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Social Security Decisions

Finishing Well / Hans Scheil
The Truth Network Radio
November 2, 2019 8:30 am

Social Security Decisions

Finishing Well / Hans Scheil

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November 2, 2019 8:30 am

This week, Hans and Robby discuss foundational beliefs that are inaccurate. This happens in faith all the time, but it also happens with Social Security beliefs. Some people think you have to take it as early as you can, some think you have to delay it as late as you can. Do not make decisions with limited information from one or two people. Age relative to your needs, health, and your spouse, are really going to be the key to Social Security timing.  


Hans and Robby get into the false Social Security beliefs people have told them over their life. They answer questions that include:

When am I supposed to take my Social Security check?

Can I take Social Security early if I am disabled? How does this affect my spouse?

Should I take my Social Security early?

Should I delay my Social Security?
How do Medicare and Social Security work together?

How does income planning and Social Security work together?

Will Social Security pay my long term care bills?  

How do Social Security spousal benefits work? Does my wife get my check?  

Do I need life insurance if I have Social Security?


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  

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

You're listening to the network and welcome to finishing well brought to you by Cardinal Certified financial planner belongs agile, 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 with finishing well welcome to finishing well today with certified Cardinal today show's were talking about the foundations, the rocks that you build on of making your Social Security decisions and and I've been thinking lately Hans about the parable of the soils in an how you know we have places in our life that we've got ruts that we've developed that are hard soil and hard for people to get through your thick heads, because we keep doing it the same way over and over again so there's things like that that affect our decisions. There certainly weeds that you know crowd out good decisions that you know we got weedy soil sometimes, but the one that I've been thinking about lately is the one with the rocks and what what are my foundational beliefs that are actually in accurate and so you know, like I had a friend call me today is actually my 64th birthday. It was pretty fun and I had this friend call me and there like so rob your 64 do file for Social Security today and I was like no I want to do normal need to wait and he goes on. Don't know why we need to do this bird in the hand idea you know I did it when I was 63 and I just felt and I know at this person has a substantial income and some other things. I just bought myself a man. Where did you get the information to make that decision. I didn't say that Tom isn't one of you know, feel better anything but this is one of the rocks that did that people make decisions on without get let him see his high percentage of our clients come in in either this gentleman was is already took it.

That was a great decision and this is why or they come in and they say I've Artie decided to delay till I'm 70 Talk about the next subject. As I want to tell a little story along those lines it that I might learn from transfer of radio about what happened in China when somebody is making decisions were made and have all the information so you know there was a lot of eyeballs in China. There was much discipleship that they read this man was meeting in a house church and the communist came in and threatened with guns and they all took off running. Will this man we know is run away from the comet as he fell into a well and on his way down the road in a cottage leg and he was hanging by legs and got me meet. He was saved in the. The communist ran right by them didn't see him. That was really really good. And of course what would you do if you hang upside down in a well by rope you be praying if you're Christian and then that was what he was doing his client and lo and behold went long. Somebody came along and rescued and he said all this is it. I found that the secret to salvation is to hang upside down in prayer. So he started the church of the upside, because without discipleship without Bible to tell you can pray without hanging upside down will yell him the effective way to pray was hanging upside down.

So he started the church of the upside down prayer, what, how many of our friends are Tona's ideas about how we should do or so security whatever work were making decisions based on limited information.

I hunt absolutely and in a lot of folks the commune with this. This is one of the first issues that we've got to deal with and we don't deal with it immediately and the summary comes into me there a new client. They want to hire me and they're espousing things like your friend did well.

I've Artie started my Social Security reversal of the party started on I can tell that was a bad decision I'm in later. They're gonna figure that out is working with me but it a lot of folks get their information about Social Security decisions from sources that are really reliable and they usually have trouble name in the minutes is kind of the common wisdom will save all everybody knows that because they been reading that Social Security is going to go out of business in 2035 and been reading that the Congress is been spending the Social Security trust fund on things other than Social Security and any really, really had a horror story this week.

