Wealth from Wisdom

7 Things You Must Know Before You Claim Your Social Security Benefits

July 08, 2017
Wealth from Wisdom
7 Things You Must Know Before You Claim Your Social Security Benefits
Chapters
Wealth from Wisdom
7 Things You Must Know Before You Claim Your Social Security Benefits
Jul 08, 2017
Carson Wealth
Show Notes Transcript

Social Security is likely to be one of your most important sources of retirement income, but the amount you will receive can vary considerably based on when you sign up and your marital status. Join Ron and Paul as they share seven things you should know as you decide when to claim Social Security benefits.

Speaker 1:
0:00
Okay. And here's the legal Mumbo jumbo, the opinions voiced and welfare 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 and may not be invested into directly. Investing involves risk including possible loss of principle. No strategy assures success or protects from loss. Past performance is no guarantee of future results. Advisory Services offered through Cwm LLC, an SEC registered investment advisor.
Speaker 2:
0:31
It hit another old time. Records as much as $10 billion in social security benefits go unclaimed every single year. Federal Reserve announced that they will raise interest rates by 203 the skyrocketing cost of healthcare and retirement could now run 350,000 for retirement. Today is now a whole new ball game. It's loaded with challenges, obstacles, the trap doors that you can do this and we can be your guide. Welcome to wealth from wisdom with baron, tall if 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. Your social security benefits will be the foundation of your income in retirement. Yes, big
Speaker 3:
1:15
deal. It's really where everything starts. Even if you've only earned a modest income the last several decades, you've probably contributed a lot more than you think, at least a hundred thousand or more to social security, and for some of you it's several hundred thousand dollars so when you do retire, you think about this investment you've got out there. I think so many of us really don't think about how big that asset really is and you want to make darn sure you get every penny that is yours. That's obvious. I get it. You're saying, Oh yeah, you're not telling me anything that I don't already know Ron, but we are going to share some things with you today that's not so obvious. First of all, if you're blindly take your benefits at face value or you're relying on one size fits all strategy without considering you're very, very specific situation, it's called the domino effect.
Speaker 3:
2:14
Paul, you and I talk about the domino effect all the time here at the Carson group is it's one of those things, it's like the butterfly effect doesn't seem like such a big deal, but it has a little impact here and a little impact there and all of a sudden you could trigger as an example, an avalanche of taxes or you could be forced and we've seen this many times fall. We'll give some live examples today. You end up four feet forfeiting additional benefits that were rightfully yours. All of a sudden make the wrong impact of domino effect. You could pay higher medicare premiums haven if you're paying a higher expense. That's just like giving some of your money away and ultimately all these little things, the domino effect could cost you tens of thousands of dollars and possibly a whole heck of a lot more. And that is why we've done several shows on this because it's one of those, it's so easy, Paul, as much as $10 billion in social security benefits go unclaimed every single year and it's just wrong that you work that hard at putting money away.
Speaker 3:
3:24
And then you don't get everything that is yours. And it's not because you're doing anything wrong. It's our system. It's a bureaucratic red tape. It's all the stuff they make you go through. And for those of you that are government servant workers, I get it. You get up, you do the best job you can. I mean, and I, I deal with this all the time dealing with the um, uh, the farm programs. I mean, a lot of times they'll give you advice on life. They just change the rules on as I'm, we don't even know what the rules are half the time. And they really do want to do a good job, but it's complicated. That's why you need a team software so you can understand all your options as truly is critical to consider how and when you're going to take your benefits and how, what kind of impact it's gonna have on everything you do.
Speaker 3:
4:10
So what we're going to go through today are nine things you must know before you claim your social security benefits. Not, not should know, not could know, but must know if you're not going to be one of the few that leaves some of the $10 billion that go unclaimed every year in the social security trust fund at Ron. I love your domino analogy and I think back about your sitting them on the table, right and play in the real game and you want to make sure they're perfectly spaced apart so that everything goes well. If you want him to roll down, I'm not talking about the games where you compare the numbers I'm talking about where you get them to knock over, but in the trajectory that you want. But if you miss, it's usually due to carelessness. And so if you put them too close, it's not going to happen.
