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Social Security Do-Over

Finishing Well / Hans Scheil
The Truth Network Radio
June 25, 2022 8:30 am

Social Security Do-Over

Finishing Well / Hans Scheil

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June 25, 2022 8:30 am

Hans and Robby are back again this week with a brand new episode! The topic this week is about redoing your social security. Hans shares a story about an interesting couple that did just that. That's right, it's story time with Hans and Robby!

Don’t forget to get your copy of “The Complete Cardinal Guide to Planning for and Living in Retirement” on Amazon or on for free!

You can contact Hans and Cardinal by emailing or calling 919-535-8261. Learn more at  Find us on YouTube: Cardinal Advisors.

Finishing Well
Hans Scheil
Rob West and Steve Moore
Rob West and Steve Moore
Rob West and Steve Moore
Rob West and Steve Moore
Rob West and Steve Moore

Jesus said blessed are the persecuted and they are suffering big time right now. This is my belief international in 19-year-old Ari was beaten by her own father and violated by local authorities and order crime was simply that she gave her life to Jesus Christ after leaving radical Islam. They need Bibles in order to endure and persevere. That's why Truth Network and Bible teamed up to sin. God's word to 3500 persecuted believers around the world at five dollars avoidable hundred dollars since 20 oh 800 word 800 worth 800 password or give a, this is Amy Thomas from the masculine journey podcast where we discover what it means to be a wholehearted man your chosen Truth Network podcast is starting in just seconds. Enjoy it, share it, but most of all, thank you for listening and for choosing The Truth Podcast Network. This is the Truth Network welcome to finishing well brought to you by Cardinal certified financial planner longs child, best-selling author and 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. Finishing well, finishing well is a general discussion and education issues facing retirees partner advisors. I'm sure I'll see if Pete insurance this show does not offer investment products or investment advice welcome to finishing well, a certified financial planner, Hongqiao, and today's show is Social Security do over and it's kind of neat because as you hear this episode today.

In fact, it's really made your you're going to hear it's it's sort of the story of a couple and how they lined up with Social Security. What happened in their situation and it brought to mind in my mind, you know, acts 18 it says here to receive power when the Holy Spirit has come upon you, and you shall be my witnesses in both Jerusalem and in Judea and Samaria and as far as the most parts of the earth and in the point is that it's the power of story right. Especially if that story is how God and Jesus came into your life when you share what he did in your life. That's the most powerful thing we have because you're gonna receive power from the Holy Spirit it says right here when you are a witness to what God did for you and I see this all the time as I have an opportunity to preach.

A lot of times people never remember what I was teaching on, but they'll almost always remember my stories, especially if the story was where Jesus was the hero, and so were open as you listen to this story about Social Security today that will impact you would be a good stewardship position to finish well. So Hans Gloria. Many people from South Carolina and an Italian madam, but she's from Florida.

They met in Florida so he took off to Florida or maybe you live down there when he was 18 years old. She's working at his construction company 22 years old. She's like the manager a lady inside and he applied for a job there and maybe he was 17 and 18. Because all time of my met these people is just he's four years younger than her and I met her first. It took me a good while and so it just been learning in meeting the okay to get together and he applied construction company and he lied about his age which he had a good night and hire people his age and so and then he ended up falling in love with the related interview and you know I some point thereafter. They got married.

