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Social Security FRA

Finishing Well / Hans Scheil
The Truth Network Radio
March 12, 2022 8:30 am

Social Security FRA

Finishing Well / Hans Scheil

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March 12, 2022 8:30 am

Hans and Robby are back again this week with a brand new episode! This week Hans and Robby are going over social security full retirement age. This is vital information for those at full retirement age as well as for those approaching that age.

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.


Hello this is Willa Hardy with man talk radio.

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Enjoy it, share it, but most of all, thank you for listening to The Truth Podcast Network. This is the Truth Network welcome to finishing well brought to you by Cardinal guy, certified financial planner belonged to Schild, best-selling author and financial planner helping families finish well 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 partner advisors. Schild, CFP some insurance this show does not offer investment products or investment advice welcome to finishing well certified financial planner homicidal. In today's show is Social Security FRA or full retirement age is kind of interesting that when it comes to full retirement age, you can see, one of the big parts of that is is for most of this is a matter of waiting and so I was thinking about this idea of waiting and I heard recently and I just got my swords love it that the end of the word guidance is dance right and so if you think about God's guidance right is his will to a great extent is a dance, but the issue is, if you don't wait on God, he will step on your toes. The experience that I know I have many many many times and so this idea of weight is mentioned many many many times in the Scriptures to wait on the Lord and obviously maybe not obviously 27 Psalms 2714 is absolutely gorgeous. It says wait on the Lord, be of good courage, and he will strengthen your heart.

Wait, I say on the Lord and when it comes to our financial things.

A lot of times we get real anxious in and so what a neat opportunity we have to do this waiting in the beautiful thing about waiting in Hebrew is this this word, and get a better understanding of the word, or waiting from a biblical standpoint is to see the first time it's used in the Bible is when God separated the waters from the firmament right in other words, there were heavenly waters. There were waters in the ocean and when he did that. It said he gathered the waters together with that word gathered is, that word waited so as we wait we we we draw closer to God and the closer you get to God the more holy it is on the same and so as you get into that holy dance and you draw closer to him while you're waiting for him to tell you. Okay, it's time to take a step, then you begin this guidance and often we were lucky enough to have people that give us guidance in our life and for me that is been my good friend and certified financial planner Hongqiao, especially on this subject. Oh my goodness, Social Security full retirement age.

We need guidance. Only Hans what we do and talking get ready for the show. I think it very easy for people that are learning about the purity and to like why they throw their arms and just around the very topic talking to a lady this morning. Born in 1957. Born in 1957 and it took us a while to get to the point that her full retirement age is 66 and six months talking to me today because she's turning 65 and going on Medicare and so there was a day when all retirement age 65 social security and Medicare started 65 both the same day.

Last time he checked that was the deal analogies. She knows that she goes on Medicare they go do something in a few months and is studying everything that happened to be watching the YouTube videos I made of the most sense for anybody to talk to Southwest College for an budget, but I had to talk to her about a little bit about her sentences and because she just why is this so confusing you know on Medicare part a and part B and part C, part D plan D and 80% and 20% did now and then we got over Social Security which were talking about today on the show glided 66 and six months and why is my friend who was born in 1959, 66, and 10 months and while my parents 65 minutes why why why why it's almost like she wanted me to justify all the government's decision since 1938 and this makes sense to your exit security came out in 1938 year and when they were looking forward which they were doing. They were looking forward to people become being 65 and then draw a check because people. Many people were dead before 65. In 1938 that was was a person that have a long line and fill it with the exception they were planning for and you know it was really just some people made it to this end, and they didn't make it very long beyond their and of course when you get down to 2022. It's a whole different ballgame. I meet people are buying your 66 and you know I'm almost 64 and you know work work work work is maybe in the twilight of our careers, but work.

I don't plan on stopping anytime soon so just trying to give her an answer of what this is resolved one little point of the moving date for full retirement age is something that was done.

Years ago, you even aware that back in the 80s when the all passed from now. I mean, I heard the urban license test. So is run out of money and have to do it. People are stealing money from it. You know the Senators are taken money out.

I get all that stuff that turns out is true. It is kind of what I heard and I was aware that they had changed. It but like probably you at the time I'm in one year and six months make a difference to me when I was 27 or 28 like let's not make the BRI 1983, 25 and I was really on the business and I remember this and I remember talking about my dad and you know what my dad happy about it. They were telling in the news everything the security changes when in fact it was 1983 have the biggest on the young people do not like people who are 60 years old or something at the time which he will and he was a happy about that mean I can second thing that they did what damage they started taxing Social Security part of this amendment thing the people that have some reasonable other income during retirement, which he did start making you pay tax on the stage. So that was the what almost 40 years ago 39 years ago they made major change in the security and it's still not fully implemented yet, so now this still those who are what it ends up in 1950 the people born in 1959. That's the last group that 66 and 10 months 99 and then in 1960 and after all retirement age is 67 so let's talk about what is full retirement age me what we, but we talked about your starting at the end and work backwards a little bit is all retirement age is the age which you can get what your check everything is targeted for you to retire and 67.