Speaker 3:
5:00
It's not going to get you far enough along. But if you spread them too far apart, what happens? One falls, but the rest of the dominoes don't go your direction and you're stuck there. And so this no dissimilar than social security for us today is you've got to have all of these pieces of your puzzle working well together. But you don't want to come up short, but you also don't want it to take you over the edge when you don't need it to. I think there's a lot of great strategies that we'll talk about with everyone and even if you're past social security age and you've drawn upon in, you've been there and you're in that status today, we're going to share with you some ideas that will be helpful for you because social security is just one element of your overall income. You can have other sources and how do those all work in conjunction with each other is so important.
Speaker 3:
5:49
Ron, for what people look at the, if you can all picture the dominoes. I mean I think it was a kid, the dom setting up all the, and Paul you said something that was really a moving picture in my mind as I remember. Occasionally you'd spend a lot of time settling all up and then three n it's too much space and not the rest of them fall and I want to think about and then when your sibling knocked it over, right. My sister, Rhonda, she's listening, going, I don't quite remember working in that way. Might be the other way around. Right. But, but the, the point is you put all this effort you thought you put all this time that's analogist to all the time we're working in our life and at the very beginning stages as something as basic and foundational social security. And that's why we harp on it so much that third domino falls and it doesn't, it can't reach the rest of them to expose the energy if it's held in all the rest of the dominoes and really allow a beautiful thing to happen.
Speaker 3:
6:45
And you got the little things, the little things done. Exactly right. Almost anything in life having astonishing impact on the world. So often as humans we're always focused on the big things. If you're not going to do the little things, why even bother with the big thing? So the little things done exactly right. We'll have a major impact on everything you do. I don't care if it's relationship, if it's diet, if it's what you bring to your business every day. The same is true and planning and maximizing the amount of wealth that you have. And Paul, let's start going through these. There's nine of them. We could probably, we could, we had to pair our lists down. We really had about 12 but we thought, you know, we only have so much time ion wealth from wisdom, so let's, let's give them the nine most important ones that they need to consider.
Speaker 3:
7:35
And one of them is, and this is really when you sit down with your advisor, and by the way, don't wait until your retire. This is something, I mean, if you're already retired, you may or may not be able to do anything about it. But if you're getting closer to retirement, even 10 or 15 years out, this is a time to start getting a visualization and having a game plan and consider all of your income sources in retirement, your dividends, your real estate, your bond's retirement accounts. Because this will impact the timing of when those assets are actually going to throw off income, our longterm capital gains taxes as to when you're going to think about claiming your social security benefits. Yeah. Around this is so important that as we think about all the different sources of income that are out there, I actually think it makes me think about a recent color here to their wealth from wisdom show and they wanted to talk about this because how it is their social security work in conjunction with their pension plan, uh, they're potentially going to get some disability.
Speaker 3:
8:33
How does it work with that? And then ultimately when is the timing of all those is going to happen. And I know we're going to talk about taxes later on too. Those are major, major decisions, but some of them become finite and you can't turn back. I think about aren't, if we want to go buy a new car, what do we do? We don't go walk right to the dealership, find the car we want and buy it immediately. Usually we want to negotiate it, we want to do our research, we spend time thinking through all of that. And ultimately we make a decision and when we leave the lot, we know for almost every car we buy, it declines in value. Now it's revokable. I can go trade it back in, but I might have a loss of value with social security. You go make decision, you get your car, your social security, guess what?
Speaker 3:
9:18
You can't turn that back in. There's very few options that give you the chance to change it. There's some file and suspend type things that are out there, but we have to look at that to make sure it's your right decision to turn that your social security back in at that point in time. And you may want to do that because you have other sources of income. That's why it's the first one to look at is maybe you're still earning money. So we don't want to eliminate benefits during that period of time while you're earning. So here's the point. If you're going to start it and you know you're going to have other sources of income coming in, you're gonna have to turn around and get a bunch of that tax essentially giving it back exactly this point that it came from. If you would leave it there untouched, it's going to grow at 8% a year.
Speaker 3:
9:58
Right? So you're better off not taking it. If you have other sources of income in some of those sources you don't exactly control the timing of, so you're on a really be conscious of this. And this is one where a little bit of planning putting those dominoes, right? The big domino effect here, having them space just right as it relates to when income, the, the sequence of income, when they're going to come in, what the type of income it's going to be is important in maximizing your social security benefits. Yeah. And around, so I, that's really our second, uh, Opportunity here for everyone to think about is the timing of your taxes. So the t word, how did the taxes take effect now, but not only now, but as you look three years from now, 10 years from now, when are you going to start taking any from your retirement plans, your required minimum distributions?
