Wealth from Wisdom

Save MILLIONS in Retirement

September 29, 2018
Wealth from Wisdom
Save MILLIONS in Retirement
Chapters
Wealth from Wisdom
Save MILLIONS in Retirement
Sep 29, 2018
Carson Wealth
Show Notes Transcript

Typically, social security is thought of as boring. But, it is the most important financial decision you will make in your life. This episode talks about how you could be missing out on MILLIONS of dollars in retirement.

Speaker 1:
0:00
Okay. And here's the legal Mumbo jumbo, the opinions voiced and Wellframe wisdom with Ron 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. I 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, an sec registered investment advisor,
Speaker 2:
0:30
Doug marget hit another old time. Records as much as $10 billion in social security benefits go unclaimed every single year. Federal Reserve announced that they will raise interest rates by 203 the skyrocketing cost of healthcare and retirement could now run 350,000 for retirement. Today is a whole new ball game. It's loaded with challenges, obstacles, the trap doors that you can do this and we can be your guide. Welcome to wealth from wisdom with bear hall of Fame Advisor, Ron Carson, straightforward and objective advice and how you could make your money go further in retirement. And now here's your host, Ron Carson. You may know something about claiming your social security benefits, but I'm here to tell you in that it's not why you don't know that could really cost you a small fortune. Hey, how's everybody doing? I'm Paul West and welcomed the welfare wisdom radio network. And what we're going to share with you today could totally change your perception of benefits you're going to receive either later in life or you're just about ready to end.
Speaker 2:
1:31
Yeah, I'm talking about, so security and yeah, you may think, oh, this is boring, but it's one of the most important financial decisions you will make in your life and don't really care how much money you save for your retirement. Your benefits could be worth a lot more than you realize or you know, and for some in this can mean six figures of change of opportunity, which then if you think about the compound effect here, Jim, that's million dollars in lifetime benefits. So I'd like to welcome my co host, Jim Caldwell. Welcome to the show to hear today. Thanks Paul. Yeah, Jay. Jim is one of a a wealth advisor across the wealth and wisdom radio network. We're glad to have your insight here on the show. A former college football coach, so in the fall we tend to talk about college football, so I'm glad that you can add your insight here for us today.
Speaker 2:
2:15
It's Paul. All right, and what Jim is, we're talking about this. There's a lot of government administered programs out there and there's rules and tens of rules and hundreds of rules and thousands of rules and there's even more rules about those rules. So to say that it claiming your social security benefits is complicated is probably one of the biggest understatements I've ever given to you, Jen and all of our listeners, that's for sure. What does we think about it? We're going to reveal five secrets for you today that before you claim your benefits, including one, how to do really counterintuitive strategy. We're going to share a secret with you that could really help you out too. We're going to talk about how to avoid the tax dragon out there. And that is, did you know 85% of your social security benefits could become taxable? That's an eight.
Speaker 2:
3:08
Then a five behind that, not 8.5 or 0.8, five 85% of that could actually be in our mind, taxable for you. And now, importantly our minds, but also the government's mind that goes with it. So we're finally going to talk to you about how to prevent doubling your medicare premiums. Again, this is like the compound effect, right? I think about this like at eating. Oh, you don't have for breakfast. You know, I'm going to splurge. I'm going to have, uh, the devil blueberry pancake orders today for my now. Doesn't that sound great? And you know, I'm going to go around a lunch. You know what, today sounds like a great day. You know, I'm going to splurge. I'm going to go out and get a large burrito and then, you know, it's been a really good day. So I'm going to go to dinner, I'm going to get a salad.
Speaker 2:
3:55
You know, I better have a, you know, a beer with that. I'm going to get a nice hearty steak. I better have a glass of wine with that. Oh man, that a key lime pie looks really good, boy. All of a sudden I looked and I've now consumed what, 5,000 calories in a day. It sounds good though, doesn't it? Yeah, and we're making me hungry right now. Some key lime pie right here for dessert. What is your favorite dessert, by the way? Jim? German chocolate cake. German chocolate cakes. Sounds of the scoop of ice cream. All right. Well, I mean is as we look at thinking about all of that compounding effect that happened with calories just from what could happen in a day, think about the compounding effect that happens for you is you look at your investments, your life, and your social security strategy and the little decisions you make all compound until one the big effect for you.
Speaker 2:
4:48
So let's talk about the first one. I think this is really important for you as our listeners, is the tax effect. So one of the biggest gotchas is people are like, oh, well I've worked so hard to put all this money away that I'm going to get it tax free. And the answer is wrong. Incorrect here because 85% of it can become taxable and they'd probably, the easiest way to look at this is if your address did gross income is greater than $34,000 a year as an individual, you're going to pay 85% of that is going to have to pay at your tax bracket. So you think about 34,000, Jim, if I divide three months or accuse me, uh, $3,000 a month for 12 months, that's a little more than 34,000. So really think about this, if you're making $3,000 a month in retirement, this income is now going to be taxable for you can deal, right?
