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When to take your Social Security

Finishing Well / Hans Scheil
The Truth Network Radio
July 27, 2019 8:30 am

When to take your Social Security

Finishing Well / Hans Scheil

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July 27, 2019 8:30 am

In the Sermon on the Mount, Jesus said, "Blessed are the poor in spirit, for theirs is the kingdom of heaven". Robby points out that we should recognize that we are "poor in spirit" when deciding when to take our Social Security and ask for help. Bloomberg recently published an article titled "American's lose trillions claiming Social Security at the wrong time". Hans agrees that generally, people start their Social Security too soon, usually because they did not ask for help.  


People who delay Social Security can live off their IRAs or take another job if they don't want to retire yet. Hans emphasizes that, on average, households that take Social Security too early lose $110,000 of lifetime income. Robby talks about how it's often the people who can least afford this loss that take Social Security too early because they think they're out of options.


Mistakes are also made under the misconception that the full retirement age is 62, when in fact it's now 66 and a few months for most people. Hans warns that starting your Social Security at age 62 will significantly reduce your income for the rest of your life.


On the other end of the spectrum, the people who take Social Security too late are those who rely on actuarial tables that treat everyone the same and don't accommodate unique situations. Hans says one exception to the rule are people who have a sense of their mortality. For those who have a family history that indicates they won't live as long, he recommends they take Social Security earlier rather than later.


Another example of a situation where Social Security should be taken earlier appears in Hans' book. Hans talks about a 67-year-old client that initially decided to delay Social Security. As it turns out, this client had a son in high school and was eligible to receive 1.5x his original Social Security benefits. Hans prompted the client to take his Social Security immediately because the benefits were greater than the loss he would've otherwise had from taking it that early.


One area where Hans deferred from Bloomberg was on the topic of spousal benefits. Robby plans on waiting until the age of 70 to take his Social Security to ensure his younger wife will receive a larger check after he's gone. Hans says he also plans on waiting until he turns 70 because his wife's family history indicates that she'll live into her mid-90s and he wants her to have enough money to support herself during these extra years.


Up next, Hans talks about the effect taxes have on Social Security, IRA, and pension benefits. Hans says a lot of people don't know that receiving income from a traditional IRA will cause their Social Security to be taxed. Robby says this really hurt one of his friends and took a huge chunk of his income. The solution to this problem is converting your IRA account into a tax-free Roth IRA before retiring. Hans says he plans on doing this before he turns 70 to live tax-free for the rest of his life.


Hans wants his listeners to know that Cardinal is licensed in all 50 states and can help no matter where you live over the phone. Even if you have to give up is a face-to-face interaction, you'll have access to an independent brokerage that represents almost all insurance companies, most investment products, and will have direct access to Hans' expertise.  


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 Truth Network and Welcome to finishing well brought to you by Cardinal God Certified financial planner belonged to child 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 with certified financial planner on today show is when to take it and you may notice I don't have a biblical title to this one, but I think there's a definitely biblical application to win to take your so security that you may find surprising but I think that is very much related to Jesus's first beatitude which is significant to me. Why did he choose this one to go first.

You know he's gonna for the first time, sit down and give a sermon most people would say the most important sermon of all time and what is he start off with Blessed are the poor in spirit, for theirs is the kingdom of heaven. And so some of you may be wondering what's that mean poor in spirit will I think there's a passage for me that illustrates that perhaps better than almost any other is you'll find that Luke chapter 7 Jesus goes to the Pharisee's house to eat meat.

I'm guessing they had steak tonight was Jersey's King James or eat meat and a woman shows up with alabaster jar and you know the Pharisees know this ain't you know who to be touch and the mastery and she is no all over Jesus she's wiping his feet with her hair. She's washing them, and she's put this anointment on and the Pharisee is thinking to himself, you know, if you are really a master you know you would know who's touching you in Jesus as well. Let me ask you question. You know if if you had somebody that knows you a bunch of money and submitted know you're quite so much and you forgave about that which one would you think would love you more in the Pharisee he got it right and a symbolist woman when she came in and you know you didn't kiss me.

