This is Rodney from the Masculine Journey Podcast, where we explored manhood within Jesus Christ. Your chosen Truth Network Podcast is starting in just a few seconds.
Sit back, enjoy it, share it, but most of all, thank you for listening and choosing the Truth Podcast Network. IRAs, long-term care, life insurance, investments, and taxes. Now let's get started with Finishing Well. Welcome to Finishing Well with Certified Financial Planner, Hans Scheil.
Today's show is your social security statement, and this is going to be really helpful. It really, really is. And I was thinking about, you know, how much this statement has helped me as I've started to approach my retirement age. And I thought in the 119th Psalm, there's a beautiful verse. It's in the gimel section, which has to do with, you know, being provided for, which fits perfectly. It says, you know, we are strangers on the earth, Lord.
Hide not your commandments from us. And the idea of that is like, wow, when you're a stranger, what you need is a map. I mean, you just do. Like, if you're going to go visit, you know, on your vacation, you know, you've been hoping for this vacation. Well, it used to be in the old days, we'd get a triptych, right, from AAA or whatever.
Well, here you're fixed to go on big retirement, right? Then your social security statement would be that map, and we'll get a lot to that in a minute. I want you to think for a minute about how we are really strangers on the earth and how important it is that God give us a map. Well, it just happens to have 66 books.
It's a big map. But it's loaded with, especially in Exodus 20, 10 easy-to-read commandments. And actually, if Jesus boils those down for you for two, you know, those two commandments can help you make a lot of progress in life, like, oh, love God and love your neighbor as yourself. And once you have that as just a place to start, like, now I can begin to navigate my life.
In fact, if I put those as a major navigation point, I would do really, really well compared to where I could find myself. And so I find that, man, really, as I began the concept of going into retirement, which I still can't get over how God brought Hans into my life very clearly, I would not have had a clue, not a clue that I needed to know any of this stuff. But one of the very first things Hans did, I'll never ever forget, was he said, you need to go to soulsecurity.gov and set up your social security so you can get this statement. And although they've really improved it over the years since they started, what, I mean, everything that ever, that was really important to me when I started my social security, when I got on Medicare, it all started right here because with a map, you know, it's like when you're at the mall, it says you are here.
This statement does that for you. Well, when I'm asking people some of those initial questions that are coming in as clients about their social security, and I say, you know, do you have your social security statement? And a lot of people say, oh, I get those in the mail, or, you know, I looked at that or whatever, and they can generally give me the number at full retirement about, but they seem somewhat dismissive about the rest of the statement, and maybe even getting it online.
And then we start asking about their spouse, they'll a lot of times say, well, she hasn't worked a lot, or she doesn't have much. Well, we need an account on both of you. Okay, you need an account on both of you, because this is where you're going to sign up for Medicare, you know, unless you want to go down to the social security office, make an appointment, spend the day down there with the government person, and then go, I mean, which for some of you that need and want to do that, go for all this stuff can be done online. And it's going to be done through the same account, where you get this statement. So if this hasn't already been done on both you and your spouse, if you're married, just have that as a to do from today's show, you go to SSA.gov. And you look for the click on or the button where you hit my social security. And that's a just a whole kind of like an acronym or some words mashed together.
And then you click on that. And it's going to ask you some information like your social security number, that kind of stuff. And be careful of the they're going to do an identity verification through your credit report. So they're going to ask you what seemed like stupid questions, but get that process started just as soon as you can, if you haven't done it already, and get it done for your spouse or your spouse has to do it themselves. Because we're going to want to know your spouse's numbers, and your numbers and you're going to want to know those before you make any decisions about social security yourself. And then added to that, you're going to want to look at this whole statement is the point I'm people have just brushed over it. The new and improved statement has got it six pages long. The first two pages are all about your social security about you, specifically. And then the pages three and four are about social security in general, social security planning, some of the nuances on it.
And it's just on two pages. And it pretty much covers the whole gamut of social security. And then it has a little click deal or a little URL that you could click if you wanted more information. Doesn't it actually say retirement ready?
