Wealth from Wisdom

Social Security: Save Tens of Thousands of Dollars

March 03, 2018
Wealth from Wisdom
Social Security: Save Tens of Thousands of Dollars
Chapters
Wealth from Wisdom
Social Security: Save Tens of Thousands of Dollars
Mar 03, 2018
Carson Wealth
Show Notes Transcript

In this week’s show, Ron and Paul discuss social security, and how you could avoid losing tens of thousands of dollars in benefits.



Speaker 1:
0:00
Okay, and here's the legal Mumbo jumbo, the opinions voiced and welfare 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.
Speaker 2:
0:31
The stock market hit another all 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 250 the skyrocketing cost of healthcare and retirement could now run $350,000 for retirement. Today is a whole new ballgame. It's loaded with challenges, obstacles, and trap doors that you can do this and we can be your guide. Welcome to wealth from wisdom with Barron's 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.
Speaker 3:
1:16
If you're in your late fifties or 60s chances are you're paying closer attention, or at least you should be until social security and what the heck's going on today with social security and you can see your estimated benefits right there in black and white. It's from the government. So there is no reason you should worry about it being correct. Right? Well, that's not correct. The truth is the number doesn't even begin to tell you the whole story. In fact, your benefits could be, and I'm going to go on a limb here and say probably are significantly higher or lower depending upon how and when you claim those benefits. Welcome to Walton. Welcome. I'm Ron Carson with my special guest today, Jim Caldwell, and thanks for joining us today. You may not realize it, but you've made a modest income. Even if you've made a modest income throughout your working life, your social security benefits could add up to be six figures in retirement.
Speaker 3:
2:20
And if you've made an average income, it could be several hundred thousand dollars. So suffice to say, that kind of money is meaningful to anybody and everybody. And that's why this decision cannot be taken lightly today. If you simply take your social security benefits at face value, you're probably gonna get the wrong answer. You're probably not going to maximize your benefits. And once you make that decision, there's no turning back. So coming up on today's show, our ultimate guide to claiming those benefits, what you need to be on the watch for. And Jim and I are going to give you some other useful tips as well as it relates to. And what the show is all about is education. We want to teach you something. We want to tailor your something so you can take control. You'll have your retirement. Jim, by the way, Jim is one of my fellow spartan racers though.
Speaker 3:
3:13
Uh, Andrew and Jim and I were a part of a 10 person team that did basically a nine mile, almost a nine mile course, 20 obstacles. And Jim that was such an incredible feeling and tremendous teamwork. I was very proud of the whole team and how we all have locals. We all work together and, and pulled each other through the tough parts. Cause at some point we all struggled and we all needed a little boost. So that was probably one of the top four or five uh, victories of, of my lifetime. Yeah, it was, it was great and great to see your heart and soul out there. You know, heart and soul is really what, you know, making good decisions is about, it's easy just to sit back and get whatever comes at you and really not take control. And you know, of course being a spartan in as part and race, we took control of the situation and also we're asking our listeners to take control of social security.
Speaker 3:
4:07
It's one of those critical pillars that a lot of times people don't spend enough time on and the numbers are scary. We just shared a couple of weeks ago, Paul and I were talking about the fact that 84% of those claiming survivor benefits were told actually got the wrong answer, not just by a little bit, by a lot. And there's all kinds of examples out there where people are just simply not getting the right answer. That's why you cannot take the social security administration at their word. You need to have someone look at it, run all the optimizations for you so you know exactly how you can maximize those benefits raw. And we actually had a situation a couple of weeks ago here in the office. We're a lady came in, she was divorced, she was about 60 years old. Um, you know, she was married, directs husband about 15 years. Unfortunately he passed away and she's looking to retire and she thought, well, I'm just going to claim my social security at 62 it gave her a lifetime benefit of about 700,000 in real dollars.
Speaker 3:
5:15
But if she would wait and go back and claim what we call the excess divorced spousal benefit, that would bump it up another 400,000 which would put her at 1.3 for a lifetime. If we didn't run that analysis for her here and show her those numbers and she would have walked into the social security office with all due respects to those folks, she would not have gotten those answers. And what's the difference? The delta between those two, $600,000 right? $600,000 that's rightfully yours. Just because you got could've gotten bad advice, you wouldn't have gotten that information. Let me give you another example, and I hit on this because I found it hard to believe that this was true, that people were getting answers that was this far off from what their actual benefits could have been. And by the way, Jim, I was surprised. You know, we deal with people of all sizes here at the Carson Group.