Speaker 3:
10:44
What's that gonna mean for your taxes? Uh, are you married? So do you have spousal income? When is that going to start taking place? All of those are the different pieces of the puzzle here. And I know this when when you ask anybody if they want to pay more taxes, their answer's always the same. No, no one does. So that's why you have to think about the tax consequences of your social security. And Paul, you and I on this show, I mean we talk about the most significant issue surrounding your money in retirement today. We're talking about social security, but nothing will come of it unless you do something about it. I eat unless you take action and you could choose us to be your guide or choose somebody. Really just choose somebody. But the most important thing is you do something, you take some, take some action.
Speaker 3:
11:29
One of my favorite saying is when it's all said and done, how many of us suffer? A lot more gets said that gets done. We sometimes talk things to death. People that do well have a high Iq and I don't mean intelligence, I mean implementation quotient, take some action, give us a call and we will send you our five step retirement master plan, increase your Iq, your implementation quotient. It's a five step plan that tackles all the key components of retirement, income, generation, taxes. When do you take assets out, what order it looks at Iras and 401ks even looks at risk or downside risk and thinks other than investments and including the investments, healthcare, longevity. It's everything and it doesn't cost you anything so you have absolutely nothing to lose. Give us a call. (888) 419-8513 that's (888) 419-8513 it's your life. It's your retirement. You absolutely, positively want to make the most out of it. It's the first domino over the second domino. Call us. Eight eight eight four nine 85 13 coming up next, we're going to continue down the list of nine things you must know before you claim social security benefits. I'm Ron Carson with my cohost Paulette.
Speaker 2:
12:48
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 Fame Advisor, Ron Carson. You could trigger an avalanche of packs. You could forfeit thousands of dollars that are 100% yours and you could pay higher, higher
Speaker 3:
13:09
medicare premiums and ultimately it could cost you thousands and thousands and thousands of dollars every single year. Welcome back. I'm Ron cars with my cohost Paul West and thanks for joining us on wealth from wisdom. How and when you claim your social security benefits could have a huge impact on your taxes, investments, healthcare, and everything. We're talking about the domino effect. You know the game dominoes. If one doesn't fall and it can't reach the rest of them don't get knocked down. It makes a big difference. You put them too close together, you don't cover the ground that you want to cover. Paula and I today are covering the nine things you must know, not should know, could know, but must know are really, really important for you to maximize the benefits that are yours that are in this huge social security trust fund. 10 billion, $10 billion a year. Go unclaimed. So Paul, we covered one and two and here we are number three, and this is one that is really interesting is this, are you considering all of your potential benefits, spouse or ex spouse? Right? I think a lot of people don't realize that. They're just thinking, they're not realizing they can draw benefits from an ex spouse. I mean it's so to help educate people. I think that's the power of wealth and wisdom, right? Is All of you listening today, finance, social security, Medicare, retirement accounts. This isn't your common day to day practice. You're not in the business of learning that, but when you hear from individuals like Ron, myself, and other professionals across the country, you want to be educated in a language that's common you. So
Speaker 4:
14:52
when we talk about social security that you've heard us use the phrase spousal benefits and spousal benefits applies to either your current spouse, you're widowed spouse or your ex spouse, and they do not apply. A lot of people don't know this to a spouse you would like to have. True. That is true. Well, you need to make some changes in your life. Make that happen. But that's maybe for a different show. But you need to think about is first of all, you have to be 62 years old to get a spousal benefits. So that's an important part of the education process. Second, it can actually be based on your earnings record or up to 50% of your spouse's full retirement age. And there's some complications and I'm not going to get it into any more details with that 35 determined by your 35 highest income years.
Speaker 4:
15:39
Correct? Paul? Correct? 35. Yes. Yeah. So, but as we also think about many times, uh, you go through life's challenges and for unfortunately, uh, that could mean a divorce and having an ex spouse. But did you know that if you are married for more than 10 years, you can actually get the benefits of your ex spouse and there's some complications that go along with that, Ron. But it's such an [inaudible] noticed, um, piece of planning that you're like, oh, this happened to me in my thirties or my forties. Not a big deal. But actually if you're 62 or older and currently unmarried you can actually claim benefits and that could be a significant amount that you didn't aware of it and maybe a unintended benefit consequence for you of a life event that happened to many, many years ago. So it's something to consider and it's part of the overall planning process and I can assure you that if you go sit down and the social security office, again note, no offense to any of these individuals, this is complicated and they are busy people and they've got to try to help get everyone through the door just like being at a DMV or other location.
