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Social Insecurity: Social Security Rumors

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

Social Insecurity: Social Security Rumors

Finishing Well / Hans Scheil

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June 8, 2019 8:30 am

In Matthew, Jesus gives His sermon on the mount and asks His followers not to worry, as their faith will replace their fear. Social Security strikes fear in many people, especially regarding how long it will be around. This week, Hans and Robby discuss how  to apply faith, or in this case fact, to Social Security, in order to alleviate fears and maximize your benefit.

The Social Security 2018 Trustees Report was recently released. While this report is very long, Hans summarizes it, basically saying that the Social Security fund was increased by millions of dollars this year, they did not have to dip into reserves. A lot of this money comes from Social Security benefits that are paid out and then taxed. That money goes back into the fund. While there are strategies to put into place so that you do not have to pay taxes on your Social Security benefit, including Roth IRAs, there are still many people who do pay taxes on this money. This alone gives Hans faith that Social Security will be around for a while, no matter what people are saying.

Robby relates this to Ephesians 6, where Paul talks about the Shield of Faith. At the time Ephesians was written, shields were used to protect fellow soldiers in addition to the soldier himself. Shields were essential because they protected the team. The Shield of Faith should be applied to Social Security. If your faith waivers in Social Security, it could cause people around you to worry about Social Security too. Of course, Social Security does leave some areas of worry. Hans talks about not mixing legitimate Social Security worries with worries not based in truth.  

Next up, Hans and Robby discuss Social Security timing. You can start Social Security as young as 62, however you may not want to start it until you either need it or reach full retirement age . Even if you’ve already started Social Security early, there are strategies you can use in order to stop the payments and wait until your full retirement age. You can get the largest Social Security check if you wait until age 70, the latest age to take Social Security.

Your spousal situation affects your Social security check as well, even if you are divorced or widowed. What happens when one spouse dies? Hans talks about how the survivor gets to keep the larger of the two checks, but one check still goes away. Life insurance can be a good way to make up for the difference.

Long-Term care is also affected by Social Security, as it is the first place your family will get the money to pay the bill. It is important to not solely rely on Social Security to pay this bill though, as it will usually cover only a small part.  

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

You can contact Hans and Cardinal by emailing hans@cardinalguide.com or calling 919-535-8261. Learn more at CardinalGuide.com.

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You're listening to the Truth Network and TruthNetwork.com. 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 with finishing well. Oh, what a journey we are taking today finishing well with certified planner upon Schild today show social security what Robbie social insecurity well if Satan had his way, you might know he's all about getting you to worry. I mean, and Jesus you know clearly sermon on the Mark who could forget these lines reset. I say to you is pretty clear. Don't worry about your life what you eat what you drink your body, or what you wear.

Isn't life more than food and the body more than clothing in an I'm sure many of you listening know you know that what Jesus was getting at is faith replaces fear and do you have faith that God's given me things work out well yeah interestingly, this week my good friend, certified financial financial planner fiduciary exquisite. There he sends me the prep for this week, so it's like okay Robbie, I want you to read this what you call it Hans it's the Social Security trustees report the semiannual report, the Social Security trustees annual report. This little bitty document I made 280 280 N. talk about Robbie Delmore here you're going to read this this this report that he was there two things going for number one. He's never sent me anything to read that wasn't worth reading and number two he said don't read the entire document discs agreed parts of the executive summary, which fortunately you know wasn't all that believe me, it was very invigorating read, hotel, motel, much as I was read that thing I was blown away to find out that simply put Social Security did not go backwards in 2019.

In fact, it went forward $3 billion number as they were projecting that it was going to dip into the trust fund, which is a crazy amount of money I can even quote that one minor corrections 2018 that the reporting line now and 2019 the go-ahead right there. Looking back for gang 2018 but they added to this trust fund that supposedly was Kennedy coming down but the scholarship that went into all their projections and all their work to look at San Bauer not to dip into the trust fund may be till 2020.

But that the trust fund is essentially a reserve.

It's way more than what they're taking in taxes, but the net result of this was I was like, man. I'm proud to be American.

These people really coming there brilliant and they do for nominal amounts of homework and they studied this like crazy and if you read that first page yourself, whoever I don't think you would be one bit insecure about Social Security you know in the next 20 years. As I mean, it's clear that there are lots of ways that money comes into that one of the neat ways I thought Hans. Not that I like taxes but I think it's kinda interesting that the taxes that people pay while they continue to work and still collect Social Security those taxes go back into Social Security to help the assistants to continuing to work if you're 80 years old and you're retired and you still have an other income besides your Social Security is 7080 90 grand a year you know now you pay taxes on the other income but that drives how much tax you pay on your Social Security and so I look upon that is a financial planner. I want that's a bad thing. I want to try to reduce people's taxes.