Speaker 3:
6:10
People that don't have a lot of money invested to those that have a lot invested. But here's what I've learned about social security. They all care about it. I don't care how much money you have, you still want to get what's rightfully yours. Here's another example, a financial adviser with a firm in Atlanta, uh, shared with us that he had a wife, uh, that age 67 claim their social security benefits for $1,100 a month when she reached your full retirement age in 2015 when the husband retired last year, the advisor recommended that he wait until he turns 66 to file a restricted claim for spousal benefits that would entitle the husband to about $550 a month, half of his wife's benefit. Right? This is exactly what we're talking about. Uh, on the 84% giving bad advice while his own retirement benefit would continue to grow at 8% a year until the age of 70.
Speaker 3:
7:07
Absolutely 100%. Great advice at this financial adviser game. But when the couple went into the local social security office to apply for these benefits, they were told that this was not an option. The Social Security Administration Rep said the husband must file for his benefits, immediately suspend them, and then the Weisel security benefit would be increased to be worth half of her husband's for retirement age. This advice was totally incorrect. And what's even scary as to sit there and say, well you can't do that. Most of people I know, most of my family members say, Oh okay, so what are my options? You just, again, you can't fathom that they could possibly giving, be giving you bad advice. It by the way, they're not bound to, and by the way, when you make the option, you can't go back and have a do over that. That's the biggest concern that, that we run into when people come in.
Speaker 3:
8:04
If they've already started taking benefits, right? We can't go back and help him. So the action plan here would be if you are approaching retirement and you have not taken social security, you need to have a social security analysis run for you. Now be proactive instead of reactive with those benefits. So let's take a look at some of the changes. Jim in 2018 a four social security, first of all, the full retirement age is increasing for some eligible seniors. Also Social Security Administration announced a 2% cost of living or cola for beneficiaries. This is the highest in six years, so that's, that's good, right? Um, and the maximum taxable earnings amount is rising by 1500 to 1208000700. That high income individuals end up paying more into social security in 2018 than they did in 2017. Disability thresholds are rising. Supplemental security income is also rising. So a lot of good things that are going on here, uh, in 2018 so it's going to continue to be a bigger and bigger piece of the overall pie.
Speaker 4:
9:19
And the other thing that can be a concern there, those are all positives would be there are articles out there saying that there might be up to a 23% cut in benefits by the year 2034. So you don't want to be one of the 97% people out there that are getting it wrong when they initially go in and sign up for so security. So as I said earlier, the analyzer is the key. Well
Speaker 3:
9:43
on social security is expected to run out of money by 2034 unless something is done. We've been, you know, I don't know if it's this, this, this seems to come. All of a sudden it's a crisis in America and then we don't focus on it then it's a crisis and we don't focus on it. But meanwhile those benefits just keep in the unfunded liabilities just continued to increase. So as you pointed out, there's a strong possibility that we're going to have to have some major changes. And there was an article I read recently that said, Liz, you just noted we could be in for up to a 23% cut and social security by 2034 and I just think good planning will actually help you prepare for this. You know, one of the things we recommend when you go through your income planning as you know, what's my life look like today with all the income sources and making some reasonable assumptions.
Speaker 3:
10:36
But what would it look like if a lot of things, everything went against me, get my social security cut, I'll lose my job, I 401k my employer was out of benefits. I don't have that benefit. I mean I think it is helpful to go through and plan for the worst hope for the best. And this is a real social security's not going to go completely away, but they're probably gonna start means testing it more. And in a way they're already doing that because we already have to pay taxes on our social security a matter of fact as much as 85%. So that has not always been the case. When I was first in this profession, you weren't pan any, none of your, um, social security was included for taxes. Now that's totally changed. There's so much coming at people today, Jim, and we've got social security and we've got a lot of other things.
