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July 17, 2021 8:30 am
This is Joanne McNair with the podcast story Mema and answered prayer for stories that point children to God's chosen Truth Network podcast is starting in just a few seconds enjoying it, share it, but most of all thank you for listening to The Truth Podcast Network this is Truth Network welcome to finishing well brought you by Cardinal God, certified financial planner long shot while sowing alternate financial planner helping families finish well for over 40 years of finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes.
Now let's get started with finishing well, finishing well is a general discussion and education issues facing retirees.com with visors. I'm sure I'll see if Pete insurance this show does not offer investment products or investment advice. I am looking forward to this episode of finishing well with certified financial planner Hans Schild today show is Social Security when do I take it obviously would question the consummately people's hearts when they start to break 5859 how I figure this out.
And so today show is for you, but it is also for those who might be guiding others is is you reaching that age and that kind of thing.
But as I was thinking about this is interesting in not coincidental that God had me working on the 13th. Saul and and if you look at the 13th Psalm which is a Psalm of David.
The very first line is how long how long the Lord will you forgive me and then he says forever.
How long will you hide your face from me in.
If you've ever been a long trip with your kids, you know, it is long ride Hans and they're gonna how far do it. How long dad, how long, how long, and it's interesting how David goes there and really, as I began to process wetware. I think God had me going with the 13th Psalm is what David is actually doing something I should have been doing which is putting God's role on God. I want all these things that happened under my control. I'm in a make it happen.
It's can happen right now because I need this to happen, but David saying now he's asking dad when we get there rather than them pushing the thrombolytic and so, in seeking good counsel and how and when do we take our Social Security and in one of the factors Hans, you have some great information there and really got it boiled down to seven main talking points of things to consider in this decision. What you mean, people coming to us in all kinds of places comes to Social Security. Many of the clients. The way in the door. Well were learning about them and they are preparing to hire us to help them make decisions. This is one of them. When we start Social Security when my spouse can start Social Security in the much is it going to be as it relates to everything else in life, people come in and they they come to think they've already made this decision only on our customer Social Security till seven another person says how I'm start now 62 arch started at 62 and the reason is I think it will run out of money or something is good weather still money left. Whatever the reason is they're generally considering one of the seven factors and so I just want to do a show where I said these are all the things I'm thinking about were thinking about Tom and I are thinking about when we got somebody that's coming in the door and there gonna hire us to put together a whole financial plan. The these are the seven things it took to treatment is fine and we always end up in sevenths but it just as it would've been nine if I had 90 put down or it would've only been four if I didn't have five, six and seven is just six or seven things will go through those in the set.
There isn't the eighth thing, which is there gonna run out of money.
I don't see that on your list because we've done shows on that before that that just really isn't one of the considerations, but these are, you know, real things to consider and inattentive belief process and let me go through the list and you can go find the YouTube video under cardinal advisors for Hans Schild or you can find it through our website. I do a parallel video it's on YouTube and see how the board is your age or the month and year that you got started in there some awareness here. This is 96 different dates for a person that's under 62. You can choose from among 96 different dates now were back in the look at all 96 of them and have you look at all 96 on but III do that to just show a point. If you're under 62 starting with your 62nd birthday every month between their and 70 you could elect or not elect not to take your Social Security so there's a pretty wide range of dates you can choose right.
And it's not as some people in element there. Think about these windows on Medicare like it's only you know from October 2 you know September in October to November. Those kind of things have nothing to do with this.
This is just this is that if you were born in you know where you're having your 62nd birthday… But that way in September while, then you can't start before September, but you start on September 1 started on October 1 started on November 1 started on December 1 an hour into the next year and so on and so forth.
96 times. That's the selection that's in front so I just wanted to make that point the end. So let's go on down there in that point I think is actually sort of an escape valve that I've thought of myself in a like okay right now my decision based on the other factors that will talk about is to wait until I'm 70 because I'm working because of my wife's age and in a number of other factors.
But if all the sudden boom. You know, there's this horrible accident. You know my wife is no longer out not you or and and I lose my job because I'm disabled and all the sudden boom that that very month I can turn it back on. If I need to turn it on.