Speaker 4:
16:42
Their job is to help get people through the door and process the next person and it makes me think about a recent color to the show. Also, Ron was talking about, hey, I love getting advice from you, but I'm also going to go to the Cisco Security Office to sit down with them and get advice and said, well how much time do you think you're going to get there? I mean, are they going to spend five minutes, 10 minutes, an hour? Are they going to talk about your disability program? Are they going to talk about your pension program? Are they going to talk about dividends? You receive? Probably not rotten. So it's you got then think about what's in your best interest as the client and working with a fiduciary. So those advisors out there that have to put your interests first, they're going to be the ones that give you the best advice here. That's a great point, Paul. So I think unfairly, we play some burden on social security administration because they don't have all the facts are not going to do take hours to do a financial plan for you to figure that out. So there's no way that they can know enough to give you the best answer possible. By the way, while you're on spousal benefits, you cannot clean both spousal and retirement benefits at the same time. But you can claim spousal
Speaker 3:
17:50
benefits of you, you know, and then all of a sudden you could take your retirement benefits. So, you know, there's some confusing and I you can't get both. You may think you can't draw, you can't draw both at the same exact time. And great story here from one of our advisors and they were commenting on time after time that they recommend exactly what a, what a client should do. They arm them with all the information, they go into social security and a representative who talks the client out of their intended strategy because they say, well you could get a bigger benefit, immediate benefit by doing this, this and this. And so they go ahead and take that option. And what happens is, yeah, maybe a little more in the short term but a lot less later on. We actually had an example where a client went to social security office in March of 16 they suggest that she take her forward time and age benefit and s and instead and get a lump sum payment going back to four time at age rather than taking the spousal benefit and letting her benefit grow to age 70 so this is exactly an example where they didn't have all the information and so they did not know, just, you know, didn't take the time to know that the client's husband had died later that year and could have suspended her retirement benefits and then claimed the spousal benefits and let hers grow at 8% per year until she hit the age 70 so here, all this good planning went out the window when they went in and said, well no, if you do this, you can get a bigger said, getting a bigger checkup front.
Speaker 3:
19:26
Does it do you a lot of good if you could get a much larger stream over a long period of time. Wow. I mean, that's, that's amazing to me, Ron. I mean it also though shows there's a changing and time's going on. When you worked with a wealth advisor in the past, they mainly did what investments they put you in. Investments gave investment advice. The wealth advisor of today and beyond is helping you provide planning advice. And I just saw this recently on social media and I thought I'd share on the show today, Ron. So think about this 20 years ago, what did you tell people? One don't, and this is 1998 or I don't get into strangers cars. Yup. And two don't meet people from the Internet and now what do we do today? We literally someone, people from our smart phones who are strangers from the Internet to get into their car who lead opposite.
Speaker 3:
20:16
Yeah. Were any of them love it? We love it. The guidance was don't ever do that. And now Uber for kids and all these other things, life and the world changes and it's now become an accustom thing where it should be more comfortable for you that your wealth advisor can talk about all of these different elements of retirement income planning and the benefits that go along with them, no matter what spousal or retirement benefits you're looking for. It's all around. Let's go to the next one. Uh, thinking about what are really the best or most obvious ways to claim your benefits and importantly when, so when should you do that? And we've talked frequently on the show of the power of waiting and the percentage that goes along with that. But guess what, that's not always the best choice for you. Depending on your situation there will taking benefits early will cost you forever.
Speaker 3:
21:06
Because once you start that, you stopped the automatic 8% growth that you're getting up to the age of 70 and claiming benefits late. Meaning letting them differ and grow is going to result in a larger check. And why is this important? I mean social security for the fifth year in a row, fifth year in a row, 60 million people who depend on that check showing up every month directly in their account, or if they're, so getting it to the traditional mailbox had to settle for an historical low increase for the average recipient. This last year of the adjustment adds up to a monthly increase of just less than $4 a month, $4 a month. Income budgets jumped substantially last year, and the gap between benefit growth and retiree costs was particularly pronounced due to the rise and essential items. And I see this even in our own household, food costs did not go, I mean four bucks.