Speaker 3:
11:29
How do we get income? It's just, it can be a real jigsaw puzzle and trying to figure it all out. And the big one though today is social security. So did you delay claiming those benefits or should you claim them right away and there was a lot more to it than anybody can really appreciate. And if you rely on one size fits all strategy, you could trigger an avalanche of, you could double your medicare premiums and forfeit additional benefits that are rightfully yours. Ultimately, he could cost you thousands of dollars and possibly much more. The only way you can avoid this, that's what the customize social security analysis you might expect to pay hundreds of dollars for this. We're actually going to give it to you. There's no cost for this. It absolutely, it won't cost you a dime. But to get your free customized analysis, call us (888) 419-8513 that's (888) 419-8513 don't leave thousands of dollars in social security benefits on the table. Give us a call. Eight eight eight 41985138884 nine 85 13 I'm Ron Carson with Jim Caldwell and you're listening to wealth from wisdom.
Speaker 2:
12:51
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 Barron's hall of Fame Advisor. Yeah,
Speaker 4:
12:59
Ron Carson,
Speaker 2:
13:00
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 Baron, taller boom advisor Ron Carson. If you're thinking
Speaker 3:
13:13
king about claiming your social security benefit stop, you could be on the brink of making an irreversible mistake that could cost you a small fortune. Welcome back. You're listening to wealth and wisdom. I'm Ron Carson with my cohost today, Jim Caldwell. If you simply take your social security benefits at face value, you could leave thousands of dollars on the table, possibly much more coming up on this segment. We're going to continue or ultimate guide to claiming those benefits that could help you avoid avoid as the key here, losing thousands of dollars. This is a huge asset for most people, Jim. And they're just not giving it enough attention. And we've covered this topic, a lot of wealth from Wilson. I'm still surprised people say, Oh, Ron, I listened to you. And then they've done something with social security recently, um, though where they didn't optimize their benefits. So this is something I owe it to yourself, to your family. Uh, Matt, uh, matter of fact, make sure you're both on the same page. If you have one spouse goes in and do something without the other, uh, that can create some problems.
Speaker 4:
14:15
Yes. And we've seen a couple of, you know, instances over the years where the husband and wife are not on the same page. I mean, maybe you have one that has the thought process of, well, I don't think so. Security is going to be around forever. I'm going to take it now and start the start the benefit. Then you have the other one that says, well, maybe you should seek professional advice. So obviously that doesn't go over well at the dinner table. So normally what we recommend based on the fact that you know, 2% of the men in 4% of the women do not wait to 70 to claim their benefit. Um, four out of 10 start right away at 62. So the best thing to do would be go seek trusted advice. Go into an advisor's office, sit down as a team, husband and wife with the advisor and, and Hash out the the options and alternatives.
Speaker 3:
15:06
Well and Andrew, um, it really produces our shell force. Just sharing his parents actually went through this, had gotten some advice and your mom was like, we need to make sure we get a second opinion. And I think that's good too. I mean, you don't have to just take one professional. It's as a big enough decision. Maybe you get a second opinion to say, are we hearing the same thing? Because you are totally on your own. If you think the social security administration is going to hold your hand, you're in for a rude awakening, they will not offer you any personalized advice. Actually, they're forbidden to give you personalized advice. I guess there are allowed to give you wrong advice and bad advice, but they're not allowed to give you any personalized advice and you don't want them to anyways. If you look at it, they have a terrible track record and getting it right.
Speaker 3:
15:54
There's lots of black guys. There was all kinds of articles. I saw one recently in Forbes on this very topic and the verdict is in. You have got to take matters in your own hand if you're going to want to maximize social security. Let's just talk a little bit Jim about household. So security is even calculated, so you're, your benefits are based on income during your 35 highest years of work. Now you know, lacking across the ball. The Social Security Administration doesn't know how much you're going to be earning and future years, but you can get an estimate based on what it looks like today. If you manage to increase your earnings in the years before you retire. The good news is that your social security benefits will likely be higher than what your existing statement will indicate because again, that's looking at today. In the past, not looking at the future. However, the flip side is true also, if you have a few years in which your earnings decline or if you retire before you've accrued the full 35 years of earnings, you could get a really big unpleasant surprise when you go to claim those benefits.
Speaker 3:
17:02
So regardless of whether your future earnings change or benefit amount, your benefits will be subject to at least one deduction. You're going to have medicare premiums actually coming out of that. You're going to see the number, you're going to have a deed ducked out of that, and you may have to pay income taxes on those benefits you're receiving. This is something too that you need to take a look at what the combined income is. And for single tax payers, a combined income of 25,000 or more, we'll expose social security benefits. The tax for joint filers, it's 32,000 so Jim is not very much before you start to run into problems on and that's why you know, thinking this through really makes a lot of sense.
