Wealth from Wisdom

What Does Social Security Mean for Your Financial Plan?

November 02, 2019
Wealth from Wisdom
What Does Social Security Mean for Your Financial Plan?
Chapters
Wealth from Wisdom
What Does Social Security Mean for Your Financial Plan?
Nov 02, 2019
Carson Wealth

Germany was the first nation in the world to adopt a social insurance program for the elderly in the late 19th century. The program was brought about by a letter from Emperor William the First, who said, “those who are disabled from work by age and invalidity have a well-grounded claim to care from the state.” 

The expectations of retirement, life span, income, economic stability and everything have changed since social security type programs were first put into place, yet Social Security remains a cornerstone of most of our retirement plans. 

I’m Paul West, and today on Wealth From Wisdom, we’ll look at Social Security. Where does it come from and where is it potentially going? How do you get the most out of your benefits and shape your financial plan with Social Security in mind? 



Show Notes Transcript

Germany was the first nation in the world to adopt a social insurance program for the elderly in the late 19th century. The program was brought about by a letter from Emperor William the First, who said, “those who are disabled from work by age and invalidity have a well-grounded claim to care from the state.” 

The expectations of retirement, life span, income, economic stability and everything have changed since social security type programs were first put into place, yet Social Security remains a cornerstone of most of our retirement plans. 

I’m Paul West, and today on Wealth From Wisdom, we’ll look at Social Security. Where does it come from and where is it potentially going? How do you get the most out of your benefits and shape your financial plan with Social Security in mind? 



Speaker 1:
0:00
Okay, and here's the legal mumbo jumbo. The opinions voiced in wealth from wisdom with rod Carson or for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consult a qualified professional. All indices are unmanaged and may not be invested into directly. Investing involves risk including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory services offered through CWM, LLC and sec registered investment advisor.
Speaker 2:
0:30
The stock market hit another all time records $10 billion in social security benefits go unclaimed every single year. The federal reserve announced that they will raise interest rates by 250,000 rocketing cost of healthcare and retirement could now run 350,000 you've worked hard and saved for retirement. That's great, but it's what you do with that money that really matters. Welcome to wealth from wisdom with Carson wealth. Carson wealth is a Barron's hall of fame advisor at recognized by Forbes magazine as one of America's top wealth advisors and they're right here in Omaha. This is where you can count on straightforward and objective advice that can help you make the most out of every dollar you've saved for retirement. Welcome to wealth from wisdom with Carson wealth.
Speaker 3:
1:14
Hey, Germany was the first nation in the world to adopt a social insurance program for the elderly. And that was in the late 19th century. The program was brought about by a letter from emperor William the first who said those who are disabled from work by age and invalidating. I can't say that word, have a well-grounded claim to care from the state. So the expectations of retirement of your lifespan, your income, your economics ability, and everything you have gym changed and social security type programs were actually first and put into place yet. So security remains the cornerstone of most people's retirement plans. Hey, I'm Paul West. This is well from wisdom and today we're going to look at social security and my cohost dressed properly for the day. Jim Caldwell. Jim's a wealth advisor here at the Carson group. Jim, welcome to the show. Thanks, Paul. Yeah. Hey, glad to have you.
Speaker 3:
2:08
So we're going to talk about social security. I know it's a one of those topics that seems, um, not as exciting me maybe as others as compared to how's my returns doing in my portfolio. However, we know it's a staple for so many people. Um, and by the way, at the end of the day, I don't care what Matt level of income you're at, what happened? You want to get paid back the money you've been deposited in that account for so long. So in today's show, we're really gonna talk about what's going on, what's happening with it. But Jim, there's something that's interesting to me. Uh, when I think about social security, where, where do most people get their advice from social security? What would you think? Usually their next door neighbor or their best friend, uh, their brother, sister, they, they just think that everybody's pay out or opportunity for a payout is the same across the board, which is not, yeah, I mean, so they usually go to someone else that has recently experienced it and then tried to associate that experience with their own.
Speaker 3:
3:15
And as I think about this gym, I, okay. Social security is like your fingerprint, right? Very unique. Yeah. It's, it's unique. It's specific to you and what happens for everyone else shouldn't necessarily happen for you. Now there are things where it's easy to call somebody who went through it before. Example, I had water damage earlier this year in my home. What did I do called someone else that also had water damage to figure out who's the contractor they use, what did they do? How did they approach the situation? Water damage has water damage. Hail damage is hail damage. Fire damage is fire damage, but your money in your information in your numbers is different than someone else who applied for it. So if, if I don't apply the next layer of detail and figure it out, I think people are making a mistake. And before we get in all the nuances of social security is actually a really interesting study put out here by a company called E money and they pulled 2,500 people about their financial habits and their attitudes towards money and here's what they found.
