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Social Security Changes for Workers

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
December 15, 2020 7:03 am

Social Security Changes for Workers

MoneyWise / Rob West and Steve Moore

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December 15, 2020 7:03 am

Millions of Americans who are currently receiving Social Security benefits are actually still working. It’s true, you can receive benefits without totally retiring. But big changes may be coming for the workers who do. On the next MoneyWise Live, hosts Rob West and Steve Moore have the details about some new benefit rules.  Social Security changes for workers on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.

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It's probably no surprise that nearly 70 million Americans receive Social Security benefits. What you may not realize is that millions of them are still working retirement benefits without actually tiring for those people. Changes may coming advisors Pres. Rob West has your calls at 800-525-7000 800-525-7000 four Social Security changes for workers next on moneywise is folks receiving Social Security benefits but who are still working and folks will expect you in the near future is at right that's right Stephen, we should say these are expected changes but not all of them are carved in stone just yet. Okay, it's good to know right so what do you think we can expect while the first expectation is a change in what's called retirement earnings test exemption limits. That's a long name for a simple concept how much you can earn without having your Social Security benefits reduced in 2020.

If you weren't at full retirement age but elected to start receiving benefits you are allowed to earn up to $18,240 before benefit reductions kick then if you made more than that for every two dollars you earned one dollar was withheld from your benefits. Here's what the change comes in Ada and it's a slight improvement if you elect to receive benefits in 2021, but haven't reached full retirement age, you will be allowed to earn up to 18,960 without having your benefits reduced okay will that's an improvement.

Not much but still an improvement over why do you suppose the SSA penalizes you for continuing to work and I think the obvious answer is to discourage folks from taking their benefits early in the years between 62 and full retirement age, which is now 66 or 67. But we should point out that you don't permanently lose the money taken from your benefits.

It's reimbursed you over time in the form of higher benefits after you reach full retirement age. Good to know what about folks who do wait until their full retirement age will that's exit word gets a little trickier, but this is for a fairly small number of people. Let's say you elect to start receiving benefits in 2021, but you won't reach full retirement age until sometime later in the year will you be allowed to earn up to $50,520 before your benefits are reduced.

That's about a $1000 increase. Then, for every three dollars you earn above that amount. Your benefits are reduced by a dollar, but again only temporarily. You will recoup those losses later okay but let's say wait until full retirement age before receiving benefits. Any changes there. Thankfully, no, I want you reach full retirement age but continue to work the earnings test no longer applies and that you can earn any amount without having your benefits reduced okay. I am so far this is all good news.

So why do I feel like Heather she was about to drop what you're right, it's not all good news. If you recall as a part of the coronavirus relief effort. A Pres. Trump signed an executive order earlier this year temporarily deferring Social Security or FICA taxes from September 1 to December 31. That's a tax of 12.4% on payrolls roughly half of which is paid by employers. The other half by workers well with that tax-deferred. Most workers essentially got a raise but the key word here is deferred without Congress. That's all the president could do temporarily to further tax, essentially just kicking it down the road so this is where the other shoe drops. That's right now.

Not all states and businesses opted to take the tax deferral about an awful lot dead and millions of Americans receive that temporary raise. So in 2021, two things will happen. Steve first, the deferment ends so the 12.4% FICA tax will once again be taken from Paychex but that's not all, of deferred tax during those four months will have to be repaid into the system. It's not clear how the Social Security system will do that and it will probably be taken back incrementally over time, not a lump sum but at least as the law stands now it will have to be repaid so workers can expect their take-home. Actually, be reduced in 2021% yes back down to the amount they received before September 1 plus any additional temporary reduction until the deferred taxes are repaid that may come as a shock to many workers, but it will be even tougher on folks who are still working and receiving benefits relying on both to make ends meet.

So in the months ahead. Look for ways to cut spending. Abets you can stay on budget and not have happened in your great advice. Thanks for your calls next on any topic at all financial 800 557. Do you know if you have enough money of house. Do you know how much is enough. If not, one blue can help with this book. Master your money a step-by-step plan for experiencing financial contentment. Learn how to save and invest and give wisely create a long-term financial plan and how to get out of debt. Find it all in master your money by Ron blue available when you click the start button moneywise live to work. You have money in a retirement account for just a general investing.