Speaker 4:
17:40
And Ron, we had a gentleman come in exactly in this scenario. He's a single guy. He's never been married. He's actually in sales. So his fluctuated over the years and you could sit there and look at it on his social security statement. 62 years old, wants to retire, wants to start taking asap. We ran an inhouse analysis for him. The optimal age for him was to wait till 70 so he came to me and says, okay, great. If I'm wait till 70 what's my benefit? He would collect 80% more money. So translating that into dollars quickly at 62 he was about 600,000 lifetime. If he goes to 70 750,000 that's $150,000 difference. So what we worked on was two things. Number one, how could he maybe keep working, maybe doing something else if he was burned out or number to be able to systematically take out money from his other sources, some 401ks and his savings.
Speaker 3:
18:38
Yeah, big, big difference. Again, planning the sequence of returns and you'll let the 8% grow. So security will begin paying out more than it takes them by 2021 as just three years from now. I remember reading this stuff to him like, oh my gosh, that's so far away. I'm going to worry about getting through the Millennium First. Right? And then boom, we're almost there and come 2034 just 16 short years of way. By the way, 16 years ago by fast, I just had my first grandson. So I'm thinking about the fact that I remember my daughter that had my grandson named Carson, by the way, Carson, Liam. Um, and he's the cutest little guy I've ever seen. You're not too biased. I, I'm, I'm totally ready. Does there, uh, but the point is 16 years I'm going to go by in a flash. And so what if, let's just put this in real terms.
Speaker 3:
19:27
The people listening, what if they, they, they're right and they have to cut benefits by 23% based on a projected us population of 370 million in 2034 that would mean drastically smaller checks for 87 million. That would be getting the benefit. What would the benefit be? Get this number. You can't, when I looked at, I'm going to, can I be right? Try it. 5,969 a year and today dollars that $80 that's, that's, yeah, that's not very much. Right. And today dollars. This comes from, uh, the Peter G. Peterson Foundation, by the way. I brought him to Omaha to give a talk quite a few years ago. Really, really talented guy. But that would be devastating for a lot of Americans. Andrew, just put a note in front of me. He says, Carson will be driving and 16 years. Oh my gosh. Wow. Even think about that. Hopefully I'm going to, you know, I was talking to my dad this morning and I'm hopeful that Carson wants to grow up to be.
Speaker 3:
20:33
What do you think? I hope he grows up to be JEM wealth advisor. Of course, a farmer. Oh, I want him to be a farmer. You know, I love the farm. I would have been a farmer if things would have worked out. They didn't, you know, but I would have been a farmer instead of a financial adviser. Grew up on a farm just north of here and my kids, you know, my oldest daughter's and medical sells. My middle daughter has a cookie company. Grant's going to be a producer. He just had his short film. Um, it was accepted in Omaha film festival. I just saw it this weekend. It was awesome. Couldn't be more private of them. Have an interest in the farm. And you know, that's such a part of my past that I hope Carson becomes a farmer. I'm getting off topic here, but, uh, the point is that, um, time goes by fast and all of a sudden, you know, things that we think are so far off that we're not going to have to deal with.
Speaker 3:
21:25
We're going to have to deal with, uh, in a hurry. So let's, yeah, let's talk a little bit about, um, just other things that people can be doing. You know, social security. I think we beat that to death. You know, you need to know what it is. You need to optimize it. You need to be proactive. Don't take anybody's word for it, get a second opinion. But there, you know, fix any errors on your record and that's one of the things you can do today. Make sure get the benefit. Are there any errors on it. You also need to work at least for 35 years. Earn as much as you can in the later years. That'll impact in a positive way, your benefits delay starting those benefits if you can. If you have a spouse for you can draw that. Allow your benefits to accumulate. Um, and also if you're planning on getting divorced, delaying your divorce for also helping this, I mean, hey, it's money, you know it.
Speaker 3:
22:25
Uh, and if you've, if you're just slightly don't like yours falls, um, this could be in both your best interest to stay married, uh, instead of actually filing for the divorce. And to piggy back on that a little bit about what, what we think's important is not how much you make, but how much you keep is the idea of tax planning. And we've talked about this on previous shows and I can't overemphasize it enough, but she, with the new tax laws and and some of the positives there were not just having somebody out there to do your tax return. I mean most Cpas, accountants are very, very good at that and they're excellent. We work with a lot of outside companies, but we have internal people here that actually do tax planning that can forecast out your cash flow and where to take the money from.
