Social Security for the New Year

How is mental for your part just our mission is complete on the walls of Grayson's nomination your chosen through your growth just started just a few select thank you this is good Truth Network welcome to finishing well brought you by Cardinal guy� A certified financial planner belongs agile, 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. Finishing well, welcome to the days finishing well with you and them excited about this title. I know I am the name of the show is Social Security increase.

So, how fun would you be able talk about but as always, we want this first show of 2020. So it's pretty good, 20, 21, excuse me in it of itself is the law of sowing and reaping. There's this idea of the kingdom mentality.

Being that there's an abundance and something to keep growing and so we went from 20 to 2020 to 20, 21 that this everything grows. If you see how God works that there's you might've seen in Hosea 8, which is the bad side of this, that if you so the wind in the report). In other words, know those of us who sometimes fall to sin, i.e., me and you know me scream and yell at the you know driver that was just pulled in front of me. Not that the Christian car guy whatever have road rage except most days, but what I don't realize is that my kids were sitting in those seats in the back and they were hearing all that when that was coming out of their father and mouth. Sometimes I ride with my granddaughter and them.

She tells me about what they drive and so apparently the log increases is certainly affecting my my family is when it comes to sin, but the better part in the great part is in a God provided this blood of Jesus Christ. And so the good news is I tell one person about Jesus that persons can go tell somebody about Jesus could tell somebody about Jesus or even witness to something that is done in my life those receipts in your planet to planet Appleseed and you get a whole apple tree with millions Appleseed to come in over the lifetime of the tree and that's the way God doesn't write. And so the good news is the government apparently planned years ago that there would be a cost-of-living increase in the call this fancy name: cost of living adjustment. So this is like no sugar-free cola notes 1.3% this year and you know I want to state this is my job as I view it is not to try to make you like things that the government does were like Social Security or any of these other programs that we work with. It's really just help you to understand and help you to make good decisions. If you haven't started your Social Security you got a lot of decisions in your need to do a lot of praying and a lot of thinking and a lot of get a lot of advice over that right time to start your Social Security and your spouses will secure that I know for me. That's right on the place where I am right at right now so I think you have 96 months that you get six different dates that you could decide to go on your Social Security to get on your Artie threw about 36 of their Artie come and gone right but every month from now till your 70. You could start your Social Security every month you wait is going be a little bit more and every month that you wait until your 66 and two months which is going to be next year about this time. If you started it before then you would be starting it before full retirement if you started before full retirement and then you have a job which you do and you earn above $19,000 a year which you do you are going to have to give it back. So, under any circumstances you personally rob your neck and want to start resource. The earliest you would want started would be 66 and two months which is a movie about a year from now.

Then every month you got the option of the land another month all the way up to 70 I think you've already made some of these decisions are not cast in stone because something in your situation could change. God could have something planned for you different than you know. We've planned out here on earth but if things stay in much the same and you stay employed in you stay doing what you doing, you're probably gonna start years and 70 yeah especially that has to affect my wife is now seven years younger than me and she would say depending on if right and if I wait till I'm 70s she gets that increase and I when it when it goes down one so security check after I pass away you know that would be for the remainder of her life. So I not only get the money and the remainder my life that were significantly being concerned about her because she's to lose one so security check that she'll get that bigger check for as long as she lives. But there's also that you mentioned that if you make this decision to wait you know. Even now at 65 that it would be a lot lower than if I don't wait but then there's also the other side of that equation that if I decide not to wait that I'm leaving years 12 payments of that amount on the table yet it never will see.

So there is this isn't like to know completely no-brainer. There's a lot of math and that's what you've got software.

People with this particular because we run scenarios and then were.

This is further important is you talked about a little bit earlier is we have a married couple, then their instructor Social Security checks probably on different dates but once they get both of them going there to have two incomes to checks and then there's gonna be a point where one of them is going to die. The other one.

One of them is going to live on as a single person� Like the notebook where they dine each other's arms again wife tells me all the time. That's what supposed okay well if that happens then and I guess the plan for nothing but and if that happens, and it's a short period of time, then it's not that important to plan for the many cases you have one person die in their 70s or early 80s and you have the other person live on up into their 90s and then you know in your case, your spouse is seven years younger than you.

