Social Security Do Over

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This is the Truth Network welcome to finishing well brought to you by Cardinal guy, certified financial planner longs at Shiloh 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 welcome to finishing well was certified for me on child today show little different Social Security do over that name.

Do over and you know Jesus used it really well when he was talking to Nicodemus at night. Some people call that Nick at night and meanwhile people stole that idea but but what he said was you know you must be born of water and the spirit. You must be born again at and what an idea that like for those of us who have accepted Christ, and I hope you have that all my goodness, your slate is clean your debt has been paid and you're now a new creation and and you begin a new life you know is the sum of the father. It's it's a beautiful thing but whoever thought that you note Social Security would have a similar clause where you can get born again until a do over.

If you could to a do over. So Hans, how exactly does that work well in golf. They call this a Mulligan get a do over. So this is really a Social Security timing issue which we talk about a lot on the show because that is something with regards to Social Security that you have control and by that the timing so you file it. 62 6364 and four months. You know 65 in two months, 66, and you just got every single month so you got 96 chances to start your Social Security starting at age 62 and ending at age 70 and so you gotta pick one of the 96 and a lot of folks do this without a lot of thought and planning. Or they plotted folks just think will okay so I get so security when I retire there there thinking that when I retire, then the next month, I start getting Social Security check. And it doesn't have to work that way you don't have to put those two things together you. You're able to pick any one of 96 times so we have a lot of clients who make their Social Security decisions before they commend us okay now if somebody made it two years ago or three years ago at 62 and now they're coming and Oscars are turning 65 and going on Medicare and their finding out about all this financial planning we do in senior and retirement planning in there covering all the issues that are just a lot of folks that we get that just a few months ago they started their Social Security check for six months ago they started the principal learner Social Security check. And they haven't done the spouse or vice versa so people have done things and once we start looking at things and looking at their income and their situation may work out that that wasn't the best decision so and I'm a talk about some examples later on the show today but Social Security has this provision, and most people don't know about its actually officially called withdrawal of application were calling it for the purposes the title is Social Security do over. So if you started your Social Security in the last 12 months so you can't do this after you know if it's been more than 12 months ago that you started it, you can't take advantage of this, but if it's been less than that you're eligible for a withdrawal of application.

You can only do this one time in your lifetime. So which is start your Social Security and then after several months or a few months or 12 months or less. You want to do a do over.

If you Artie done this before you can do it again. The end. One of the requirements that creates a stop sign for some people is you gotta pay back everything you got you not pay me interest.

But you got a payback everything you've got.

So again as I'm trying to follow.

In other words, the reason that people would do that as they would go all my goodness I didn't realize that this would really change my spousal benefits or I didn't realize that they would call me back to work now that would be something that could happen right.

I thought I was retire that way and off, but I have a schoolteacher that that actually happened in a lot of schoolteachers they come back. Adam, six months after they leave.

Teach in school because they need schoolteachers, especially good ones you know the and so I a lot of clients that are schoolteachers and they retired like 63 or 64 and then you know after a period of time.

The school wants him back, and they can want to go back to me.

Maybe they laughed and they were burnout or whatever, but you know that they're ready to go back and then this is perfect for them. They can do this once that I can see all sorts of reasons that somebody might retire and then all of a sudden some huge thing happened in their lot and for the Air Force back in the workforce and go out and I will if I'm within that 12 months. You know this really might be a much better plan because as we talked about before. If you're starting your social security while you're still working before you're at your full retirement age right yet you're given back part of it be orientated you got your ear and I want to do one of these is that happens within a year if it if it works on the first floor yet have the money on the sidelines to do theirs and anybody who has no savings.

They are can be considering a do over. Anyhow, minutes and but pain is not. They need the money and they have needed the money and they continue needing it forward giving example of a client that right now. I was preparing the show garlic ongoing client who sees this just turned 65. She was buying a Medicare supplement from us and she didn't have much of a work history and we looked at the whole thing or I didn't actually look at it. One of my young lieutenants was looking at it and showing his 388 bucks a month and she just took it in, which is a little early at 65, her husband still working.