Yeah, absolutely. And so then one of those 96 date is actually your full retirement age FRA say what's that for people that are younger than me… A 1960 and after that full retirement age is your age 67, 67th birthday is the one of those 96 dates that you reach full retirement age and that's where you get your full benefit. And if you wait till then to started any money you collect from Social Security. You can still make as much money as you want from a job if you started before full retirement age like it 6465 or that sort of thing you are going to have to give some of it back if you're still working and earning a substantial income. You can go to Social Security.gov site and get your statement and will tell you exactly here's here's your your month when you are at full retirement age. Yeah, and it'll give you an amount to that's what you can get approximately that at that point. So the third thing on the list to spousal benefits so your spouse enters into this equation because your spouse has 96 different dates to your spouse is presumably a different age once while get people that are exactly the same age, but even if it separated by a few months. Their track is a little bit different then we gotta figure out what the spouse does the spouse have his or her own earnings history significant or is the spouse gonna file for your benefit, because it really matters when you file to kick in the spouse benefits and then if the spouse is going to get your check after you die if you die first, that it really matters when you file is a whole bunch of stuff interconnected with the spouse that we need in a married couple situation.
We need both Social Security statements we needed.
We've got 96 different dates here 96 different dates here and a lot of couples do started at the same time the different ages but that's that's what were doing in the planning, so that's a big factor. Spouses now retirement date so that this is a big misconception that people come in with a lot of people think you start your Social Security the month after you retire and you can do that maybe their parents did that. Maybe there spouse there that you can do that and there's some logic and so you're gonna pick the one of the 96 days.
The just happens to be the day after you retire because he stopped one check to start another one that makes sense. The thing I want to point out it doesn't have to be that way you could start your check before you retire, you can start to check after you retire and go without a Social Security check so you get more so when I want to say with retirement date. It doesn't have to be that way, you still have the choice of the 96 then you got needed and desired income so if you need the money in a light, and help you get if you just need your Social Security check I care what age are needed next month and were going to just go get it, that becomes the overriding factor is many people that think they needed that they really desire, so there there. You know they really don't need it. And then when the sit down with me and they find out where yeah I needed but they've got money in an IRA so we could pull money of an equivalent amount of money every month out of the IRA.
The 401(k) to live on and allow them to delay it for whatever reason, to their benefits others alternatives even when people needed. If there's another alternate source of money and needing desired. Then you got this life expectancy thing and some people come in just convince of the neck and live very long. So if there are hundred percent convinced that ensure that event. Sure started as soon as you Can be more check sugar and collect before you die less you have a spouse in your the bigger check because you don't live very long, but your spouse lives a long time there to be collecting your benefit for the rest of their life so there's a bunch of factors of life expectancy. But that's a consideration and then you get other yearly taxable income. So many people are just unaware of how Social Security is taxed in its taxed based upon your other income Social Security by itself is not tax. There can be taxes if you have a high additional income. So is the extra money that you have or your primary money if that's high that comes back and then they tax your Social Security so we need to look at that. We need to project that in the future and you have some control of that someone actually I see people that are still working they don't consider the other factors. They just want the money and they don't realize how badly that is going to be tax, not to mention the penalties for taking an early universe is having hip hung onto it.
So this is a conversation well worth spending some time with because that if there's a lot in fact Hans you saved it Social Security for you and your your spouse is the basis of the financial plan other words, this is the this is where we start from there.
Before we but begin to build the other thing listen you prove that rich, poor, and everyone in between. Go ask somebody as I do often that 82 and just do an intake form there come in his new client and asked about this and what is your monthly income.
What's the first number they're going to get there. Social Security check.
They can tell you all can't think about is negative so you know some wealthy people that are 50, pooh-pooh Social Security just slackened me enough I got other plans are all wonderful. You definitely thank God you have some other money that were to put together financial plan which you talk to some of its 82 and they've been collecting that thing for 15, 20 years I learned that if they have a lot of money so we got all sorts of examples and things did it to talk about amongst these seven factors of when do I take my so security forces are based on cargo guide to planning for and living in retirement all firstname.lastname@example.org back.
Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic group.