Speaker 3:
22:05
I mean, that's like one increase at Starbucks, right? Or Dunkin donut as you'd like to say, medical costs. I mean, medical costs skyrocketed even though we're doing everything we can to slow it down. So it's, if you're saying, Ron, it wasn't nearly enough. You're not alone. I mean, the stats are out there. So getting these benefits, right, not letting the domino impact have a, you know, you want to, you want to maximize the most, you can also security. So because you're not going to get big increases once you start the income stream. Yeah. And it, depending on the Max you've earned over your lifetime, Ron, it may not be quite as beneficial to wait. And that's why looking at some type of analysis is so helpful because there is no perfect answer here. And that's what's amazing is is you can't have the backyard barbecue talk about, hey, when did you pull your ears?
Speaker 3:
22:56
Did you pull years at 65 or 67 or 68 or 70 I dunno. [inaudible] each situation is dependent. I don't want to base one of my pillars of my retirement income on what someone else thinks unless I've got them fully understanding all of the different elements in my physical life. Well you made the comment, I mean when I first started in the business, we didn't have all this optimization software for Pete's sake. We need half software. I mean, that was back in 1983 and it, I mean the think about how much more sophisticated it's become. There's a lot of money you can leave on the table if you're not, if you're not doing it right. And believe it or not, one of the biggest areas where you can really get yourself in trouble is just, this is not choosing your benefits correctly. It's riddled with, we've talked about it on today's show, government rules, regulations, red tape there, thousands, believe it or not, there are thousands of different combinations that you can benefit from.
Speaker 3:
23:56
There's only one that will optimize your individual benefits. That's why so much of this money goes unclaimed every year is it does take planning and effort to get it right. And if you make one simple mistake, you don't claim the benefits exactly the right time or you miss out on one of the lucrative benefits you could have been eligible for. It's good. It could be the difference between a great retirement and one that's not adding up. You just heard the stat that I shared $4 a month was the increase. So you've got to get it right on the front end so you don't have to depend on big cost of living increases in the future. We'll help you get every penny that's rightfully yours. When are customized social security analysis, it's quick. It won't cost you a dime in. It could save you thousands, tens of thousands of dollars in additional benefits or taxes that you could actually save. Give us a call for your customized secure social security analysis at (888) 419-8513 (888) 419-8513 don't get cheated out of thousands of dollars of lifetime benefits. (888) 419-8513 coming up on the next segment. Paul are going to continue to go through the nine things you must know to claim your social security benefits.
Speaker 2:
25:09
He's a published author and has been featured in Forbes Investment News, the Wall Street Journal, CNBC.
Speaker 3:
25:16
Now back to wealth from wisdom
Speaker 2:
25:18
Veterans Hall of Fame Advisor, Ron Carson. When should you claim your social security benefits
Speaker 3:
25:25
and will this decision impact your other investments, taxes and your medicare premiums? Welcome back. I'm Ron Carson with your cohost Paul West, and you're listening to wealth from wisdom. If you simply take your social security benefits at face value, you could cheat yourself out of thousands and thousands of dollars and benefits. Not One year, not two years, but every single year that you're alive coming up. We're going to continue through our list of nine things you must know, I should know, could know, but must know because it's a domino effect if you don't get the first couple of decisions right. So many of the rest of the decisions you make as it relates to your security and retirement income is really going to be keyed on getting this one, which is a Biggie, right? Social Security benefits and a, and Paul, we continue going through the list here and I think we're up to a eligibility ages. You know, we've talked about, you know, what those ages could or should be and uh, and there's a lot of confusion around this.
Speaker 4:
26:26
Yeah. So I mean, people don't always understand when should I best do it? They often ask their friend, when did you file? And so you need to think about when you can first start at age 62 up until the last time, which is age 70 but for many people, there's a phrase called F r a so full retirement age. So based on when you were born, that's going to give you when you're expected full retirement ages and people look at that as the middle ground. Is that when I should actually do it, if I do it before it's considered early or if I do it later, I'm waiting to accrue or achieve my benefits. And everybody's in a different boat there, Ron. I mean, so some are at 66 years, somewhere at 66 years and two months and I was two months. Doesn't sound like a long time waiting. Those two months could have a material impact. We're talking thousands and thousands and thousands of dollars over your lifetime and not just waiting those extra two months. So make sure you talk to someone who can help give you advice because your eligibility age on that Fra is so important to look it
Speaker 3:
27:31
gap. And Paul, you and I have said this many times. I mean, ultimately there's a lot of information and I know people get overwhelmed just not just with finally finances. It's just everything coming out as all the time. I call it the whirlwind of life. And you do want to make the complex simple. Use a car analogy earlier, I laughed to myself and I shouldn't, I mean how much time and effort people I know will spend researching a car, I mean hours days, we just, and it's like in the most that they're going to save as maybe a thousand bucks from the best outcome to the worst outcome. Yet they will go in or they'll listen to somebody and they'll give him a piece of advice and it could have two or $300,000 impact. I mean, we had a gentleman and not that long ago, and just because there wasn't that upfront time put in, he cost him, he had already calculated at 110 of silver, $110,000 from something that he could have had done in two or three hours worth of planning. Make the complex simple. You want a team that does make the complex simple that they do all the variables, all the testing, all the what if scenarios, and then give it to you in a simple format and a common language that you understand what they're talking about.
