There are many misconceptions associated with Social Security, like is it taxed, is it a retirement plan and is it okay to tap into it early.
"If you were born in 1935, your full retirement age is 66. If you were born in 1960 or after, then it's age 67. So the very best time is full retirement age," said Pat Miedell, chairman of the board of American Wealth Management to discuss some of those issues.
Miedell said you are eligible to pull out your Social Security at age 62, but if you pull it out early it will cost you. She said you will pay a 1/2 percent penalty per month for those months until you become full retirement age.
She said if you can, it's best to actually hold off on collecting your Social Security until you are 70 years old.
If you can do that, you actually gain 8% per year.
She said remember, Social Security is not tax free.
Her biggest point to remember is never, ever pull out your Social Security.
"Unless you are ill or unless you have some real economic problems, no job or those kind of things, I think everybody has to take a look at that, but other than that, I think people sometimes really shoot themselves in the foot and start collecting to soon and they jeopardize themselves in the future."
Miedell said the biggest misconception with Social Security is people think it's a retirement plan. She says it's not, it's supplemental income.