Here's a chance for you to advance the kingdom through financial resources and leveraging Hans expertise and qualified charitable contributions veterans aid and attendance IRA Social Security care and long-term care. Just go to cargo guide.com in contact to schedule a live recording of finishing well, your church, Sunday school or civic group contact on cargo guide.com that's Cardinal guide.com welcome back to finishing well, a certified financial planner Hans Schild today show Social Security when do I take it and the seven planning factors and again a quick review of those Hans the 96 dates that you could elect there's 90 6M is basically eight years from 62 to 70 is every month.
In between is what is your full retirement age, which is 67. For a lot of people, 66, and so many months. Spousal benefits is that your spouse comes into this decision because they have a separate earnings record but they may be filing again shares or you may be filing against their retirement date when you going leave your job needed and desired income. So do you need the money now or can you wait or do you desire the money just a man. I'm taken and then life expectancy. How long do you think you're going to live and I don't try to do a lot of predicting in this, but people tend to do that when the company and is they've Artie made up her mind that this outline last and then what is your in retirement.
What is your other income besides your Social Security because that's how taxes are collected so I just came up with the seven things to our seven factors that we use when were taken in a new client to to evaluate and I as I said earlier, many of the people that come to us they've Artie made up their mind or they Artie have a strategy. Hopefully they haven't done it yet and is usually based on one of the seven and they haven't considered the other six so that's the first thing I'm doing with the mystery we need to broaden the picture here and widen the decision-making process so it works, you benefit right and there's a lot of information I'm talking about now, especially in along the lines of spousal benefits at and along the lines of other taxes you know when I am encasement in my case, I had no clue you that you could take it anymore and I thought you even took it but you know maybe once a year you had a window to take it. I didn't realize at any given month, you could turn it on. Yeah as well so you can in and so something that's come to me with all of this is that you could listen to four or five of our radio shows.
Watch for five of our YouTube videos about Social Security.
Then read my book. Then read the workbook and then go searching stuff on the Internet in you.
You could pretty quickly and you don't mess you know as a layperson you you're pretty knowledgeable about Social Security so and many of our clients that come in as we educate them in help them make an educated decision. This not really that hard to do if you're out okay so I'm pointing this out to clients is the real benefit that we bring to people's Social Security doesn't sit in a box all by itself because these seven things to consider when we got to consider when you're going to go on Medicare. We had to consider what your other income is conveyed and how much you have an IRA how much you have in other money and what can income your sample format. A banner, you need Social Security, how badly you need it now. You need to look at your estate planning and were going to need to think about your spouse is a survivor and whether which check there going to be relying on so you were in Social Security and were talking about. And as I don't think it's that hard to list seven things and can go through there and raise everyone's knowledge, the real benefit that we feel like we bring to the equation is all of the chapters of my book and all of the items. The seven worries that are on the website.
They're all mixed together like soup and then they play themselves out over the rest of your life, and this gets real challenging you make one decision here. It affects five other decisions so that's what we do in financial planning, crime, and so some examples where you've seen opportunities for people to come in yet when we talked about this a few shows ago but I'm still working with these people.
The duties working is soon to be 61 and then which means in it year in a couple months he's gonna be 62 and his wife is 65 and she Artie took process. She really took it.
It's very small and she took it early, essentially because she's not working, and to pay her Medicare part B premium is eats up about half of she's collected about six or seven checks, five know something like that. I'm going down to meet with these folks and his Social Security at 62 should be a year and two months. He takes it early is going to be $1907 a month and say Satan in cheap chic. I came back to me when I was talking about taking a girl and she said will want to get more the weight yet to get more free weights.
That's not what I'm recommending here come took a few brass messages came with me here when he's 62 and files you're going to be 66 and at full retirement age yourself. 66 and four months or whatever she's can be and her spousal Social Security on his record is currently 1300 a month a year and two months so what was she getting Ashley filed at 65 to 388 bucks a month so comes from 300 almost thousand dollars more mom. She's good, but she can get that until he files. That's what he's filing early because she's four years older she gets it at the rate of full retirement age, because she will be at full retirement age, even when he 62. She was like 21 or 22 and he worked in the company that she was the office manager for he was like 17 and he faked his age 21 to get her to date and she didn't find out into the dictating that she was dating a 17-year-old dude and then it was too late to stop it, and by the time she married in 18 missionaries waited that long but anyhow that's the story from 40 years ago the love story and but in any case, just as all kinds of things so I showed him that it really affects their retirement plan because he is retiring early and it's going to be that much less money that were I have to pull out of the IRA for them to live for several years we just lose more for later image now. Now that they've asked looked at all these things there there all with it and she's actually going to have to pay Social Security back she's going to do a do over. She's going to give that money back. That's only $388 a month for finance $1500 and you get almost at all back the first month that you will get that money and the tax money is worked on another large IRA that we've just handle all the income streams on that he doesn't make that much money.