But you know she's been kissing my feet and you did anoint my head that she's not in my feet with this expensive appointment. He said no he who is forgiven much loves much now when you look at the two people that woman that the course the Pharisee thought he was better than was poor in spirit. I mean she knew how bad she needed Jesus and she was all about loving on Jesus and shown him how much she appreciated what he was doing there and that he was God the Pharisee on the other hand, when you think about the opportunities you have in front of him. He was sitting at the table with God.

He thought he had. He was good. I'm good. I am I don't have much to forgive because I'm already so much better this woman over here with the sad news for me is how often is that me how often is it me that think so I'm good. I've got this figured out, and when it comes to Social Security.

If you looked at me three years ago on my was by no means born spirit with Social Security because I thought what I need to know anything about Social Security and you know it can be a piddly sum of money it, it really won't matter much. And you know I'm just to be working anyway so what difference does it make and so the net result of that is Bloomberg wrote a heck of an article right well he did in them will actually Bloomberg's old company. There's one guy that owns it is famous with his.

The article is Americans lose trillions claiming Social Security at the wrong time, young roots, there's lots of articles like this that are out there, but what was kind of interesting about this one. And the reason I sent it to you is this went through all the news media circles agreement this was.

I know it was in the LA Times is in the New York Times, probably in the Charlotte Observer immunity just I just saw it over and over and over and over and so I sent to you in a really just for you that I thought with this is part of Robbie's education and so security because a lot of things we've been saying all along and then I kind of forgot about it because you know I'm usually pretty selective about articles and sending when I send my son for reason I did with this with you tied it to the next Social Security show you brought it up to me by week ago when we were getting ready to prepare for the show and you just talking about and I go back and read it and it's really saying what we've been saying all along is that generally speaking, people start their Social Security to set and these people know there are some people, though it started too late. What they point out in the article is most of the software that's designed to help you pick the ideal time to start Social Security and getting the most money. Most of the software programs we subscribed most of they just use actuarial tables and they treated buddy the same and you personally have a sense of your mortality may most people do and so with what they're saying is, is that somebody that has a sense that they're knocking to live a long time or health. They might be better off taking the Social Security at full retirement age is like 66 as opposed to waiting till 70 because there to miss out on four years of Social Security checks just to get a large larger check, and if they don't live till 80 knocking to make up the money so that the case, but isn't that also one of points that I disagree with the article is it doesn't take into account spousal benefits early in your situation, and what we been talking about for a year and eight months, six months or have only been doing the show is in order to finish well, that's the idea. The best thing you can think of is to have options in one of those options is this so security and if it's a big part. I did not know that when I was not poor in spirit, and I didn't realize I have a lot to learn when it came to this idea of when to take so security but but a lot of options are open or close to you based on what you do with this particular decision.