Speaker 3:
23:10
And I think that's very, very important. Ron, when you package that in with which, so security strategy should I use? Yeah, I tax planning and better fact just planning to live a lot longer. By the way, I think this is one of the ticking time bombs that people really don't appreciate is we're on the cusp of having lives get extended a lot longer and we all know social security is already going to have a challenge, right? Paying out more than it's bringing in and right around the right around the corner here at 2034 or 20 no it was three years from now. So 20 whatever the date was, 2021 um, and but what if people live five years, 10 years, 1530 years longer? That's why social security can only be part of an overall game plan to help you get what it is you're looking for.
Speaker 3:
24:05
Most retirees, you've got questions about claiming these benefits. What's the best time? How are they going to be taxed? Are they going to be taxed? Do I have other benefits that I'm actually eligible for? Most people take these benefits at face value and as a result, you could leave thousands of dollars on the table, possibly much more. We've given you examples of three and $400,000. Delta is between your best case and what the advice was actually given. But you can avoid this with a customized social security analysis. This makes claiming your benefits simple and easy. We at the Carson grew up or review your situation, a plugin, plugins, unnecessary details, and in minute you'll see all of your options and most importantly, which one will help you get the most out of your benefits. This includes optimizing the amount of your benefits and minimizing taxes on those benefits. And if you're entitled to other benefits, that could mean thousands of additional dollars into your pocket every single year. And you might think, hey, this is expensive and there's a big obligation. There's not, we love for you to take a look at our firm, but we'll make a deposit and give you something of value. Eight eight eight four nine 85 13 that's eight eight eight four nine 85 13 I'm Ron Carson with my co host Jim Caldwell. And you're listening to wealth from wisdom.
Speaker 2:
25:22
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, he's a published author and has been featured in Forbes Investment News, the Wall Street Journal, CNBC, and more. Now back to from wisdom with Barron's hall of Fame Advisor Ron Carson. Did you know
Speaker 3:
25:44
how and when you claim those benefits, social security benefits could trigger a bunch of taxes. Matter of fact, maybe an avalanche, they could double your medicare premiums in, caused you to forfeit additional benefits that are rightfully yours. And that money you were counting on for your retirement could now be a fraction of what you thought it would be. Welcome back. You're listening to wealth and wisdom. I'm Ron Carson, my co host, Jim Caldwell. And thanks for joining us today, Jim. We beat us to death. So security we've done on past shows. Still frustrated at the amount of people that leave hundreds of thousands of dollars on the table. But let's move on. Let's talk about some things just going on in the market in general. What is, um, apple is out and talking about opening healthcare clinics for employees and their families. And this comes on the back of a similar move. Amazon, Berkshire Hathaway, JP Morgan announced that joint health care for initiatives for their employees. I eat, this is awesome because our government in some areas is just not, not fulfilling the role. Um, and we've got problems and you know, big companies that are doing well are coming out, uh, and directly helping those that are, you know, part of their community versus relying on somebody else to do it. So I, I like these, these are positive moves going on. What's your take on that?
Speaker 4:
27:00
I think anything you can get the government out of for four and let the main street business handle it is good. Um, I think it personalizes it more. I think you're going to get more of a, a straight scoop from, uh, from that type of a situation versus as we've seen just using, so security as an example, you go to the administrative office, you're lucky to get a 10 minute meeting if you can. That's what people tell me. Number two, you know, you don't want to ask a question when you're there because you're not have numbers show you're going to get possibly the wrong answer. So, uh, I'm all for that. I think that sounds very positive. I had a question for you. You're in the trenches, you're meeting with clients and prospects all the time. What are you hearing? What's on people's minds these days.
Speaker 4:
27:43
There's a lot and a lot. It's really picked up lately, Ron, where people, number one, we're all living longer, even said that earlier. So you know, you're pushing out there hopefully into your 90s or even longer than that. So they're worried about, okay, do I have enough money to even consider retiring? So we go through and we try to work with them to calculate that out. And then you look at, okay, if I have enough money, can I make it last? You know, we go through another 10% correction or we have some catastrophic event down the road. Somebody pushes a button, people are worried about that. Um, so we were looking at, it still starts with us as a personalized game plan for people. Most people coming in here don't have a financial plan. Their estate planning documents are outdated and need to be updated. So I'm get, I'm seeing the whole thing, soup to nuts here lately with a lot of concerns out there. But we have the solutions here to be able to help them.