Now it's can almost be nontaxable to ripple out enough money to pay the government back for her 388 object possible tax money probably just plus a little more to stick in a savings account is these people really don't have anything but IRA money, they got a lot of IRA money.
But once they get on the tax plan that I've set up they can be drawn.
A large amount of seven review to go back to these factors as we look at this example I'm sitting there going out how cool because you have factor 1 which is the age month and year. In other words, is 96 different choices that both he and she have so you know on 792 between different choices because there's two people involved is huge yeah and then the full retirement age definitely comes in the play with her. He's at full retirement age is no longer know at the point that he begins to go and then spousal benefits. Of course it's huge. And in this particular case, and then there both in their retirement in a date so you can so yeah and then they definitely need the income because I put together retirement.
But these people have a huge IRA been very diligent in creating and enabling them to retire early.
We don't want to start drawing that down too much and he 6162 years old if we don't have to. In the Social Security check is going to be there, is that foundation then you got life expectancy. These people between the two, but that's a really hard thing to calculate and then this other yearly taxable income. We've we've got that master in their place people can pay very little taxes and live on a nice tax-free income for the rest of their life. I and so it's just a matter of taking the seven fact which all you know when you combine in a both people also did you see that there's a lot of things and end. No, I think it also speaks to the effective. Why make this decision on euro right because you don't know what you don't know and and yeah you're hearing a lot from Liston to the show and not, but believe me, you know, why make a decision like this that that when you can get you no easy enough advice you does go to Cardinal guide.com and email Hans and Sam look at this. Why not you know because were not were talking about these things continue on for the rest of your life. Absolutely no big deal if it's $400 a month or whatever difference based on when you take this for 400×12 is 4800 times, you know, 10 years is 48 grand and make it 20 years or 30 years and you can see that this this huge implications as far as this basic decision that seem so simple when you first come up with. You know what time did about 20 minutes for these people is he reverse engineered tax return for about the next 10 years we actually filled out a tax return did all the calculations so that we could come up with the exact amount of money they could collect in addition to their Social Security check and still pay almost no taxes on their Social Security check. Very little taxes on the other money, and even put inflation in their and then created the timing of the start of the annuities and so our financial planning software is not even slick enough to do all that. So Tom just goes over the side. He can do all that about 15 minutes is just amazing and so it you know this is that it's actually kind of fun and if you're sick and you can't say Hans a smile but but when he starts to see these plans come together. I let God I'm a team I remember is to say, I love it when a plan comes together. I can tell you Hans that's you see it on his face is like Brandon medical for God's at work here just create the shows. The YouTube we got all kinds of people calling in.
They've got several problems they come to us with and many times when they leave us or when they go walk away from the first meeting we've added two or three for more problems that they didn't even know they had okay and then we've gotten on the road to solving all, or at least get them in a better position sure that brings me a lot of joy at school to see how God works so again this is all brought to you by Cardinal guide.com and forget the guide. After Cardinal and Hans's book the complete Cardinal guide to planning for and living in retirement all their Cardinal guide.com. As always, we've we've run out of time before he ran out show with St. John's you think you finishing well is a general discussion and education of the issues facing retirees Cardinal guide.com Cardinal advisors upon trial CFP some insurance this show does not offer investment products more investment advice. We hope you enjoyed finishing well brought you by Cardinal guide.com visit Cardinal guide.com for free downloads of the show previous shows on topics such as Social Security, Medicare and IRAs, long-term care and life insurance, investments and taxes as well as cons best-selling book, the complete Cardinal guide to planning for and living in retirement and the workbook once again for dozens of free resources past shows you get Hans book go to Cardinal guide.com if you have a question, comment or suggestion for future shows.
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