Sure there in your one of those might be to live off of your IRA money when she retire if you retire before 66 or 68 or 70 retired 6260 is as if you have enough IRA money that you could live off of that and then further delay your Social Security or you could delay it. Another option might be to take on the second gig and you know and in some ways, 60, 62, 64 could be a little young to retire. For most people immunity to it's just I don't think it is for me and I in II think about my own options that allow it. Corseted think about this for years ago. I'm certainly thinking about it now that you know the best thing if if five obviously listen to God and hopefully to advance the kingdom of God where you want me where you want me into working on the kingdom and so that fortunately leave me here at truth broadcasting and the ability to continue to work, which leaves me more options ability to hold off on taking her Social Security and and still you get the benefits of Medicare, and we are 65 and and the options open up as you're able to hold off your Social Security, then there's other things that you're able to do with other investments in the assurance of generally speaking there talking about people or for the most partaken too early in his costing on average hundred and $10,000 in lost money per household over a lifetime. And the sad thing is that is is I look at people. I just know in my own life. It seems like the people that are the least able to afford taken that big chunk out of the Social Security are the ones that took it early because they they seem to be the ones that honestly have our thinking that they're desperate when they're really not thinking through what other options may be an and it's it's it's kind of scary while actually don't have all the research that these people do have a pretty good at handling what people makes people tick. In regards to Social Security and I was telling you this earlier that people in their 50s and early 60s before they retire mid 60s, they'll don't tend to dismiss Social Security renewal just you know I'll be there when I needed and just generally and then what I've found is by the time they're in C and me like there retired or it's going to be two months from now that Social Security has gone from very little importance once actually see what is to very high importance in central in our financial planning units is the linchpin of of really retirement how Much money you have or don't have. It's important and so you know I I think that's part of the problem and we would we would call those people I guess rich in the spirit not poor in spirit because they cannot think why mom okay I got my retirement in whatever free retirees and then when they're ready to retire. Then they become poor in spirit because all of a sudden they're looking at that and it's replacing another check in and they're coming in to see me and I'm always testing them because I want people to be really paying attention to the stuff I'm recommending I don't you know one people just researching I want them to. This is serious stuff I think about you might be 30 or 40 years old listing and thinking lessons have to do with me what I wish I'd known what I know when my mother was making a selection because she didn't know live as well as my father did an engine of my parents were divorced and and I really had no understanding of what she was doing with Medicare. Medicare supplements nothing what she was doing Social Security so by coming into a show like this and Sanjiv McNutt. I am points for II don't know what what I don't know Jesus show me what it is that that that you want to teach me the way you can do that is cargo that's what bringing it to Sharon today if it's brought you by Cardinal If you go to Cardinal you look at the seven worries tab which we hope and you don't worry that you have faith, but you're one of the ways in Social Security which is what were talking about today and there's all sorts of helpful information extremely accurate charts on ways to met help you have the right options in making this decision because it isn't a cookie-cutter approach thing by any means. Women talk about spousal support. A lot of things but you can download that chapter for free at the seven worries Seven worries tab or you can just email Hansson and get the book and of the center of listen, I'll send you the book. Both books note no charge. You do this and you get them on Amazon if you really know if you're one of these people that want to stay anonymous and I respect that and it's for sale. This is inexpensive himself so would like to get you the information regardless and you know Social Security, it meant something. His just can't, come to me that full retirement age is now 66. It used to be 65 but that's the age that you are targeted to start your Social Security and when you get reading this article, or you just listen to a lot of people talking their thinking that full retirement age is 62 because that's the earliest you can take Social Security but that's actually four years before full retirement age so I think part of this may be our thinking is because people know you can started 62. They start targeting that is a retirement date in their mind and then they just take it when in reality we need to take 66 and we need to say that that's the age where I can get my full benefit if I started before then. I'm reducing it and I'm reducing it for the rest of my life and not just producing it for yourself and in the case which will talk about the other side of the break now for our spouse that that adds a whole different part of the equation. It has to do with the options of that so much more finishing well with today show, though I take my social Hansson 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 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 Tom to schedule a live recording of finishing well at your church Christian or civic group. Contact Tom to Cardinal that's Cardinal welcome back to finishing well is certified financial minor child today show is when do I take my Social Security Saudi symbol seems simple, but you never talk about. Blessed are the poor in spirit that wow there might be a lot I need to learn here that you know with the glasses completely fall in the important information in here but it turns out that the more I'm poor in spirit on the idea window.

I take my so security, the more there is to learn and the mortar considered in order to have options and you know I love what you do or say and right before the break Hans that you know it has to do with us targeting you know we targeting that were wait and teller 62. Are we targeting that in my case right it's it's 66 and four months. You know is your full retirement is my full retirement known by the waiver and talk about that to say that's news to a lot of people that are that age. Some people have researched and they know differently because they do a little bit of research so they know that it's different than 65.