Now from up couple that was trying to get their information from the Social Security decision himself. Yeah. I mean we've prayed for this couple on the show before and will do it again. They this gentleman has just been diagnosed with ALS, which is very very difficult to deal with it. 63 years old and just early in retirement and to be facing that for both he and his spouse and by the way, he's a CPA K visa card carrying CPA and so I'm just helping these people in anywhere can and so we he Artie had a disability application incident that this gentleman took Social Security at 62, which don't really necessarily want to say was a bad decision, but he didn't know the ramifications of it that it just looked good to him is too grand a month and you know, had he waited a while, it probably would be three grand a month or 3200, but but he took it and then a year later per year and half later, he gets this diagnosis and so they had filed earlier for Social Security disability so you can actually do that if you take it early and then you become disabled, then you can go to Social Security and say now I want to apply for Social Security disability because I I am now disabled and then if you're successful, which he's been then your Social Security check will get raised to the amount were eventful retirement dates and how Sebastian yeah it's a real benefit and that they Artie could figure this out and she's pretty sharp and you know he being a CPA is pretty good at rereading rules and regulations. Still, even with problems that he has now they both are in so they they got all that started but with they didn't know and which frustrated about is that Medicare is gonna start for you. Two years after you get approved for Medicare disability for Social Security disability and so that didn't mean much to them at 63 1/2 disease can be eligible for Medicare. In February, 20, 21, about 15 months. He's gonna get like everyone else, but he could really use it now Medicare.

Now I can imagine what the bills would be phenomenal compared to what you think brochure in the supplement so so that's one of the places that Medicare is administered by the Social Security Administration to meet.

So, if so, it ate. It's a little bit hard to separate these but these folks have a lot going on and what you know they have learned, the hard way is using all the Social Security regulations to make your Social Security decisions. There's several things that they would've done differently if they would've had the benefit of my advice okay or somebody like me in no him being a CPA. He's pretty knowledgeable about a lot of things but he he never restrained Social Security and so there's a special provision in the Social Security code with Medicare that when you get disability benefits from two things into things only end-stage renal disease, which is dialysis. Securities of shutdown or ALS is a view of either of those impairments. Your fast tracked on the Medicare so she was under the assumption we prayed about this that between the time I talked during this appointment wrote me about which was last week that maybe they'll get approved for Social Security disability and then they'll get fast tracked on to Medicare just assuming that and so was she in the unit needs to say things didn't go that well on this point. It's a challenge because of the Social Security did is made up of people that are going by whatever rules in a somebody mixed mixes of form in the wrong place and eat you get a deal that for however the months that she said in a what you're getting advice from if you're calling those people ask him for advice.

You know, is is based on just a very, very limited information that they have based on what they're able to do and so you know I get out of this is I'm just thinking it says it right there. My book don't go to the Social Security office and started asking questions and using their stuff to do so security point because what what I'm involved is not so much answering questions about Social Security because sometimes I got a look at but it's it's really getting an overall plan for when you can start when you're in reliance of security and the good news for him. His work itself out. Is this going to work itself out in two or three months instead of right or three weeks, which is all the more reason you know that we do this radio show and that if you go to Cardinal unifying the seven were established, one of which is Social Security what were talking about so that you know you have the necessary information to have options right we talk about this all the time.

The more information you have on the subject, the more options you see in and the more you can waive those options, which is if you're hanging upside down in your in a well not have a lot of options going to get out of the well.

Yet all kinds, options, and any and he didn't didn't realize what he had in Salina make this book available to you that actually the PDF is there Cardinal where you can get that absolutely free or just email Hans and and get the whole book which gives you all sorts information. I'll be glad to send it to you. Go to Cardinal send a message through them assistance and will ship the book out to you can also go to Amazon and just put on trial or Cardinal guy can either use type it into a surgeon, both local, and because it's not so easy to remember the complete karma guide to planning for living in retirement. It took me a few shows reflects it anywhere I publisher likes to be descriptive entitled the study that's good so there are several factors right that that enter into this decision besides just your agent obviously will your age within your gauge and then relative to your needs of when you can start to check in and so so that's one of them. Then you get your spouse or or not mean people that are single spouse. He was in there the matter, but then you got. If you have a spouse, then it's is this person and live longer than you and then all of these distant back to the first decisions when you started.

You got a look not only over your lifetime, but of you and your spouse's lifetime taxes right we got income taxes and you know in the in the second part of the show will talk about that a little bit and give Technorati of that in of itself. You know, enters into my equation and about four or five different angles of of when to take that make that decision because I got the taxes on my income.