It says retirement ready, which is just wonderful. And, and, and, you know, a lot of those that information is really, really helpful. Information that we talked about on the show, but there it is with the links, you know, to where you actually need to get to.
Well, I'm using it for my show notes on my YouTube channel. And because it's very condensed, and it's pretty, pretty thorough. And then like you said, if you want extended information about a particular topic, instead of going and finding a book somewhere, you can just click on the URL that's right in that paragraph. And it'll give you, you know, three pages or 10 pages on even deeper information about it. So that's on pages three and four. And then pages five and six are called Medicare ready. And as a replacement to the Medicare guide, this thing pretty much goes over the whole deal with Medicare. And the first pages, did they not know they're a government agency? Yeah, well, it's pretty slick.
Somebody did they did a good job in revamping this thing, it's given you useful information, we're going to start using it in some of our shows. And I'd like you to have access to it. And your spouse's statement because your spouse, I don't care about their work hours, we might be filing some of their social security, if they have enough, even if it's a small check and delaying yours.
Or vice versa. And then we might also they're going to need Medicare whenever it comes around, you're going to want to apply online for all of that stuff. So you need accounts for both of you. And today would be a good day to get started. As you point out, you know, it's like that little map at the mall, you know, you are here, because here we're beginning to actually do this retirement ready.
What does this look like? Whether or not you're actually going into retirement, you're certainly turning 65, as the case may be. And you're going to have to make some decisions that I this what reason why I have to laugh, because I had no intention of retiring, I don't need to know this stuff. I mean, that's what I thought when I was, you know, before I met Hans, I have no intention of retiring, I haven't, you know, why would I need to know any of that? Well, it's the truth is, you are going to turn 65. And at that point in time, you are going to have some situations and you need to know where you are. Because you have several really neat decisions, you get to make stewardship opportunities, but you got to know where you are.
Well, you absolutely do. Now, the reason I'm talking about this in February and March, is I do a show every year after the Social Security statements have been updated. And yours, if you're still working, and you worked in 2022, most likely got two updates during January, it got one update for the inflation increase. And it got another update when they put your earnings in from 2022.
And that probably affected your number, it did mine. And so there's two updates. So in other words, in the beginning of February, you can get the updated statement that includes both of those updates.
And they update the projections, they update everything. So that's useful. And then, while I was doing that, this is the first time I've ever really looked at the new Social Security statement, and it's, it's better. So and it gives you a lot more useful information. And they've gotten a lot of information off of there that I don't think anybody ever used. So somebody at the government did something right.
So I'd encourage you to get it. What were the reason we need it is this is the basis of the retirement planning financial planning that we do. I mean, this is the first place we go. It's the first worry. It's up in the upper left hand corner of the board, Social Security, and the boards on our YouTube shows or YouTube videos. And it's just the first thing we need to know about you. How much is your Social Security check going to be?
And when are you going to file for? And then usually, when I say that to somebody, they come out with an answer. And they're going to tell me, whatever, I'm going to wait till 70. Or somebody says, I'm already taking it, or I'm going to take it when I'm 65.
Or I'm going to take it at that FRA for retirement age. A lot of people just have an answer. And I really want to ask them, how much thought and planning have you really put into that? And I usually don't ask them that. But I just have a sense with a lot of people, it's not that much. Some people it is.
Some people have gone and made their own models. And they tell me I'm taking it at full retirement age because I've done some calculation, and I'd have to live to be 90 before I'd benefit from waiting or something, you know, that's kind of extreme. So I have to live to be 85. And I always, I always love that I want to ask them, I don't want to get cynical today. Now, did you come to me to help you make decisions?
Or did you come to me to tell me about the decisions you've already made and show me the basis that you made those? It's kind of a joke, because it's not a joke. I mean, this is your life. And this is your income that you're going to be living off of in your 80s and 90s.