Speaker 2:
5:48
Yeah. That's not good. No. Well, it's, it's the reality of where we are and what it looks like and how we approach it, um, that they think also for married couples. So you get a little bit a benefit, but it only goes up to 44,000 so that's again, that's less than $4,000 a month. All of a sudden now 85% of that is becomes taxable. This curious is huge compounding effect then related to do you go into a higher tax bracket and what goes along with that? And Jim, I think all the time people assume one of two things. Either one as soon as I turn and the right age is 62 to become and have my ability to actually file, but that has, I'm going to file now and I'm going to get my money now or people fall in the opposite camp, I'm going to wait as long as possible. The reality is it's not an all or none decision all now are all later. There's a lot of ways and techniques and I think one of the things you can maybe share with our audience today is, you know when you do social security analysis people, what are those things you're looking at to help them make the right decisions
Speaker 3:
6:50
here? Sure. So when people discuss with us social security options, I do hear a lot more times people at 60 to wanting to take it because number one, hey, we think it's going to run out. I mean they've already figured that out through the noise that's out there. I'm not sure where they get their information, but they think it's going to run out. So take it now I'm going to get signed up and I'm good to go. Or when we start digging a little deeper, some households, maybe they've got health issues like they are parents died early or whatever. So that might make effect. Um, another reason they might want to take it early as they have no choice that that's their only retirement. They don't have a pension, they don't have Iras 401ks in all those things. So how we're handling that is to do the social security analysis and we try to look through and see where's that break even point at what age down the road. Is it best for them to take it at 62 full retirement at 66 six or can they wait until 70?
Speaker 4:
7:45
Yeah. And I think it's a combination of all of those different things, Jim, that makes the world of difference for people. So here are things to think about. How do we help you stay below the taxable thresholds? How do we do this in managing other retirement income sources? How should you maybe take an IRA withdrawal? So let me give you an example. So we had a family in here and they were looking at getting Jim, I think it was like $3,215 a month from social security, which is great. So let's just round up. That was a little over what, $37,000 and change that they were getting annually. Well 44,000 again is the threshold. Um, but also they have for the first time they had about a 12 month stretch where they weren't getting income from their jobs or for a retirement plan. So actually the best decision they make because they're low tax bracket is they could actually do a Roth conversion to get rid of some of the future tax implications they had.
Speaker 4:
8:47
So if we would have turned on social security for them, that 37,000 plus now became taxable and it hurt their Roth Ira conversions. So is like the duplicative effect, right? Or add and I'd probably not duplicative bad word from you there. The add on effect of they just created additional pain. It was the, Oh yeah, they already had the steak and the wine for dinner and now they had the key lime pie and now they're going to have the coffee with all the creamer and afterwards they just kept compounding and compounding the amount of calories they were consuming or in this situation, the taxes they were paying.
Speaker 3:
9:24
Right. Well we see a lot of situations Paul, where people commit in the majority of their money is in 401k's. We see it all the time. You know, normally it's, it's families where you're paying for, you know, college educations outside. You can't put away those non qualified accounts. Okay. So everything's in your 401k, you're getting closer to retire, you're stuck. If I hold off, if I hold off, I want to retire at 62 or 66 I hold off to 70. Um, what does that do? Well, we can go into, their 401k is start to take those withdrawals early even though they're not required. Bridge that gap. Get them to a later age where they'll get a higher payout and then they won't have all that taxable income from 70 and beyond.
Speaker 4:
10:07
Yeah, and most people listening to us right now in gym are like, Hey, that sounds like a great strategy and it doesn't matter to me right now. I'm not there yet, but you're going to get there at some point and you can run an analysis any point, you know, I'm in my forties I ran the analysis by the way, and you were like, well holy cow Paul, what are you doing? That's whatever, 1520 years away for you. It doesn't matter. It's still, I want to know the information so that I can keep making the right decisions along this pathway. So it's fall time. Jim, I loved waking up earlier this week and it was great. Well in the morning. Fall makes me think of what? Football food. Um, tailgating. I'm not a camper, but people love out camping cause it's nice, your windows are open. Those things all are fun.
Speaker 4:
10:55
But also, you know, winters on the horizon and it makes me think about skiing. People love to go skiing. So there's different types of skiers that are out there. Here's your skier who the casual skier loves to go have a good time. They have no desire in terms of how fast they go down the mountain. They just want to go and be out on the mountain. Right. And is your retirement plan. But like that, you don't care when you get to retirement, you don't really care what it looks like. You just want to get there one day. Or are you someone who's like a professional skier who loves to race down the mountain, but they build out a game plan and a timeline. They waxed their skis, they get everything ready for it. They plot their course. How are they going to get down the mountain the most effectively?