You know, the stock market sometimes be possible to enjoy both profit and peace of mind and investing no matter what's happening. You can see a short video webinar on that topic. Sound mind investing.org since 1990 sound mind investing in stocks offer financial wisdom for living well sound mind investing.O RG okay raisins one cracker single almond wheel, but sometimes Christians view themselves spiritually same 11, and taken something of today and the word in Scripture and application.

The first topic wasn't available briefly, podcast or email all that were.org rest on the fellow rain went racing think maybe your mind is consumed in his new John Hassler helps readers to focus on the here and now you simply write publishers.com many people are experiencing financial challenges such as credit card debt downsizing that in jobs savings. In fact, more than half of all the courses are the result of financial pressures at home, but there's hope in your money counts biblical financial expert Howard shows that the Bible is a veritable managing your finances will discover the profound relationship with God, your money counts is available when you click the start button moneywise live today moneywise live this free on the first was the moneywise guys I can help you sell, giving, saving, infesting no generosity, buying, selling live or artificial give us a call will kick it around 800-525-7000 songs were there. Rob in the Rob West household is that is alive or artificial tree will always live yeah that's a big deal for us. You know, I prefer the young even though you have the needles dropping you just can't get past me that just smells amazing and always a Fraser for in the West household if at all possible. I like I like that Frazier based on the hand signals looks like producer Jim agrees Jim as a Fraser guy you can tell by looking at him now. Maybe just needs to shave. Nonetheless, 800 800-525-7000. Let us know what your tree choices if you care to Chattanooga, Tennessee Tito, thanks for holding my friend it's on your mind today. Thank you for taking my call. Cruising radio station, I heard your comment about security. I am currently by and still working out planning on working for 65 and then tapping and Social Security would that be a wise move. Yeah, absolutely. You know if you have the option to continue to work on work as long as you can list the Lord redirect you somewhere else because if you waits until full retirement age 66 or 67. You can get the full retirement benefit, then every year Tito beyond full retirement age or to get an increase in that shack of 8% all the way up to age 70 and some folks ask ask well what about the money. I'm giving up while not collecting a check and obviously if you're in good health.

I keep in my life expectancy. When you reach age 65 increases to 83 and 84 for women and men respectively, and so time is on your side, the Lord Terry's eventually you'll recoup what you gave up without collecting through the higher check amount and then at some point you will be made whole and then you'll enjoy that higher check for the rest of your life. So I think it really just comes down to.

Do you need the money was God have for you in the season. Can you continue to work and if so, does it make sense to go and delay it and then collect that higher check moving forward. Okay perfect. Thank you so much for taking my call. Got bless you guys will think things think I'm calling in today and we pretty Tito. I've got to say this I don't have to say that I probably shouldn't say it but you sound like you 25 not 65 so what you know every time you really think just something special in your diet Tito is that what is it you eat or drink or don't. That they keep young and vibrant is a grapefruit juice. Is that what it is ever heard. There's something about grapefruit juice really what you know it's funny because people don't believe I'm 65, when I tell them that night talk on the phone thinking I play a lot of racket clean living, you know, being a God word decor and reading staying healthy is part in my diet and just you know life you know at this point is starting to make us feel bad about ourselves so we can let you know I'm sorry I would love your body would lead you, thanks very much. So he did so young that he did here at the right times wrong will and wouldn't have said anything but glad you didn't think he was the date your daughter something 800-525-7000 Grandview, Missouri hello John what you question for Rob West.

What's my call. My question is I almost 74 still working full time so I know my thoughts.

Not going to be read to that is our point of order. I'm making too much money and my so security is going to be taxed. Should I be looking at that and maybe cut back to part-time our district as much money as I can. Chips fall where they met. Yeah, you know, I mean taxes are symptomatic of provision right so I'd be grateful for the opportunity that you have to continue to work and earn as much as you can pay the taxes appropriately.

You will not be taxed on 50% of your benefits of your incomes between I think 25 and 34,000 for an individual and 32 to 44,000 for a married couple and then it goes up from there upwards of 85% when you get to know beyond that. But again, if you've got something you're doing that you really enjoy. The Lord has since I was the giving of the health to be able to do that.

I would say earn as much as you can pay the appropriate taxes and give generously and and Linda Hassler what he would have you to do with the rest are taking care of will make sure I understand this correctly .25 and 34, the rank I'm falling into. So 50% of my so security will be taxed at.

I'm not quite sure what right yeah it would just spend on what rated falls into based on how much you're earning. Said I would check with your CPA or tax preparer just to see for your specific situation, but based on that level I would expect up to 50% of your benefits to be treated as income and then you as you put all of your income together it would fall into various tax brackets. As you move up to the Pike.