Okay, I mean, it's just, and that that's, this is important to you now. But it's really important to most people in their 80s and 90s, even very well to do people, if you go see them, and you sit down with them, and you talk about their money, like I do with just about all of them. And I ask them, you know, how much is your social security check? Most of them can tell me if they're not into dementia, they, they know it within 100 bucks. It's usually net of the deductions for Medicare, but they know it. And they know it goes into the bank every month.
And they know that might be the only most reliable income that they have, unless they have a pension or something like that. So I'm just telling you, it's important to people, and it's going to be important to you when you reach that age. And boy, we got a lot more for you on this particular item, which I think is really, really, really helpful. So you might want to get more resources for this.
I hope you do. If you, if you are wondering the source of that, it is cardinalguide.com. Of course, the show is brought to you by cardinalguide.com, and there you can dial 1-800-HANDS if you want to get the real scoop for your particular situation. He would love to help you. It's there on the contact page at cardinalguide.com, as well as the Seven Worries tab, which this one today would be Social Security. It's number one on the hit parade, by the way, because we do realize it's to help, you know, sort of a stable place where we can work from in your plan. And it's there at cardinalguide.com.
We'll be right back with a whole lot more on your Social Security statement. Investment Advisory Services offered through Brookstone Capital Management LLC, abbreviated BCM, a registered investment advisor. BCM is certified financial planner. BCM and Cardinal Advisors are independent of each other.
Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Cardinal Advisors is not affiliated with or endorsed by the Social Security Administration or any other government agency. Welcome back to Finishing Well with certified financial planner, Hans Scheil, and today's show Social Security Statement. Oh, we love this show because it's so helpful and boy, they've made so many neat improvements to me, like the difference between this, the 20, 30 page thing it was to now we got six and such helpful pages, but it's critical to really just the first steps of the plan.
Well, yeah. So, I mean, we kind of left you behind the break there where you have the decision in front of you of when you're going to take your Social Security check, if you haven't taken it yet. And I want to point out that you can make that decision every month. So, every month you delay, that means you get a little bit more for the rest of your life.
So, you delay six months and then you start it. You're going to get six, you're going to get more every month it's delayed and you can delay all the way till 70. But it's important for you to learn what your full retirement age is.
And you can look right on the statement. You look on mine, it says 66 and eight months. So, you say, well, 66 and eight months. Why, you know, 66 and eight months is I'm the tail end of the phase in for everybody that's two years younger than me and more. Everybody born in 1960 or after your full retirement age is 67. So, if you want to be, if you're still working, you definitely want to delay until full retirement age.
And the reason you want to delay is if you take it early, which would be at 65 or even 66 or 64 as early as 62. And then the first, you can go ahead and make $21,000 a year besides your social security. So, the first 21,000 and a little change, social security gives you that. You can have a part-time job or some type of job, collect your social security and the 21,000 you make from a job. But if you make $40,000 from a job or $50,000 or more from a job and get social security, you're going to be given some of your social security back.
And so, you certainly don't want to do that. Now, call me if you get into specific situations, if you already took your social security. So, for most people still working, we're going to suggest a delay until full retirement age.
Okay. Now, if they're still working at full retirement age, now it's a decision. You can take your social security. And in the example that we have in the video, this guy's social security is 3,657 a month at full retirement age, which would be about a year and a half from now, almost two years from now. So, if he took that and he's still working, he gets to keep his whole check. He can make all the money he wants to make after full retirement age and collect social security.
He still may not want to do it because if he waits to collect social security until he's 70, which then would be another three years and four months, he's going to get a much larger check. Projection here is $4,696 a month. And so, when people just look at that, they say, well, all I give up is $1,000 a month. And now I'm getting a check at 66 and eight months.
And if I give up all those checks to age 70, you know, then I'm going to get a bigger check of $1,000 a month. But then they count the months that it takes to make it up and people get into these. And they're almost treating it like a game, like we're trying to get the most we can out of social security. And if you want to make it that, fine.
I don't look upon it as a game. I look at upon, this is your base check that's going to be really important to you in old age. I mean, just don't, you don't know what's going to happen with the economy, with incomes coming in. This is the check, you know, you can count on. And so, it's adjusted to the economy, right? As inflation goes up, your check goes up.