Speaker 4:
28:51
Yeah. So we use that right in the cardiology, Ron buyer's remorse afterwards. And what that feeling is for you. Well, you don't want that same feeling of social security. Do you have remorse? And actually makes me think about, actually earlier today Ron, uh, I was talking with the family and they have a lot of cash sitting on the sidelines right now. And I haven't heard someone use this phrase. They said, Paul, I'm feeling guilty. I'm feeling guilty is what they said of not investing more of my cash right now. And I've been sitting on it for too long. And I think the phrase feeling guilty is interesting because how many of you out there social security feel guilty that you don't know enough or feel guilty? You made a decision. But did you put enough thought into the decision? And I'm not saying you can change it, but ultimately what's the worst thing that happens, Ron? When get a second opinion or people help you look at it, you feel better that you made the right decision and that's a great feeling. If that's my worst outcome in life, when I go through analysis of my attorney, my CPA, my advisor, or anyone else like that, if the worst thing it is is I get validated that I made the right decision, that's a happy day.
Speaker 3:
29:59
Well, you may, you said something and it just occurred to me, you said many have buyer's remorse, but don't. You have to know that there was a better outcome to have buyer's remorse. How many people running around out there that it made this decision and they have no idea that they left a hundred or 200,000 or $300,000 on the table from not optimizing the decision? Just like in this last break we were all talking about our Uber rating and what you reverberating. What's your Uber Rating? I mean, I guarantee you more people know what the Uber rating is. Then they know whether, even if they're on social security today, they may know the Uber Rating, whether or not they know. Did I leave anything on the table? Everybody listening. If you started it just for the fun, I would love to know is even if there's nothing that can be done about it, and you're going, Ron, this will just be painful.
Speaker 3:
30:46
But it would be an informal survey is take a look and see what was left on the table. And I'm 99% sure, and this comes from just 35 years worth of experience. I'm 99% sure everybody that we look at, there's things that are left on the table because it's all the little things, like I said earlier, earlier segments, all the little things done. Exactly right. Having an astonishing impact on the world, right? And so often when plans are put together, there's a lot of little things that people don't pay attention to. Those details. And it compounds in social security is one of those 11 know how many people have no idea what they left on the table? So if you're receiving social security and you want to know what the stark reality was and maybe you can pass it forward to somebody to help them not make that big mistake by becoming educated can be, I don't know if how many people share it with, but say, Hey, I left 200, 300,000 on the table by not doing the planning, not utilizing technology. I mean technology today a mean even 10 years ago we probably could have gotten a lot closer, but now we can pinpoint with technology exactly the different thousands of scenarios that are out there to get it. Exactly right. Yeah.
Speaker 4:
32:05
And so Ron, I think we maybe move into our next one here, which is the earnings test. Yeah. So many of you don't realize there is an earnings test and as you're working, um, it only applies to people that are below you, that normal retirement age for you. So actually benefits on your earnings if they're above a certain level, are going to hit this earnings task and it can be challenging for you in that situation. So you're going to have to understand what your earnings test can be. Either talk to an advisor or a planning firm. You can also go to social security.gov type your information, Ron.
Speaker 3:
32:40
It makes it pretty easy for you to put there. But the only thing I don't like about that is when you put things in a calculator like that, it's up to your discretion and that is one finite number and one finite screen. It doesn't take all of the other dominoes into play that like we've been talking about today, that can have such a material impact of what you look at. I mean it's like a fireworks going off your, you got to light a fuse that then causes a chain reaction of all the next things to go off. Well if you miss wire those you can either have a dud or you can have a serious catastrophic effect of fireworks misfiring or shooting off in directions that we don't want to happen and or danger in all directions and we don't want that to happen. Not dissimilar to your retirement benefits.