Speaker 3:
4:17
47% of their people review their personal finances daily. Wow. That's somewhat surprising. You can say review. That could be anything from just logging into the website, taking a peek, make sure your money's there to really sitting down and thinking it's row. Yeah. Or, and I think it goes through some form of both viewing and or thought process that comes up in their head. And I talk about this all the time. What's the number one reason people log into their bank accounts? Just to see if their money's there. Yeah, just to make sure. Kind of a little bit of a fear effect based on some things that have happened 10 years ago or so. So they just want to make sure or or recently like Equifax or those types of things that people are concerned by fraud. So they're just going in there to make sure it's in this right bandwidth of where it was from the date of the day before.
Speaker 3:
5:06
So here's an interesting thing. So when I asked you earlier, where do most people get their advice and you correctly answered from their friends, from their neighbor, from someone else who actually just completed this before. So 57% of people, again, this is from the same study from Imani admit to purposely avoiding talking about money with their friends. So then if the, if they're already fearful and don't do this when they do do it, they probably don't disclose all of the important elements in making that decision. Right? Sure. I mean, they keep it close to the vest. I mean, shoot, if they, and I've seen other surveys too, Paul, where they don't, they don't discuss it with their children. So if you're not talking to your children, what are you going to fully disclose to your neighbor? Yeah, I mean, there's a big difference there. Yeah, I know a lot of times.
Speaker 3:
5:54
Um, so they actually, 30% of people admit to hiding information about their actual spending habits hiding. They have a secret account, they have cash under a mattress. They don't disclose how much money they spend at the tanning salon. All of those types of things. So why, why do you think that is? Is it just lack of trust in today's world? Is it the fact that you don't want everybody to know everything about you or is it a transparency issue? I don't know. What do you think? I think it's a communication issue. Um, and the reason why is you can use the word transparency and all that other buzz words that go along with it. But the reason why people hide it is they don't have the right form of open communication and are they embarrassed or whatever it is. Um, is it trust? Uh, all of those things.
Speaker 3:
6:44
Hey, you can hide something cause I'm planning for a surprise birthday party. Okay, great. That's when you shouldn't hide something. But at the end of the day, it should be, you should be able to enjoy your life, do what you want. And I, and I look at, let's take married couples here for a second. So if I'm a married couple, I look at, there's really three forms or three sizes of communication levels throughout. They're either at none or not very much, and they run independent financial balance sheets. Essentially there's the other opposite end. Every penny is disclosed. They go through it with fine tooth comb, they know exactly what's happening. The majority of the people are in the middle. They're in there. There's usually one of the team members, spouse who handles the majority of that, the other as a good ballpark or framework of what that looks like.
Speaker 3:
7:36
But there's usually somebody who's more involved and I think that's probably where this happens the most gym. I can go with that. I mean, let's just say, I mean, you know, husband and wife, maybe it's the man that dominates it. I don't know. We see that probably more than the other way round. Even. Even though it could be reversed though, even though I think the wife might not be fully engaged as to what's going on, I think as kind of a revenge thing, they keep, they keep a hidden account somewhere just so they kind of feel like, Hey, you know, I got this over here. You're running all the money, you're making all the decisions. I don't really understand it, but just in case you make a mistake or we get mad or whatever. The reason they keep that hidden little slush fund. Yeah, and I don't get it.
Speaker 3:
8:17
I mean, it's bet it's unfortunately, and I just shared with you statistics, it's, it does happen and how many meetings have you sat in with an, I know I have where you start to ask a lot of questions. You're filling out any money, you're putting people's numbers up on the screen, and they looked at each other like, Oh, you owned some Berkshire. I didn't know that. Or you've got an accountant, XYZ bank. I didn't know that. That's where, that's when you're a lot of kind of one a duck, you know? Well, I don't know about that. Yeah. I mean, I don't think it happens all the time. It does happen. It certainly does, but you know what happens at that moment. Gym people don't come in because they're fearful of that, but the reality is when that happens, there's something actually magical that goes on there.
Speaker 3:
9:02
What just happened and improvement in communication. Correct, and feeling good. There's probably been a moment many, many times when that person who maybe hasn't shared that additional account, they have or talked very much about it, they said, Oh, I got to bring this up to my spouse that I don't know when the right time places. So it's actually easier for them to sit in a conversation with you and me to talk through that rather than having it at the dinner table over a glass of wine. So one of the things want to talk about today is helping make sure people really understand social security wide. It is how it works, all of those types of things. And a lot of people don't even really, I would say, look at their pay stub to see how much is or is not coming out for social security, what it looks like.
Speaker 3:
9:57
Um, and I think one of the most, um, misnamed or misunderstood parts of the program is, is you look at social security, that there's a 12.4% tax on you, right? So, um, however, what you don't realize is, is 6.2 is paid by you. So when you're on your pay stub, you see that coming out, but you don't realize your employer. So for us, it's the Carson group. We all as an employer also have to pay social security benefits for your behalf. So it's actually a benefit you get as an employees that you don't have to pay all of that versus you know, self-employment and those types of things. So that now there is a maximum limit. So up to a certain amount after that you no longer have, have to pay. Um, but really what happens is the social security administration takes about 85 cents of every social security tax.