Speaker 4:
11:42
So that way when they get there, what can they do? Celebrate victory. Ice Cold Beer. Actually, oddly enough, an IC live buyer key lime pie and ice cold beer at the of a ski mountain is a darn good thing. At the end of the day, it's gotta be fantastic. Yeah, so it was the hot tub. But I mean all of those things, like it's a reward mechanism for yourself. And imagine the reward of all the money you've saved in your life is you can have more of it. You can spend more on your kids, your grandkids traveling, traveling to husker football games. I may not get the outcomes we always want, but we can at least enjoy the experience and the ride. And what we don't want people to do is miss out on that. Jim. I think that's the theme of like of the, the shows we do here is we want people to understand. So if you actually want a customize and personalize social security analysis, give us a call. (888) 419-8513 that's (888) 419-8513 the simple analysis, it's free. It will help you, so be one of our first caller's. We're not going to charge you a dime. (888) 419-8513 you're listening.
Speaker 5:
12:48
12 from wisdom, trust, transparency, accountability. These are the values that drive Ron Carson and Carson wealth. You're listening to wealth from wisdom with baron tall, the fame advisor, Ron Carson, he's a published author and has been featured in Forbes, investment news, the Wall Street Journal, CNBC, and more now back to well from wisdom with Barron's hall of Famer Advisor, Ron Carson. Hey, believe it or not, claiming your social security benefits could be and will be actually
Speaker 4:
13:17
one of the most important financial decisions you ever make, but really it's not what you don't know about this government administered program. That really, if you think about this could end up costing you a small fortune. Hey, welcome back to wealth and wisdom. I'll Paul last, my cohost today is Jim Caldwell. Jim, so glad you're on the show with me today. One of our wealth advisors and today we're pulling back the curtain on five critical things about social security. You really need to know that could cost you thousands of dollars or possibly more. And coming up with this next segment, we're going to reveal how you could avoid losing thousands and thousands. But can I just say it one more time, Jim and thousands of dollars every year in spousal benefits. So let's talk about that. I mean one of the things like as you progress through life, people get married, what do they do when they get married?
Speaker 4:
14:06
They combine assets, they also combined debt. I always remember, you know, getting married, you know both of those go together, right? Assets and debt and all those things happen and people make decisions. They've got to get a will, they got to get trust, all those things. And Hey, by the way, if you're listening right now, I had a drink last week with the family, super, Super Nice family and they were talking to me about their personal situation, their both work in the working card. They have three children and they don't have a will. And it just, it just gentlemen, it pains me. I mean, my passion in life is to help people, help them be successful, their finances, all of us here at the Carson Group feel that way. But I just said to them, if there's anything you glean out of our conversation, it's go get that taken care of.
Speaker 4:
14:56
And I know the likelihood of somebody getting injured or not being on this great earth is a slim, but I, I couldn't imagine putting my family in that scenario without having those simple things in place. So I hope if you're one of those people are listening and by the way, you're not alone if that's the case, because there's a lot of people that have come listen to show. We're asking those questions about, they have their wills by the way. Another one that I ask people all the time, Jim, sorry for going off sidebar here for a moment and I'm passionate about it. You know, I actually had a listener, great husband and wife in earlier this week, wonderful to talk to. They've made some great decisions. You know, they're going to be empty nesters soon. And when you, I started talking about their life, their wills, they've updated.
Speaker 4:
15:40
I started talking about their life insurance and just they have the right things in place and it's amazing to me how many of you don't know who are listening today, how much life insurance you have and when does it run out? So again, we offer that will show, people will explain. Then you've got the beautiful part about it as Jim is complimentary. It's free. Yeah. Well yeah and we're not going to try to sell you something. So we are a fiduciary. I know it said it on last week on the show. I'd love to hear from you if you actually did this, email your financial advisor and ask them if they are a fiduciary. And I'd love to hear your responses. So if you want to tell me about it. (888) 419-8513 or you can shoot an email to us@infoatcarsonwealth.com and tell us your story. I'd love to hear what they said or Ford is the message and we'll help you understand what actually happened.
Speaker 4:
16:31
So let's get back to the segment here, Jim, and talk about what's really important. So your spousal benefits could actually be at risk. So let me think about this so I can not only make a mistake of my social security, but I hurt my spouse's too. I call that a double whammy, right? Yeah. All the time. Football, you get blocked and you get knocked over and then somebody else comes in and knocks you down or get rolled up. Yeah, you get a double team and they both tried to tackle you or they both try to block you. This is you're hurting yourself. So here's some interesting things that you need to know. The rules first that you have to be age 62 to either file or receive a spousal benefit and you are not eligible to receive the spousal benefit until your spouse files for their own benefit.