But I'm telling you there's a lot of people even some that of research there, to me for retirement planning, and that's that's news that that it's 66 and four months and by the way it was set into place with this for you because your jury agent. It's going to be as high as 67 for the people born in 1964). You know, in Marion lies kind of what the target is because anytime you take anything before your 66 at your full retirement age is where you get what your Social Security was intended to be and if you take it sooner than that your essentially taken apparently with your articular penalty. And here's the deal is that these same people that don't know full retirement age. They all know 62 people know that across the board. You can start your Social Security at 62. Most of them don't know the ramifications of that or they think they get a little hit or whatever, so my thinking is we need to shift our mindset as people that are listed to me for advice that really go to full retirement age and that that's the age that the Social Security Administration say we targeting this whole thing based on your income. That's when your the earliest that you should think about retiring now if were going to do it. Short of that server to retire at 6463 then written after really calculate and no before we started what that's gonna cost us over a lifetime and really take a look at it and consider some alternatives to level which you know those are options are actually quite pleasant to me to figure out how God would want to finish. Well, perhaps to take a job in order to get you through to be able to hold off on that to improve because as we're talking right right before the break.

In my case, you know, I really want make sure that Tammy gets my full and in by waiting till I'm 78 since she significantly younger than me know she'll be able to get that larger benefit long after I'm gone.

I hope I get the same plan. You know, as long as God agrees with my plan know don't start until 70. Then at that time Ron will be 69. She's not a lot younger than me a little bit younger and then if I don't make it the 80 year in the vibe mid 80s or whatever it is pretty good chance she's going to live up in your midnight sky and aunt 98. She still kick just as he stalked her the other night and her mother just passed away a year ago when her her 90s and into the spring a chance she's gonna live a long time, and from the time I die till the end of her life.

She's going to get my full delayed amount that's for me can be over somewhere between four and five grand a month and then it's inflation-adjusted so it's can be even more than that and I got a plan is can be tax-free in our deal so you know it just it just it it it if you can delay it and you can work out a plan to do it. You know you can make all those numbers turn in your favor for your retirement. That's hundred and $10,000 and you get the options that we were talking about which you can invest more, that in the kingdom.

I'm now with they don't talk about in the article is taxes in your Social Security so a lot of folks don't really get that you have for taxes and Social Security so it's not tax-free.

You never have to pay taxes on all but you don't pay taxes on some of and the amount that you pay in taxes on your Social Security is calculated by your other income. So if you have other income that you need to live off of taxable income, then not only can have to pay tax on that other income you're going to have to pay taxes on your Social Security based upon how big that other income. It so the answer to that is, Roth IRAs and Roth conversions. My plan is by 70 to have all my IRA converted over to a Roth and that way I'm going to be able to pull money out of their tax-free for an income and then my Social Security stay tax-free. I didn't really sad you know and and I'm certainly thankful for. People have large resources and able to do all that.

The really sad part for me is those friends I have that I talked about that took the day they turn 62. Most of them are working to and then they realize oh my goodness, I'm paying tax on top of my domicile, security, and you know it that's end of taken a whop in part out of what I thought I was getting in and it just didn't know that and that's not even included in the hundred 10,000 rise that extra taxes that you pay for the giveback of the Social Security on the amounts over 17,000 year from 62 to full retirement age listed a certified financial planner Honshu Island are show is again finishing well which is based on the book complete cardinal guy to planning for and living in retirement and its accompanying workbook which is available. Derek cardinal but is also the PDF of both the book and the workbook are they are of the seven worries tab of Social Security today one of those stories in your book I think is significant about a man who should wait until he was 17 he was really wealthy and an end. But in his case he overlooked because he wasn't corn spirit he thought he knew what he is doing by weight and 70 yet so he was a 66-year-old when we met in Rome is unique about him as he had a 17-year-old son Woody didn't know by delaying his Social Security and living off his other resources.