Speaker 3:
10:53
Dollar goes into a trust fund to make sure it pays the monthly benefits for existing retirees, their families, surviving spouses, children. The reigning really goes to people with disabilities and those types as well. So that's kind of the breakdown. So when you think about social security, it's not just, um, for retirement purposes, but as also, it's, uh, your ability to use it when you're disabled is another intended benefit. Jim and I know you've had people who have been below, um, you know, full retirement age or FRA is often the acronym that's used there that have had to use it because more people end up having to retire earlier, get disabled than we actually would ever anticipate. Sure. And you don't have that crystal ball. I mean a lot of people say, you know, I want to work to X age or whatever that is, but you know, health, health or lack of good health is a, is a big determining factor.
Speaker 3:
11:43
And not just with yourself, but you look at your family history. I mean you can almost see that, you know, lion coming into the room or whatever, you may have to deal with it earlier. Yeah. And I think people make these mistakes and we call them blunders, Jeff for a reason because they make these mistakes. And we actually wrote a blog and a web article is called eight blunders to avoid. And so if you want a copy of it, you can just text us. So to, here's what I want you to do. Text the following a WFW of course, that's our wealth or wisdom show. So WFW dash blunders, all one word to three, three, four, four, four. So 33 four four, four techs, WFW dash blunders and will automatically send you this guide. Eight blenders to help you avoid one of the biggest ones we see is in retirement for your social security people. Don't make the right choice. And as we're going to come up in our next segment, we're going to talk about some more of the details, how you apply it, how much credits do you need? When can you start? All of these details that are super important for you, your family, your life. Hey, you're listening to wealth from wisdom.
Speaker 2:
12:49
Do you own an annuity? Inflated fees and commissions could be costing you an arm and a leg. Get straightforward and objective advice from Carson wealth by calling (888) 419-8513 are you caring for an aging parent? Are you concerned about the skyrocketing cost of healthcare and longterm care or do you have questions about how to best manage an inheritance? We can help call Carson wealth today at (888) 419-8513 and now back to wealth from wisdom with Carson wealth.
Speaker 3:
13:19
Hey, welcome back to wealth wisdom. I'm Paul last MCOs. Today's Jim Caldwell, Jim's a wealth advisor with us here at the Carson group. Jim, we're talking about social security. And I thought this some interesting statistics here. So over 63 million people or more than one in every six U S residents are collecting social security benefits as of June of 2019. Wow. Right? Without social security, this number is phenomenal. So listen to this. Without social security, 39.2% of elderly Americans would have incomes below the poverty line. That's two out of five people essentially, if I round to there, that's scary and it's sad all in the same breath. But it also, it tells us the critical importance of this plays not only as part of people's retirement plan, but also, um, the success of the United States economy. And what's going on there. And so really, I mean, retirement is one of the most complex important financial puzzles that we have in place in life and choosing an income plan that will last and remain tax efficient, preparing for hum whatever unexpected life challenges hit us, Jim.
Speaker 3:
14:32
But I would also say our advisors, you know, we continuously field questions about retirement and you know, the number one question we often get from people is, Hey, should I take my social security or not? Well what's the best answer? I dunno, it depends. Right? So what are some of the factors of that? It depends upon Jim, when people are considering taking social security and more importantly when to do it. Sure. So a lot of it is what we said earlier in our other segment that you, you know, what's your family health history look like? And then what's your individual health look like? Um, what other assets do you have to draw from? Do you have a big 401k or four Oh three B type plan at work or something where you could retire in your sixties and draw off of that. But, um, you know, a lot of people are under the impression that social security, Paul will not be here someday.
Speaker 3:
15:23
So there's a little bit of a fear factor, but when you look at the numbers, I mean taking it at 66 versus 62, I mean you get about a 26% total increase in your amount. So if you can, if push that can down the road to full retirement age, as you said earlier, or even try to get to 70, the the numbers are huge. Yeah. And it's, I'm gonna frame in a different way. Okay. So, um, 26% greater sounds great, but here's what I'm actually gonna say. So you can start at age 22, but let's just, let's use, I like round numbers cause people understand round numbers better than others. So if I told you you put a dollar in, but you're only gonna get 75 cents back, how would you feel Jim? Not, not real pleased. Nope. So, but if I said, if you wait till your full retirement age instead of at age 62, you getting approximately 75 cents a second.
