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Social Security: The Issues with Taking Benefits Early and Investing Them – CBS MoneyWatch.com

Q: I’m 14 years younger than my husband and the sole wage earner. Our effective tax rate is 15 percent, I believe. My husband fears major changes to Social Security and wants to collect his retirement benefit early, starting now. I know that his SS income will be taxed because of my income. Is there any benefit or pitfall to taking his early benefit and putting it in an IRA? My feeling is that to “bank” that money in balanced investments could be a substitute for long-term care insurance that we cannot afford, and could protect him from “losing” his benefits.

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