He's only 60 but she never thought about the ramifications of him or retiring or any of that stuff and they also have a good bit of money in a 401(k) plan that they been plan to live off I came in his were sitting down. He'd like to retire and then we start looking at all this and they don't really have high income needs. So there very good shape. It having a social having to Social Security checks is going to be less of a drain on that 401(k) because if we have the Social Security checks coming in as a base income. Anyhow so we go through this because she's four years older than him. She's going to be able to get a $1350 a month spousal benefit in a year and for five months where is he's getting Social Security benefit at 62 of like $1900. He put those two things together and you got some pretty significant spinal again. She wouldn't if she'd stayed on her so security when she went in and out. She was already in it and share it in 300 and some odd dollars a month which she did not know apparently right. Was it if she would waited 18 months, she would be in a been eligible but my question and that is either she'd been eligible for half of her husband's life benefit now is to save it. She'd left it at 388, when it came up time, which she still she can still do the spousal benefit, but it's a complicated formula and she's going to get less than the 1350 a month because because I have her benefit filed early on the small thing and that's deducted out and then some sort of a cloud our coverage right you get into the master that it just she still would've probably got like 1100 a month or that's the way it is now, but I'm I'm going down to see her in do a bunch of financial planning discuss it with both of them as they look weird and I recommend a Social Security duo were just because it's only seasonally collected since March. The March April May you know Diane's ran an $88 cruise is not that much money and so she's gonna she's going to give back that the 1500 bucks that she's gotten and then they'll stop her payments and then she'll get that full benefit in schedule spousal benefit till he applies and he can apply to lease 62 separates the following if I file you completely and you know who would've ever thought that he now I understand why they didn't you know who would have been at me as is this clear cut that wow when you come into this picture that's reason why you sit down with Hans and you give them all your stuff because you look, I mean that it's not just you. It's you and your spouse and all his things figure into the equation of what these people need five grand a month or $60,000 to live, you know, when I asked her that before taxes are after taxes and she's coming on hall checking out generally do it like that that assist us about because of 5000 is after taxes you need eight grand, inanimate. I got a plan for a grand so that you can pay 3000 and taxes right you know or NMR granted for tax-writing people think about that. But when they come see me they do. I want to set the same thing and so she's she's coming five grand a month and now he can't get so security for a year and 1/2. So if he retires now. I got a plan for five grand a month after taxes, which means you know we ran all the numbers is really only about 60 to 6500 and would have to take that straight out of his 401(k) so consequently he might wait another year before he retires. You look closer, so security or root wait till October 2022 whole point being is there to get to Social Security checks and yeah those two together. It's almost 40 grand and if you remember from earlier talking you don't owe any taxes. If all you have is so security even if you have a little bit more, so we only have to withdraw 20 grand to their 401(k) year. Once you're on Social Security, they can do that for a long time and you then I can pay much in taxes minutes almost 0 taxes using all those formulas and they were just elated. So the idea again as if Social Security do over retirement today.

You know from Hans's book the complete cardinal guide to planning for and living retirement is The seven glorious chapter. Today's chapter is in Social Security and so you know we talked about many times on the show that this is the a formula like window. I start my so security Wyndham's my spouse started Social Security and today shows talk about how you can have a do over. If you started that we found that you had something else that you possibly can do.

And again, Nick and I just wanted cardinal guide.com email and Hans tell them you want the book so when we come back. This can be more on Hans and I would love to take our show on the road to your church, 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 and 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 your church or civic contact time to cardinal guide.com that's cardinal guide.com welcome back to finishing well today show or talk about as Social Security do so without thinking, you started your Social Security and all sudden nose to take the guy who gets called back to work and and and so how much you're gonna make when you get call back to earth that that all effects that decision.

The law does so anytime we have somebody who's younger than full retirement age, which is right now about 66 in six months or remedy you for that category right now where you're not quite at full retirement age.