Speaker 3:
16:19
I'm just rounding for this purpose. But if you wait, I'll give you $1 for every dollar you put in. How do you feel then? I'm all, I'm all in. Why? Cause I just took something from you. I took a quarter from you. What did I do? It makes you angry, upset, frustrated. Well, I'm already upset for paying into social security such as compounds. It's the system. I mean, I'm not going to debate whether it's right or wrong. Our job is to educate people. I don't want to be political in that way. I will say though, when I describe it to people that way to saying, Hey, instead of getting your full dollar, if you start earlier, you're getting a reduction of that dollar. What does that do? [inaudible] changes their mind and their perception and that's what we try to do on well from wisdom is help educate people.
Speaker 3:
17:04
Cause partially let's just illustratively again say, Hey, you are going to qualify at age 67 to get $3,000 a month. Just again. Okay, great. When I say at age 62 you're only gonna get $2,200. Now at age 62 all of a sudden if you're getting $2,200, you're thinking, great. But if I said, Hey, you could be getting $3,000 if you can wait, and by the way, that means you're getting the dollar back. What does that do for people? They should, they should. They should be on that. I mean, th now if they can't afford it, I get it. Right, right. But if that's her only, let's just say it, and this is where it's really tough, is let's just say when people approach and they put on all
Speaker 4:
17:50
these years and all that hard labor and the only income stream they have is so security, that's tough situation. So, you know, especially if you, if you have to, if you have to take it at 62, like as you said, health problem, maybe you can only work to a certain age where you're employed. Um, maybe you get phased out, maybe you get bought out. I mean, all these things are happening today with consolidation of companies.
Speaker 3:
18:13
Yeah. So, so simple ages here for people just for education purposes. So 62 is the first, OK. There's really three ages when you talk about 62 and then your full retirement age and your full retirement age does change based on actually when you are born. So I just kind of commonality like to tell people it's about 67 and then of course 70 is the end when you then need to begin. But there's this benefit that happens to you between age, full retirement age and 70 right gym. So can you tell people what happens for them then?
Speaker 4:
18:46
Sure. Well, a couple of things. Uh, number one, if you defer to when you're 70, you're gonna receive an 8% guaranteed return each year in your benefit. And if you look at where interest rates are today, you look where the markets are today to be able to have a guaranteed 8%. I think a lot of people would take that and run with it. So by putting it off, um, you're going to have a bigger benefit. And if you're, if you're thinking you might live longer as people are getting into their late eighties or nineties, you're going to need that extra money down the road.
Speaker 3:
19:18
Yeah, and it's so fascinating to me. Like right now I think about Jim, I mean, so the S and P 500 essentially since the beginning of time has returned right around in depending on what day, uh, 8% per year. Correct. But you're riding the roller coaster, you're dealing with the downturn in 2001 the economic challenges, of course we had in 2008 scary times. Don't want her to forget about the fourth quarter of 2018 where down 10 plus percent, but now I can get an 8% return for a three year period guaranteed by the United States government. It sounds like a pretty easy question. Right? Well and it's an easy question
Speaker 4:
20:04
and an easy answer. The thing is, it goes back to what we started out with is where are people getting most of their information from, from sources that might not,
Speaker 3:
20:14
where are those or experts? Yeah. Are you, are you, are you going to go set up a will or trust on your own? No. No. Right. People aren't, they're going to go to an expert. So I don't know why people don't go to social security experts all the time to help think them through it. So one of the things we do here at the Carson group is as nice as it does sound actually to go from full retirement age to age 70 is that's not always the best decision for people either. So there's this cool thing we do is called a social security analysis. So with a social security analysis, we're able to show people when the optimal point is, is when their income taking it earlier, where that crossover point is, depending on how old they are or when it's better to wait. So yeah, you can get more money up front earlier if you take it earlier.
Speaker 3:
21:01
But if you think you're going to live, it's a little bit of this as a longevity conversation is if you think you're going to live again above age 78 81 82 often the longer you wait, the better. It's not always the case. And so that's why why it's like a fingerprint, right? That's why, that's why I have my thumbprint here on my iPad. We go right? It's unique. It identifies me. Your situation has to be looked at. So you can actually send us a copy of your social security statement and we will give you a confidential and complimentary social security review. If you want that from us, all I have to do is go to our website, Carson wealth.com. Click on appointment or connect with us and we'll show you a secure portal that will help you upload that and send to us. But let's get back to actually the social security.
Speaker 3:
21:45
So here's another surprise for people. Hey, I'm getting social security. I put money in there all the time. I can't wait to get this tax free income. What do you think about that, Joe? Uh, someone's misinformed. Yeah, well they're probably not misinformed. They just don't know the, the, the ignorance, right? Ignorance often is blessed. Wagner sin ignorance is often bad. So when I think about this, it's when people just don't know. And by the way, if I wasn't in financial services and dealing with this all the time, I don't think I know. And I don't want to be fair, the consumer public. So our job is to educate you. So if you make over a certain dollar amount, whether you're single or married, it's based on your tax filing status, up to 85% of that income becomes taxable then up to 85% of it. So again, simple math.