Speaker 3:
28:36
And I think that's important because it's not just one thing. It's a lot of little things done exactly right. To give you a battleship type of retirement question, I get asked all the time as I'm around Omaha, um, is, hey, when's the next big pull back going to happen? And the truth is nobody knows and, but here's what we do know. We're in one of the longest bull markets in history. Um, prices are crazy, but they're not cheap either. And this is a great time because we know one thing, the, one of the biggest mistakes most investors make is they think the market is going to dictate how they do. And it's not true. The stats are out there. It's how you behave, your behavior ruins wealth. Matter of fact, just by influencing your behavior, whether it's, there's a bunch of studies out there, we can add three to 4% a year in returns by having an appropriate level of risk of family index number.
Speaker 3:
29:32
One of the things I love Jim, when we sit down the decision center, right? Or we can just plug into clients' data and they can give us a bunch of what if scenarios, second house, retire here, pay for my daughter's, my Grand Joe College education, all of that and show cause and effect. One of the things we have to be just more aware of is just you know, how devastating being taking too much risk at the wrong time as you're nearing retirement can have to a portfolio. So the question is don't try to answer a question that nobody knows the answer to, but what is your appropriate level of downside risk? And that's where we see a lot of people coming in have a lot more risk than they think because you never mind too much volatility to the upside is to the downside. But here is something, the canary in the coal mine, and this was something that was brought up by rob for long, the guy that manages you know, global horizons.
Speaker 3:
30:30
Talking about the fact that in early February the euro stocks 50 index broke through its 200 day moving average and hasn't been able to recapture that level and the following week. So this is something that a lot of times we'll get weakness, um, overseas before we actually get it here. We know all of a sudden we have a lot more volatility than we've had in. Hopefully that allows people to really focus in and say, okay, the markets just don't go straight up all the time. What is my downside risk? And then if you get that piece right and you don't panic, and buffet said something this weekend that was right on, he said, you know, if you're really invested in the equity market, you've got a tail wind behind you. I agree 100% agree, but it doesn't mean that it doesn't change directions and blowing your face. For those of you that ride bikes, you know, you turn around, you think you got to, you know, you've got a headwind. Troy, you got a real headwind. Then sometimes it's misleading where they're going to come from, what the wind really feels like a, but getting that piece of it right, it's going to really drive whether or not you're successful. And going on
Speaker 4:
31:33
back to what you said about decision center and how you can go in there and calculate a lot of, a lot of numbers for people. What I'm seeing is a lot of advisors out there are not really giving inflation rates the the attention they deserve. I'm seeing the lowest numbers ever. What we like to use as a higher number, usually for four and a half percent. So if we do error, we're going to err on the side of being conservative. And I've seen these Monte Carlo simulations, Ron, to people who are running for, for prospects out there for people that go out 30 and 35 years because they base it on, well, you're going to live to be 100 shoot. Things change in three years, things change in five years. So you gotta be really careful with some of the data that's being thrown in front of me.
Speaker 3:
32:20
And that's a great point to make him every single day that passes in a client's life becomes fact. We're already, I mean, that's bad rockets, unchangeable and then we, but we need to look at it more frequently to say, you know what, shame, even as a company or at the Carson grew up, I remember we used to do five, seven year business. Things are shifting so quickly in business. We do a one year with 90 day sprints as far as, you know, what are we going to do for technology? What available, you know, risk management, things that we have for clients. As you well know, we use a lot of irreplaceable capital strategies here. So the sophistication that goes into that to technology continues to improve. Um, and so do we, and we're gonna see, we continue to invest heavily in the client experience to give them along with their advisor, the Vore, the value of the relationship, key decisions made so they can see the true value that they're getting.
Speaker 3:
33:14
But understanding that how all the pieces fit together so they don't make knee jerk random decisions. What so often happens and I ran into that just the other day when I was going through some statements that some people brought in and I asked him, I said, do you know why you own these mutual funds in your portfolio? And they had no idea. And I said, well what was the basis for the recommendations? Well, the advisors said that's what we needed and you know, it's really neat here. He talked about technology. We can go up on our touch screens and all of our conference rooms and actually put the client up there and have them do a risk tolerance questionnaire. It takes anywhere from two to five minutes. They love the participation in the meeting and at the end of the questionnaire it shows the proper allocation and all we need to do then is plug in the plug in the dollars to the different buckets.