It's good to be on the lower end. Given the numbers you're describing. But there will be some taxes doing just want to make sure that's not a surprise to you, John. We appreciate your phone call today sir, thank you very much. Sounds like you're really heading and moving in the right direction before the break, I think we have enough time for you to tell folks about the brand-new money wise app. That's my understanding, it continues to fly off the shelves. If we had shelves and shelves yeah but were delighted about. It's even glad you asked. It's the brand-new money wise app. We spent eight months our team here at moneywise media three full-time developers building what idling is the very best digital envelope system out there, you can connect all your institutions download your transactions. They automatically get filed in your various envelopes which you would set up yourself to mirror your spending plan and you know the envelope system deliver CAD and so many others have talked about for so many years I think is the most effective way to manage your money manager cash flow in your spending on a monthly basis will that's puts it all in the palm of your hand. With the digital approach and you can download it in the Apple App Store and the Google play store and by the way, in addition to the digital envelope system. There's all the moneywise episodes and are money wise app community which is where you can interact with others so I'll be in there periodically answer your questions, you can share ideas with each other so check it out.

Today is no cost to download it. You can find it again in your app store. Just search for moneywise biblical finance right sounds great. You are listening to moneywise live where were taking your calls today in any financial topic, so anything you might be wondering about dealing with. Let's kick it around. Let's talk about a let's see what God's word has to say about it can do that when you dial eight 525-7000 lines 800 557 a wrong turn when it comes to money. We all steer clear financial potholes magazine is all about helping you make money wise decision explicit articles to scare you in the right direction where free inspection is waiting for you. My wife got away #that is robbing you of freedom and peace of mind. Christian credit counselors can help where a nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt percent faster while honoring that data and phone to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors.or call 800-557-1985/ here's the click here dictionary biblical imagery is a fascinating back reaching a particular quote about Babylon the great, great is referring then to Revelation. In the revelation of all things we see what what began right back in Genesis chapter 11. Now in its culmination of Babylon the great, in the book of Revelation. This is what the quote says that a dictionary biblical imagery. Babylon the great represent human political, economic, and religious systems to craft materialism, godly living sovereignty of God. Great represent human political and religious systems devoted to craft materialism living sovereignty of God in contact Babylon can permeate the world system will know my way back to moneywise were sort of kind of celebrating Christmas moves closer and closer were calendars.

We hope you are as well. We hope you have most of your Christmas shopping done or at least started by no if you haven't, this would be a good time to start but not until today's program comes to an end.

So stay with us for the remainder of the hour. If you don't mind moneywise live a place where God's wisdom for your your finances is paramount and if we can help you with that. Feel free to give us a call 800-525-7000, Indianapolis, Indiana hello Steve, how can we help you today.

We did little close to yeah sounds like that's better. Steve got to unclear guerrilla here.

I like Stephen I think we don't have you during the handle will have to move to another line. Steve okay yeah maybe turn your radio down Steve here and now.

Yet excellent okay. My wife and I 2035 2030 we were getting closer like 10 years like retirement and with I know what conventional wisdom for, but with all that going on and not get into you with everything, but with COBIT. What happened with state court that going on and looking at possibly the recession coming.

We just didn't want to only 10 years left in retirement. This ER fund and I then take a while to recover. So basically I pulled the trigger today all markets or hoping for correction get back so I don't you like you check you guys about what your thoughts are. Yeah, you know, I can understand the concern and and Steve unfortunately that's not the approach I would've taken though and not that it's too late to see anytime you're in a retirement account to you don't have the tax consequences that you would normally have when you're making these kinds of changes but trying to time the market is just a losing proposition. Given the fact that you're in a 2030 fund meaning of fund that's really geared toward retirement in 2030, which is in effect will affect nine years away. You are already in a well diversified portfolio that was increasingly decreasing stock exposure and increasing bond exposure to become more and more conservative as the target date approaches, but keep in mind you still have it all. A quite a while here nearly 10 years before retirement.

The other thing to consider is you know when you you reach retirement age. Let's say that's 10 years from now and you begin converting these retirement assets into an income stream. You need to have them last for decades. It's not like you can use all the money on one day at retirement.

And so you know having a long view, even when you're 10 years or less from retirement is still appropriate. You know some people try to convert that to an income stream of let's say 4% that would be conventional wisdom where you would supplement what other income sources.