Well, yeah, it's going to be inflated and the extra thousand is going to be inflated too. In this guy's case. And, you know, like in my own situation, I may not live long enough to really see the benefit of waiting from till 70. I mean, none of us know that. But I or I may just live a little bit beyond there or whatever. I'm not going to be counting the chips.
And whenever I take it, I take it, I'm going to forget about it. But my wife has a much longer life expectancy and the way I've amateur counted, my wife may very well live into her nines, but I'm going to have to count it. My wife may very well live into her nineties and a hundred. She's had an aunt that died at 101.
Her mother died in her mid nineties. I mean, it's just, she has what I think in her health, a longer life expectancy. And after I die, her check is going to go away and she's going to get my check and she's going to get my check for the rest of her life.
And she'll get that thousand dollar inflated amount. So my own personal deal is I'm going to wait as long as I possibly can. Now, that being said, if something changed, if my health changed, I had to retire before I'm 70.
I don't know. A lot of things could change. I just could decide I want the money coming in and I want to pay the taxes on the extra social security or which would all be extra to us. There could be a lot of things I could change that.
Probably not, but this is what I'm talking about. My wife's number is about 500, 600 bucks a month is all she's going to get at full retirement age. So, you know, and she is when she gets half a mine, it's going to be about 1800 a month. So she's going to be filing under spouse benefits, not her own benefits. She's been fortunate enough to stay home and raise our kids and not work a lot past being in our twenties. So she doesn't have a real strong record, but we still may file for her at full retirement age, just so we'll take that five, 600 a month because she can't get the half of mine until I file. And I don't want to file before 70 just to get her the half of hers. So she'll file on her own, collect it every month until I reach age 70.
She'll be about 68 and I don't know, a half, something like that. And then once I file, she'll go for half of my benefit and we're off to the races. I mean, that's the plan for now. It may change, but we'll need to make those decisions if I do financial planning for you, because we're going to say, okay, now we got that. Now, how much taxes are we going to pay on social security? I mean, how much of that social security can we keep? And then how much other income are we going to need besides that social security?
In my case, a lot. Where's that income going to come from? You got IRAs, you got raw. I mean, so this is how we build a financial plan. And then we come up with that income. Is it taxable? Is it non-taxable income? And then the taxable income drives taxes on the social security.
And so this is just a fundamental thing that we need to decide on before we start making other decisions about the creation of income. Right. It's again, getting you your map of you are here and it's really handy in so many different ways. Plus, as we talked about, it's got all those links and all that other information if you need it.
Right. Let's see what I would like to do in my plan. And sometimes plans don't work out exactly the way you want. I just want to tell everybody when I lay out a plan for you, you know, it may not work out exactly the way I point out to you.
I mean, it's just things, you know, because we're estimating things. But if I could wait till 70, that's in today's dollars, 46.96, call it 4700. It'll probably be inflated by then because that's kind of a ways off, but six years, five and a half years. And then my wife is getting about 1800 bucks a month. You know, that's 6,500 bucks a month coming in just from social security and that'll be inflated. So, you know, you start, you start getting to where a pretty decent household budget.
Okay. And now we are going to need more money than that to live. And, you know, we've worked hard, we have savings, but as soon as we put, let's just say we put another 3500 bucks of taxable income with that. I mean, but then you got, you got 10 grand a month, but you really don't have 10 grand a month because you got to pay taxes on the 3500 a month if it's coming out of the IRA. You know, it's 42,000 a year. So I got to pay taxes on that. And that's going to drive some taxes on the social security. So you see how you build that up. What if I need more income than that?
But it's looking pretty good. And I also have Roth, you know, Roth IRAs that I can draw from that aren't going to be taxable. So I can create an income out of those and they're not going to drive taxes on social security.
So, you know, I don't want to get too much into my own situation, but I like to sit down with everybody that comes in, see what their social security is going to be when we file for it. And then I like to plan for as much tax free income in addition to it that we're going to live on beside it. And then I want to pay as little taxes as I possibly can on the social security. And I want to defer taxes on everything else.