My mother's life. I but I may haven't reached the full record and in so anytime we have somebody starting in you can do it as early as 62 or has started a regressive animal. Again, this counseling is is that if you have a year where you make more than $19,200 in money from a job with the call service income you can be given a bunch of your Social Security check back to just account so security ministers done like that people taken early, but they're really not retired and then they're making a whole regular income and they're getting the Social Security check there and asked for that back and what I think about the whole picture. It's kinda crazy by this country has year if if you make an $40,000, for example in your pan in Social Security. I'm sure you had you taken back a smaller check that you're stuck with now for the rest you live in Japan taxes on Social Security that are now given back his convocation and their employers pay and sell securities or is it that's nonselective for this is one reason for a do over like you get call back to work and if that happens within a year, then you can take advantage of what you know now were talking about that week we got to get clear is is that if you take it early only take it if you're planning to make less than 19,200 women like outlets like a part-time jobs binder a consulting gig or something. But if you are going to make money reasonable money from a job and from work, even if it's much less than you made in your real job than you probably want to wait to take Social Security to your full retirement age is once you reach 66 in six months or 66 and eight months or whatever 67. Once you're there you can take it and still work me because once you get past full retirement or this is only for the people to take it early and now the do overs for anybody Avenue just if you took it in the last year.

You can pay it all back and start over again. It's not quite that simple. But you know I got I got another client that we met back in March or April and I think he's listen to the podcast or picking me up on YouTube.California really good guy in his he he he he makes it.

Everybody in California makes a good income because you could live if you could let he has a hit these up in a six-figure income for B and you know something like the custodian it you know are in charge of the facility or something. I don't and I had a hospital out there in the guise retirement is moving to Oregon.

He's got all kinds of stuff going on that I'm helping with, but we just kind of agreed to just let this thing sit for like 60 days and then we gets cousins little retirement dates July 1 salad started on this week and I find out were going over this and that health insurance for the wife and the move to Oregon. You know the Medicare supplement and talking about long-term care insurance is qualified money as pensions's taxes in Oregon versus California and work on finally started his Social Security check. And he's just put that like a given in any night.

Try not to act too disappointed in me.

People can do whatever they want to do but you eat, you really did ask it out and insist set so he fits right in that category of a month ago so it had come in yet but I think it's it's set to go. So it'll qualify as a do over this guy's got some 401(k) money in some IRA money and so he has plenty of stuff to live on besides Social Security and not for the rest of his life that one of the real kickers. He's got his wife is like 63 and she needs to buy Obama care healthcare.gov health insurance okay and we handle that to relay passing quarters. You know out of the little clicker thing because it manages the that there is much in that but we handle at just simply for clients like this is almost sent them to somebody else so you and I don't get paid much. I want to be able serve them and so the real key that is the subsidy.

This stuff is going to be probably 12 1400 bucks a month for her. It's a big deal thousand bucks a month, you know for two years and so if you qualify for a subsidy you can get a subsidy if your income was 30 grand a year you get a subsidy of like 80% of it or 90% if you qualify for no subsidy because you got in a counter so security in your other income in your pensions and so this guy would have the option of doing a do over stop in his Social Security right because that's all securities, and towards the right disqualifications, an endocrine drive them out for he and his wife and then with a can live off of is some of the qualified money or the IRA where we can just we can set your income at like 30,000 a year and then we can withdraw the other money because he's got some savings built up to the end that he did. He just has a just sold his house and he's buying a less expensive one in Oregon and he's got other money that is put back in. So working to live off of that, plus the 30 grand that we pull out of the IRA. So we thought her tax return is tax return. It's going to be 30 grand is he's gonna look like he's low income. These can get a full subsidy for her almost full subsidy and easily limit monies money and then he's going to be getting a larger Social Security check in two years. Then right because of that is narrated, then we won't have to take money out of the qualified money and insist this is simply a math problem in figuring out all the stuff makes up so I'm probably gonna recommend a do over to to to the point where because he he's going to be patent on me when you know when when I tell me others of how her God visited B 1200 a month break yard.