My wife's income. No, what's it gonna be when this happens and that happens you know all those enter into the equation so telling a lot more to talk about these foundational planning strategies of Social Security are you based on one if you want to hang upside. It will be right 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 data care and long-term care.

Just go to Cardinal and contact Tom to schedule a live recording of finishing well at your church Christian or civic group. Contact Tom to Cardinal that's Cardinal is welcome back to finishing well with certified financial planner Hans Schild today were talked about foundations of making your decisions on when to take your Social Security and and other issues along the ideas of of counsel security works and have it affect our lives in you know, as we said right before we went to break in one of those big issues is taxes and you see this with a lot of people will yeah I mean that there is a way and we give you an example of the lady that came in this lady and her husband are going to be is on the phone with early down Charleston or in St. James at St. James, James Island is not St. James's James Allen Enea delightful lady and she's a nurse just like my mom and my older sister psycho sister and she was just genuinely worried and is worried that she doesn't have enough money in savings to retire and she's worried about that. And she's worried because you when you get right down to enough savings and to retire you can talk about being worried that you don't have enough but which your measurement of I don't have enough in a kind came out hers. I really needed, wanted to have 300,000 and when I got to 40 that came out later, but we were on to some other things before that he had so we merely went to the Social Security checks and that's where I'm in my thinking and then I found she'd Artie filed so she's almost 68 and I believe she filed back when she was 66 and the full retirement age so at least she got one part of the taxes right is you don't want to file for your Social Security while you're still working. If you make over $17,000 a year. You gotta give some of it back in taxes. So that's the first thing don't take it early. Unless you retired in your stay retired and she didn't do that and she took it at 66. But it's been gone for a couple years and she gave me a number of about a little over $2000 a month for hers and then for her husband's. She gave me a number of about 1600 a month and then in addition to that, she had is eligible for a pension that she still she's really only clear about one thing she takes in February can be a little over a thousand a month so Scott a thousand month so) income.

These folks have $2000 or $1600.36 plus thousand month and have 4600 a month coming into the household. The house is paid for you and I just started asking her a settlement is how much do you need it. I made that and you know then she we start talking about taxes. I said you know if that's the only income you have your unit paid either zero tax or real close to them.

We dug into the so security a little more and we found out that she's been doing tax withholding. She's really getting about 2400 a month in Social Security, but their withholding 18% so that she can pay those taxes sees Ellen in the doing the same thing on her husband. She bright enough to get all that set up properly but if she retires working to get rid of that with holdings in Ashcamp 2400 a month. He scanned about 1800, and a thousand a month who can be up to about five grand a month and that is tax rate which is well that this was negative as is text is tax-free because I asked her. I said how much you get your job do you have to earn to be able to have five grand a month of spendable income. I asked her that in cheat sheet she had no idea. I said, will they take a lot out of you checked out then your husband shall yeah the perfect community take out lots things and I said I'm just gonna make this simple four years you would need household income of about 8 to 9 grand a month to net five. What I'm telling you right now is if you don't have any other income and we don't withdraw money for a few years out of these IRAs, you can earn five grand a month is that you can spend all that he could spend it every month that goes on forever. Amen. That's a beautiful you know Like the gift that keeps on giving. Every month this is why you need a financial plan that looks at more than just the subject at hand like Social Security and that's what she signed up she was ready to just send the money last night to do. It's not very expensive but I said to just wait a minute you were in it and will will get through first things first, but she signed up for Laura financial plan out plan cost her 500 bucks because they don't have a huge amount of money and we do that very expensively now she's got assistance. So anyhow we we go through this and now were back on her money you know and and so in a later show will bring her up again. This should be a good example for how organ and to further that minimize and how we gotta be careful that we don't have a year that we pull a whole lot of money out of that IRA because her 401(k) or where we have it because if we do that will answer all this other stuff is tax-free stuff out about what talk about me I catch my birthday dear my birth. My 64th birthday. So obviously if I wanted to disco meth my world up really bad.