You have Social Security and pensions that kind of thing. But you would try to have some sort of growth component to the portfolio. Maybe 30 or 40% so that you wouldn't have to touch it in.

Where the market is down, but in the good years, which again when you're looking over 10 year periods, the market pretty much always performs pretty well, then that adds a bit of a growth kicker that allows you to get a return better than you would get if you are in straight fixed income or straight CDs or straight bonds so that over the long haul. You can, you know, and a little bit more return to the overall strategy. So there's always uncertainty them in this year. It's look like a pandemic in prior years. It's look like a financial crisis and gas. The crisis in oil embargoes and we could go through history in every decade has its own tumultuous euro crisis if you will, but that doesn't change the fact that we go back over the last hundred years and say what has been the very best place to build wealth.

Not trying to pick the top and the bottom of the you know the periods where it's going to go down and or it's going to go up just staying in over the long haul.

The very best place to build wealth with the diversified appropriate investment strategy is the stock and bond market and so I think as long as you're in that target date fund or your giving consideration to your retirement age in your investment allocation then conventional wisdom, and history and science and all of the research says stay the course. When you try to pick when the market is going to go down and then when you try to enter because you think the market is going to go up. It just doesn't work.

And that's what the data says so I prayerfully consider it your money year the steward of God's mice. You gotta make this decision to try make you feel bad about him just giving you my perspective, I prayerfully consider perhaps getting back in and doing it in a way again that has an appropriate allocation for your age and risk tolerance, and then stay the course because again once you reach retirement you're still going to need this money to be working for you. For decades, if the Lord Terry's and you have good health and Rob to evidence that if I'm asking the right question in the right way.

If I would've asked you Rob five or six years ago. Listen Rob if a global pandemic ever came around the bottom would drop out of the market completely right. I mean, so I should probably do something with my money because I were talking about a global pandemic and just about every country in the world everything would go right through the floor right you might've said yeah I probably would temporarily and it did right. Never had the fastest set up their market in history down to 30% plus in just a very short period of time, but then it came roaring back in those people who at that point said we you know what this is never coming back and it's getting a lot worse before get better gets better will they missed the fastest rise to a bull market in the district is well so yeah it's always better to stay the course, so long as you're not taking an inordinate amount of risk in your investment strategy is appropriate for your age you and if you made what you think may be a incorrect move as long as you are trying to find God's will and God's plan for your life. Don't worry about guys like to be mad with you he's capable of. Bring your money back to wherever it needs to be.

After all, God says, have your faith in your trust in me and I will meet your needs and that this is moneywise line 800-5257 Christian healthcare ministries enables believers to show love for one another by sharing each other's health costs through CHN's voluntary health cost-sharing programs members uplift each other spiritually and financially.

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How should we as Christians think about investing. What if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very practice of investing we design investments for performance and a better world so you can invest for the future with a sense of wholeness and purpose. We call this investing that makes the world rejoice. More information is available@investeventide.com. How do you reach people who call themselves Christian but don't know Jesus find out by reading the unsaved Christian Dean, and Sarah was a cultural Christian today.

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You'll find jobs online jobs.jobs.org theory. I need some help. Sometimes I feel like I can't get a handle on my money.

I mean where is a no go. It sounds like you need to moneywise help you plan your content and track your spending three dollars you spend every morning on coffee every morning and get access to free difficult financial advice sounds awesome. Let's do it. Okay, searching for moneywise any abstract drawings Senate Majority Leader Mitch McConnell has acknowledged for the first time that Joe Biden has been elected president, Micah's remarks on the Senate floor today.

The day after the electoral college. Affirm Biden's victory. This comes after state and federal courts around the country have rejected cases filed by Pres. Trump alleging fraud hundreds more US hospitals gearing up to vaccinate their workers and federal health officials arguing a second covert, 19 shot about 400 hospitals and other healthcare facilities will be getting the first shipments of Pfizer vaccine today starts closing broadly. Hiram Wall Street breaking aboard a losing streak for the S&P 500 measurable company stocks at a record high, as did the NASDAQ composite NASDAQ up 155 points today.

