$2,500 a Month From This U.S. Program
I worried about a lot of things when my two daughters were young and I was starting out in the investment business.
I worried about losing my job. I worried about running out of cash before I ran out the month. I worried about the high costs of food, gas, utility bills, taxes, you name it.
But what I worried the most about was becoming disabled and not being able to work.
What I didn’t know at the time was that I was eligible for one of the most generous disability programs in the world that would have paid me a fat monthly check I could’ve used to support my young family.
That generous disability program is Social Security.
No, you don’t have to be 65 years old to collect a Social Security check. In fact, 13.5 million Americans under the age of 65 — many in their 20s and 30s — are receiving a Social Security check each and every month.
The majority of Social Security recipients are retired. However, there is more to the Social Security system than the monthly check Americans receive during their golden years.
SSDI Will Save (and Pay for) Your Bacon
Social Security has two basic programs: one for retirees and one for people who are unable to work because of disability. If you become disabled before you reach retirement age and aren’t able to work, you are eligible for a monthly Social Security check even as young as 18 years of age.
The original intent of SSDI was to prevent poverty in the case of disability. Disability benefits, called Social Security Disability Insurance, or SSDI, are pretty darn good.
How good depends on how much your average lifetime earnings were and how much Social Security tax you have paid to come up with average indexed monthly earnings, or AIME. The higher your AIME, the more money you will receive. And most people collect an SSDI check between $800 and $1,800 a month, with the national average at $1,234.
If you made more than $118,500 a year, you may be eligible for the maximum monthly benefit of $2,802 a month.
That’s Almost $3,000 a Month!
Keep in mind you have to have a pretty severe, long-term disability to collect a disability check. Severe means that you can’t work and long term means that your disability is expected to last at least one year.
You also have to wait five months after approval to collect your first check. And your case will be reviewed every one–three years to make sure you are still eligible.
These caveats aside, make no mistake: There’s a lot more to Social Security than just retirement benefits.
Disability benefits are meaningful benefits that many Americans don’t know they can receive.
Sure, it’s not enough to make you rich, but SSDI can be enough to cover basic living expenses and ensure you maintain the quality of life you’ve come to enjoy if times get hard.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch