Wealth from Wisdom

Focus on These 7 Investing Fundamentals to Make Your Money Go Further in Retirement

September 23, 2017
Wealth from Wisdom
Focus on These 7 Investing Fundamentals to Make Your Money Go Further in Retirement
Chapters
Wealth from Wisdom
Focus on These 7 Investing Fundamentals to Make Your Money Go Further in Retirement
Sep 23, 2017
Carson Wealth
Show Notes Transcript

Focus on these 7 fundamentals that will ultimately help you make the most out of every dollar you’ve saved for retirement.

Speaker 1:
0:00
Okay, and here's the legal Mumbo jumbo, the opinions voiced and welfare wisdom with rod cars in there 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 LLC, an SEC registered investment advisor.
Speaker 2:
0:31
This Doug 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 skyrocketing cost of healthcare and retirement could now run 350,000 planning for retirement today is a whole new ball game. 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, and 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:
1:08
What do you know about claiming your social security benefit? And once you do know, is it bad, is it fiction? And there's all kinds of information out there. Like for example, she just delay and taking your benefits as long as possible. Are you better off claiming them sooner rather than later? The problem is there isn't any easy answer. It's based on your individual situation in your individual need. And many of you, many of you say it doesn't matter because social security is on the verge of going bankrupt anyway. Hey, welcome to wealth and wisdom. I'm your cohost Ron Carson, along with Paul Webb, and thanks for joining us today.
Speaker 3:
1:53
You may not realize this, but if you've earned even average in gum over your life, you will potentially have several hundred thousand dollars in benefits and retirement. And if you've earned more than the average bear, that number can be high. Six figures, maybe even a million dollar. Suffice to say, that's enough money to get almost anybody that tension command, it should underscore to you just this is one of those throwaway people don't pay attention to. They don't spend enough time on it the way and how you claim social security cannot be taken lightly and it could impact. There's billions of dollars. The fact is there's billions of dollars left on the table every single year because people are not planning. They're not looking at what all their options are. The reason that's happened is there's all these traditional rules of thumb. You've got friends that did one thing, family dead, another you go while they're in our situation, so we're just going to do what they do.
Speaker 3:
2:57
There's no shortcuts there. Ladies and gentlemen, this is serious stuff. There's true pain and consequences when you figure out after, you can't go back and do anything about it. All the money you left on the table, and today Paul and I are going to talk about less. We're going to talk about the Equifax breach security breach, how that in fact could rob you or social security benefits. And if you're thinking how can that possibly be it, we'll be covering that in the second segment here that Paul, you know, we see it all the time. It's, it's an asset class. People don't think about the, it's a throwaway, I'm going to get whatever I'm going to get. And there's just not a lot of time and effort put into planning around maximizing social security
Speaker 4:
3:43
a little bit differently that there's just one button is either on or off. They don't realize that there's many different colors and shades and approaches to it. So I think about what many people love to do. And we've talked about this a little bit before, Ron, I know you like it, I love it. Actually just got back from San Francisco Bay area over the weekend and there are so many fun things to do and planning a trip. I love planning a trip and I probably spend more time planning that trip then you even do at the trip often. And how many people do though?
Speaker 3:
4:19
Well, he had a quick question for you. Enjoyed planning a trip or taking the trip more?
Speaker 4:
4:23
Uh, probably both equal but planning the trip is fun. It's fun. You wouldn't think that way, but it is. I enjoy the trip too. But uh, plan a trip is so fun, but we spent hours, if not some you'll spend days and yet that's a, that's a finite and dollar amount you're spending in terms of not only your money but your time. Then think about social security. That's a decision that's going to affect the rest of your life. And many of you walk in to a social security office or somewhere else, spend whatever amount of time. They're 15, 20, 30 minutes and you make this decision for thousands and thousands of dollars in your life. Well, why? Because you don't know enough or you don't enjoy it. So you need to look at ways to learning more or partnering with individuals because the impact of not making the right decision. I mean, truly the pain we've all been through, the pain of travel, right? The pain of a missed flight or a cancelled flight or a rental car or you get a flat tire. Uh, but the financial pain can be realized for the rest of your lifetime. And that's why it's such an important topic for us to talk about.
Speaker 3:
5:36
Opening statement that I hear this a lot. I'm actually out here in Aspen right now. My attempt to summit all the 14,000 foot peaks in the u s but anyway, I've been out here and you know, very wealthy organization or community, Aspen, Colorado, and uh, just talking about social security, people have the view that it's not going to be around, so it doesn't matter. And it's just not true. I mean, it's, I mean there's some, there's definitely some financial headwinds for social security. Here's some stats. I think these are interesting. Over 62 million Americans will receive 955 billion in benefits in 2000 1,770 1 million workers are covered by social security and for retirees and accounts to 71% of benefits paid. 61% of seniors rely on social security for half their income. 43% of unmarried seniors are almost wholly reliant on social security. The average 65 year old live about 20 years.
Speaker 3:
6:41
The elderly population is set to grow by 65% in 18 years. By the way, that's why if you look at the unfunded future liabilities, it's huge. And the worker to Beneficiary Rocio ratio also is going to decline by 21% and 32% of workers abset no money aside. So they're going to have to have social security. And so if you just look at it in a vacuum, people say, well, it's not going to be around because of all these headwinds. It's going to be around for those that really need it. And if you're getting even close to retirement right now, um, it's certainly going to be around for you. So you know, there's the delta, the gap between the best case. In the worst case, it's huge. Well, this is, this is something, don't, don't say, I'm not going to pay attention to it because it was potentially going to go broke.
Speaker 4:
7:29
I mean how many people walk in and they say immediately, I want my money now because I don't know if it's going to be there later. I understand the emotion of it and we've talked about investor behavior, but the reality of this is this is a dangerous, dangerous political maneuver to let this thing expire. I mean, I can't imagine any politician, I especially anyone that wants to be reelected that they're going to let this drag out forever and go away. Ron. I mean, I just think that's a myth and I mean we're talking the year 2034 so this is 17 years away, but we all know time flies and priorities happen. Then it'll probably get closer to there. Then people are going to get comfortable with it. This is, it could be detrimental to the American economy. Let's just, I'll repeat. One of the statues are shared. Ron Retired workers account for 71% of benefits paid. What's that do to our economy of 71% of people retired. This is what they're using. You're creating a whole new economy that we've never seen before. If they did something like that.
Speaker 3:
8:35
Yeah, no, it is true. So just get rid of it. The second one, this is a biggie. Paul security hasn't made some changes in the last few years to tighten up the way you can gain the system legally game the system. And some people think, well the loopholes are gone and I don't, I hate to call them loopholes, but the ability to stack the benefits in your favor are still there. And the stats are staggering. You know, billions of dollars more than $10 billion a year are lost and legal benefits that could have been claimed that people just didn't know about. So these loopholes are still, they're healthy and alive and for you to take advantage of.
Speaker 4:
9:16
Yeah, and there's a lot of them. I mean, Ron and people hear the word and they gloss over like what in the world are you talking about? Uh, the reality is that could be an approach that's appropriate for you. We're not going to delve into all the details on the show. That's a personalized conversation that you can have with an advisor. But Demian is a technique that's been used, a file and suspend. Obviously the majority of that went away, but timing in terms of uh, spouses are ex spouses, uh, divorces. There's, there's a lot of interesting ways that are available for you that you need to look at. And we've gotten calls in the past specifically on that, uh, for people who want to understand the different rules that go with each part of these things. So the loopholes aren't all gone and they've been tightened, they've been shrunk a little bit, but there's still ways to approach them.
Speaker 3:
10:12
Just a brief history lesson, or I think most of our listeners probably know this, but President Roosevelt is the only science, so security into law, um, and it's really become, it's, we just gave some of the stats of most people's income. Matter of fact, elderly beneficiaries get 50% or more of their income from social security, 50 million people a year. Again, 170 million people to the tune of 900 billion annually. You would think with all of that, we would know exactly how the program works. But this is just massive confusion. So we put away the myth that it's going away, it's not, and they're going to figure out even who you get out to the later years where there's some definitely some headwinds are going to figure out how to, how to have it may be available for those that really need it. And number two, the loopholes are still there and it can make, I've seen it make as much as $300,000 in benefits from the worst case for the best case scenario. So it's an enormous, you know, think of it as a fixed income part of your portfolio that certainly doesn't correlate with the stock market. Those are the exactly the kind of the kind of assets that you want to have. And it is in fact is there's ways that you could, you can by delaying actually have that asset base grow by 8% a year.
Speaker 4:
11:35
Ron, I mean it's like, it's not only what it could cost you in terms of dollars coming in, but you know, like I said for traveling, it could cost you time with your family. It could cost you events that you could go to. So think of it from that perspective. What are you missing out on by not making the right decision here?
Speaker 3:
11:51
That's absolutely right. Just on that, we're, I just had a conversation with someone called into the office from Vail, Colorado, and they're actually with Morgan Stanley and they were so frustrated because they had not had a meeting with their Morgan Stanley advisor and over three years, and they were just now getting their 2014 taxes done by their CPA. This is 2014 I said, well, we're gonna have penalty. That goes, it's a, it's a mess. And the point there is, is there's just a lot going on. We're going to come back, we're going to talk about more of this, but we would love to give you a second opinion at the Carson group and you're a wealth from wisdom, and simply give us a call at (888) 419-8513 we can show you how to maximize your social security, how to put an effective game plan together. Really how to get the most out of your wealth. It's eight eight eight four nine 85 13 I'm Ron Carson with my cohost Paul West. And you're listening to wealth from wisdom.
Speaker 2:
12:52
How could you make your money go further in retirement from wisdom? Ron Carson, he's a published author and he's been featured in Forbes, investment news, the Wall Street Journal, CNBC. Now back to wealth from wisdom with Aaron's hall of Fame Advisor, Ron Carson, whenever have the best time to claim your social security benefit
Speaker 3:
13:15
and what assumptions have you made about how much you're going to receive every single month and how much you're going to pay in taxes on those benefits. And do you really know what's fact versus fiction? There's whole kinds of misinformation out there. And welcome back. You are listening to wealth and wisdom. I'm run cars with my cohost Paul West. The truth is claiming social security today is confusing. It's complicated. And if you go to the social security administration and they're probably going to give you the wrong answer or not the best answer for you. And that's why Americans leave tens of thousands of dollars individually, which equates to 10 billion more a year loss. And legal benefits. You could, you could claim we're going to continue to talk about myths. We've covered the fact that it's not going away. A B there. The, the claiming the benefit and how you claim those benefits really does make a difference.
Speaker 3:
14:09
Uh, and the loopholes, you know, you can really maximize those for your own benefit. But Paul, we were talking about, we had a couple reach out to the office from Vail, Colorado. Um, items I like to give the location. I don't know, it just kind of personalized, but the point is they had been with Morgan Stanley three years, both her and her father and she really is the leader of this. We're in, uh, in the, in the business and then they delegated it. But the point that she made is three years. They've called us one time for a meeting and the tax stuff's not getting done. Just a lot of, lot of things not getting done. And this illustrates the importance. Begin to maximize social security or anything else. Not only do you need to have team which you work with. Um, and we're not saying our team were just saying a team when you go through and do your due diligence at a minimum is you know who's on the team, a CPA, a CFA and attorney and an advisor, maybe an insurance specialist, um, who's actually on the team.
Speaker 3:
15:12
Are they located or is there a loose arrangement? How often are there stuff going to be looked at? What are the triggers in which proactive things are automatically going to happen? How often are we going to meet with the team? These are all questions that need to be answered. We're talking about social security today. This really applies to tax planning, tax reduction, a state planning, income planning, education, planning, risk planning and planning, everything. And, and if you don't, if you're just paying a fee and you're not getting the proactive that's, you're probably not going to get a return on the fee you're paying. Your financial team
Speaker 4:
15:52
seems like a lifetime. I go to the dentist every six months and I'm amazed at how their technologies involved. I get an email, I get a text, I get a phone call frequently, just remind me to go to the dentist. And that's pretty basic. Blocking and tackling, right? A teeth cleaning and here's somebody you're entrusting with your money and yet they don't have to be on the phone with you every single day, every single week, but you need to get the right amount of communication for you that that's the important thing around. Some people don't want to talk as much. Some want to talk all the time and you need to match what's important for you as a client and as a consumer to what you want to hear there. And social security. It could be one of those topics of conversation that you have when the timing's right.
Speaker 3:
16:38
Yeah. All the time, Paul, to weld all the, we have the money, can't buy enough, can't take away. And actually where I'm staying or announcement, which you're the guy that died way too young, embrace true wealth and what he left here for the community of Aspen and it's just spectacular. But I'll guarantee a, he had, I don't know this for fact, but my guess is he had a well place team that was being proactive. So he, you know, he died flying, he loved to phone, write and sing. But you want to have a team that is being proactive and not that you don't have to be thinking about all the things that you should be doing. That's not, that's what you're paying an advisory or advisory team for Paul. Let's talk about cost of living adjustments or back. People are saying, Hey, we've got social security.
Speaker 3:
17:27
The way they calculate an increase is very funky. You're not going to get a commensurate race. What the cost is, not even close. And just give you an idea. Keep this in mind with only a 3% inflation, right? And don't go look at the CPI, look at what your costs of the things you consume. It could be four, five, 6% a year, but just at three you lose about a third of your purchasing power and just 10 years. So this is a big deal and you can't, you know, so security is an asset class, but you need to make sure, cause it's not going to go up. What the cost of everything that you're living on. You got to make sure other parts of your portfolio are actually performing well. Then you have some growth drivers so you can increase, you know, the principal value of your portfolio.
Speaker 4:
18:14
Yeah. People don't think about 20 years from now. Of course we all can reminisce and think about, gosh remember when coke or you went and bought a candy bar? If the store, remember when that was a nickel, a dime, a quarter or 50 cents, whatever it may be for your lifetime. Well look how much I had changed. Well you're looking at small dollar amounts. You're not looking at large ones that could be very, very influential for you. And it makes me think about on a recent conversation I was having with someone and they said, Hey Paul, I just turned 62 so I just figured it was right. I went ahead and filed and I wanted to just grab my hair and pull the rest of it out or what's not already falling out. And he'd say, why? She's, well, I just needed money now. Um, and I said you needed money now, but did you have any other options related to it? No, but I just, I wanted to do it. I just went ahead and did it. And people let emotions drive their equation here and it may have been the right decision for her, but I'm worried about that. If you just would have waited one more year, the increase in the monthly would have been well worth the short term pain. And I mean the short term pain of waiting a year versus the longterm pain of waiting a lifetime there.
Speaker 3:
19:34
Yes. Here's another point I want to make your financial investment accounts is a mistake to something to be said for keeping it simple, especially when you're retired, but it's a full time job. If you've got multiple accounts with multiple institutions, and the reason it's important to consolidate, of tie back social security here is everybody thinks with someone else who's going to handle it. If you in fact are the person that's coordinating everything. I have all these multiple accounts, that's why no one's probably doing it. It's like, well, you know, you're, we just have a piece of it. We're not responsible for the overall well being. Just because you consolidate doesn't mean you have to consolidate it for reporting, consolidate it for advice, consolidate it for monitoring. It doesn't have to be held it. You can still have multiple institutions, but you want to have a way to consolidate all that information with, with a key decision making team that can act on your behalf.
Speaker 4:
20:35
Yeah, I think that's a good point. Benefits. Uh, Ron, I mean, there's some industries that don't participate in that. So the railroad industry is one that I think about. Uh, and you know, actually recently one of the largest railroad companies in the United States, actually the largest of union Pacific kind of goes back and forth, announced some layoffs and early retirement packages. And we've actually on the wealth from wisdom knit network, received several of those phone calls and inquiries. And you have to remember if you're part of an industry like that, you actually get to participate in the railroad retirement benefits program, which is in place or in lieu of the social security. And so that's numbers that you have to look at. But you got to look at those numbers. You gotta look at your four o one k or retirement plan you have at that organization.
Speaker 4:
21:21
You get to look at your personal investments, your real estate, any other income sources you may have and putting that full combination together. You can't make a decision in a single focus. You can't be looking down just a tunnel and not realize what's going to happen outside the tunnel. You got to put all the pieces together. So that's like railroad retirees at Union Pacific or other places. You can't just make the decision on the numbers we talked about. You got to make decisions emotionally, but you gotta make the decision on the numbers and how they work with everything together. I mean, just like we were talking about traveling on a trip, it's not just your flight to get there, but everything you do in between and what happens with it and what goes on and how all of those parts of the package look together that makes the entire experience for you.
Speaker 3:
22:07
I agree totally. It's all about the experience about true wealth all the way out of that. Money can't buy and death can't take away. Here's the other myth to cover most of my expenses in retirement that is if you're living just on social security in retirement, it's an important piece to pillar that you need to have, and we see this all the time. I mean, you know, the people were so conservative, they have it sitting in a bank. They're getting no return on it. And some advice we can give you don't obsess with the market short term ups and downs and have some responsible part of your portfolio that is the growth part of your portfolio. I mean we are literally, you know, September historically has been the toughest month, you know, for the market. And so far it's not been too bad. Um, but you know, who cares about what happens in one 30 day period of time. And I hear people, so I'm 70 years old, I shouldn't invest in equity. The fact is you're 70 but you could live for 20 more years. So really your time horizon as 20 year time horizon. So dope backed yourself into a corner where you don't have a multifaceted approach, some to provide income, but another part of the portfolio is, and make sure that you have some growth so you have future increase in cash flows so you can keep your center living consistent with what you've grown accustomed to.
Speaker 4:
23:31
Yeah. There's another side of this that we should talk about with people is sometimes it doesn't make sense to wait as they've hit their Max benefits and what that looks like. So I've worked with several families that is, we look at it if they reach that maximum, why wait an extra couple of years? So I think that's something that people don't think about that and think, oh, I'm going to get the 8% that goes along with it. It's going to help it overall. But those are numbers that you need to run because they may be different. Well, here's what happens. They heard from a friend, oh yeah,
Speaker 3:
24:04
can I just this, this is a point that they need to get a statement today from social security. So right in black and white, what those benefits are. But that's not going to tell you the whole story. You simply can't take it at face value. What you need to do is have an evaluation done so you're not leaving all these additional benefits on the tape, my age. Here's the bottom line. No two people are alike. There's a lot of bad information out there. The only way to get the most out of social security is what the customer social security analysis design specifically for you and your family and what your situation is, and you might expect to pay a lot of money for this or even thousands of dollars. We're going to actually offer it today complimentary by calling eight eight eight to four my nine 85 13 give us a call today. Eight eight eight four nine 85 13 will help you maximize the benefit so you don't leave anything that's on the table. It's a big deal. Hey, do you know someone may have solely your social security number and I'm not kidding about this in this, could seriously, seriously jeopardize what we're talking about today and that's your social security benefits coming up. Next, we're going to dive into just how it could impact your arm. Ron Carson with my cohost Paul West, and you're listening to wealth and wisdom,
Speaker 2:
25:18
trust, transparency, accountability. These are the values that drive Ron Carson and Carson wealth. You're listening to wealth from wisdom with there until the same 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 Barron's hall of Fame Advisor Ron Carson,
Speaker 5:
25:43
I imagine. Yeah. Imagine
Speaker 3:
25:47
you turn 62 years old and you decided to delay taking your social security benefits until you turn 70 so eight years go by, but when you file for your benefits at the age of 70 came on.
Speaker 5:
26:04
Okay.
Speaker 3:
26:05
For what you could hear, they tell you, social security administration says you've been receiving those benefits for the last eight years. Think of the shock that would cause you. Hey, welcome back. You are listening to wealth and wisdom. I'm your cohost Ron Carson with my cohost Paul West. Unfortunately, this recent Equifax breach compromise hundred 43 million social security numbers and one of them maybe yours. We're going to talk about how this can impact you and how you can protect yourself from what actually happened. Just to highlight here, the security beach breach occurred on July 29th very disturbing though it was not disclosed for six weeks, which gave criminals access and time for those hundred and 43 million social security numbers. There are 123 million of us working and for the most part not collecting social security so you wouldn't even know that they started using it and the media, if you listen to the media, and it's been all over the place.
Speaker 3:
27:11
I've been talking about these fees taken out credit cards and other lines of credit and loans under our names, but you find out about that right away, but no one's, my knowledge has actually been talking about what I would think it would be a much greater concern. You're, you know, again, you see it, you deal with it. Maybe you're talking about a few thousand dollars but if someone's able to rob your social security benefits, we're talking about a lot of money and so Paul, you know this, this is cover what some of the safeguards that people can actually do to make sure this stuff, what happened to them?
Speaker 4:
27:51
143 million of us. I can tell you Ron, I went out immediately, looked at my credit report and I immediately looked at my credit cards and by the way, I actually, there's a charge on there. I don't recognize, I'm researching it right now. I mean it's impacting all of us. And so if you're going to ignore, that's probably the worst thing that you do. The best thing you can do is walk through some of these steps that we're going to outline. Which one would be, you know, go review your social security statement and make sure all isn't aligned with that to go check your credit report. I mean that's something you can do. I mean there's other ways you can put a freeze on it if you want to. A third check. Many of you throughout the country use credit cards frequently? I do is what, you know, have you looked at that lately? Making sure that all of the charges there are correct and accurate?
Speaker 3:
28:41
Yeah, I mean, if you're collecting benefits now I start saving your notices, um, and just showing the benefit that you're getting. Also, I'd print out your bank statement showing you're receiving benefits, additional proof it's you and you know also that sending a certified letter to the Social Security Administration, just letting them know that your address hasn't changed, nothing has changed. Uh, and you know, and the, I think the irony of this is social security may think you're setting up a scam to pretending that you've been scammed in order to double your monthly benefits. I'll no doubt there'll be people that will, that will figure that out. But I'm back to the certified letter. If I did it, I would get a return receipt and I may do this every few months again in just indicate too that you've not filed for any of your benefits. So if anybody files to let you know and keep up. I keep documents and all of this stuff because dealing with the government, trying to sort this stuff out can just be maddening. It's like some of these movies you'd see or someone steals the identity you go, could that really happen? It actually, it does happen in it. It can really create a mass and a lot of mental anguish for you.
Speaker 4:
29:55
Yeah. There's nothing going to be more frustrating and that feeling if that does happen to you, but equally as frustrating is the fear of the unknown and we talked about the fear that no one cause often for the markets and what's going to happen. Here's the fear of the unknown is a in this digital world, is someone going to hack into my information, take it. There are many of us have probably unfortunately had some form of theft happen against us in our life, whether at a home. I remember Courtney and I were at the airport in Los Angeles and we were getting ready to go. The airport would come, walk out to our car and our cards and broken into and purse and luggage and things stolen. Those are all painful events. But in the reality is what could happen here could be so much more severe.
Speaker 4:
30:39
I lost tangible possessions, a purse documents, some cash that was in there, a camera, and I'm still can talk about it. And this happened almost 10 years ago, Ron, but it's frustrating, but how this could impact many of you could be so much more severe than that. So take the steps now. Um, your advisors should actually be communicating with you and what some of the steps you are doing. And we're not trying to get you to be scared here. You just got to go through the logical steps and the process is here to help protect yourself.
Speaker 3:
31:15
That's a great place to start because you've got a base, everything's in order. Everything is okay. And then take steps to continue to monitor that. And you know, lifelock and some of these others, which I think is good. I mean I think that, I know we looked into it as part of our planning, just giving clients the ability to have a secure way of monitoring anybody stealing their, their uh, their identity. But you know, let's come back to social security overall cause that's in the topic today and who would have thought that someone could steal your social security benefits? Back to the most simplistic explanation of security. It's based on a formula. It's based on your 35 highest earning years. Their average together divided by 12 to give you a lifetime index average of monthly earnings. And right now the program has 2.8 5 trillion in reserves.
Speaker 3:
32:08
I put those in air quotes because that's, there's really no money there. The IOUs, we, we rated the money a long time ago and until it's, and it's projected to continue to build until two 2034 and then we're going to have some different things happening. Plus they'll, security's been getting tougher on rule. They just recently crafted some new rules. For example, claiming strategy known as file and suspend and no longer available. But those of you in our clients, it took advantage of it before April 29th, 2016 are grandfathered as your spouse's independence. So that was a big deal. I remember Paul, we got aggressive getting people in that it really made the benefit for again, having someone that's going to be a proactive team for you. Um, and then you talked about the deeming rules as well. Those have also changed. Um, again, just lots of little things that you need to know. You know when you go to claim social security benefits
Speaker 4:
33:03
around this. This past weekend I was out in San Francisco in the bay area. We were out there for a wedding. Hey, by the way, on a side note, we did some tourist activities and if you haven't been to Alcatraz ever, it's just, it's a place you got to go. It was, it was fast. It was my first experience and I guess we were there for three and a half hours. You don't have to be there that long, but it was really interesting. So I don't know if you've ever been there, Ron.
Speaker 3:
33:24
I had. Did you do the audio tour, Paul?
Speaker 4:
33:26
We did. We did.
Speaker 3:
33:27
Yes. I loved it. I mean the part, I guess now we're getting off topic, but um, where you did it in the prisoners could hear all the partying going on in San Francisco. That just sent quivers down my spine. To think that you're out there isolated here, how, how cool the punishment can hear the rest of the world living their life and enjoying themselves. And you're stuck in that hellhole.