Speaker 3:
22:40
If you are getting 40,000 a year, take 85% of that. Well that's what happens. So 34, where's that 34,000 if I can do the math right in my head. So now $34,000 is on your AGI. And so now what if you make a couple hundred thousand dollars a year? It's now up to the next steered step tier of overall tax bill doom. So I think so. I agree with you. If, if, if I wasn't in this business, I wouldn't know. So I would probably, as I got closer to, you know, considering social security, I just get out in the social security office and figure those guys with all due respect to them, they're the experts. Yeah. And they're going to say, okay, Mr. Caldwell, based on what you and your wife have, here's what we think you should do, blah, blah, blah, blah, blah. Doesn't work that way. You'll walk in and they basically just are order takers.
Speaker 3:
23:28
So the people that come out ahead, especially married couples, are the ones who sit down with a trusted professional and go through the analysis and look at the different choices. And sometimes it's better to have one person file than the other because of spousal benefits, especially when there's a difference in the total dollar amount between versus the other. So you're right. And again, there's no ill will or bad comments meant towards the social security administration. They're fine people, but they're not in the business of provided advice. They're not licensed. They are not foodie sherries. They have not gone through the training of being a certified financial planner like so many people have in what we've done there. So it is, I like your phrase, they're just order takers. So often when you go into the DMV, you know people's favorite things. We're all, yeah, there, but there are a, I'm, I'm paying my registration fee, I'm paying my tax, I'm doing that here.
Speaker 3:
24:23
It's not that dissimilar. What box do you want to fill out? Okay, let's put it in the system and get that going for you. But it is way more complicated than that. If you think about it, something that's gonna pay you hundreds and hundreds of thousands of dollars over your lifetime and you're going to spend less than an hour thinking about it. Huge, huge mistake. If you want help on this and you just rather have a phone call with us, just go to Carson wealth.com it's called connect with us. You'd go out there and connect, shoot us a note. We'll set up a complimentary private phone call. Be glad to help you because it is complicated. I'm not sure it's a Rubik's cube or that level. Can you do Rubik's cubes by the way? Oh, I can't. I didn't think you tried. No way. Yeah, you're kind of like a dinosaur, so I mean it's just challenges one today. Yeah, you kind of look like one today, so, but it's complicated. So if you want help again, Carson wealth.com Hey, I'm Paul West with Jim Caldwell. You're listening to wealth
Speaker 2:
25:14
from wisdom. Any major decision in life is worth getting a second opinion and financial planning is no exception. Let's talk about how you could make your money go further in retirement than you ever thought possible. Call Carson wealth. Just schedule your free initial analysis now at (888) 419-8513 do you have a lot of assets but are short on cash? Learn how you could leverage your assets to free up cash with Carson wealth by calling (888) 419-8513 and now back to wealth from wisdom with Carson wealth.
Speaker 3:
25:48
Hey, welcome back to wealth wisdom. Paul last with Jim Caldwell. Today we're talking about the staple. For so many people in their retirement plan, their income plan, but even if it's not their staple, every single person listening today is impacted by this because of your involvement with so security. What happens even if you are actually a member of a religious order and you take a vow of poverty, you may actually then be exempt from whole security and self employment taxes. Um, here's a little known fact, Jim and you love it when I ask you these types of questions. Yeah. So a lady by the name of Grace Owen from New Hampshire. All right. She was giving the lowest social security number ever. Where do you think it was?
Speaker 3:
26:36
One, you're right. Zero zero one dash zero one dash zero zero zero one yeah. Pretty interesting. Huh? I like that. So pretty easy to remember. I like that. Um, and I think a lot of people know too based on when and where you were born is actually a signal on your own personal social security number. So I know a lot of us here in this part of the country, our first three numbers are often very similar cause it's just based off of, uh, you know, part of what they do there. But one of the things I want to share, and we're talking about this taxes. So in our last segment I talked about taxes, the importance of it. So if you're single, if you make less than 25,000 from a security and you have no other options, great, you're not taxed. But once you get above $34,000, that's when up to 85% of that becomes taxable and it's not much higher.
Speaker 3:
27:30
So single 34,000, anything about 44,000 for married filing jointly then becomes taxable. Okay? So there's your numbers. That's what you need to look at. Um, and now here, here's was just amazing to me. Is 42% apply for social security of men as early as possible. 48% of females do. This is early as possible. Why? I don't understand. Now, some of it may be purely they need it, but we talked earlier, this results in a 25 to 30% reduction of the total dollar amount I get. So if they don't need it, and I mean what I needed is like truly need it, not want it to go out to dinner a few more times a month or maybe used to give more money to charity, which I agree with. But when you like the opportunity to earn more, and Jim, you brought something up in the prior segment, I want to come back to this here now.