Speaker 3:
34:04
And off we go. I mean, this isn't rocket science, but it's actually a process that people walk out the door very comfortable with. Yeah. If you're an investor and you're sitting out there and your only hope is, or your strategies are all just geared to the market going up but aren't designed to do well and really any kind of market environment and true, if you have an all season strategy, you're not going to capture all of the appreciation of the market, but you really don't want to cause that means you can accept all the downside. Really look for specialty and diversified and differentiated strategies. Um, and we'll talk about that. You know, a little more in our next segment, but do you know your downside risk? Come to the Carson Group. Get a second opinion. You can either do it online or come in to a risk tolerance questionnaire and we will actually tell you where you're at, what your downside risk is.
Speaker 3:
34:51
And more importantly, how would you optimize the portfolio in order to get maybe the same return or a lot more risk? Or if you're comfortable, comfortable with the level of risk you're taking, how do I optimize it to get a higher return? By simply having the right assets and the right asset categories, the right kind of strategy, your portfolio, it can make a huge difference. Give us a call. (888) 419-8513 (888) 419-8513 we also have talked to a ton today about social security. Get our free social security analysis. It will cost you a dime. We'll show you exactly how and when to claim those social security benefits strategies to maximize those benefits. Plus, we'll take a look to see if you're eligible. Additional benefits. It can really add up to a lot of additional income. Eight eight eight four nine 85 13 I'm Ron Carson with my co host, Jim Caldwell, and you're listening to wealth and wisdom.
Speaker 2:
35:48
Trust, transparency, accountability. These are the values that drive Ron Carson and Carson. Well, you're listening to wealth from wisdom with Barron's hall of Fame Advisor, Ron Carson. He's a published author and he's 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. This
Speaker 3:
36:13
may shock you but it shouldn't, and that is what you see on your estimated social security statement. Doesn't even begin to tell you the whole story. In fact, your benefits could be significantly higher or lower depending upon how and when you claim those benefits. Welcome back. You're listening to Walton wisdom. I'm Ron Carson with my co host Jim Caldwell. And thanks for joining us today. Getting the most out of the benefits is way more complicated than anybody can really appreciate. And coming up on this segment, we're going to continue to talk a little bit of hear about interest rates gym. And you had a great example of a client each actually worked with a on social security and I'll have you share that as well. But one of the things to surprise me this week is our new fed chair, Jerome Pow. Uh, it made his first appearance as a parents, as a, as a head of the Federal Reserve before the House Finance Committee.
Speaker 3:
37:09
And then he's out saying, yeah, we're going to continue to raise interest rates in the market. You know, it goes down on that news. It just surprises me that the market is surprised about that and actually I'm in favor of getting rates up to getting things more normalized. Yo, this is really stressed out. A lot of people that are really just comfortable having their money in the bank getting a fixed rate of return, all of a sudden they absolutely have yo know return to show for it and that has been a painful reality and those same people didn't invest in the equity market so they've not benefited from this big run up. So just some increase in rates is really going to help out, you know, a huge segment of the population. Also, the thing I would go on back to what buffet said is if you're going to have and rely on these, even even with rates going up som there are almost no return and if rates were to shoot up, those bonds are going to come down in value.
Speaker 3:
38:08
I'd really take a look at, and we were talking about it in the last segment, Jim, irreplaceable capital strategies. You know the, the day the mark, if you're afraid of the market going down the day it was down 4.6%. We had several of those irreplaceable strategies. We're actually up slightly, I mean they weren't up much, but the market was down 4.6%. They were positive. And this is where we run risk analysis every single day on all of our strategies, make sure they actually do what they're expected to do. And that is, that allows investors to not have knee jerk reactions. It positively influences behavior, which is one of the absolute secrets too unwell when it comes to investing. But let's get back to social security here, uh, and give a couple of additional examples, gem of, of what you're saying.
Speaker 4:
38:59
And I see these all the time. So, I mean sometimes they sound a little redundant, but where you really, yeah. If a couple of situations, number one, where social security planning is so important where a husband and wife are years apart as situation where we've got a 10 year gap and you have to sit there and try to decide what's best from, so security, how do they take income, how do we allocate their, their portfolios. But actually had a lady command, um, her birthday is in September of this year, she's going to turn 70. She wants to get ready to take social security. So she called to, so security department before she came in. And unfortunately the, the gentleman said, hey, uh, do you want to take surviving spouse benefits that her husband had passed away and all that. And she said, well, I'd like to. And he says, well, you're eligible to do that all the way up until you start taking your own.
