The Future of Social Security

Hey this is Mike Swick from if not for God podcast our show stories of hopelessness turned and I hope your chosen Truth Network podcast is starting in just seconds. Enjoy it, share it, but most of all, thank you for listening and for choosing The Truth Podcast Network. You're listening to the Truth Network and TruthNetwork.com. Welcome to finishing well brought to you by Cardinal guy, certified financial planner belonged to child best-selling author and financial planner helping families finish well for over 40 years of finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes.

Now let's get started with finishing well know we are excited today. You really are not about the show really significant life-changing thing to me to understand little bit more about social early and actually today shows title. The future of Social Security and I'm here with certified financial planner homicidal in my cohost here and it you know the thing I love about the subject. John is it reminds me of doubting Thomas who gets really bad rap, but you might've heard and I've heard this before that a good disciple always has questions sure and and just think where we would all be today if in John chapter 14 verse five, Thomas didn't ask his famous question like videos and sit there wondering where Jesus is going, but only Thomas raised his new member hidden school exit Jesus. I don't know where you go you know he was a wanted admitted that he didn't have a clue as to good for him because because of that question. Jesus gave us. I am the way the truth and the life. No one comes to the father except through me in so fortunately for us all of us listening today. John asked that question years ago.

Like what really is happening with Social Security and are we gonna run out of money and all these, questions, and so you know it's that time year we get the annual report this in Robbie's car letting Jean because were buddies in mind that that is what people call me by name. The people that know me and Hans is my real name. My legal name they gave me when I was born and you know if you ever listen to Johnny Cash and a boy named Sue is if your name was Hansson who were in the first or second grade. You have a nickname to the other. That's good so yeah I mean it this year and actually came out back in late April and comes out every year the Social Security's trustees report or the trust fund report. That's a real page turner, and that a lot of pages to yeah and so I asked Robbie the question before today's your we talked about it last year.

I read it every year. So why are we talking about this on the radio when you are listeners why do our listeners even care a second about the Social Security trust fund report. Or maybe you could say why do you care about it now that you've learned maybe how about Social Security.

This is my third year and deal with it with Hans and it's phenomenally helpful for for me to realize the hope actually now at this point in time. It's actually faith that I have a missile security system that the faith a document run out of money while you know from my perspective, you know it for my own self that is that I don't run out of money for my kids. I believe the countries with things, fix it, but not only that, but that now there are people robbing at work getting all that today. So for me, you know, Social Security became, as it is of the more I understood how to finish well. It's like, man, this is a really big deal.

This is a large amount of money that I this is going to help me finish well and and it's going to be there. Will it is. There's almost $3 trillion in the Social Security trust fund, and there's almost another trillion in the Social Security disability. Trust fund. The fund for people that are under 65 are under 66 or 67 and there get Social Security because of disability.

So we put the two together almost $4 trillion. That set aside to pay future claims by end of the cool thing is going to reserve if you work in our churches have a reserve or whatever statements taken money they have never taken money out of the reserves I mean here since this guy the money that continues to grow and even though their predictions that they might be dipping into it at some point time they have never dipped into the reserves. In other words, like this thing keeps growing. With this report is the annual accountability there's a whole bunch of people in a government building up in Washington calculate all the stuffing and actuaries.

They have accountants they have financial managers that manage the bonds in his it's really a lot like a big insurance company where they've got peace trillions of dollars that are there to pay out claims in the future, and so you know, the answer for me of why were talking about on the show is I read this thing every year.