He knows that because he's looked at cobra you know that that lassie get cobra from the hospital here here you know so expensive. It is the end. We didn't understand is how well subsidize these healthcare.gov programs are and we handle those are all across the country just simply for spouses or adult children that are tied in with the parents are right and we handle it as a service to our clients and so we studied it real well and that we use it to helping but obviously I read a lot about Social Security and all these topics that I talk about. I'm sure this not interesting enough that most people to read about it, but it's my job and my business yet I just listened to a guy. He said a statement in an article that he put out a guy that has the same job as me a financial planner and he said that this right from the Social Security manner that Social Security provides information Social Security does not provide advice you think about the difference between advice and information coming all the stuff I've been rattling off at the show.

That's all in their manual and it's all accessible online.

You can find everything I talked about in about a second by putting the words into Google and searching it in your right there site so they make available information with they don't give his advice and I can tell you, you know would be smart for you to start your Social Security check. Now more than I can tell you would be smart for you to wait because your wife and then this late date. That's advice. They don't give that's that's really what we do and a lot of financial people don't give advice on Social Security because they got liability of any time on giving advice to people. I'm not doing that, by the way on the radio just to the world and your you really gonna need to sit down with me if you had advice that way. I make that clear. You know it is a lot as we can tell that go into in of giving real advice because each situation is different and yeah I mean I take all the information that I know and then all the information I know about you, and then all these other factors like taxes and income in Medicare and in all his things and then applied all that into my brain and then conversation with you and what you want and then I give you advice I say this is what you ought to do so that's what we do and when it comes to Social Security. The Social Security office and administration. They don't give advice ever and I think some of their people can do that is, they have their own little opinions in an anionic site. I think they actually do give some of that on the sly.

But you know this is it. It's not in this is this is advice, and the Social Security do over is just one little exception that we have at our disposal when we get clients where they've Artie done things and now they're coming to us or just want us to look at everything and were saying. They wait a minute you could you could be living off of your 401(k) money, you could be living off of your savings and then you could give this money back and wait and this could be later. Now unless we don't give advice to everybody, but it's just in certain situations. This is a constant blessing and health concerns are obviously based on in the lives scenarios you described. In both cases that was critical aspect of flow yet for healthcare but wastage is a health concern. People that have terminal illnesses or illnesses that are probably going to have them going to see God sooner than their 90s.

You know, sometimes those people are better off filing early because right then. I only got so many years to collect said that the advice is different for every person in every situation and were not given it on the radio you know where we were just giving you general information and education about it and then the way Yahoo answers and I had no idea you could get a social security do over me if this sounds too good to be true, it you know it really is a mean there it is one of the call at some remove event with withdrawal of application. They always have these words just process you withdrawal your application even though you made six months ago is still an application to them. I listen I make videos about all the radio shows and we send them out to our clients.

You could ask to get on our mailing list and you could get it will be a little different than the radio show part in the podcast which you can obviously listen to them. Also on YouTube and always get posted in their starting to get a lot out when you're traveling last week. United people think of mail at the email it's email night and since I'm on that. You know I get it here so it really is quite handy not yet yet you know you're going to get almost weekly this week of you can get the radio show on the podcast and you can get that video.

That's also posted on YouTube and then you gonna get a little bit of learning with Vantage shows up in your email box because all our clients and everybody gets asked to be part of our mailing list and you know you you can if you wanted to go on YouTube and you just put Cardinal advise hours ORS Cardinal advise wars and then I think you can just type on child as well and up the sky, probably 120 YouTube videos. Where were going over all the stuff, maybe a little shorter than the radio show. People tell me their great aunt because again you're going to add slot get misinformation. Of course there's always the book the complete garden untied the planning for living in retirement. You can get that. Also it Cardinal guy.com is Cardinal advisors on YouTube. I get � but the that's kind of her neck and right show today. Hans thank you 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 and investments and taxes as well as constant best-selling book, the complete Cardinal guy for planning for and living in retirement and the workbook once again for dozens of free resources past shows to get Hans will 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 a word. Once again that's Cardinal guy.com Cardinal guy.com. This is the Truth Network