She never really worked much that by herself. Jack starting turning 65 was $336.50 a month, and she figured like go ahead and start the attack. Anyhow, because all of it when I got to lose and pay my part B expenses and service since 19 met her, and I will relive them on the matter. One of my people here was and you know there is a marginal long, but somewhere she popped up 401(k) that has $940,000 and not let people arrange the statements that you want talk to these people. They got the 401(k) and they had a lot of questions in Buffalo so I get on the phone with her and the first question that I got after I talked about how you have $940,000 in the 401(k) because he is not a construction worker is a landscaper and now he was driving a lumber truck around 61 or whatever and so on. Word, and as it turned out some guy down in Florida he was doing the landscaping worker met this guy that has issued a statement multimillionaire Florida and he ended up hiring PO to be a landscaper and the other crew and all I can agree brought in as an employee started 401(k) and then then he moved them up to New York to take care of his New York estate and all the landscaping and study, went back and forth and they started 401(k) and that's how I got the money in their and then which she did hear about five years ago she started investing in real aggressively absolutely not knowing what she's doing and the two of them have just been scared to death knowing a lot go up and down that they just it's almost like they're playing the lottery or something and her timing couldn't have been any better so I like to respond a little bit to this point is not just me giving up on things is Cardinal has these videos Cardinal advisors on their YouTube page 6 and in the video Hans, I think it was critical that that she was born in 1956 my right and he was born in 1960 and said she was literally you know, just turn 65 here that that at that point in time, but he advised that the point where he could get into Social Security right correct and still working make about $30,000 a year there, live in the back that I read that they moved back to the firemen miserable job yet you allow topic of the first time you down there in South Carolina would somewhere and then come in and out of the cell.

Following that pullover but any so there marginal law and so all I know about the folks as they go $336.57-month-old. Jack Internet Jack about Iron Age box because they were taken out of part B, 475 and then they got $30,000 income and then I got $940,000 IRA panicking about the market because it had been a childlike 959 60 gone down the like night can and then it was back at 940 and he said had because she's the one doing the investing and he really didn't know much about what she was doing better timing could not been more perfect.

And so the first thing I did the dogs he has. Once I talked about a plan just went over that gratefully that look get the money out of the 401(k) and muscular, although you planned that I could manage look like let's get it over to TD Ameritrade and do that exit because even work and work those people for a long time that we get all at started because they did have the option of going in and just turning it all the cash inside of the 401(k). If they really want to fix it and still wear wild side with a deal he could've done that but any survey without the money rolled over all the cash we got over TD Ameritrade may have a big silently and then you know we want to work and constructed the plan and get into the plan in a little bit you know what I was looking at some here I said you was about a year or two or three months away from social security that he was 60, and eight months without you would be 62 until October 2020, 22, right up right now. She had Artie gone.

Just for you but she was on Medicare. He was paying a girl volunteer me for very happy people and he would soon retire tomorrow if he could make out through that out there is Joe and they also through some of the theory. Think about cash in the whole thing in an attack that they knew that only have about 600 grand laugh and they thought will think that 600 grand bankable start living up that I left out and they agree so the videos really about today and the show was about were were trying to get them the best possible Social Security check between the couple and so as it worked out. She did her self harm by collecting her three 3650 early because at 64 1/2 because if she would wait until 66, and six months when she will be in October of this year she will be entitled to have as a style Of his social security and half of the mountain at full retirement, even though you cannot take it at 62 per 50% is calculated based upon what is purity would be when he's actually 67 so complicated that the line the short of it is we I just called us to look at the time I get the financial plan, you go and retire right out.

You go and tell this afternoon if you'd like that you give your two week notice because you have enough money that wouldn't just make withdrawals from now till purity, which at the time of about a year to three months and then we get Social Security work.

I have between the two of you about 3031, 3200 and they only need five grand a month to live and live well and then work out there withdrawals of 1800 and somehow 940 grand. I mean if all my cases where the CPI you know I wouldn't have my blood pressure so what we ended up doing about the other security we had good duo she would within her first year we had to pay the 336. The time like six months we had to pay that back to file an application that we can do that pay it back.

They had plenty of savings to do that and so we got that pay back and then you know we lived off of the money and that's all going fine and then next month, sentimental him to apply and then heard apply spousal benefit in Dan Morgan, a lower their deductions from their account significantly lower because they don't need that much make up the difference of five grand a month and then the kicker is to pay almost no income for because something purity and impact in and of itself.

3200 a month, 3100 a month out tax free unless you have a high of income and their other income urges can be there withdrawals from the IRA to check all the boxes didn't pay almost so it's kind of critical during that first year. If you selected Social Security to whole redo idea and working to get a lot into that and just submit that we could go to break before that I want to remind you that I was. Information as well as sans's book the complete cardinal guide to planning for and living in retirement and again there there the video on the same study. Is it cardinal advisors on their YouTube page. Very popular YouTube paints a really right back with more on Social Security do over Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic room.