I read every word on every page. It's about 300 pages long, but I get the gist of it is they go through there and they make a prediction of how much money they're going to need every year and interesting. Last year they predicted that they were going to dip into the trust fund when I actually was for the 2018 report that they did in 2019. They said during 2019, we can have to defend that money alone and say I at the time I kind of question that, but who might've these people put this thing together and as it turned out we didn't dip into it. We actually added to it in 2019. So the time to help the listeners out let me mean by dipping into it is not like learning to use this money for government contracts. They would be needing to dip into it in order to make because he gets on the baby boomers coming now into the system that we only have these baby boomers go ahead and would have to begin to take our reserves rather than be able to fund the current people with money that's coming in through payroll taxes. At this juncture, but as we now know that wasn't what took place at all. I didn't know dipping know dipping in 2090 there was talk about all the people that are coming on the Social Security unit which is anywhere from 62 to 70 people have the ability to get on in there to get more the longer they wait, but there's people coming on every month that are starting their Social Security checks so that's is a problem for these people to solve because now they need to pay him that Social Security check for the rest of their life they don't really talk about every month there's people going off the Social Security because when you die your Social Security check stops so you know it's a business of managing money and taking in the revenue from the payroll taxes and then taking in the revenue because when you people pay taxes on their Social Security that goes straight into fund Social Security so if you're 75 years old and you're getting Social Security check of $3000 a month and but you have to pay $1000 in taxes on that 3000. They don't put that in the general treasury that thousand dollars goes to pay somebody's else's Social Security check. So they've got multiple sources of revenue for Social Security and what stands behind it all is the trust fund that okay so we if we have to dip into it were to dip into allow at yachting thought about that angle.

With all the baby boomers coming in and so few of them retiring at 62 or 65 or whatever is people working longer than only now there's a whole lot more tax being paid on Social Security, the remnant that helps offset the plaintiff kosher are just people that are older that that are just earning money on their investments or their pension check me if you have a high income in retirement hi taxable income.

You can pay taxes on your Social Security and the taxes that you pay on your Social Security goes back into the Social Security fund to pay current benefits or to add to the trust fund where everyone allocated to so the summary of all of this is that we added a little bit to the trust fund last year when it was predicted that we would use some of the trust from a single why does that matter to me is that there are some allies out there that are really Satan's lies that that people really accept as fact.

I want to tell you a couple of one is Social Security's going to run out of money.

I mean people.

The person on the street. A lot of folks a lot of our listeners a lot of you may just believe that poets can run out of money so I can't really count on that. That's one line and then the second lie is that the government is spending our Social Security money on something else could be guns military building bridges, what, whatever, there's all kinds of theories and it's just they're not true.

If you read through this report, like I do and you've read it that all the money that is allocated Social Security, whether it be taxes, trust fund, the income taxes on the Social Security checks if all gets allocated to Social Security. It has to by law. If anybody ever told me three years ago. Robbie someday you will look forward the subscription report that you will want to read. It is so true and I saw the email that here is this thing it I just based on comparing it every year and understanding a little bit about budgeting is that you know to say that Social Security would run out of money would mean way more than what they're talking about. By 2035 bill of evaporated. The trust fund that there still literally a phenomenal amounts of money that are coming in and payroll taxes and all that other stuff so this idea of totally running out of money and said it's just it's it's absolutely ludicrous before you didn't you just tell me a few minutes ago before you start doing the show. You believe both of those lies. Oh yeah, I absolutely would have some income up to me three years ago and said Robbie, do you think so security from a higher man on the street you think so security from money.

Oh yeah, there's no waving cover the baby or things that Robbie, do you think that the government paid money for no satellites or something. It gathers the politician for five of the anything. I got along so in which the ramifications of believing those lies a loss of hope and a loss of faith and in how you are going to finish when that there's a lot of money at stake is your may we teach this every seven weeks.

We talk about Social Security and we teach one piece of this into me in my answer that question is if you believe all that stuff you just gonna dismiss the teaching we do. You know, I'll just get my Social Security when I get it and hope I get is probably gonna run out of money and is if you have that if you're in that position you potentially are going to make bad decisions. It's it's it's a scary thing and so we gotta tell you that the whole idea here is that we knowledge the worry and that's why we have the seven worries tab a cardinal guide.com it's, you know, don't forget to put the cargo before he put guide.com and you find a seven worries tab and this is part of Thompson's book complete cardinal guide to planning for living in retirement, which is available if we always talk about by just emailing Hans or the PDF on this Social Security tab is right there, but if you want to send a copy of the report you, you could get on the list. That's the picture you can be excited to hear we got a lot more, and of the future of Social Security and why this is. This is a critical part of how we will finish well the resources that we really do have the same Hans and I would love to take our show on the road to your church and Sunday school Christian or civic group. Here's a chance for you to advance the kingdom through financial resources and leveraging Hans expertise and qualified charitable contributions veterans aid and attendance IRA Social Security care and long-term care. Just go to cardinal guide.com and contact time to schedule a live recording of finishing well at your church Christian or civic contact time to cardinal guide.com that's cardinal guide.com welcome back to finishing well, a certified financial planner Hans/John Shauna today show the future of Social Security. Why is that important as it is a part of finishing well from the standpoint of our resources and Hans in one of the basic parts of your strategy is your planning somebody's financial future into the retirement years.