If you were born 1960 and after that for me, born 1958 so targeted for me to get my full retirement check at 66 and eight now if I elected to same with you. We could have started our check 62. We chose not to.

So what what why did you choose not to take your check 60 to 1 of the dates that working mostly since I was working, it would be taxed just like what you just described Social Security benefits even be getting this money and giving it back up whatever 25, 26% of it. You can write back to them in taxes plus the scarier part for me personally and probably the bigger reason is once you lock in at 62. It's going to be at a greatly reduced rate and you're going to have that same rate for the rest of your social security benefits. So by waiting till full retirement age. The benefit is substantially increased. It stays increased and in my case some of the weight even further to 72 to actually get the maximum benefit that will be there. Actually, not just for me but for my wife significantly younger than me, which is very important to me. You know, as long as she lists that we know in the way that was age 62, a same beginning as you can take early retirement and you can take a smaller check if you in fact were retired at 62 or 63 or 64 that day, so pretty consistent. All security early retirement and start to manage not just 62 or nothing every month from their 70 you can make an election every month you wait to get a little bit more and it's all targeted toward this FRA full retirement age and that's a moving target and been a moving target for about 40 years for the ticket from 60 to 65 into month that that 65 and form men 65 and six months and they gradually work it out and then when they got it 66 they left it there for about 12 years. Everybody in that middle area FRA full retirement age is 66 and then started over, and 66 into month for Monsanto were still not through this and we will be through with this phase in until 2027 so when you're looking at right now they're just seeing the tail end of the 44 year facing that clarify little bit absolutely. And that's a great point to mention that you can find all this information at causes website which is cardinal is a very wonderful video.

Along these lines at YouTube, which is under cardinal advisors, which again is gone before retirement age for 2022 and of course this book, the complete cardinal guide to planning for living retirements available. There is what website cardinal as well as other ways to get up with Hans semantic short break and when we come back we will finish off with full retirement. Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic room. 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 and IRA Social Security care and long-term care. Just go to cardinal and contact Tom to schedule a live recording of finishing well, your church, Sunday school, civic, contact Tom.

Cardinal guide.that's cardinal welcome back to finishing well certified financial planner Hans Shiloh. Today's show is Social Security full retirement age understanding the ramifications of that and getting guidance on how to work around this information and plus give it a hopefully little understanding to do what's going on in the past to make all this happen right home in making 83 have regulations or amendment.

Amendment that your financial ability of social security well into the future and they did that by raising the retirement age and moving it from 65 and you wouldn't think that a two-year movement in the retirement age would have that big back on the financial stability of the whole program but here's you can still drive. 65 you were to get less than you otherwise would you they have to put the changes into the future. They couldn't go to the people that were 65 van and say okay will check make you 64. He thought he could retire at 65. Guess what a getaway to 67 so they didn't make any changes for the people that were right at retirement. All these changes were made for the future and I remember my dad again what is in effect you Johnny ended not can affect me because I'm right there I'm taken my gun. I didn't think much about it. And now that I'm that age where I'm coming up on 66 and eight months not really having that big of an effect on me because I'm still working like a lot of people in a lot of people our age peers in mind Robbie are still working and plan to continue and the ones that are many of them if they save for retirement their delay in checking out so they can get more subtle plan worked out quite well. From that perspective, but it looks like were facing the same thing again right well what we are in, you know, they're probably going to do something similar again. You think about it for a minute is with you here. We do the report will probably be doing that in April or May work will take the numbers from last year.

Trust fund and go over really make sense of this whole theory that such security is run out of money and not and 2022 and they said that it will, trust fund, run dry in 2035. If we don't do anything, and what I would propose is there going to do one of the movies they're going to make that the Congress has to pass the president #to move the retirement age again and I can remove it for you and me and people born in another 50 or the 1960s to move for the people born in 1970 and after May.

Maybe even a little further than that, move a little bit of time and it's probably gonna take him another 44 years or 47 years or whatever to implement a full age change and probably end up with 70 I think people that are 25 now I think they're going to be fine may make crumble a little bit the last thing on their mind and they got 20 years to prepare yen the whole piece of this is nobody could have predicted people living into their 90s like they are now hundred such social security or summary retired today and they were born in 1955 and they were, you know it.