Speaker 4:
33:50
Yeah, no, it's, by the way, it's just a wonderful city. We had a wonderful time out there for the wedding, but uh, the people, uh, getting married, uh, I work for a nonprofit and so a lot of the attendees, uh, work for philanthropies and charities. I got to meet some amazing people this past re we can round that, just do wonderful things for so many different organizations and foundations across the world. Actually, there was people there from five different countries. Uh, and it's just a really neat event, but it amaze me. Three people learning what I did for a living and, and some of them are actually heard the wealth and wisdom show. Ron had said, well what about my social security? Do I get it? And so I had to actually explain to them that, you know, even though you're a nonprofit and there's some tax benefits for all those types of organizations, that they still, each of one of you are still paying your social security taxes so you can achieve that benefit. So it doesn't matter what sector you're in, many of you still have some form of benefit like that.
Speaker 3:
34:45
That's so true. Let's talk about taxes for just a second retirement, Paul. And we also get asked, what's the best way to take out my money out of my IRA to pay the least amount of simple phone call, give us a call. And who are we in our partners across the country or the number two independent advisor according to, and we were selected as one of America's top wealth advisors according to Forbes. And of course we're fiduciaries. We're committed to putting our clients' interests ahead of our own. Matter of fact, we had a great press release today. If you want to Google Carson group and you can see how a lot of that reorganization actually just took place, but one simple call to us, we'll probably save you thousands of dollars. We have operators standing by and take your call now, eight eight eight four nine 85 13 if you already have an advisor getting a second opinion, we'll only be that one person in that you call now eight eight eight four nine 85 13 I'm running Paul West and you're listening to wealth.
Speaker 2:
35:51
He sees good times and bad times and he's got the gray hair to prove it. You're listening to Wellstone wisdom with Barron's hall, the same 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. Do you need to pay tax
Speaker 3:
36:14
on your social security benefits? Should you delay taking your benefits? Are you better off? Take your benefits early because you believe social security systems on the verge of bankruptcy. Lots of information. Why don't we confusion out there. Welcome back. I'm Ron Carson and you're listening to wealth and wisdom with my cohost Paul West. If you rely on some misguided notion or mess about claiming benefits, you're probably gonna make some big mistakes and leave a lot of money sitting on the table. We're going to continue to talk about the myth of social security and how to get what's rightfully legally yours by maximizing the benefit that is right for your objectives and what you're trying to accomplish. And Paul, it's moved right into one of these other mess, and that is if you work in retirement, you won't get your benefits. That's, that's simply not true.
Speaker 4:
37:07
Who started that rumor? I don't know. Maybe.
Speaker 3:
37:10
Maybe it's social security administration.
Speaker 4:
37:12
I don't, I don't know. Let's hope not. Uh, but people just make assumptions and we all know what assume means, right, Ron? Right? Let's be careful. Do you can work in retirement. You can get your benefits. You just got to put the right plan together. They said, don't make an assumption or don't lean on. Hey, we lean on our friends for a lot and it's okay to ask them for, Hey, who did you use to help dry wall your home? Or who did you help fix your landscaping? Or who did you help do it with electricity? Those are all great things to leverage your friends for it because they had an experience. However, they don't have your experience with social security. They don't have your last 35 years of income. They don't have all of the information on what you paid in. You need to help give that to professional to help make that so you won't have a myth. Like if you work in retirement, you won't get your benefits.
Speaker 3:
38:09
Yes, that's right. So you do. Let's, and let's talk about another myth. You're Paul. The Social Security Administration will personally assist you to choose the best options to optimize your benefit. They're not even allowed to give actual advice. They can simply give you what your options are. And they may, in fact not at me, probably are not giving you all the options that you have. It's not because they don't want to. They just, you know, they just don't have the, to sit there and dive deep into your situation, even if they could, they're technically not allowed to give financial planning advice,
Speaker 4:
38:48
such a critical, critical part of the economy. The retirement plan for so many Americans, we've already gone through the numbers over 70% as the primary. So we need them to help out. But again, this isn't a five minute conversation. You just don't walk in and say, Oh, I'm going to go make a hundred thousand dollars decision plus and be done with it. This actually needs thought process. It needs planning, it needs people to look at it. Um, and it's just, it's not as simple as that. I mean, I know we've actually come in and before, you know, what, what's something people hate doing often buying a car. So I think, you know, 20 years ago, 30 years ago sometimes for many people you bought your first car, you didn't know, you went into a dealership or maybe you had a parent or a friend or sibling help and you went and bought a car.