What most people he met 65 whatever this is one of the basic building blocks that goes into that is so security we had sealed three-legged stool is just in the most basic financial planning and one of the three legs is Social Security so everybody in the country can give Social Security check. See get that and then you what we used to have more pensions now we have IRAs and 401(k)s that type of thing or some people still have pensions, but that's the second leg of the stool and then the third leg is personal savings and so you put those three legs of the stool and asked to create your retirement. He and to just dismiss one of the legs are not study that and have a good effect on it really plan out your retirement is really missing something or to take it to early when you don't really need it.

Just because you think that the funds can run out of money is, the scarcity mentality.

Just reading that's why read the report every year.

I want to make sure that hundreds of backing up what I'm telling people is that if I if I see them plan some monkey business within that that they're not doing that that is just as gonna happen outside, you may personally go with this crazy to me that I never really entered into many Social Security or Medicare to discussions of my life prior to starting to shove it out brought them more and more, and whenever I see somebody that chose to go on Social Security email at 62, or as soon as it could always look at ago I would do that because it's a significant change when you run your report and the comment almost immediately from every single one of ever ask was I gonna run out of money and I want to make sure I get my pay I think.

Oh my goodness, how much money we leave and on the table because people by that law. Yeah we we we ran our own reports couple three months ago was that generally about February or March. You can get last year's numbers. Those whose February or March of this year. The 2019 numbers got added and I ran mine before the show and I requested that you run your is what she did anyone say I made you run. If anything, I always do that in exercises before the show. Hans made me do both good for all it was it was it was shocking to me like while my mouth went up and eight you know and I'm not that you know. For those of know me know I was in the car business and made significant money back in the day, but in in broadcasting. I don't make nowhere near that. But it was really encouraging to me to go but here you know, somehow or another went up and I'm like, man pitching well yeah and then we sat down we looked at the reports of the Social Security earnings report is something if you call me for financial planning or you just want to talk about Social Security. That's what I would have you do.

I can't run it for you because I can't get into your Social Security account, but you can and it's a little bit of trouble you to go in there and you go to SSA.gov so security administration.gov and then you open up on my Social Security account and they're gonna make you set up a username and password and they're going to ask a bunch of questions about your credit in your mother's maiden name, and they ask a few weird ones, and so mean.

There are some people that have a little trouble with it but it's worth the trouble.

And then once you set up an account you going there every day and run wanted to. And it's extremely helpful to look at this unit would not only does it itemize what you know what it would be if if you get it at 66 or 67 and the cool thing is if you run along one like you can actually see what it is in infected I've talked to my brother.

He thought that while you either take it at 62 retake it 66 and the four month whenever he any I was like no, now you can you can take it 64 and three months you can take it at 64. Not every month and every month between 62 and 70 is an option for and every one of us has a different amount that would be your your premium.

I mean that you would get from sure and so what we do with that report is first time in ask you to bring it in. Some clients that have difficulty with. We sit and do together or Tom gets to do that we beat we run the thing up together and we get it out and then we take certain numbers off of that and we plug it into some software that we can and then based upon than we make projections and then your other income in euros. We pick a day and we pick an optical date and we don't always pick the software tells us to pick that's a data point and then there's some subjective things on that and that's where it comes up. People say I want take it now because so security is run out of money. I just know it is I heard, and their Robinette trust fund, you know, and they spend it on.

Tell him to stop doing that and insists I don't sit and argue with people that is just again. That's why read the report every year when it comes out and it's it's it's only when we get into this year and we talk about the year of 2020. I just found something very interesting is I haven't seen one article anywhere other than financial journals for people like me read them member just in the common press where they talked about this year and I think the reason for that is there's bigger news, but to me I was waiting for it and I just noticed that now. Another thing about it is the person who signed is that Stephen miniature, which I didn't even really know how to pick him out of a lineup before all those briefings, the coronavirus briefings with the White House every day. He's the guy with the big classicists out there and he's a smart guy and he's behind really just managing in getting the payroll paycheck protection program and all the stimulus things, the Treasury Secretary is the guy behind. He's the same guy that signs this report so well he was doing all that there's a whole team of people over there at the Social Security administration and treasury that are creating this there managing the trust fund or managing the $4 trillion that are there to back up our so security checks so it it you know that's one of actually farm decisions, you know, as you begin the work into this stuff, you know why just this year in August. Take my Medicare supplement. I'm very excited about that or MMA. I'm excited about the siding.