There's a chance for you to advance the kingdom through financial resources and leveraging Hahn's expertise and qualified charitable contributions veterans aid and attendance IRA Social Security care and long-term care. Just go to cardinal and contact time to schedule a live recording of finishing well, your church, Sunday school or civic contact time to cardinal guide back that's cardinal welcome back to finishing well, a certified financial planner Hans show how and today show Social Security redo and when we left our heroes are in the middle that redo Hans. We have the house for years younger and he's a higher earner filing at 62 taking a lesser benefit so that to who is at full retirement cute four years older exit point 1/2 years older so she's paying back your 336, 52, Social Security, and you gotta fill out an application before you decide in the morning and she's now going to get about a $1200 check which is half of his full retirement benefit and then his age 62 benefit is like 1800 and something so difficult. But the social security planning and this is going to be at least half of their income actually about 60% of their income in these people were fortunate that they had a $940,000 401(k) so what I did for them as I divided the 940 grand in the three buckets so and bucket number one respect $300,000 in an account which was interested similar to the way it was in the 401(k) that you can lose money. You can gain money yet we we think they're going to gain money and it's from that account that they're living out of that were making the monthly deductions this year of five grandma and have been for about a year and the second bucket we put 300,000 in a growth annuity so it's not designed for income is designed for growth and safety so you can't lose any money and that second bucket and whenever you get credited with gains which they've already been credited with gains one and you can even lose again sellers once a year, you get index credit and then that thing just grows and grows and grows our state even in a bad year and then that money since there just available for them for a number of purposes, but it's real things and then the third bucket is the future income bucket and so work with that is we put $340,000 in an annuity that is designed to start an income in the future, and without getting into too much detail this annuity. After six years they can just live off of the income from the third bucket cluster Social Security.

It can meet their income needs and both Social Security and the annuity payment are guaranteed to last as long as they live. So it's really that third bucket that provided their security with income that they can never run out of money today asked the tech and insulin return. The income from the income on and that third bucket that will turn the income off from bucket number one so will stop making withdrawals from that first bucket and Dave lost a little money on that first bucket because of what the market spend this year but they have lost much of that were lost because we have a very conservative but it still had losses and they'll learn that back over time and are not in the least bit worried about it because they know they got to go to buckets as that's that's that annuity that that last annuities, like Social Security itself writes that it just came and in pain and pain. Yeah, I mean it guaranteed like in the example that we had for them. It's like 27,000 like $26,000 a year guaranteed that amount. After six years and Artie made it through one of so five years from now they will have the option of saying flip the switch start send me a check for like 2200 a month or something like that. They flip the switch. Those checks are going to keep common as long as one of the block so he could pass away in his 70s. She could move into her 90s until she was there last month she can get that check every month so it is like Social Security or it's different than Social Security.

It doesn't have inflation so that is a concern and over time they can be adjusted so security epithets back and adjust up and that's why we have the other two buckets). But the interesting thing to me in this in this study is you usually don't suggest people take their Social Security early right incentives. It just shows how individual situations are so radically different dictated income strategy for the 940,000.

The more money you take out early, like right now we had to keep taken out five grand a month for life. If we didn't have Social Security. We would bankrupt us 940 grand.

I mean, at some point and that we have market losses coming.