Speaker 3:
33:28
We don't want you earning and making money. And then you get hit with the earnings test based on what you have and not realize the headwinds that are now in your play in your face. Going along with that. Yeah, no, you, you, you, you nailed it Paul. Again, little things I'm going to say this many times because it's so true in everything in the life, all the little things, not exactly right, have a big impact. This is a domino effect. It's making a lot of really good decisions that you put a little effort into, give balance up in the short run, put some effort into this and the short run. So ultimately you can have balance later on. And that really boils down to having the right financial advisor and the right team. And if you ever wondered if you truly are covering all the basis, all those little things we're talking about today or could you find someone who could maybe do a better job for you?
Speaker 3:
34:18
Because trust me on this. If you're hanging onto the wrong advisor and if they're not creating value for you, or if you're just getting one piece of the overall puzzle, you have to have a holistic view of it all. You're going to be the one that's gonna pay for it. By the time you figure it out, it's gonna be way too late to probably do anything about it. So you owe it to yourself in your family to get a second opinion. Let us show you how we can help with our five step master plan will address all the most critical components of making the most out of your retirement, of all the assets and the wealth that you've accumulated. Get a second opinion because it will benefit you. Eight eight (841) 900-8513 call now and learn what your benefits could be. It could change everything for you. Get a second opinion on everything that you're doing. Call (888) 419-8513 so how we you avoid the social security tax traps that could needlessly costs you thousands of dollars. We're going through the nine things you must know are going to reveal the last two on the final segment. I'm Ron Carson, my cohost Paul West.
Speaker 2:
35:31
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 this way shock you, but even if you
Speaker 3:
35:45
earned a modest income, you've probably contributed six figures, the social security and for many others it could be a multiple of six figures. So if you want to ensure you get everything that is yours, I mean this is your money that you've put away and get it back out. We can help. Welcome back. I'm Ron Carson and you're listening to wealth from wisdom today. There are a finite number of ways how and when to claim those social security benefits and the decision could trigger an avalanche of problems with your investments, taxes, even higher medicare premium. So it's critical you get this one right. Coming up here on our final segment, Paul and I are going to round out the nine things you must know before you claim social security benefits. Not could not should but must. We talked about the domino effect, the butterfly effect. You want to get this one right and Paul Biggie here is the government is making it harder to get to these benefits and here's, here's a pierce of the biggie.
Speaker 3:
36:51
It used to be if you made a mistake you could go back, you can undo it, you could pay back the benefits, you could do a do over and then start on down the road and then they've really tightened the window. You can only go back now 12 months and do a do over. And I think I'd figure it out why, and I said it in the last segment is we're thinking about what we're going to say on this segment. It's like an 83 and before no one really had any software to optimize it. So I'm sure the government, I don't know this for fact as it just Ron Carson theory is, they're like, wow, we're getting, it used to be 20 or 30 billion. The number was a lot more that people are living now. They're getting their Max, they're getting more of these benefits of ain't go back and do a do over that just costs of government a ton of money. That had to be the motivation, I'm guessing around making the do over window of time. Very small.
Speaker 4:
37:47
Yeah. Well you don't see very many people were on get a change. A life insurance policy later is it's usually a finite decision. And if you can come back and get a better rate of return, and that's ultimately, uh, what was happening and that's why the rules have been tightened up, uh, in relation to a lot of those. But also Ron, uh, you know, I understand the government needed to make that because I'm sure as they're trying to project out to the future on what's going to happen, uh, the need more static numbers that go along with it. But it also, um, for those of you that heard from a friend that they filed away and suspended and then came back in and did it later and made all these changes, those days are gone. So your ability to take advantage of a lot of those techniques have gone away and the recent years and it's probably only going to become more stringent in the future. Uh, cause I know we're going to talk about what is the potential for getting my money back. I know that's something for younger people out there who are working here today, enlisted aide or wondering, am I ever going to get my money about that? So maybe that's the next one we should talk about is what is the future of social security?
Speaker 3:
38:50
I think it's a big one because this does play into nine thing she must know is, is social security going to be around? I'm going to put myself in the category for years. I said, and it was just my being naive, I guess that, you know, social security, take it now because it's not going to be around forever. Now that I'm been around a while, I realize that it's, it is such a, I mean we're, we're, we're in a fee at currency. The governors just create more paper. We could have a whole show on what this is going to mean for cryptocurrency and Vic coin and all that stuff. I mean cause I think things are gonna change dramatically in the future, but we have to deal with the here and now and congress are government. It's never ever going to go away. You're going to have, I think it's going to become much more needs based.