Speaker 3:
28:25
Um, and I would say, uh, you asked about, you know, will social security be around or not? And this is probably one of the, the top three questions I get from people. So by 2030 for those social security trust fund, at least at this point of time will be depleted. And now only 79% of benefits can potentially be paid out. So am I going to only then get 79 cents on the dollar? Is what that's telling me, starting in 15 years from now, what do you think is that going to happen? I don't personally feel like it's going to happen. Um, I mean, but I could see were perception out there would be, Hey, you know, our, our government's debt seems to keep rising every year and how are we going to, you know, be able to pay out all these benefits? People are living longer so the stream of income has to stretch.
Speaker 3:
29:15
Um, but I really think that, you know, Medicare and social security, I call them the entitlement benefits. I mean, they're going to be here somehow. Some way those dollars will be funded. Yeah. Well remember what I said before, if we don't have social security, 39.2% of people is what I shared earlier of elderly Americans would be below the poverty line. How is that going to be good for our nation? And I also, at the end of the day, I don't want to talk politics on the show. It's not what I do. I don't talk it with clients. It's just not what I believe in. But I do believe in the following, I cannot imagine, and this probably won't get decided till some time between 2030 and 2034 is, I can't imagine whoever is politically in the office at that point in time that they're going to want to have to go back to their constituency and be seen as the person and persons and party and parties that let their constituency not get a dollar back for dollars they put in.
Speaker 3:
30:18
Right. Yeah. I don't, I don't think that's, I just still, nobody wants that hanging on her head. No. I mean, uh, it is, uh, is right now is kinda like the cans been kicked down the road, uh, when in reality it'll come up and it will be interesting to watch 10 years from now. It's just gonna keep bubbling up higher a further thing. So it's something we're going to watch. And so again, some people are saying, Oh, I better take it now because I may not get it later. At the end of the day, they're going to get this figured out as my belief. And, you know, I don't have any certainly assurances on that front, but again, I can't imagine why would we put two, two out of every five people in poverty by not having this program? Why would we jeopardize that? Um, and by the way, we also have longevity at play here, but we've also had some better years of economic environment.
Speaker 3:
31:08
So with contributions and those types of things coming in. So I, I'm not that worried about it. I don't, you know, it's not stuff that I certainly lose sleep over here today. Uh, but it's something I have a conscientious ion looking at to figure out and, and discuss with people because this is part of having that longterm lens looking out in that horizon, right gym to say, um, what does 10 years look like? What does 15 years look like? What does 20 years look like? So this is a marker that is on the horizon for so many people. And that's really why I talk about you can't go this alone. Um, and you have to be able to figure out what does that look like. Um, but also there's an online application. If you don't know what your benefits are, it's actually super simple. I really like the site.
Speaker 3:
31:51
I do it for myself. I'm in my forties, by the way, but I go to ssa.gov you can put in your information and get emailed every year, the annual statement. So I don't get the actual paper copy anymore. Jim. I'm not a dinosaur, so I don't, I don't want it personally. I know some people do. Um, but also I can log in and see my benefits and see what that looks like. And I like that. And actually, you know what I've done with that gym, I've taken that information, downloaded it, and if you work with great financial planning firms, we'll actually store that information in a digital vault for you. So then that way we have access. So if something happened to you or your spouse, we'd have that information already so we can calculate it in our conversation with families. And I think, I know Jim, it's part of our collection technique when we're onboarding new families and doing financial plans. But how do you frame, how do you explain to them the importance of, actually they may say, Hey, I'm in my thirties in my forties I'm in a fifties this doesn't matter yet.
Speaker 4:
32:47
Couple of ways. So number one, as we've established on a number of shows, people don't like to pay taxes. That's just like it's a no-no, right? They want to always be able to say to their friends, Hey, I either got money back or, or, or I'd have to pay anything at all. So a couple of things like it's similar to going to the doctor, right? We like to have your tax returns brought in. We like to see the last two years tax returns. Like if you go to a doctor, what's the first thing they do? They do blood work, right? If they, if you don't do blood work, then how do you know what's going on inside? So the tax returns combined with the social security statements that you're talking about, whether you get them online or you bring in paper, paper's fine. That's, you know, by the way, are you one of those guys that like his plane tickets on his phone and you stand there and can't get it to read and everybody to us?
Speaker 3:
33:36
No, I can't stand that. So it's up. It's ready. Habit going paper there then. No, no, no. I use digital on my phone, but I'm not one of those people that gets up to the stand at the TSA and you have to thumb through there and [inaudible] all that. Yeah, like five people before it's pulled up. Right.
Speaker 4:
33:49
It's ready to go. I was just curious cause you get through TSA more than any, any person I've ever met.