That's not a good strategy is to start pulling money out of your IRA open for the best. So we needed the Social Security payment and we needed a significant payment to reduce the withdrawals from the investment account okay and a year of those is no big deal, but 10 years or 12 years will be lethal effect. So that's the reason we took his early is because we need that 1800 bucks a month on him to reduce our withdrawals and then the real reason we have Emma flying at 6254 years younger. She can't get the spousal benefit until he applies and that her spousal benefit simply because she's a full retirement little bit complicated, but we needed that one that started. That's what enabled me to tell them going retire you're done driving that truck. He was just below both of them just thrilled airplane dictations and all canister and anything that I can sit there and think about what a wonderful place to be in a basin like God bless them was he was a good landscaper for this. This man in heat. He set them up on a brilliant strategy that to be investing this money into another 401(k) and then you know now that the interestingly, the Lord sent them to you right about the time the market would adjust. You know let you know they'd made all that money in the market but then all the sudden you know, things were looking tough and now we got it in the three buckets of money and as you think about it. They not only have the future income and then they have the money coming out of bucket number one but then you never said a word about what happens the bucket number two and that's an annuity that just keeps growing and growing and growing and that's even more security right we can pull out 10% of that one. Any year. We live in after 10 years there's no more surrender penalties on that you can just pull out any amount you want any time now. Granted, you're going to have to pay taxes on so I don't know I don't like big withdrawals just out of nowhere and so with that being said, we have kind of a secondary plan will look at taxes each year and were going to be taken some money out of bucket number one bucket number two. In addition to our other withdrawals and doing a Roth conversion so that they get a pot of money to get into all that video because, and I didn't even explain that in real depth to them because it's us to these people are just there just happy and they're not worried anymore and they're just riding around on his motorcycle and send it out to go back to this to the ideas Social Security redo like that.

That's something that really is is why it would be really good for people to contact you before they decided to go Social Security right absolutely with the purity redo. We've done a number of the because we get a lot of people coming in the turning 65. For obvious reasons were big in the Medicare business and some of them have guarded their Social Security and sometimes on the spout just because the same reason she did that much any model to take and then people do that, stop when they don't know what you're doing and in the community, brought up with that I met you a year ago. Well hopefully it was less than a year ago you wish you did Social Security because we can do a dual right that then you just gotta have money to pay it all back.

Whatever it is you talks in this lease is part of that equation, but again you know the cookie-cutter approach is when it comes it cannot when you're going to do your so security just as in the plan right now I'm Yeah, goes anything, don't try this at home and okay this know that this text a lot of boxes showed me were, Social Security will talk about investments for time, but IRAs talk about taxes we could get even into the state because they have some concern over the sum of money can be loud when the second one dies and they want that to go there to so this this thing text a lot of boxes in their real happy that they found me and you know I would like to be me in the situation is wonderful on these people think that I'm a genius is really one of the simpler cases that I have asked actually is.

You talk about them. I will sentence you know that's where the third bucket of money is, ends up being, you know, there is state for their kids and so would make Matt Roth conversion that you're talking about really will end up in a another part of why they were blessed. Come see from my standpoint, even the kids are to feel that way and I don't think there you go spend the five grandma you were just getting going on that and will see how things go for a few years, but yeah, and is back in the drive much more taxes to take a certain amount and just pay the taxes and do a Roth conversion and we have so much flexibility in bucket number one bucket number 22 do the conversion.

It's great as a whole idea buckets of money and I love that that whole concept with got some other videos. Now this podcast shows it was done along those lines, but as always we run out of time before he ran the show so when I remind you that the shows brought to my cardinal guide Cardinal or you can find a website that has all these worries that the people might have is going into retirement, and of course all those are connected to Hans this book, the complete cardinal guide to planning for living in retirement, which again is easy to access it. All sorts of different ways but the easiest ways this contact times it is website cardinal and again their YouTube channel is Cardinal so again when it comes to these things, you know.

Wow it's just so much easier for my standpoint in a pick up the phone and give him a call and and and you'll feel a lot better about where you're headed.

So thanks, Andrea.

Thank you. Finishing well is a general discussion and education of the issues facing retirees Cardinal Cardinal advisors upon trial CFP some insurance this show does not offer investment products or investment advice. We hope you enjoyed finishing well brought you by Cardinal visit Cardinal for free downloads of the show previous shows on topics such as Social Security, Medicare and IRAs, long-term care, life insurance, investments and taxes as well as constant 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 get Hans book go to Cardinal if you have a question, comment or suggestion for future shows. Click on the finishing well radio show on the website and send us a word. Once again that's Cardinal Cardinal This is the Truth Network

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