Originally Posted by
Old Fat Guy
You do not need to, nor should you, touch the outer collar.
+1.
The only requirement is that the self extractor ring ( aka collar) is threaded in nice and snug before you start so that it's engaging enough threads in the crankarm. Otherwise you can tear it right out of the crankarm when the crankbolt backs up against it and puts a lot of force against it. The whole point of the extractor ring is to just sit there, nice and secure, so that the crank bolt can back out against it, pulling the crank off the spindle.