Speaker 4:
39:41
But the amount of information out there was all in the seller's hands. Today it's all in us as the buyer and we have so much information online that we can track current prices of cars at all different levels of used and new and you can get that information, but why do many people go to Carmax? Because they don't feel like they're getting screwed over. They don't feel like they're having anybody taking advantage of them, and so the difference is here, I'm not trying to compare a social security administration to carmax. Social Security Administration job is to help you complete the process. They're not choosing the car out there on the lot for you. They're not knowing how you feel about it or knowing if it's important or if you can afford it. They're just trying to help get you through there. You need to go to a planner that can help you have that carmax experience where you feel really good that you're making the right decisions.
Speaker 3:
40:34
I'm just curious about, have you ever sold a car to Carmax? I have. No. I have not had a car in Arizona and it was great. It was simple. You took it, they told you what it was worth. They wrote you a check. Maybe I could have gotten a little more if I would've put it in the paper. What a great experience. And it was a total transparency there. They were very forthright in your right. You'll making the complex simple. They did that for me selling a car. They were totally transparent about the fees and costs and they had an effective game plan. Here's what you need to do to sell it. The car. Same thing that having a very effective financial planning firm should be able to do to you for you. And we're not today, I guess we're not talking about pulling money out of or taken RMDs.
Speaker 3:
41:27
But this is another one where people throw a lot of money away. 10,000 baby boomers are turning 70 and a half every and the RMDS is an area where people are making mistakes. They're deferring hiking it too late. The penalty from taking money out of your, uh, 401k Ira too late, as 50% of what you should have taken a or taken from the wrong account or not aggregating all the accounts you do the right calculation or not using qualified charitable distribution. So there's just a lot, lot of information out there. Um, and we're in a world where information is coming at you. It's changing every day. Um, you can't defend what you know, but embrace the unknown, the new information that's coming. I was actually, Aspen Institute was born here in Aspen, Paul in 1950 at a meeting with him yesterday. I'm thinking about joining the, um, uh, the institute of fellows, which is just a member.
Speaker 3:
42:26
But what I was taken back by and really encourage was, or society of fellows I should say is the amount of information that they have and they challenge each other. Um, they had 60 events here last year, brought in speakers, um, all household names that you would know for a healthy debate about things. And I think this is coming back to wealth management is have a team but challenged the team. How'd you come up with that assumption? Why do you think this is in my best interest? And, and you, you know, Aspen Institute has been doing this since the 1950. Uh, they've had tremendous following because people like to be challenged that don't just accept the status quo where you're at today. Uh, but to say, how can I get the most out of not only the team that I have, but the newest information and making sure your financial team is up to speed with the best and the most relevant information, whether it's social security, tax planning, estate planning, all of it.
Speaker 4:
43:25
I think you bring up a great point and I'd love to share with our listeners today, got some wonderful accolades this week. So Barron's magazine came out with their list of top advisors across the country and the Carson Group got ranked extremely high from the group. And just Kudos, Ron to you, the entire team at the Carson group, you are listed as a firm that has progressed over the years. It used to be, you know, one adviser, one group, and now it's team of advisors, team of planners seem groups. And it was an interesting to see you listed against all those other people that you were the only one in double digits on the list as years is top independent advisor, which is testament that things change and you've got to adapt your organization to help respond to people's needs.
Speaker 3:
44:12
Thanks for the accolades, but it's really our culture and with our organization that have allowed that to happen and it's been, it's been a great run. We've been on the list for 10 straight years, I think more than any other firms that on the list. And it's been great. Whether second opinion from us or a fact, an opinion from somebody else getting a second opinion. It's really important just to take a look at where you're at and maybe, and one of the thing I can promise you if we can't add value to your situation will tell you that. And I respect my fellow advisors out there to do the same. So we don't want to replace the relationship just for the heck of replacing it. Tangible, beneficial value or don't make the move. Give us a call for that second opinion. Eight eight eight four nine 85 13 that's eight eight eight four nine 85 13 I know you will benefit and be pleased with the result. Even if you don't make a move, you'll get value out of it. You've been listening to wealth from wisdom. I'm Ron Carson and what's my cohost Paul West, and we'll talk to you next week.
Speaker 2:
45:16
Social Security income tax 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 wealth from wisdom with Rod Carson or for general information only and are not intended to provide specific advice and recommendations for any individual to determine what is appropriate for you. Consulted, 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.