So the odds of something like that and the ramifications so that's all the more reason to delay if you can afford to doing the work for the rest your plan so that's one decision that all of you listening are going to need to make now if you've Artie made that decision. So were not leaving you out really the topic at today's show is your check in January can be 1.3% higher than it was in December and then there's there's plenty of complaining that goes on this. I will that eats up most of my Medicare increase okay for my Medicare part B is a most people have it taken out of the Social Security check. And that's 144 60 this year. In 2020 and is going like 148 90 or 50 or sentence 148 something so it's going to be about a four dollar a month increase is 144 one 4850 and be like up about a four dollar a month increase and thus I can eat up your whole Social Security check.

Not to mention if you have group health control you have health insurance. List any notes you could get a deal warrior health insurance only went up to 3%.

You're like going to Chang uptake that sometimes we see not go up 2040 60% of this is real political, especially the Medicare increases but that the Social Security increase is not so much because you know that's not really the government given you money were not given you money if you thought should've been three or 4% of me that's really simply the whole Social Security system it's based upon inflation.

So when they plug in the inflation and then they plug it in and that's what they came up with is 1.3% and then they make sure that we can afford it, which we can. There's over $3 trillion in the trust fund and every year that we've been watching this stuff. Trust funds gone up by little bit now. It might be different this year with all the people at work and that type of thing so will manage year-by-year, but in any case for you, your check is going to go up 1.3% in the pictures can go up a little bit. Not really a significant thing is other than the fact that is significant that this is one of the lower years of increase. They haven't been much for the last few years is inflation's pencil, so I'm not so sure that a lot of retirees want inflation to go up so that the Social Security check in God, and know you tell me what would I personally don't want inflation eclipses there so many things that that that affects on top of your income because obviously if it went up in your get less bang for your buck, that works fine. Periodically your your check that is now 101.3% you know is 1.3% higher buys you the same things of the same amount of things in goods and services as you check 100% blasted Lasher management app, but the other beautiful thing when you think that you know I was a kid.

Realistically gasoline you could get a 20 6F expensing and so you know it's really nice to know that this thing now that gasoline is now up at two dollars a gallon. And that's even print pretty much a deal to what it was five years ago, but it's keeping up and it is increasing right because when you look at what their social security checks were 30 or my dad's check. I mean, I know in the mid 80s. My dad was a highly paid executive. His Social Security check was like 1300 bucks a month something like that and you know mine is going be a lot more than 1300 a month and I years younger than him or 31 years younger than him, not mine is going to be substantially more. Only almost triple that. So that's all because of this inflation earnings are higher in just over 30 years.

It's in our triple based upon all the increases sensing my dad who I can imagine the year he didn't pay the maximum spouse. Maybe when he was in his 20s or some that he was highly compensated his entire life but you know it was like $2700.

As I recall and so I'm thinking wow how can I have the bigger Social Security check to my dad based on the way he was, but it just goes to show you that the government in their own way is, is clearly seem increase and so their pass that along. Sure, and so we just need to understand this and try to make good decisions within Social Security and then furthermore on your other money right other financial decisions.

As we talk about the plan so we got to go to a break. Again, I hate work a lot of time for this part will not be right back and in the meantime, cargo guy.com and you know today's topic was is gonna be on Social Security which, if I'm not mistaken in that chapter 1 it is chapter 1. Pain on startling the study and Susan Hans's book the complete cargo guide to planning and living in retirement. You can get the whole book or just download this guy.com email on their right next to Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic room. 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 higher rate Social Security care and long-term care. Just go to cargo guy.com and contact Tom to schedule a live recording of finishing well, your church, Sunday school, civic, contact Tom to cargo guide.that's cardinal guide.com welcome back to finishing well, a certified financial planner Honshu Island today show with Mike about the topic.