Speaker 4:
17:13
First we were actually, we're just helping a family gym and you know, it was like again equivalent. It was like $32,000 in change annualized for them for the year, but they had to make a switch the first spouse filed. But then it wasn't actually the best decision. So then they had to rescind their application, the other spouse filed, and now the spouse that originally filed at a recent, it is now filing for spousal benefits. And you may say to me, holy crap, Paul, that sounds expensive. It sounds like a lot of time. Guess what, Jim, this was worth over $70,000 so if I put $70,000 on the table, but you knew it would take you about an hour and a half worth of effort, which you do it. Yeah, with Jamie, our producer, would you do that in a heartbeat? She probably do it for $7 but it's, you know, as we look at, people want to make the right decisions and we value something the most.
Speaker 4:
18:09
You know what that is? Gym Time. We value our time the most. So imagine this, like people wouldn't have gone through this exercise because I don't want to go to Alice will security office, right? I want to do x for $70,000 yet I live in Omaha, Nebraska, and yet I'm going to go drive for extra miles to save 10 cents on a gallon of gas. Or I'm going to make sure I go fight the Costco traffic to get the cheaper gas. Maybe I do guess what? If I'm in the proximity, sure, I'm willing to do that, but I value my time, that $70,000 that you're not going to go do this. No. And I think people will make the right decisions. And by the way, there's actually different rules for expo says. So here's an interesting one, and I share this because Jim, we've shared this before and I can't believe how many phone calls we've actually got about this to help people out.
Speaker 4:
18:57
It's a good thing. So if you are divorced and you were married for over 10 years and you did not remarry, did you know you could actually get a spousal benefit? Let me say that again. So if you know someone that's going to be your friend, your brother, your sister, your mom, your dad, your son, your daughter, they were married for 10 years and for some reason got divorced and didn't remarry, that you actually could get spousal benefits from your ex. I know. Sounds Weird for those of your listening, like, oh my gosh, I got to wait to get some money back. Heck or get one of those things. So we can help walk through this with you. But we don't want you to make a mistake here and miss out on leaving tens and tens of thousands of dollars on the sidelines here.
Speaker 3:
19:41
I'll give you a great example. First thing in general, you know, no two people are the same when it comes to social security. So if you're talking about do I take it, do I put it off and you're sitting there with a coworker or your, your your dentist or wherever. It varies. Uh, number two is great scenario. Friends of mine, the wife is an extremely successful doctor. The husband knows a stay at home, he takes care of the kids, run some around, does all that. He's taken himself out of the workforce. So what you have to be careful with is if you do that, that has a huge effect on your social security benefits down the road. And Paul, you talked earlier about running an analysis for yourself and your early forties I think, you know, that was a suggestion I made to them. Hey, we need to run an analysis to see where you are now. So we're in the process of doing that. It will be interesting to see what the numbers look like as we move forward.
Speaker 4:
20:33
Yeah, no, I mean I think it helps everyone. I mean, and Jim and what we realize is no one size fits all in this entire equation here. There's no, it's a little bit like what a fingerprint. Everybody's got a unique one and everyone's different. I mean, why did the iPhone go to digital recognition first? You know, what'd you have to do type in a passcode, a four digit passcode? Well, by the way, I think most people can figure that out for all of you out there that do one, two, three, four, two, two, two, two, three, three, three, three, three zero, zero, zero s or whatever it is. You're laughing, Jim, is that yours still trying to figure out how to do it? Yeah, well I see our producer, Jamie's changing hers at the moment. And so that's funny. Um, but then it went to thumb print recognition, right?
Speaker 4:
21:13
And now what do they do? Facial recognition. So the world's getting smarter than this world's changing. But I'm saying is that's the digital footprint. So that's like your social security, your own social security number, which is your unique identifier, says what your footprint is to make this happen and to actually help you out in terms of making this right decision. So don't miss out on spousal benefits. And I mean, Jim is, we talk about spouses and helping each other out. It's amazing to me when we work with families across the country, there's usually one person who takes the lead and finances, right? There's one who makes your investment decisions. There's one who pays the bills, there's one who usually likes to talk about it. Don't forget about the other one, at least communicating with them where you are in that process. And a lot of times when we watched this with people is they want to know enough to feel comfortable but not so much because they just don't care about every single details.
Speaker 4:
22:14
And I love the word, you know, and I see this all the time when a family comes in here, I just had this recently, Jim, um, earlier in the week we're family came in and the spouse said, you know what, I just, I just trust him. I know it's all in a good place. I said, okay. I said, just walk me, walk down this pathway with me for a moment. So you trust him and you trust them immensely. But if he's not here for some reason, where do you turn in and where do you go to access all that information you trust? And I got silence like right there at that moment. I don't know. I don't know where all of that is. And you know, he looked at her and said, well hon, it's all on my computer. Okay, but I don't know where to access it.