But in the scheme of things within Social Security.

That money makes his way back into the trust fund and as we were looking there last year in 2018. That was $34.5 billion. So in taxes. The federal government collected on Social Security checks when they collect that tax. They put that money back into the trust and then they earned on the trust fund, they earn almost $81 billion of interest.

So on the bonds that are there. The treasury bonds that there's almost 3 trillion they earned $80.7 billion and that goes back in the dressing you might be saying right now Robbie why are you telling me that here's what my thoughts of little bit I know on shares this and plus probably a lot more because he's been studying a lot more years but you know the shield of faith right it did you've read the full armor in Ephesians 6 and ended.

You know, in the days when Paul was there shield was a huge deal. In fact, a in elephant Spartan mother would tell her to do what he went out to war you need to come back with you shield her on it other words, you don't lose your shield and why is that why would they say that the reason they said that is because your shield was protection for the guy next to you see your your your sword and whatever was how you known to carry yourself, but your shield is how you protect the team know that's good. It's a team sport. This war stuff is so in your faith, your shield of social insecurity you when you begin to think that wow are going to run out of money and while there is not to be enough this you drop your shield and of faith in God, right, he's not Kabila take care of me and when you do that it causes your neighbor to drop their shield and so people come to you. I know they have answered also securities it right closer and it causes us to drop our shield of faith. People tell me that on their way in his clients as we can send to retirement plan.

Figure out the retire so much a given Social Security how much is in their 401(k) or IRA. How much can we pull out of that which taxes pay for this whole plan together and I'm relying on that Social Security and then I'm trying to make the taxes as small as possible and that and then I get a lot of folks say well I will you know can really count on that unthinkable you know if I really take you seriously on that that unskilled need to cross that out working a plan like this and I can be there. People get this because it's not even so much from the news media.

But somebody gets it from the news media is really from their friend, who's watching those news reports that heard it from someone else and they just kinda develop this common knowledge. This whole things going broke.

You can't trust that you can't rely on it and that's why I read this report not to come and report on and there's plenty of people doing that. It's really so I know is there any truth in this is that you know what these people are telling me you know can I look at them squarely and say well you know the truth is really somewhere in the middle and some of what you're saying has some accuracy.

There's some areas for concerning here were not trying to say this is all necessarily hundred percent beautiful, they would be coming out of the report, but what I tell you implicitly, 63, and in whatever time they thought that the trust fund might possibly know that their projections would show that the trust fund would happen to where it was know you know that the trust had no more reserve they have no more reserve. But the thing I just didn't understand is, wait a minute, there's no more reserve there still taking in all this money from payroll taxes they're still taking in this other taxes. The tapping on Social Security and so at the point that what I thought was Armageddon at 2035, which by the way, I'll be 80 and they push that off, you know what two years or one year that with this report that wasn't brilliantly 30s and replying that they do nothing by her small this this makes a couple sums number one that the government and the whole society does nothing to change this or to improve care to improve the trust as number one, which I think or do something that only get into that today. The second thing is, this makes the assumption that these smart people that all their assumptions come true.

I guess you could make one case it could be worse than this me maybe maybe they've projected this and it could be 2031 but it but it could also be 2039 or they could do something so that he just moves this date out further in, there's always some day were the trust funds and run out of money. But the thing that became just clear to me as well. Robbie, you know any doubt I ever had really that I would not get back more than I put into Social Security manner based on what I saw that there gonna do with what I put in. I'm like this is a miracle.

I mean this this this is going to pay my family.

Even if I die, you know this. This is a set of substantial social security. It's exactly what it was. It was built to be an you know I am really looking forward to, you know, that kind of security and that along with other ways that you can plan for your future and and therein lies the opportunity course soon so really what we want you to get from this and were going to talk more about what you can do about Social Security in the second part of the show what we want you to get from this is just. That doesn't believe everything you hear. Don't blanch on. It's easy to latch on to negative advice. No fear mongers stuff and I mean you just listen you just how they know that the government's gonna run out of money. Others not can be anything, or you come to hear that there spend in this trust fund on other projects besides Social Security. This is nonsense. We are talking today. Obviously about Social Security and not social insecurity were hoping that by listening to the show that you can see that a number one you have Social Security not because of US government because God obviously in Jesus. This is going to provide for you, but there is also a lot of fellow Christians and other people out there working hard to keep this stuff up and if you want to find out more about it.

You go to Cardinal guy. Don't forget the guide after the Cardinal.com you look at the seven worries tapped today's on Social Security and much of the stuff I originally learned about the security and Social Security are ER in your book count go you and will the book you can download the chapters for free of the book in the workbook.