If you asked me Social Security increase. But before we go in the sum of those details we wanted to let in the listeners know if you're just tuning in, and you went wow I need to know more about the kind of thing I hear you being a show you can always go to the podcast which you go to cargo guy.com you can see the podcast. There you can Google it on finishing well so there's a tab that's the name of the podcast and all hundred and some of them are up there and I just talked to a lady on Iowa who googled it just retirement planning, and she's very sweet Christian woman and she just saw those a Christian financial podcast and I don't think were alone. I think there's a few more. Anyhow, she's listen to just about every show, backwards, over the last couple three months and now she she called us during open enrollment and bought a Medicare supplement and now she's talking to us about long-term care insurance talking specifically about a hybrid, but it's just you know soon as I got on the phone because one of my other people has been serving her and then she want to get me on the phone to talk about long-term care and since I open my mouth will I recognize your voice and think about that and she's put a number of her relatives up in Minnesota on parts of the country. So if you want to get a hold of the podcast and this is not convenient to tune into the radio at 8 o'clock on Saturday morning. You can find it first on our website@col.guy.com but it's on spot. If I Apple iTunes and you gave about all I've elects it display the finishing well podcast and pick it up plant in order. That's that's what they're designed to deal course we would appreciate it if you would subscribe so you can just get it in your podcast and portfolio every single week limit come out when he left without downloading it and then if you have time, we would really appreciate it if you would rate the podcast you can do that give us how many stars you think are any comments and some that you want us to talk about something that would be delightful. So again, finishing wells and name the podcast we be really really appreciate you listening to Chester to share that so limited some fun is she that she told me that she listen to the podcast several months ago and she's listen to most of my ever got a number out of her but she's listen backwards. Which makes sense because if you know if you listen to number hundred and six. Then you went on hundred five and so I was sitting there thinking about that since she's listening to our podcast back and I thought will which one did you listen to first she said all I could remember that I said okay. I so want to try, you will be talking about this and that she could go over those of the reason I want to know that as I put these in order, where I started with Social Security and then I got them all in order. That's how I think about them and now that you've got them all backwards several times over a rethink everything was nice to know what happens is funny, on-demand content, which is really handy. I meters if you get to miss that so getting back to our interests. You know this is a pretty exciting topic and only money is growing and is in need, just just the fact that Social Security number one, you can count on. We've done other shows and will do more shows we do about every April, where we talk about the financial footing of Social Security and there's a lot of noise out there that you probably can hear more of it.

The new administration coming in. You know everybody's saying all will you know so securities can run out of money in there to do this and now that it's a new administration's responsibility, whether they're going to be suggesting changes and you will see in it that's her seekers were not even sure I got the new administration coming it out. At this point in time, it still seems like it's you know up in the air. So is it Steve makes it more important that you pray about these things because it what you know who knows what the outcome analysis sure ended that they that they had talk I mean there's some things that I really really like that.

I hear out of the trunk, administration, and then there's other things that I don't like like you suggesting just eliminating the Social Security tax for several years for several months during the coronavirus really this was floated out there and then that would save the employer's pain in their matching share and then somehow you have to pay it back, almost like it was alone. I like at all okay and it was just floating in it and it was dead on arrival. Now, there has been talk of of charging people that make more than the maximum of $138,000 just charging them Social Security taxes and employer taxes all the way up to you know millions of dollars or whatever and not have to look at that a little more buddy ranges.

Somehow, if they're gonna manage this over time read to me when I'm logically looking through this he things on the table for them it's a big political game and then the news people start spitting out articles negative in the country will even so securities run out of money and some drastic as can happen in a lot of that stuff is just nonsense.

That's really where I wanted statement position. I really would more focus on the $33 trillion. There, there's about $1 trillion of income coming in from taxes. And then there's about $1 trillion of benefits going out right now and 2020 and I don't know what will be for 21 so it's pretty much a balanced budget with a little bit of the surplus and that's one of the reasons they only want to raise 1.3% because I think just wouldn't respond to political pressure and raise it substantially that's going to hit that whole funding thing is pretty sound is not to mention it in a fib 3 trillion in the bank deployment will be interest that's included in the revenue is is that money is in bonds and its earning interest in that's included along with the taxes and along with the taxes that the wealthy people pay on their Social Security that shows his revenue to the goes back into the Social Security trust fund. So there's a lot of sources of revenue. In this this thing is is actually very well-managed. It maybe isn't as well planned out for the future so the managers of the fund. If you call and that the managers are hampered by whatever the politicians promise and set up a pretty good job generally do because obviously you can see the increase and that translates into them in being able to increase the fund in about 1.3% this year, or whatever you know they would deem appropriate. This is those things go on but again this from a standpoint of planning you you consider this to be the bedrock right absolutely, this is your check that you can have for you and your spouse for the rest your life in there some scenarios where you don't pay any taxes on this now some of those scenarios may not be very good to you because you got have a low other income. When I say low.