Speaker 4:
22:57
I don't know your passwords. I don't know where all again at all of that. And so build a safety net for your spouse, whether it's a digital Dropbox or work with an advisor who helps store that information. So what we do is we call that a digital volt. So imagine this, you have a digital vault with all of those things. And so your trust, your will, your passwords to get into your Facebook, your Twitter, your Linkedin, your snapchat, your, you name it, whatever you have. And then it's got all your statements. It's got personal information. Could I have your well wishes, all those things in one place for your gym? I mean think about how many people you see use that to give them that peace of mind in the family situation. We use it all the time. I mean, it's a nice, it's a nice safe place to store valuable information. Plus when they do eventually pass away, whoever
Speaker 3:
23:46
the executor of the estate is can come to us or the kids or whatever. And we can, we can supply for them everything they need. They don't have to go through shoe boxes, go through all the different drawers, five money hidden behind pictures, you know, we can simplify that for them.
Speaker 4:
24:00
Yeah. And I think, you know, safety deposit boxes and a bank, you know, have served their purpose over time. And maybe there's key things you want to put in there. Maybe you own gold bars or you and Mickey Mantle Baseball Card or whatever you have in there that has sentimental value for you. But if you look at your financial documents and how that helps, they need to be stored in a digital secure manner that somebody has access to. So something happens to someone on a Saturday. How are you going to get to the bank to get access to that? You're not, you're going to have to wait for Monday. 48 hours goes by, but that's going to feel like 48 days to you and what that looks like. So think about it. Speaking of banks, by the way, so you know, you deposit money in banks. So what if Jim, I deposited $520 a month into your retirement account?
Speaker 4:
24:45
I hope you say thank you because you're not gonna see anything. You're stunned, you're so excited. Well, I mean that's 6,200 a year and I imagine if that was an added benefit you got out of your social security that you missed out on before and it takes 6,200 times, 20 years of your life. Yeah, times the compound. In fact, you're talking a hundred thousand dollars of opportunity there. So if you want to figure out if that possibility is available to you, get that extra hundred thousand give us a call. (888) 419-8513 (888) 419-8513 we'll give you this customized personalized source curry analysis to help you out. (888) 419-8513
Speaker 5:
25:21
he seemed good times and bad times and he's got the gray hair to prove it. You're listening to wealth from wisdom with Erin's hall of Fame Advisor Rod Carson. He's a published author and has been featured in Forbes Investment News, the Wall Street Journal, CNBC, and more. Now back to wealth from wisdom with Barron's hall of Fame Advisor Ron Carson. Hey, claiming your social security benefits has been, and
Speaker 4:
25:44
we'll be more complex than ever before. In fact, actually thinking about this, Jim, according to Forbes magazine, as much as 10 billion, that's with a B billion dollars in social security benefits will go unclaimed every single year. Can I emphasize that enough? That's a lot of money. That's a lot of money. Hey, you're listening to a wealth of wisdom. I'll Paul last and I'm with my cohost Jim Caldwell and today we're pulling back the curtain on five critical things about social security that could cost you thousands and thousands of dollars. In next, we're going to really talk about the undeniable statistics that prove your benefits could lose their purchasing power over time. Plus, if you could actually be getting additional benefits that you may not know about that could put more dollars in your pocket every single time. So let's think about this. John, I'm going to share this story. So according to investment news, social security benefits have lost 34% of their buying power since 2000 wow.
Speaker 4:
26:45
I mean 34% that's a big number. So that means $1 is worth what? 66 66 yeah, sense. Yeah. That's not a lot. That doesn't buy you a sodium or I bought a candy bar the other day. Well not for me, but for my children. Um, uh, not that I'm opposed to a candy bars. And actually I think what from a call it might be my all time favorite. That was a good candy bar. Maybe Butterfinger I dunno. Snickers has some good commercial pickers. Frozen stickers on the golf course doesn't get any better. Yeah. Well I'm glad you can get out. Play Golf, join. The rest of us are here. But it's, as we think about this is things the purchasing power of things go away. So actually earlier this week, social security talked about and announce that in 2019 there will be an increase in benefits of 2.8%.