If you send us a message on the website or send me an email. I'll be happy to send me your address I'll send you a copy of the book charge in the second part of the show were going to give you some of this information that's in the book and really what will be a little more useful than some of the stuff were talking about here in the beginning we just wanted to kind of extinguish some wanted to raise the shield of faith, not it it it goes way beyond Social Security. Did you know God's got this. He really does compass chairman and you are way more important than the birds of the air that cost so we were hoping that will all raise our shield of faith as we come back we want you to think now I can't get into Walmart again to do whatever go Cardinal guy.com and you can list the podcast). If you got iPhone you could say Siri play for me the last finishing well podcast and it'll arrive there even your Alexa at home finishing well is the name of the fund as a certified financial planner and on child we come back more on social security/Hans and I would love to take our show on the road to your church and 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 guy.com and contact Tom to schedule a live recording of finishing well at your church Christian or civic group.

Contact Tom to Cardinal guy.com that's Cardinal guide.com welcome back to finishing well today show with her tongue in her cheek just a little bit social insecurity don't want you to have any of that. It didn't want you to see that God right has your back in and he doesn't want you to worry Susan very clearly but you know part of that. It is enough trying to understand how am I going to finish well and in a big part of that in the planning for finishing well is for everybody that's a huge amount of money of of what I would look at in my planning for retirement will be my so security check, which by the way, wasn't you know welfare in any way shape or form. Did you have any idea what that was before we ran your first report that no one really is in being, which are decisions and so so in the second part of the show here.

We just want to talk about okay so what do you need to concern yourself about Social Security and the first thing is like when do I start, and you can started as early as 62, but you don't want to started at 62.

If you still work because you can end up given some of the back or maybe all you been hard at 34 million is gone back and you know it's tragic.

Const is a meet so many of my contemporaries and other my age people and and you know I'll say when you take your 60 I started a year ago. And these people work and and you just want to go wow and and I really didn't get good advice and it was just it was too easy. I had more clients that I've talked out of this thing where I was lucky enough to get them in before they could take it earlier before they took the plunge number to an interesting point have a client that did exactly that of the spouse and then they came in to see us about six months and that and showed him for Social Security. You can you can pay Social Security back the money within one year. If you pay them back the money you can cancel out your starting like it never start so you can actually fix a mistake with them.

You can started as early as 62. You really don't want to started before your full retirement age, unless you have to. So if you're not working and you just need the money or you did early retirement and you just want the money and you fully understand what it's costing you, or possibly if you're sick and you don't have a survivor depending upon it, and you don't have a long life expectancy and you just say look I want to started and bird in the hand is better than two in the bush.

There's all kinds of reasons started early.

Okay, but what I like to do is is could get into see somebody like me that you know contending just give you some feedback and make sure that you're doing the right thing but for most of us. It's better to wait at least until a full retirement age, which for the people return right now it's 66 is full retirement age and its growing to 67. By the time the people born in 1960 or after full retirement age is 67, so is somewhere between 66 and 67, and at that point. If you're still working like a lot of people are.

You can go ahead and take your Social Security you take a full Social Security amount and you don't have to give any of it back because you still work okay. But if you're still working then or if you have other resources, you may decide to wait till your 70 to collect because it'll just go up and up and up and up and you'll get by starting at age 70.

You can get the largest check that you could get and you can get that larger check for the rest your life and beautifully from my perspective is that your spouse in our case, in a my check will be significantly larger than Tammy's and so you know after I'm gone she could she'll go down to one check that you have your check at that check will be significantly larger because I waited till I was seven and since Tammy's much younger than me know it to change. It's not for you folks is not just the same for everybody. Don't be going by what your brother told your some guy down at work. You really need to look at this for yourself. And we do that type of work were we do financial planning retirement planning for people and we start with Social Security as the first content chapter in the book the end if you want to read the book we know we we told you earlier this chapter and I got it open right now to page 12 and it this is the first point that it makes in the summary as is the.

The answer to the question of when do I start lies somewhere between 62 and 70 and it's different for everybody. It's also dependent upon your spouse so when I can get into that today and a bunch of but it's just any could even be your deceased spouse.

It could be your divorced spouse.