Speaker 3:
39:43
I believe that they're going to throw a lot more pitfalls, sand traps, hidden back doors of ways of taking that money back. Giving you the illusion. I know you did you say Ron, you sounded like an extreme. I'm not, I've just, maybe it's my, it's my, you know, 52 years on this earth. I probably singing to the choir a little bit when I talk about not exactly trusting government authorities. I'm making the best decisions possible. By the way, there's a great ted talk out there on short termism and short termism is making a short term decision at the dramatic longterm benefits of that decision. And they said the number one group to make that suffers from short termism who do you guess it would be Paul? I would say the younger generation politicians. Politicians. Yeah. Cause it'll say whatever to get elected. Al, we'll do whatever promise, whatever.
Speaker 3:
40:38
And uh, you know, so this is our long winded way. Am I, in my opinion, don't, don't make a bad decision because you think, well social secure is not going to be around. So I want to make a short term decision to take what I can cause I think a lot of people operate on that basis and I'm here to tell you they're going to do whatever they need to do to generate. And, and this is where having a team, a plan, somebody you work with to really be conscious of what's going on and what are the new rules out. There are ways they're going to try to extract this money back. Be aware of it.
Speaker 4:
41:06
Yeah. I mean, it's around, people forget about it. It's still fully funded for another 17 years to 2034. That's a long time period. A lot can happen in the world, whether it's currency we're talking about then, um, but then it's still over 75 cents on the dollar funded. So if you look at the long run, that doesn't mean everybody's getting their payment. They're talking across the entire system. And I'm with you on this one, Ron is, I just believe this is too important to the state of the American economy. I think more importantly emotionally that, uh, is you were just making comments about politicians. What, what's most important to many of them getting reelected and do they want to be the ones that kill social security or be the ones that the first person put a dollar into their life and they get 75 cents back? I can't imagine, uh, politicians wanting to be the people champion that type of initiative or helping push that through unless something's dramatically changed in our world in 2035, Ron. So that's why I think you can't spend time worrying about it. All you can do is take the here and now make the right decisions for what you have now. And if something changes down the road, then you're going to have to alter your,
Speaker 3:
42:17
yeah, and we, and I said it last segment is work. Either do it if you're doing it yourself, working with team, make the complex simple, you know, look at all the variables, put the time in and then really understand what your personal situation is, what it is you're trying to accomplish. A little bit of effort here will pay huge dental. The benefits in the future. I've, I've said, you know, we all suffer when it's all said done a lot more good southern gets done. You said someone earlier was feeling guilty and not not, you know, sitting with cash. How do you feel guilty because you haven't neglected, you work, you get busy. Call it the whirlwind of life. We get it. There's all kinds of things going on and you just don't get around to maximizing it. And this is one of those little things, tiny adjustments now especially if your forties or 50s, 30s, 20s especially have a huge, huge benefit and you're going to need some help and creating that financial game plan.
Speaker 3:
43:11
I mean the taxes are social security, income, medicare, inflation, health care, managing risk diversification. It is complicated. And the big question is who, who are you going to trust? And yeah, I want to be careful here. I want to be really careful because this comes across as touting ourselves. We are humbly confident. I'm just going to say it. Um, I don't want this to be self serving, but I think there's some things you should know about our group. We're the number two independent advisor in the country according to Barron's number two out of all the firms that they've evaluated and they only evaluate the best firms out there, we were selected as one of America's top wealth advisors. According to Forbes, we have published four books, two of them, New York Times best seller. So people have really loved what we've had to say on a variety of topics.
Speaker 3:
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We are featured on news outlets. I just CNBC, Fox all the time, as many times as we want to be cause we know what we're talking about and we serve on several boards to protect individual investors like you, including the fiduciary institute, the CNBC Advisory Board, the American College. We're committed to putting the investor's interests ahead of Wall Street. But aside from all that, the most important thing you need to know is we help. We care. 99% of the time we can add value. Get a second opinion on what you're doing. Give us a call at (888) 419-8513 that's 88849851388 841980530
Speaker 5:
44:49
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:
45:02
Okay. And here's the legal Mumbo jumbo. The opinions voiced and wealth from 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 in 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, l l c an SEC registered investment advisor.