Speaker 4:
27:31
Okay. Well, they had actually projected a 3% before. So what this is called is cola cost of living adjustment, not Coca Cola, not RC Cola by the way. Still Make Rc Cola Gym. I Dunno. I Dunno. I don't see as many, I don't drink. So I don't think you are either. No, no, no. You're just a vodka Soda Guy, right? Yeah. All right. Whatever it takes. Um, the social security cost of living adjustments are based on what they call the CPI and is it increasing or not? And what does that look like and what is the average person's increase? So on average, listen to this number. The 2.8% increase will increase your, the average benefit by $39 next year, $39. What does that $3 a month? A little over $3 a month. Gym. Not a lot, but did the cost of gas go up by more than that? What about, you know, a dozen eggs, gallon of milk, getting a beer at a restaurant, whatever that may be.
Speaker 4:
28:34
I'm going to bet they went up a little bit more than that. So you have to look at what this buying power and purchasing power and what it does for you. And I think that's one of the things that people don't realize is that when you reach full retirement age is the growth of your actual account if you haven't filed for the benefits is easily over double than that. Right, Jim? Yup. Yeah. So I mean, I think Jim, I mean as I look at this is if you lose all of these things and you're not doing something to increase, you got a problem and you've got to make sure you get all of your Nicole's out of this because, um, there's been a lot of changes. So this is actually the good news about this 2019 change at 2.8% is this is the biggest hike we've seen since 2012. Yeah, that's good. Um, went back then it was 3.6 this year. Actually if you remember it was only 2% and then there was a 0.3% in 2017 and those of remembered the meager social security years of 2016 there was no increase. So the years before that were 1.7 1.5 and 1.7. So it's good news. It's up to this level. The bad news is is if you said for your investment return you on a 1.8 or 1.7 or 2.8 return, that's probably not what you're shooting for. I call that in the hyper concerned Revitive category.
Speaker 3:
30:06
Well, you know, you talk about real life scenarios. I mean about four weeks ago we had a couple come in and they were looking at, you know, going to start their social security. We ran an analysis and I'll give you some interesting numbers. So when you look at it, husband and wife situation, they both wanted to start taking it at 62 but if they could wait to 71 of them, it was an incredible, it almost doubled their number, almost doubled the amount they would receive every month. And when you looked at that over a lifetime, it took it $163,400 more in a payout to give them a total of $813,412. Those are huge, huge numbers.
Speaker 4:
30:47
Big. And so social security though, I think one area that is very interrelated but it's different is medicare. And so medicare can be very, very complicated and confusing to a lot of people, but also your total income. Again, your social security income could then affect your medicare payments. I mean in Medicare, I mean, think about this. Um, medicare premiums can range from $187 and 50 cents a month to $428 60 cents a month. I mean, that's gigantic. I mean that's a 200 and what their $40 difference per month that you could be affected and now they're actually looking at a surcharge gym. So if your income is above a certain level that could he be even greater than that?
Speaker 3:
31:30
You know? I'm glad you brought up Medicare, that topic. Is that your favorite? Well, one of my favorites, but I think it's one of the most overlooked in the process and fortunately here at Carson wealth we have a number of workshops throughout the year that are, that are free. All you have to do is call us, let us know you're coming. But we have a great medicare workshop coming next week. It's on October 2nd or October 3rd it could be for people that already are signed up or it could be PR people that are considering the signup. You'll be able to benefit both ways. So what are you going to talk about it? That type of session while we're just going to look at the different steps that you need to take if you haven't signed up and what the rules are there and then if you've already signed up, you know, are you getting what you deserve? Are you, are you fitting it all together with the rest of your financial plan? So I think it's, something's going to be exciting. I'm looking forward to it.
Speaker 4:
32:18
So if you want to sign up, you give us a call, (888) 419-8513 or if you'd easier send you an email or text to info@carsonwealth.com we'd be glad to help you out because Medicare is, a lot of people call it a boring topic. It is a necessary evil or a necessary part of your overall financial plan. Just like, hey, you got to have special teams and football, right? But it's if you don't execute well, we certainly saw that with our huskers last week. And if you're not an ex account is executing well on the special teams. It drags down your overall performance and can hurt dramatically your overall game plan. And that's the way I look at Social Security and Medicare. I mean, if you think about what those two do, they're not the sexy parts of your overall financial plan. They're not all the money you've saved in your 401k throughout time.
Speaker 4:
33:09
They're not. Maybe the inheritance you got or you sold the business and you had all these things are, they're not the property that you own, not like the offense and defense. You play the offense while you're growing and the defense. You always have downside protection, protection, protect your assets for social security and Medicare there. I love the comparable special teams, Jim, because they're the ones that can help move you down the field or change your field position so that you feel like you're running downhill or the worst yet that you're not feeling like you're punting and how to have your own. And
Speaker 3:
33:40
Yeah, if you look at, I mean look at the teams that win national championships. Special teams will be one of their strength because it's emphasized and the kids pick up on it. Okay. If it's not, then they just, oh well you know, we're just going to work on punt today or kickoff return. So it's gotta be a point of emphasis in your financial plan.