If you were married for 10 years or more and you didn't remarry before 60 you can collect benefits, even if they're still living off of your divorced spouse earnings record so they'll tell you some of that down the Social Security office, but we know we do a lot of work and we study this stuff just like the Social Security report so we don't know everything about it but we know a lot so yeah and it's an integral part of you knowing you said many times that all this stuff comes up together we look at the seven worries tab and eight Social Security zip a big part of the building blocks so to speak of figuring out you know taxation. The big part of figuring out how you afford long-term care and people usually come to us about is they want to know how they can spend their retirement savings over their lifetime. In the course. None of us no longer live. May we can guess within the concern was that is what if I outlive my money or if I start spending it in my 60s or even my early set in mid 70s and then I spend too much or I have market losses or some other type of loss and then I'm 85 and I've spent all my savings and then I'm just having to live on Social Security alone so there's a there's a there's a science to this where suburban take your Social Security check. That's the base level and so if that's all you got and I could pay any income taxes then you can make a little bit beyond that and you knock and paying income taxes on your Social Security. There's a threshold you can make oatmeal Fairmount and then you're not to pay much taxes on that society has Social Security plus an income of little bit I'm saying like, 10, 15, $20,000 in addition to the Social Security.

They're going to be at a very low tax are almost no tax. Then you start climbing from their in taxable income like interest income, investment income, pension income, you may be doing some part-time work and you start stacking that up. Now you can get higher and higher tax brackets in retirement and it's can circle back in Texas taxi Social Security so you know when we're when word doing financial planning retirement planning for folks we start with the Social Security and then one of our first goals is to try's pay as little taxes we can on that Social Security and we do that by how the people distribute money to themselves and so this is were Roth IRAs coming really nice is if you don't already have one. We can consider a conversion depending upon how old you are and which to a Roth IRA conversion. Ross will love junk money income to you tax free, so it won't count is taxation under Social Security so there's all kinds of maneuvers that we can get into in planning, but it all tracks backed Social Security Frank and the cool thing is that as we wait, and of the kind of the thing keeps going up. I mean it in the end that the idea of an annuity, the constant, like you say were you done outlive your money. That's what annuities RMS with Social Security is my never would have known that in a million years that I not had a chance to sit on the show several times to realize Laos also stirred Social Security. This tremendous amount of money I'm in a beginning and when I begin to take it is going to be at the hands of annuities so wow if there other ideas as far as annuity investments that they seem to make a lot of sense to make can outlive well yeah Mises no matter how you get are you spouse does is conveys money coming in now.

Do you know what happens when there's two Social Security checks in the household and then one of the spouses dies some tubular quiz here. I did you get the larger of the two. So the survivor gets the larger of the two checks so you know again if my wife were to die, I would still get my check as it would be the larger Tammy which again that the statement which is easy to get.

I did know how easy to get. I really was worried about clinic government website. It was another project I sense and left the project for it was actually not only easy but delightful to see you know what all was involved in that and how what data records they tipped over the years and exactly you know projected what all it would be. And there's ways to actually increase your your payout it later in life aren't there months or cheer and we yeah so you got to Social Security checks, husband-and-wife, and then one of the smaller ones going to go away when the first one dies and that's another thing we gotta look at in estate planning. So we gotta decide how long is it like in my wife's she's gonna need some life insurance because her checks can go away or if she dies, you know, first, I'm in a need some life insurance to replace her track because I'm so dependent on Xhosa where the long-term care implications of Social Security and those are, and we have that in every chapter of the book we take a look at how does long-term care affect this area and what it really boils down to is that's the first checker, the first money we used to pay the assisted living sedative we have to transfer an old person older person into assisted living in the villas 6000 a month and they got a Social Security check of 2000.

That's the first money I mean got to thousand of it. We just go take a Social Security check and send okay that's kinda concerning, but especially if the survivors depending upon that Jack. But I mean that's generally what happens and then we gotta come up with the other four grandma savings every month so you know I just the point I'm making here in the on page 12 in the book is is that don't rely on the Social Security office to make an appointment down there and get in there and ask that person. All the questions you can to get correct information from them but it's not you know, based upon your interests okay. It may go ahead and do that but you know I'm just suggesting that a person if they haven't made the selections yet that they consult somebody with like me that he is a financial planner that could could could really give them some advice in light of everything else that they have is not involved. So for more information. Of course you can go to Cardinal guy forget the guide. After Cardinal.com or go to their website Cardinal guy.com and and download the book if the seven were stabbed or just email Hans to get the book. The course more information on the lots and lots of podcasts on his radio show like we've done maybe 10 shows on Social Security so much information available and you know were praying that through your understanding of this that you have more security to be able to raise your shield of faith in the next time somebody comes to you and says eight that things run out of money we got in a minute claimant. Have you read the annual report to flip this way it affects. We hope you enjoyed finishing well brought you by Cardinal guy.com visit Cardinal guy.com for free downloads of the show 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 to planning for and living in retirement and the workbook once again for dozens of free resources past shows what you get. Hans book go to Cardinal guy.com 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 guy.com Cardinal guy.com


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