I could go apply for Social Security, but the that my real situation is. My wife is seven years younger than I am okay right so you know what we talked about before is is that is it based on the fact that I get to talk for a living and I love what I do work in Christian radio. I can imagine retiring in intensity says you can't do this no market to all that you and I can imagine that for years and years and years and yourself that it would be crazy for me to take even at full retirement age wouldn't be consuming. If I get. Here's the question. I am and I go to crazy, but it just probably not, recommend that you have essentially as I recall in my statement if I retire if I apply take my so security at the maximum time, which is 70. It's about $3100 a month versus about $2600 a month if I were to take it at full retirement age, which should be 66 map okay right is my understanding correct that if I take and wait until I'm 70. And then say I pass away. It 80 right by this point time Tammy is only 73 and she lives on the 88 did she not get my phone off $3200 then for the rest of her correct right so you every month that you delay your building up her check. Assuming she's gonna live longer than you and that checks for the rest of her life right which is is a significant thing being her husband like I'd be really, you know, not maybe so inclined to wait till I was 70, but knowing that all my goodness you know that's gonna be if you can that much more money for alerter and file because she seven years younger me. This is enough chances are this to be a substantial amount of money difference in over her over a period of time. So if we decided to take it at 66 and half for whatever reason, right.

Like you needed the money.

We probably would add in there some life insurance knowing that you just lost her $500 a month for the rest of her life so one of the ways to mitigate that problem if we want to make that decision is to get some life insurance, maybe even his term insurance for like 10 years or something to give her some assurance that if you were to die quickly right that she would be able to collect your check for the rest of her life and that that check would be smaller than it otherwise would have been and should have a life insurance payment to compensate for the yeah and I think it's worth repeating it that I really never grasp. When I turned 70.

If I take it at this point time. You know I get 3100 Tammy will get half of that amount of money to sheet she and I worked in the home in our kids are being raised, not set. So she her check if she took it on her so security really be minimum 700 $5800 but she gets half of my check. So when I turned 70 Mino B 31 when she turned his full retirement age. It'll be half that it actually will be half of what it would've been if you took it for retirement. It will be half of the 26 31 I just half of the 2600 a month off after the 3100 and it won't be half of that until she's actually at her own full retirement age. Okay, she took it earlier than that, than it'll be a discounted half of the 2600 right right so you can see that herein lies all these decisions based on all sorts and information right yeah and this is an you eat then you move over to taxes. All these future dates and doing things are not doing things. Then we got a look at the income taxes you're gonna pay on this check that your starting at a given point in time and that's can be determined by the amount of other income you have that's that's the real key went taxes on Social Security income are calculated based upon so another words if you're Mr. big box and you got a whole bunch of money coming in from something in your van taxes on that with her to come back and tax your Social Security.

But if you're not Mr. or Mrs. big box and you've got just some money and you just take a small extra income, then this can be no taxes on initial spirit so when were planning we we really also need to know what your other money deal is or calculating whether a particular date is a wise decision or not, I'd see you got things like your IRAs. We are talk about and some people have Roth IRAs would write the income that didn't have a text that's another reason is Social Security to have a Roth IRA because you can pull money out of there and it doesn't yield zero tax and then added to that, it doesn't raise your taxes on your Social Security because it doesn't count as income. I am but another thing that always enters in to the equation is long-term care right because that something that you know is we get up there. Wait, we are responsible for well and unfortunately if you don't have insurance or you don't have a plan for long-term care. That's the first check the gifts through the Social Security check is a some images. Everybody's got one knowing that just because that money is coming in every month so that the data for this can be the down payment and then we'll look to your other resources.

Your IRA if you have one CDs land you can have to utilize your resources to pay the bill for long-term care and is either in that situation or somebody's in it right now and they need long-term care and all he got as her Social Security check.

Know what I would say then just call me and let's sit down, we can please figure out a tax efficient way to pay for the care you need not. Not to mention if there veteran that there's there's benefits with that as well that that would be of a critical reason that would affect all that as well that that you may not even consider the what's it called a in attendance. Veterans aid and attendance. That's correct right so all this stuff is all available if you go to Cardinal look at seven ways Want to sell securities. What were talking about today. You can download the PDF of what we talked all about know clearly conflict love to get to his effective Philistine today to finishing what thanks we hope you enjoyed finishing well brought you by Cardinal visit Cardinal for free downloads of the show or previous shows on topics such as Social Security, Medicare and IRAs, long-term care and life insurance, investments and taxes as well as constant best-selling book, the complete Cardinal guy for planning for and living in retirement and the workbook once again for dozens of free resources past shows when you get Hahn's 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

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