Speaker 4:
33:58
Yeah. By the way, speaking of special teams, I got to remark on this, I don't know if you saw a couple of weeks ago that North Texas game versus Arkansas where the punt return or caught the ball and didn't fair catch it, but he acted like he did all his players started walking off the field and as the other team Arkansas Thought, oh well shoot, we didn't hear a whistle, but we also assumed he fair caught it, started walking off field and then he started running all the way down the field and scored a touchdown. Yeah. Now I think every other punt returners in trouble cause they're probably going to lit up here in the future. But it was a great special teams play. You know, I strategy was an effect. They talked about it, but guess what? It wasn't just, I'm sure that one player on the team and said, oh, I'm going to do this.
Speaker 4:
34:41
There was a concentrated effort. They all talk to each other, said what they're gonna do, how they're going to do it. And I haven't heard yet, but I, I'd be, I'd be willing to, you know, suggest via a friendly wager with you, Jim, that they probably practice that. Surely did. They talked through it, how they would do their emotions, their body, all of those things on how they could really make it most effective. Yeah. So I don't know if you saw that, but as a cool place if he didn't play great, but you did see it. I just saw the, okay. Yeah. Well I didn't see it alive either, but um, hey, so I think about live and what's going on in life. I mean, a lot of you read Forbes magazine. I do too. I'm actually those Carson Group. We've been ranked at Forbes, so we're thankful for that. But they said a recently in a quote that millions of social security recipients aren't getting what they're entitled to. And in fact, as much as $10 billion in benefits goes unclaimed every year, don't let yourself be one of them. Give us a call. Eight eight eight 419-EIGHTY-5888419 85 13 this free analysis helps making, claiming your benefits simple and easy, gives you more time and makes you more money. (888) 419-8513 you're listening to well from wisdom.
Speaker 5:
35:52
How could you make your money go further in retirement? Learn how next unwell from wisdom with Barron's hall of Fame Advisor Ron Carson. Is it possible you could pick fewer taxes in retirement and keep this money for yourself? You could learn right here and right now on wealth and wisdom with their it's hall of Fame Advisor, Ron Carson, that your social security benefits could be worth a lot more than you know.
Speaker 4:
36:15
And that means six figures worth. That's a lot of zeroes, right Jim? Well it is. And that can actually add up to millions of dollars for you. Or if you want, just leave it on the table. And I mean that's like throwing your money away. It's like throwing a chip at the casino or cash and burning in her, losing it or think about all those millions and billions of dollars of unclaimed gift cards that people leave out there. Hey, I'm Paul West. This is the wealth of wisdom radio network and we've really enjoyed tonight helping everyone think through social security and what's best for them. And we've been spending time revealing facts, but I think one of the things you need to know, and we're going to finish it up here in the last segment, is talking about really that you can't rely on the advice of the Social Security Administration. And I'm not saying this to bad mouth them by any means, but you got to remember they're advice is to help get you processed.
Speaker 4:
37:07
It's not what is best for Jim Caldwell or Paul last or whoever's standing up there. So even though, I mean people want to go there and help, you need your plan of attack, you're going to come up. Like how many of you go to the car dealership now without researching the car online first? Probably very few. You want to go there and just wandering aimlessly know what's going to happen. You're going to end up buying the car and the salesperson, it gets you to buy because they sold it to you and had it happen so they can move on to the next one. Where reality is, is you want to be in this scenario and situation where you get the best advice possible. So I mean, as we think about this Jim, let's also think about how the markets are doing. So of course earlier this week, what happened? Interest rates, right? So what happened? Interest rates this week. Jim, what up about 25 basis points about woke Zack. Okay, good. I just want to make sure. So no, I mean we had an interest rate increase. So what goes on with interest rate crease? Now what? What are people thinking? Uh, what do I do next? Do I go to bonds?
Speaker 3:
38:17
How's that going to affect stocks? Go, they're going to go up, but they're going to go down. Yeah, well what are they going to do? That's what everybody really wants to know. That's why they're listening to this show. Well, I know when they announced the hike earlier in the week, equities were up that particular day. So at that point in time that they went up and had a positive effect. Yeah. Well, I think things we have to look at is entire economy.
Speaker 4:
38:36
So if interest rates go up by 25 basis points, 25 basis points equals 0.25% unemployment is sitting at 3.9% this is near an 18 year low in economic growth is ratcheting and higher. However, if you're really look behind the numbers, the best stocks are performing absolutely the best. The rest of them, eh, not, not as much. Jim, I mean, and I think we've been experiencing this through a long period of time and I think the Fed and not to bore people on our show today, but I mean right now they're predicting now for more rate hikes next year. Wow. Ouch. Yeah. So I don't know about you, but do you remember, I do. What was the first mortgage rate you ever paid in terms of a percentage? Uh, 11 and a half percent. 11 and a half. So that beats mine. Mine was eight and a half. So, and it's not because I had bad credit, it's just because that's where rates were at that point in time.