Speaker 3:
33:54
Anyway, off the top, just met Jamie Hopkins before he travels more than anybody I've met. But I'm prepared. I'm also a time maximizer Jim. So in those scenarios and situations, I love the digital and my phone. It updates right away, tells me gate changes, it text me. So I was traveling last week. I texted me about a gate change. It texted me, um, I was down the hall grabbing some food. It texted me and said, Hey, you're now boarding. Wow. I must still be living in the stone age or something. I don't know. Yeah, we'll, we'll call it the prehistoric, but that's okay. Um, so Jim and Mina, I share this with people is because they don't know where they are and their social security. So if you go to ssa.gov again, it's so easy to find. If you want us to do an analysis of this for you, you can just shoot us a note on Carson wealth.com you're able to see it.
Speaker 3:
34:41
Or if you want to email me my, my email is P West Pwee, S t@carsonwealth.com. And I'm telling you, and I told you this earlier, this is one of the biggest blunders that we see and we want people to avoid in retirement, in gym. I mean, I've seen hundreds of thousands of dollars worth of mistakes, hundreds of thousands. And if you want to read on your own, if you're saying, Hey, this is interesting, but I just want to read more about that. Here's what you do. You text us at 33, four, four, four. So put that number in your phone, that number, and then just type in the following word. That's all you need to do. WFW dash blunders. Do I need to spell blinders for ya know, I've got that done. Okay. B, L. U. N. D. E. R. S. I just did it just in case because I'm controlling, but as we think about this 33, four, four, four, I've never done something like this.
Speaker 3:
35:25
It's pretty cool. It's the simple way. We'll send you the information. Um, you can read it on your own and just hear and see. Um, you can certainly go to our website. I also just have it as a blog post. So if you'd like to see, actually I have a cool infographic. If you've never seen infographics before, it describes social security and some of the key points we're talking about in today's show. You're going to Carson wealth.com. Go to our insights and you can see more of that information from us as well. Hey, you're listening to wealth from wisdom. Have you ever wondered how do other people get away with paying fewer taxes than everyone else?
Speaker 2:
35:55
Learn how you can save thousands of dollars in taxes by calling Carson wealth
Speaker 3:
35:59
at eight eight, eight four one nine 85, 13
Speaker 2:
36:03
social security risk, taxes and healthcare. This is where you can count on straightforward and objective advice on the biggest challenges with investing for retirement. And now back to wealth from wisdom with Carson wealth. Hey, welcome back.
Speaker 3:
36:19
This is Paul last year, listening to wealth from wisdom today, my cohost Jim Caldwell. Jim, glad to have you today, Paul. Yeah, you're singing and some good insight. Um, and so one of the things is we talk about, and you know what we've learned about social security, ensuring that with so many people, but one of the things I would say is, is um, the rules continue to evolve. Um, and, and we as top financial planners, if you remember, we're a fiduciary. So that means we have a legal obligation to give you as the client what's in your best interest. There's actually only a minority of us that are actually set up that way. So just remember one of the top 10 things to ask your advisors, are they a fiduciary? If you want those. Again, those are on our website, top 10 questions to ask your advisor.
Speaker 3:
37:04
But I'm a huge believer and we are here at the Carson group of continuous learning. So twice a year we get our partner advisors together because we're really trying to help in this consumer movement. We want to be good educators teaching you as consumers what's most important in a communicate in a language that is understandable to you. But we have to reinvest in our people. It's one of the most important things we do here at the Carson group, making them better, helping them explain things to their client. So we're this last week, Jim, uh, we were fortunate we had many of our partner advisors flew in to meet with us. Uh, they came to our national um, location here in Omaha, Nebraska, center of the universe. Well, many people think it is. I'm glad you finally adopted that thought process. So, but as part of that, I too, you know, so even my role as a leader, as a managing partner, I work with families.
Speaker 3:
37:58
I use this as a great way to sharpen my saw, to get better, see what other people are doing. And I'd rather, I believe this is a world of a law of, of buttons. If I spent time connecting with other financial planners, you may think they're competitive if you're currently one. But I look at it as I can learn something from them that can help me and help my clients and especially if they're a fiduciary because they think and behave like we do. But you don't, I'm curious, you know, you participate in these meetings this week, you love these things as well because you get a chance to learn and get better. You love networking. So it's a great chance. But any you learned from this week that you can maybe share with our consumer listeners on what's happening in the world or things you've, you saw or heard?
Speaker 3:
38:42
So spend some time with a couple of our, our partners and uh, my takeaway and spending some good time within is the number of people who are open to a second opinion on their present situation with the markets at all time highs. And the economy booming and all that. People still want a second set of eyes, Paul, on their present situation. And, and I'm hearing that as a common theme across the board. So I talked to a couple of guys like, so what do you throw out there? And they say, we just give them a no obligation second opinion. They bring in their statements or tax returns just to have a listening session and they sit and listen, take notes, see what the situation is. And basically the takeaway is, you know, if, if they can't add value beyond a doubt for that family that's sitting in front of them, then they just shake hands and, and go home.