Speaker 4:
39:54
And she never knew that. And it turns out he had died 10 years earlier and she had called when he passed. Wow. Ask the question, Hey, am I entitled to any benefits from my husband? And she was told flat out, no. So all they could do at this point, which was sad, was to go back six months and give her some portion of the dollars she'd lost. But when we did the math, just because I was curious, she lost out over a 10 year period, $140,000 that she was entitled to. So it goes back to what we talked about earlier, never trust. So security and never asked questions when you're ready or in
Speaker 3:
40:33
your office because you don't know, right. Answer's going to be, yeah, well Reagan used to say trust, but verify. That's probably we need to verify then verify because this is really a key decision and it's all about operating in a fact based environment. You know, I heard they said or he said, or I heard this at a family, you know, get together. It's, you're the one that will suffer the pain and consequences if you don't get this stuff right. And Jim, I just want to come back and talk a little bit about interest rates. Um, you know, here we are, rates are going up the two years at 2.26% the 10 years at 2.9% and you know, everybody's worried about a break in three, it's going to break three is probably going to go to three and a half. The 30 years at 3.176% so think about this, you could literally give your money to the government for 30 years and all you're going to get as a 3% return.
Speaker 3:
41:29
Inflation rate is too many fear that because we've had such accommodative policy for such a long period of time that we're going to have the real inflation genie out of the bottle and you're having to pay taxes on that 3%. So let's just say you're really nutting around too. That's not even keeping up with inflation. So you're given the certainty in that kind of scenario of losing purchasing power. Would you rather have some volatility? And the point is you can, may, you can manage and measure how much volatility is appropriate and you can manage the downside risk. Like I said, if you manage a downside, the upside will take care of itself and Jim, when you sit down with clients, I would imagine it is for me that you know, the most popular strategies are the irreplaceable capital strategies people are concerned about, you know, even though it's spent a long time, they remember the financial crisis wall and I, I'm looking at our tools here are allocation tools where we, we go in and we do the risk tolerance questionnaire, so you've got to come up with either a conservative or moderate or a growth risk tolerance and within those we're able to then map out for people what percentages they put into different buckets.
Speaker 3:
42:45
And even in the moderate run, which is the middle of the road, normally it's 50 to 60% 60% of your money should be in an irreplaceable capital strategy. It should be the core so that when that market does have that correction, you're only going to be down one one and a half percent versus the rest of the folks out there possibly eight to 10% also putting in some, we call them specialty strategies. At the Carson Group there there alternative strategies or not, they have nothing to do with the market going up. One of our most popular has been the housing funds we did back during the financial crisis and we bought and rehabbed single family homes even after we rehab them. We had um, you know, really nice affordable home where 50% under replacement costs of that gave us a lot of downside protection. Um, and so there's, you know, be with a firm, by the way, you know, that can, that can react and benefit when you've got that kind of chaos dislocations, things going on because there's always an opportunity somewhere to get the best risk adjusted returns.
Speaker 3:
43:55
Well today we've talked to him about the market. We talked a ton about social security and claiming those benefits. Jim is complicated and it's confusing. They're basically an infant infinite number of options of how and when to claim those benefits. And if you don't know exactly how to claim them and the right time, or if you don't consider how this decision could impact your investment taxes or even your medicare premiums, you could cost yourself an absolute small fortune. There's only one way to figure this out is you've got to get involved in ask questions. We can help through social security analysis. It's quick, it's easy. It won't cost you a dime. If you want to know, give us a call. Social Security analysis right now, eight eight eight four nine 85 13 that's eight eight eight four nine 85 13 a few in your 50s or 60s it's time to create your strategy for so security is absolutely right. Now, don't delay. A moment of delay is the K and don't lose out on potentially thousands of dollars in lifetime benefits. Give us a call. Eight eight 84985138884 nine 85 13 I'm Ron Carson with my cohost Jim Caldwell and you're listening to wealth and wisdom. See you next week.
Speaker 2:
45:14
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:
45:28
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 CW m L L C an SEC registered investment advisor.
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