You know the year that I take EMI so security events, things are all in a part of the equation of in my opinion, finishing well, you're supposed to be in a gobs in his presence is fullness of joy and these things are supposed to bring brought joy and not fear at an end in alike. Thomas, you asked the question and so you got the information. What is so's were preparing retirement plans for people going back to the three-legged stool as this is where we start okay when you start your Social Security check. How much will it be at that point how much will your spouses be at that point. If you're married, he hand a much with the two of you together, then working at sit down and look at how much other money do you have what kind income. Can we create from the other money and put the two of those together and then of the other money that you have, how much of that is for tax money and how much of that like an IRA or 401(k) and then how much of it is in you only pay taxes on so when you're retired. If you been fortunate enough and disciplined enough to say then you've got savings and you have before tax savings after-tax savings and then you got Social Security check. So working a look at this from the foundation how much you can get from Social Security and then we want to know how much income taxes or you can pay and there is a way to plan things out so that your Social Security to check could be tax-free. So when I can get into that on this show. But that's my plan and and and and a big part of mine is really my wife's age versus my age intake and Social Security because if you have heard me talk about it before my wife is depending on will be here for me or her.

She think she's eight years younger than me I think she's there for.

I rework it out significantly younger than me at and so if I wait till I'm 70 to take my Social Security. Not only do I get the bigger contain number for whatever. The time but when I die, and she will get in over my check number at the bigger nadir for the rest of Avalon which is in on her case is probably Sheela Melamed. It's been 11 years after me and him and that's a significant thing in making sure that my wife hassufficient many people in their 80s or 90s. It's kind like all they have and if they have savings, then okay then then maybe they've got a supplement to that or a pension. But you start looking at the differences in the numbers just on that issue.

My wife is not seven or eight years younger than me. She is one year younger than me. But you know, if you take that one year, she's going to get the spousal benefit because she didn't work a lot outside of our home so she can be getting the spousal benefit and then more than likely I'm in a gophers and the fact that she's going to get a much higher check is a widow surviving me for many years. That's huge that it really is.

If it's it's phenomenally huge you know in to my way of thinking of that way over shoots well if if I take it when I'm 68 in two months then you know I won't leave quite as much on the table. There's all sorts of calculations that that go into that but at the end of the day. You know, our family is where in my case is my priority to make sure that their Allstate on and well and then we can we another wasted well and when people come to us for planning the they think that there only coming for planning the investment of their money in.

That's not really what were plaintiff part of that were really saying how much is again because you live for the rest your life and then when you die if you're married, is your spouse can survive you, how much is going to cost them to live after your life and in some cases that many, many years. So then we look how much is your Social Security check. And we gotta make up the difference and we like to do that in such a way that you're paying little or no income tax.

So there's some planning that we can do where we can eliminate or significantly reduce the taxes so that's less money that we have to plan for gets a little bit complicated, but not really like Thomas. You know he had the questions because he was a disciple and disciples have questions when you have questions and you go to Jesus to get answers and he's got answers to give you hope to finish well in so many different ways and so were thankful that you would choose this show to listen to be thinking about that and and again the many resources that are available@cardinalguide.com a course in others the seven ways taps all sorts of ways to get up with Hans he would be delighted to work with you in in in whichever way, whether it's by get in his book or or you personally kidnap women learn about your social security. However that works. It's all there a cardinal guide.com and we just pray that you would then continue to finish. Thank you. We hope you enjoyed finishing well brought you by cardinal guide.com visit cardinal.com for free downloads of this show previous shows on topics such as Social Security, Medicare and IRAs, long-term care and life insurance, investments and taxes as well as constant best-selling book, the complete cardinal guide to planning for and living in retirement and the workbook once again for dozens of free resources past shows what you get. Hans book go to cardinal.com if you have a question, comment or suggestion for future shows. Click on the finishing well radio show on the website and send us a word.

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