Speaker 3:
39:33
Yeah. Well I think, you know, my three rules when we take on new client, love your rules. Um, num number one is a no, a, I don't know what I can say on the, uh, air here had no rear end, so that's good. Thank you. Uh, number number two, I have to be able to assure that I can communicate in a language that you understand, but also it's a two way street, so you need to as well. So we have to have common communication language and number three we have to be able to provide value beyond a reasonable doubt. And if we can't do that, I am not actually going to bring you on as a client. So if we cross all three of these often say they're good, we check one, two, three boxes, then we can actually finalize whether we engage. But I found something really interesting.
Speaker 3:
40:20
Okay. So, um, we, we were, I was listening to a panel discussion earlier this week, um, and what you're talking about families and it was really good. It was called our elite advisor summit. So it was a great chance to meet some of the best and brightest minds. And again, I love them because they give back. Um, they're willing to share on this law of abundance type mentality. But somebody up on the stage said this earlier this week. He said, families follow the path of least resistance. Families follow the path of least resistance, and that's just really resonated with me because remember when I shared earlier, 30% of people actually don't disclose everything on their personal financial situation to their spouse. Why is that least resistance? They don't want pain. They don't want confrontation. People hate conflict. People follow a path of least resistance on social security, Jim, so what do they do?
Speaker 3:
41:15
File right away. Easiest thing to do. It's hard. If I've got to go meet with someone and talk to them for 30 minutes on what's best for me, but worth hundreds of thousands of dollars, yet you lose a dollar in your couch. You're going to spend how long looking for that darn thing until I find it. Yeah. Are you dropped change in your car, you're moving your car seat forward, you're moving it backwards, you're digging in there, you're getting your hands dirty. You'll spend all this time, but when something on paper is worth that much money, people follow the path of least resistance, wills and trust. Here's another one. People don't do it. Why? Oh, I don't want to meet with an attorney. How frustrating is that when you sit down with a family and they don't have a will? Yeah, it drives me crazy and I'm on is, you know, I'm on a personal mission to get as many of these people.
Speaker 3:
42:05
We're not even a law firm. I just want people to do that. People follow the path of least resistance related to having a tough conversation with their advisor. People follow the path of least resistance when it comes to actually setting a plan. Jim, I love this. The other day, so I got like a phone call from one of my clients and he said, Paul, you know, we love you. We, you know, we love what you do. We love all of this. Have you ever thought about actually taking it to even another level of sitting down with us and having us define our ideal retirement day and don't just be, Hey, it's out seeing my kids or grandkids or travel or golf or whatever, you know, fit, fits your a bucket and desires and your goals and your passions. I get up at seven 30 I have a cup of Dunkin donuts coffee on the porch and then go do yoga and then call my grandkids.
Speaker 3:
43:08
I then take a good friend out to lunch. I then go paint in my studio or whatever. Those types of things are. Think about that visualization. They're pretty cool, huh? I like that. Yeah. So, but a lot of us don't spend the time to play and we actually call that process. So we talk about that with some families. Um, and by the way, not everybody wants to do that. They think it's too squishy or subjective, but so many people who do it have more clarity in their life and they most likely accomplish more because they figured it out. And it's the people who pay attention to those little details and knows the difference between what I just said. I have just said, Hey, get up and coffee, have lunch with people. Do that. I said, what type of coffee? Where they're going to have it, what they're going to do, where they're going to go.
Speaker 3:
43:57
And granted, that's not every day. But if you think about your ideal day, cause we both work, right? So we work full time and Jim I asked you this is the managing partner often is what does an ideal day look like for you? Right? And you and you have that answer. But when people get to retirement, they talk in very big generalities. They don't actually get down to those levels of specifics. Now it also challenged all of our listeners that if there are Mo, most people say what they want to do in retirement. I almost had. But yeah, it's a permanent vacation right from your work is most people want to travel, but if you want to travel but you want to do things like hike Macchu Picchu or other types of things that are um, maybe more straight athletic, you better do those now in earlier before later.
Speaker 3:
44:49
You may not have the ability because of a disability or things like that. And those are huge mistakes people make. And if you want me to help show you kind of what an ideal day looks like and have our team talk about it, it's real simple. If you want, you can go to Carson wealth.com and click on appointment or afford slash appointment. Or if you want, you could just email us info@carsonwealth.com we make it easy for you to connect. This is the whole point of wealth from wisdom. We want to educate you on the important topics that affect you in your life. Thanks for listening.
Speaker 5:
45:20
Risk, social security, income taxes, estate planning. Every week we talk about how to make your money go further in retirement right here on wealth from wisdom with Barron's hall of fame advisor Ron Carson.
Speaker 1:
45:33
Okay, and here's the legal mumbo jumbo. The opinions voiced in wealth from wisdom with Ron Carson and for general information only and are not intended to provide specific advice or recommendations for any individual to determine what is appropriate for you. Consulted, qualified professional. All indices are unmanaged and may not be invested into directly. Investing involves risk, including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory services offered through CWM, LLC and sec registered investment advisor.
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