Another 10,000, 15,000 year that you can make babies, much as 20 and you don't pay much of any taxes on that other income in Norwich pay taxes on your Social Security but you start looking at Social Security and some other income from an after-tax spendable income. This gets real important in a financial point as this. This is decisions of when Juergen started and you know, the longer you wait the more it is and then if you meet an early death. Sure, you left money on the table at Devon Avenue died 75. The great part about that is really not in the know and I doubt you can be sitting up there in heaven, saying, why really mistake that is taken at Social Security check at 66. I would add all those extra checks out. If you leave your spouse back here and then there smaller check will maybe there'd be some regrets but I'm all foreign financial planning is make some decisions.

Some of those decisions are about working to do in the future. So were prepared with her not cast in stone yet. Some of them are right now. Decisions you make those with the best information we have and then go on without regret.

Part of my job to get people in it just a good place where all the stuff in a related Social Security retirement income planning IRAs your stay and we got a bunch of decisions to make, but we need a plan and a big part of this when it comes to Social Security for my perspectivism now thinking about another level. I never picked it up. Is this the tax ramifications of okay even my checks bigger at 70 than it would be at 65, but then I'm still planning on working but for some people that were going on their 401(k) and IRA know all the tax ramifications of Social Security become a huge part of the plan was surely do my I think my Social Security check at 70 is projected to be over $4000 in my spouse's is going to be $2000 in silver and have six grand a month of everything works out and we actually delay to that point the Lord leads us here that long well beyond that were have six grand a month coming in from Social Security for however many years and if we plan or other money right through the use of Roth IRAs and life insurance. I intend to pay zero taxes and that $72,000 per year and that'll go up on 1.3% or whatever so that will be more by then and you know they tax your Social Security or Social Security is taxed based upon your other income. If your other income is coming out of her bra off IRA was coming out of life insurance cash withdrawals are cash loans that are tax-free. My other income is can be either zero or very low in my plan is not to fail in taxes specifically on that Social Security check clients. A lot of cool ideas we talked about Social Security increase is to increase our income without increasing taxes and those are part of the reason that it really makes all kinds of sense to prepare to plan for what you really want that to look like because there's different you know you somebody's moved your cheese you're not playing in the same game at all that that you are playing it in trying to get absolutely any just display you need to point that's what we do is we take the seven subjects that we do the radio show and in our financial plans. We cover every one of them, but we apply so instead of giving all this general population data.

We take all that and we apply in your needs and wants. And then there are all interrelated. So we put together a plan like this is what were planning to do this is how much income you can count on.

That's another thing nice about so security we can count on. It's not gonna lose 20% in the stock market downturn and it's just it it it it's there and it's guaranteed by the government so the stuff is all written interrelated and you need a plan and then we can adjust the plan as we go along.

You're not bound to whatever we decide on his sister.

You can have a plan in place of the you know what to do when certain things that once again out of time. It's been a blast for really praying for you to have a delightful New Year's I use it on database but I will say that the original shall played the first Saturday in 2021, but you can find out all this information's Cardinal guy.com reports radio shows, finishing well but you go to get his book the complete cargo guide planning for living retirement with the demo seven chapters of cover. All this information just email Hans and asked for your copy.

So thank you for listening.

Thank you. We hope you enjoyed finishing well brought you by Cardinal guy.com visit Cardinal guy.com for free downloads of the show previous shows on topics such as Social Security, Medicare and IRAs, long-term care, life insurance, investments and taxes as well as cons best-selling book, the complete cargo guide to planning for and living in retirement and the workbook once again for dozens of free resources past shows to get Hans book go to Cardinal guy.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 the word. Once again that's Cardinal guy.com Cardinal guy.com. This is the Truth Network