The Dow gained 337 this is SRA news today and left ahead today 525-7000 Chicago, Illinois hello being what you question for Rob online yeah you know it's it's consistently listed B is one of the best high-yield online savings accounts. I checked periodically nerd wallet kind of a silly name, but very helpful website nerd wallet.com that's one of the sites that the ranks these particular savings entities online and another would be bank rate.com but American Express typically ranks up among the highest ugly right now, they're offering about .6% so little more than half of a percent on their savings balances, so no fees or minimum balances, which is always a good thing and that's slightly higher than than typical unit with a lot of the online banks. Right now they're down at .5%, so half a point so I wouldn't have any problem with that. The only downside my understanding is there's no mobile app to manage your savings accounts and that's important you you want to check that. But that may exit be a plus by making it just slightly more difficult to get access to your funds but clearly you can link it up to your checking account move money back and forth on their website but yet I wouldn't have a problem with AMEX be.

I think the key is to look for someplace again. You're not in the pain he fees, no minimums and there to give you a little better rate of interest than you get from a brick-and-mortar bank be thank you very much. New Galilee Pennsylvania, no DNA, Dean, where is new Galilee Pennsylvania about oh well.

Love never have given through the area few times I've never seen it, but how very biblical. How can we help you to thank you for taking my call. Mary Christmas question. I didn't like his answer somehow think that I like better nine years old. I am a nurse job for 15 years. My body and I have a lot of fine.

Everything's wanting to job the last maybe when I'm thinking to current job that enabled me to get around the last couple weeks working sure how that would play into ultimately my benefit for retirement because I will make less money.

I can't make what I'm making now without being a nurse. I've been out of the clinic long enough that I don't feel like I be qualified to go back to walk around at the hospital I got like my skills are are up to par yeah, we'll see if I can do better than a couple of thoughts needing number one is yes, there is the financial side of this. But then there's the nonfinancial side as well, which is the impact on you physically and otherwise in terms of staying in this job. So let's start with the financial side, yeah. It's certainly true that if you recognize that your Social Security is based on your highest 30 years of earning typically what happens is you know.

Toward the end of your working years. You're earning you know the top end of what your compensation has been throughout the rest of your life and therefore your replacing some of those earlier years when you made last. And so, the extent to which your income drops. That means you're no longer offsetting some of those lower years with higher paying years because in the final years of your working life. You don't have that maximum income that's there but it would be interesting for you to reach out to the Social Security ministration just to find out how much impact that would make because you may decide that because of the nonfinancial side of this equation, the impact on you physically and emotionally and otherwise. You know, the impact is minimal enough that you say it's not worth it so they could very easily and there there doing virtual meetings right now. They could very easily take your estimated income in your replacement job if you will plug that in to basically what you've earned to this point and run that calculator out and tell you what the impact would be in terms of your monthly benefit.

And again, you may decide that it's just negligible and you'd like to go and make a change. I think the other thing worth exploring in this may not be an option you you probably Artie looked into this if it's possible at all, but I would just say, is there some other scenario where you're not stuck in that to the seated position of, for instance, a lot of companies are allowing for standing desks. Have you asked whether you could have a standing desk, perhaps with a therapeutic pad under your feet where you perhaps you're able to move around and you still get the work done right there in the same space that they have for you. God, I just throw that out as one option. If you haven't considered up at the end of the day on the financial side think the rest you and your husband need to just talk and pray through the financial side, I'd reach out to SSA to see what impact it would make and just see if that's enough for you to stay put for these remaining working years. Nadine, that's no fun to be in pain, particularly for talking about five years and if it might lead to even further pain know. Beyond that, it's not something you want to risk.

So where do we fall as far as what worth saying what your husband is suggesting all right nevermind I sure doubt they're important that priority and smile back at night and especially nowadays with the code that I was already seated.

If you will pardon the pun. Very good. I did not have to rearrange my schedule. I am home all the time. I am running out.

I know these are things he said that cost-efficient.

No second caught our know that no insurance that that at the cafeteria. I'll tell you Nadine. I work from a standing desk and it's amazing I wouldn't trade it in. You can even get one of those tested have you one of those treadmills attached to them or you can walk while you work.

So maybe a happy middle here. But anyway, we appreciate your call.

You can send the spice cake I write on over, since it sounds like we get the better answer. Walk while while you work, which is why Rob often sounds out of breath.

Writing is is the 12 miles away and getting further away as we speak. They became nice to have you with us today. Thanks Knoxville Tennessee Becky all Becky were almost out of time will tell you what Becky will come back and shed a little bit after the break because we have to pause herein and hit a station break was called a hard break I we can go back to Rob for a second and talk about this standing thing you do something you feel God wants you to do rep.