Speaker 4:
39:38
That's what they were doing. And that's what going on with, and now we're starting to reach up to the point with people is how comfortable are they with risks and now all of a sudden if they build a bond ladder and can be a 4% plus in some triple B or higher rated type bond ladders, are they going to start, you know, retreating from equities at some point? Are they going to say, should I take some chips off the table? Um, my guidance to you is, is, and we never predict when the market's going to rise or fall on the show because we are believers in building the right game plan for the long term. Not trying to short time the market. I mean, I can see Jim, I mean is, I love a lot of these statistics with unemployment. But what I also see is a bubble happening at the moment is, you know, and I heard this statement the other day, and it may not be apropos, but I'm going to say it anyway.
Speaker 4:
40:33
So producer Jamie closure, yours is when you see like a friend or a neighbor next to you and she points at me right now that is making more money on a specific investment decision, whether it's real estate, bitcoin, anything else than you are. You get jealous. And so then you go try to find ways to make more money than them, right? And so it's human nature. We're competitive and we don't want other people in our hearts to make more than we do. And so that's starting to happen. And so we're actually thinking a little contrarian to that is now the time to take a few chips off the table, protect what you've built and have some what we call downside protection, your portfolio. Let me give you an example of Jim. So let's say hypothetically you and your family, your low sixties you've saved and you've done a great job through your 401ks and your, and maybe you got a little bit of herons and maybe you've saved $2 million.
Speaker 4:
41:38
It's a big number, right? Most people think of a big number, but if you're low sixties $2 million, and if you both live a over age 90 and you spend $5,000 a month, maybe isn't as big of a number as you think it may be. So let's say the market goes up 10% in this next year in year 2 million goes to 2.2 okay. So will that change your mind to retire? Not Make it a little bit easier? Yeah. Easier. Yeah. You've got more money. Yeah, absolutely. So what if we go back though, and something happens in the markets or the world where there's a terrorist attack or there's something that causes a downturn, maybe the, maybe the tariff issue becomes a huge, huge deal. And then your $2 million has a 2008 setting where the market drops by 38% and your $2 million becomes $1,240,000 what does that do to your retirement?
Speaker 4:
42:31
That gives me a big headache and it's not, you can't do it. I mean, is it going to be more a headache? It's going to stop you sleep in gym. It's going to stop you from retiring. Why? So you're, you're chasing yield, you're chasing information, you're chasing all of these things happening that you don't need to. So I mean, I hope the consumers out there, we'll realize, yeah, it's fun to make money. Don't get me wrong. Just like it's fun to shoot the best golf game possible. If you didn't know our producer, Jamie's a fantastic golfer. She does a wonderful job, but at some point it's okay to play for bogey and to take double bogey and triple bogey out of the equation. You don't always have to go for the green and two, you don't always have to go over the sand trap. You don't always have to go to the water.
Speaker 4:
43:14
Yeah, there are times you can because the risk is worth the reward, but not with your money. Right? Not that I would question that. I would question right now if I were sitting at home, is can my kid, my portfolio weather a storm if it does happen or is there more upside in my portfolio versus Dallas sided? I, I would think the opportunity to come in and see us and receive a second opinion, complimentary second opinion on your current portfolio candidate, whether the storm can it, whether interest rate hikes, how's it going to react to down the road when those happen? If we're going to get four and more next year, you need to be doing a little bit of planning right now and possibly some reallocating of your assets. Yeah, so here's another stat I love to share with people. I think everybody knows I love statistics, so this is the reality of the world we live in.
Speaker 4:
44:06
And I share this with you because more the people who depend on social security for more than 90% of their income increased from 43.7% of people in 1991 to 46.6% in 2012 and for people who depend upon it for more than half of their income, that increased from 69% to 71% so if more than half of weather or where you get to go out to eat and what you got to do for fun is based on one source and that is social security and you don't maximize that, then I say shame on you because you have the opportunity to, there's firms like the Carson group and others out there that will give you free advice on how to do this and how to get there. (888) 419-8513 till see if you qualify and how you can best do this and avoid the Medicare mistakes, spousal benefits, all those we've talked about on today's show and it's been fun to talk about it with you here. Jim, give us a call, (888) 419-8513 or if you want, email us info@carsonwealth.com will help share with you best practices you've been listening to, wealth and wisdom, and we'll see you next week.
Speaker 5:
45:16
Risks, 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:
45:29
Okay. And here's the legal Mumbo jumbo. The opinions voiced and Wellframe 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. I 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 CW m l LLC, an SEC registered investment advisor.