I mean, that's, that's basically the game plan. And, you know, my own personal situation, I'll probably still be working, God willing, on, you know, age 70 and beyond. So all of that kind of stuff that I've planned out for this tax free check, I'm going to be earning money from my business.
And I'll give it to the church or some of it and give it to my kids. And, you know, you got to come up with a reason to make money. But when I sit down and plan it for you, just understand that I'm, I want to see what that social security check is. And I understand that if you had no other income, you're going to have that tax free. And then we're going to build your other income through pulling money out of taxable accounts, constantly testing how much tax we got to pay out of that other income.
And how much tax does it drive on social security? Right. And again, you got the basis for the plan. And you got a monthly idea of what you can do. But the other part is obviously you have the retirement ready steps, things that you could be thinking about as well as the Medicare. Right. Which when you go to apply for Medicare, which I understand isn't but a couple months away, or maybe even sooner. Yeah, then it's right there. The links are right there on your social security statement.
Right? Oh, yeah. Well, and the links are in your my social security account. You go onto that page, you're going to apply for Medicare, you're going to apply for social security. It's going to be good for me if I never talk to social security on the phone.
Oh, let me just tell you, I was sitting at a Bible study, actually, and I heard these guys talking. I had applied for my social security. And so I was waiting, and I'd done it online, and it couldn't have been easier. I mean, it didn't take me two minutes, because I already had, thanks to Hans, my social security account.
I went and applied for it. And I was listening to these people at a Bible study, oh, it'll take 90, 120 days before you get your social security, you know, and then they won't pay any back, blah, blah, blah. And I was listening to all that. And I went, gee, that isn't what Hans, I don't think that's true. But I wasn't going to say anything, because I don't want to be the know-it-all. I was just sitting there. And, you know, sure enough, man, about 10 days later, I'm looking at my checking account, and I went, bam.
You know, there it was. Pretty simple. Just like Hans said, it wasn't any big magic. And I didn't have to go down to the account. I didn't have to do nothing other than just, you know, do what I knew I needed to do under the circumstances. It was smooth as silk.
It was wonderful. Well, again, we want to remind you that it's as easy for you to do. Just go to cardinalguide.com, and there you can see how to contact Hans, how to get his book. Of course, the Seven Worries tab, social security is number one. And all the show notes and stuff are there. Cardinalguide.com. Great show, Hans.
Yeah, thank you, and God bless you. The opinions expressed by Hans Scheil and guests on this show are their own, and do not reflect the opinions of this radio station. All statements and opinions expressed are based upon information considered reliable, although it should not be relied upon as such.
Any statements or opinions are subject to change without notice. Investments involve risk, and unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results. Any strategies mentioned may not be suitable for everyone. Information expressed does not take into account your specific situation or objectives and is not intended as recommendations appropriate for you. Before acting on any information mentioned, please consult with a qualified tax or investment advisor to determine if it's suitable for your specific situation.
Finishing Whale is designed to provide accurate and authoritative information with regard to the subject covered. Investment Advisory Services offered through Brookstone Capital Management LLC, abbreviated BCM, a registered investment advisor. BCM and Cardinal Advisors are independent of each other.
Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. Cardinal Advisors is not affiliated with or endorsed by the Social Security Administration or any other government agency. We hope you enjoyed Finishing Whale, brought to you by CardinalGuide.com. Visit CardinalGuide.com for free downloads of this show or previous shows on topics such as Social Security, Medicare, IRAs, long-term care, life insurance, investments, and taxes, as well as Hans' 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, or to get Hans' book, go to CardinalGuide.com. If you have a question, comment, or suggestion for future shows, click on the Finishing Whale radio show on the website and send us a word. Once again, that's CardinalGuide.com. CardinalGuide.com. This is the Truth Network.
Whisper: medium.en / 2023-03-25 10:08:36 / 2023-03-25 10:20:13 / 12