I know the Lord is what my back to be a pain.

So yeah I think so but you know I think the trend toward really thinking about you know what is your work environment you standing desk and staying on the movie a lot of people working remotely and there being worker mode option for a lot of companies now.

Even just the trend toward office environments that allow people to move around when we built out our new office.

We did it in a way that Tas huddle spaces where people can gather community private offices coffee area so you will be able to move around his big deal and doing God's work in pain free is also I am on my way want to come up Tuesday I don't.

I know that's when you will be right you probably find your career even your teeth for your getting to know Christian foundation and your family to learn how many lines that work buying a home is the largest most nerve-racking perches. Most of us ever make. It doesn't help that you're entering a maze of unfamiliar words and confusing options that can leave you intimidated frustrated and afraid. You can take advantage of navigating the mortgage made by Dale Vermillion help you clear up the confusion on rack your nerves and make the best mortgage decisions possible with confidence navigating the mortgage maze available when you click the start button moneywise live.org is very hard right here to help me understand God's purpose for your life to the eyes of a layman more than a few passenger ministries or even zealous Christians entered America back to God. Indeed, we have two 80 million people living in America were waiting on a person tell them about God, no one's telling them in wall 86% of the church would like to believe there's a God, less than 1% of us are telling them about him and that's the reason were in chaos.

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Thanks much. Knoxville, Tennessee hello Becky what you question happening on call in and I learned in our auction. We are completely debt-free, are mainly oh 909,000 have a 401(k) with a little bit over 308,000 and we also have another pension that you'll be saving security can years out from retirement and were just worried everything that's going on in the world in the market and how our country is would it be wise to pay.

I can you know that penalty fee and withdrawal just cannot pay off our farm so that we would have no debt at all what he wants to do with our money yeah Becky.

I appreciate the question very much you said 300,000+ in retirement is that in what type of account 401(k) 401(k). Okay, well, you know, this year you can actually pull out of 200,000 and not have the penalty as long as it is in fact coded related you would still obviously have tax due on all that you know I'm as much as I like to be debt-free and certainly I think that's clearly affirmed in Scripture it's not the borrowing is a sin, but we recognizes we recognize the changes the relationship right God's word says that yoke your borrowers a slave to the lender so clearly it's not a favorable relationship and it's going to limit flexibility clearly as your God directs you in this and the next season of life. So I think we want to be pursuing a life that ultimately houses completely debt-free including our homes now. At the same time as well unless you have a real conviction around that you say you know it is you and your husband pray about it. You just absolutely feel a conviction that your to be out of debt in full right now. Apart from that I might try to continue to have this retirement account grow for the future and really try to sync up the payoff of the home in the form of the hundred 40,000 with that retirement date so that would give you 10 years, where out of current cash flow, if possible, which would mean you have to have some margin over and above your living expenses and the expected minimum payment, unless the term hasn't been paid off in 10 years, but if the term extends beyond 10 years on the mortgage then you need to add whatever you needed to to that payment every month to be able to have that paid off when you reach retirement and then what that would do for you is give you the growth on that 300,000 between now and that time as an additional asset to supplement your income in retirement and put you in a position where your expenses are as low as possible because at that point you no longer mortgage payment that's completely paid off. Now that brings us to the question you started with, which is given what we see around us, the pandemic debt US national debt.

All of these things you should we be concerned about stock market investing and I would say no. In my view know.

Again, every decade has its issues. Certainly I think the debt levels in this country are higher clearly than I would want them to be. They've passed the annual gross domestic product. It is starting to get to a place where I think there needs to be real action taken. Not just kicking the can down the road and there needs to be solutions, but when our backs are against the wall in this country we tend to get creative and come up with the solutions that are necessary and I don't feel like were on the brink of a debt crisis.

I don't think as a result of the pandemic you were to see a major economic problem. In fact, we weathered the storm quite well and I think over the next 10 years. There's no reason to believe were knocking to see consistent performance like we have every other tenure.

For the last hundred years, where the stock market is been the very best place to be because all you have to do is outpace the interest rate on that mortgage for it to be at least financially a benefit to you because you got tax-deferred growth going on there. So if it were me, I'd let that money continue to grow and compound as well as investment strategy is appropriate and I would focus on syncing up the payoff on that mortgage to your husband's retirement date to keep your expenses as low as possible as you head into the new season of life.