66 and two months, and so they retire they retired back here to go in there collecting their check and then they currently live until they're 95 or hundred B panic check out of the trust fund for a long time. You know you you look at that and then if they dye their spouse, probably to collect on their check and live to a ripe old age. So you got it. On the other hand, is so security paying everyone a lot longer.

Now if that trend changes for the people at Mililani 25 think global warming kill. By the time they're 70 or something coming Assuming that doesn't happen think that life expectancy continue to grow is Social Security needs to prepare for that one way to do it is to delay retirement or delay full payment for retirement make sense, and you know what a dream. I don't know what you thought about when you were young, but I never dreamed that I would be working in the my 70s but now I can't even imagine not working in the mindset I think I don't want to imagine not working in the my 70s right yeah you go look at the name of all the programs were aged eight GED and do you look upon yourself aged now and out all the guards you know that's a relative term is about leader for the aged.

Think about your guy hobbling around related problem around and using a walker mail and you know it program is set up purity to provide money for old age and when people can't work or they're not intended to work and the whole thing is a moving target to make my like this is what look for another phase in like this. Talk about the here and now because most of the people that were talking to your in your 60s and 70s. You're probably Artie collecting some security in this whole conversation may be boring you.

So the decision you got right in front of you. 60. I started 63 four started in full retirement age, which is now known to be pretty close to 67 or do I delay it even beyond there and get a larger check and a mic in the latest par 70 M to get a really significant one sticking point in the whole thing. I think really clarifies for me why full retirement age is a big huge deal is that there's a big difference in taxes on your Social Security.

If you take it before full retirement age and after retirement age right for drawing the IRA is different really know the taxes some security to get tax based upon your other income so he take it while you still working you're going to pay income tax on your purity by the amount of your other income. But if you take it before full retirement age, which is because 67 not only pay taxes on the benefit you have to give some of the benefit back if you make more than $19,560.

Double tax. That's the part that I wanted some clarification on cassettes that to me is like, goodness, like if you're working before full retirement age and you are taking your Social Security you got that double tax that is like the double whammy you think your friend is Megan maybe $40,000 a year in muscles. 60, get my mother get good maybe get 1500 a month so got $18,000 purity and coming that all he had, he would gain tax but the $18,000 is to be taxed based upon the other 40,000 that he makes his job so he's going to pay taxes on the so security clause that he made 40,000 from a job is more than the 19,560 time he's all done is given most of the back to the government therein lies live date is a big deal for those people that are wanting to take Social Security before waiting date seven yet working. You don't want to purity check until you're at full retirement because 67 per start. You retire or you're not working or you lost your job or whatever happens, something bad happened to you that is causing you or you need the money and you don't have this other income within you contact. You can take it and then you're going to reduce your benefit for your whole life and then if you go back to work.

You can end up being like this it guy we just describe now when you get to full retirement age with your Artie there and you you could be start taking your check, but you're not taking your check because you decide to let it accumulate even more. All the way to 70 and see you get a much more significant check and you'll probably still be working at 70, but there's no more delaying your disk to take manual probably your patient tax on it and you know the plan states so you say that amount for all the money you make in the 70s from Social Security save that for later call Chris you can just continue with I knew any idea which may not my ignorance, and the dilemma so I guess to half years ago when Everest class. I had no clue what a non-annuity is or that Social Security is like a really cool annuity like oh my goodness, you know, we can be investing in annuities which have that same type of thing. It pays out as long as you live and and so the idea that that we can create an income source for the rest of our life is just absolutely beautiful. I don't have to worry that it will run out. You don't come in when he passed away. Your wife is still alive and is still alive. She's getting get your increased check for the rest of her life. You know that it is about the best annuity that you can do yet. People ask me all the time. When should I take Social Security and you know my answer to that. Not enough about because in FY have to laugh when somebody people, and my thing in the May, so you gotta take it at this age and younger take at this age and so I I can add to that question for any person I know a lot about you. Been pretty easy to make a recommendation like get the option anywhere between 62 and 72 take things in his ramifications of your decision and you know if you want help with that, get to know you little bit better.

I make recommendation down the idea getting back to guidance getting somebody that you're comfortable dancing with that that that's okay you can trust him and and so that's why we do this work that we provide these services at cardinal guide like that's the name of the website. Cardinal organ the YouTube videos are cardinal advisors in Hans's book the complete Cardinal guide to planning for and living retirement is full of guidance and so that's available to a cardinal and again we run out of time before ran out of Shelby so much fun. Hans, thank you 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 with you by Cardinal visit Cardinal for free downloads of the show previous shows on topics such as Social Security, Medicare, IRAs, long-term care, life insurance, investments and taxes as well as ponds 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 both go to Cardinal if you have a question, comment or suggestion for future shows like on the finishing well radio show on the website and send us a word.

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