He wasn't able to file for that dependent child under 18 or child in high school because actually when he gets over 18 sizes in high school still gets a check form. The check was for half of his Social Security check. So we discovered this we going to file Social Security right away.

Change his plan of delaying and then he collected for about a year and 1/2 two years check and 1/2 and by the time you put all that together, it wasn't worth waiting and so the as the article says there is not a cookie-cutter approach all actuarial tables in the world isn't you with your family with your medical history with your work history or other opportunities that you may sure one of things I want to point out since we have just a little bit here is is something really cool that's going on this week we've got people all over the United States. Listening to finishing well and there picking it up off of the podcast apps and frankly I don't really know exactly why this is happening, we would like to think that perhaps it's a valuable show to people that we were not paying any money in advertising to create that but what I find really cool is which is getting called in with the book as well on in the books been out for a couple three years on Amazon and we have people in Hawaii in California and just all over the place. We have a client missionaries in a rack got hold of the book on the Kindle and the movie back to the states and anyhow we did planning for them but one of the questions.

All these people have is that do you do planning for me out here in Oregon or Reno wherever in the answer is yes.

I mean we are licensed in all 50 states and what I will tell you is how satisfied they are is that they decided to reach out to us and some of the people that reach out to us just reach out to those get the information and they find somebody local in Minnesota China really want to talk into that but I think about the other day is is that you only have to give up one thing which is of face-to-face interaction and what you get for that is your opening up a whole world of options were were completely independent.

We represent most of the insurance companies and all the lines that we handle.

We represent most of the investment products Roth IRA planning is not about something priority conversions is really not about something reselling you. It's just about planning out a strategy tax planning the same way and so just wanted to point out to people is that if you give up that face-to-face you just open up a tremendous amount of options not only options for products but experience is by doing this on the phone is 20 of us altogether, working out of the same place and if one of my young associates is not familiar with whatever expertise they need.

I'm just down the hall and I do that all day long so it is just kinda cool to me.

Serving people all over the country and having people that are drawn in to call us and want the services that are picking up on the show and then when I also know for every person that calls us. There's probably 50 others that we affected positively because we got thousands of downloads that people are learning things in by listening to the show design and one of the cool things about the podcast which speak to for second is that you can if you got a smart iPhone you can just say hey Siri play the finishing well podcast and it'll come right up on your phone and then you can do what I call binge listening so you know you got a long trip to Atlanta. Are you going somewhere and you can listen to 1020 episodes and and and just think about it you begin quite an education is important spirit on all the subjects of Social Security and taxes and Medicare all the things we talk about every week that there is a heck of an opportunity by just telling Siri out a list of the finishing well podcast and then binge listen to, you know you hear what you're hoping to learn about as well that party life that's really flattering unit would be great if you call us up and do business with us in user services but it's also great if you just learn something that made your situation better than that. It advances the king sure has is you're able to give more to the kingdom for people that didn't make the choices work for other ways that you mean aren't giving inheritance your family are putting you met them in a position to be able to get to the kingdom you know all those things are treasure in heaven. We have you know what we all are no is way more important than investing in witches in a wide I love to show consent.

Eventually, you know that's that's what truly counts is if we could really be poor in spirit and in learn more that we have got there in front of the saucier to forgive our sins and those kind of thing so we want to thank you for listening to this episode and hopefully you got from this out when you should take your so security but I would say that there is that link their cardinal or you can call Hans and look at your individual situation with your wife and her age and know when she can go on Medicare. All those things enter into a right Hans, this is not a cookie-cutter deal. What other resources you have with you, Ross regular IRAs work in income we can create from there I can see all the charts in the world but man I'm excited about actually put in my personal information in the Hansson's hands and and getting a customized thing based on what my family share. So it's all there again cardinal we want. Thank you for listen. Thanks. We hope you enjoyed finishing well brought you by cardinal visit 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 ponds best-selling book, the complete cardinal guy to planning for and living in retirement and the workbook once again for dozens of free resources past shows when you get Hans book go to 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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