Becky, thank you very much really quickly try to get in a couple more calls Chicago hotel Tom oh what your situations are the hundred dollars from my 401(k) when I changed job I had to roll over so I decided to use the money and the stock market already gained 7% in the last three months so while my question was should I roll all that back as a 401(k) before the end of the year are just let it continue in the stock market works gain a and pay 20% of that money I withdrew out of the 401(k) as part of my taxes for the coming year. I mean, what was wrong with the investments inside your 401(k) or are you trying to pick some highflying individual stocks and try to capitalize on some short-term moves in the market are what is it you're doing outside of the 401(k) that you couldn't do inside about job all the rollover when I rolled it all over it. When a less than .01 401(k) in terms of interest in anything inside that 401(k) or if you roll it out to into an IRA.

It still takes days in the tax-deferred environment and you really through an IRA wouldn't have really unlimited investment options except you continue to enjoy the tax-deferred growth whereas right now. Not only are you have to pay tax on this money as it comes out. Even though you missed the penalty. That's a pretty big tax bite and if it's in a taxable account now as you make gains along the way. Those are also going to be taxable. So you're missing all the real benefit of the 401(k). The reason that hundred thousand dollars provision was there during the pandemic was for people lost jobs and were really just having trouble putting food on the table and keep in the bills paid and so the government said, yeah, you missed the penalty pay the tax pull out from your 401(k) that can meet your obligations. But there really isn't any benefit you.

In fact, there's a significant downside to you trying to invest outside of the 401(k) or an IRA that would allow you to do the same type of investing long-term but but have tax-deferred status. Here's the thing, you can put that money back in. Normally you have 60 days with the cares act exit have three years to get that money back in there, but I do it sooner rather than later because if you file a tax return and then you put the money back in after you have to file an amended return, because you know if that money still outside of the 401(k) when you file for 2020. You're going to add that withdrawal of your taxable income of 100 grand which can be a pretty steep tax bill. So if it were up to me unless I'm missing something here.

I get that money back in and then invested in an investment strategy that's appropriate for your age and risk tolerance inside the now IRA instead of the 401(k) Tom. We hope that helps you. Thank you very much for calling us today. Steve, we are almost out of time.

I'm sorry to say that because my producer tells me that you been trying to reach us since Larry Burket was on this program is. Is that true Steve is that true is absolutely absolutely true.

Every time I will come up with a thought or question I would call and I couldn't get through per letter.

In so doing, at 1980 Steve telling you what I was going anywhere tonight as soon as the show ends him to stay right here and you and I are going to spend the next however long you want just chatting. Okay, let's try to get your question and you go right ahead. I was very different stories about difficult hiding okay that they say they're the computer tied there's a group of people are right that believe this way, the Cardinal not likely that the that the tiling is not biblical. Okay, my, what I actually thought of it first was you answer the question for gentlemen about taxing his Social Security.

When I start taking it by force. Unfortunately, 62, that's another story. I had only was allowed to make so much money, but once I hit 65, I talked to the IRS must make as much money you want any problems.

So I'm a little confused as of the taxation on money. If I was that make you a lot of money.

So verses it out so there's a difference in the reduction in benefits and taxes due in terms of income taxes that need to be paid on Social Security earnings so once you reach full retirement age, whatever that was for you.

You can you get your full benefit. It's not to be reduced and you can earn as much additional income as you want and that'll have no effect on your benefits.

What we were talking about earlier is if you then work and you make a certain amount of money when you get over a certain amount. Your benefits are going to be taxable up to 50% in a certain range and up to 85 of your benefits. 85% of your benefits will you pay income tax on but you won't see a reduction because you've not met an earnings test and you earn too much money. So there's a difference between paying income tax on a portion of your benefits and a benefit reduction because you made too much money unfortunately got just a little bit of time. We just quickly mentioned on the tied question that you know I think the model even though we see references to the tide in the New Testament the model that Jesus sets forces proportionate giving and clearly the local church is God's plan and so this idea that we would give on the increase, proportionate to God's provision to us I think is absolutely biblical old and New Testament. The question is what is proportionate giving for us and I think you need to ask the Lord what that is for you.

I like the idea of giving systematically I think of Ty the 10th is a good starting point to Randy Alcorn, the author calls the training wheels of giving. I would say give your local church first and then beyond that, sacrificially. You stand though. I will chat a bit off I think is the wife live is a partnership between radio and money.

My thanks for listening and joining space every 40 years.

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