Social Security Chains  

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 Schild, best-selling author and financial planner helping families finish well 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 and finishing well today show file is refund Social Security chains of darkness is necessarily sound fun when it is I think there's really much to learn here is is really a neat thing in second Peter 24.

There's this picture where Peter gives us an idea that if God didn't spare these angels, but put them in chains of darkness that scriptures always stuck with me on what is that mean exactly chains of darkness, but if you look in the Hebrew at the word arrogance, you begin to see possibly what's going on here that the word arrogance in Hebrew starts off with an outlet like you think of the alpha male and and when you think American city which should start with a right it's like it's got this self right and the interesting thing is that it has. At the end of Final Cut which means it's sort of this cover. So you're so consumed with yourself that you know God to protect you by putting you in the dark so you don't go hurt yourself and and and and so what I think about doing my own taxes. At times I think of the Social Security which this is. I've made some huge mistakes in the past because my arrogance. I didn't know what I didn't know, and so either you're kinda in the business of bringing light to the darkness when it comes to some of the subject Social Security's definitely one of these yeah and what we you know today's topic is Social Security and started preparing for the show and I got the formula for paying taxes on your Social Security and really didn't want to go over the formula and teach that we actually did that in the preparation here in man. I was getting nothing antigravity in session begins.

EM events is an out of myself. It's like and we don't want to talk about that now when you hear the formula I'm interested to give him a few words of it so they can get an idea of that what you know, we really don't have a clue about this stuff is really confusing and this is my simplified version. I try to make this as short as I could so it's half your Social Security income and you add that to your other taxable income you come up with a total right and if that's 25,000 or less, then you don't pay taxes. That's if you're single.

If you married filing jointly. It's 32,000 and then if you're over that half your Social Security is subject's are you feeling some darkness come in audience you know just clear that while this is something that we should try at home Saturday mornings at 8 o'clock to give you the tax formula for Social Security and therein lies the situation honestly again a year and 1/2 when I began this whole project. I had no clue that they taxable security.

I mean I think there's a lot of people out there like me that like are you kidding I would've been, and I've always done my own taxes because I'm so arrogant that I think I know what I'm doing and I'm sure all the CPAs and Homer Sanya. Ironically, figure. But you know I wouldn't even have thought remotely that really they can attack Social Security after we put all this money in there. I mean it was, like you, trying to figure your time they send you the money right and then you send back the taxes like they never gave, and that can be as much is about 40% of the actual check here in the highest income bracket 20% if you're in the middle income brackets and you know, no tax. If you don't really have much other income other than your Social Security is the people I seen this hurt the worst. You noted again. I had my eyes opened as she began to let there be light and bring some light into the subject is the poor people that it decided on a take my so security is 62 while I'm still working and and then all my goodness that there given almost all their benefit or 40% of it. Whatever back in taxes forever diminish the benefit right mean just so the benefit when they get much older and there really having to rely on and they can't work there going to be stuck on a lower benefit so and so what what we really want to talk about today is first of all, understanding who pays taxes on their cells and relevant to the listeners and for your listener out there and you listen to the show MI going to have to pay taxes on my Social Security. Or if you're already on Social Security, then you probably Artie know if you are not and if you can. Taxes are not and really, is there anything you can do about in the answer to that is yes. So then added to this where the topics were difficult subject that we are on his arrogance and you know it really applies in this area is most people come to us with some foregone conclusions about Social Security taxes when the file how the spouses were they just converse with foregone conclusions and some of those rights among the wrong.

Some of them are inapplicable to them and the Social Security is the base income that we use in our retirement planning. That's the first thing we got to know her.

We got Jack because just everybody's got and that's a check that's the first check coming in in retirement and then base. All other planning on that. So you get your Social Security and then you get your other money in the income that I can. Yeah. And so that's one of the big things that clearly comes immediately is what part you might have to pay tax on. If I don't have any other. So if you don't have any other income you can pay no taxes� You to be able to spend the entire check. Now if you don't have a very high earnings record which a lot of people like that and you just can have a minimal income to live off of it. We run into a lot of people like that and it's sad that at least were not taxing how it all you got your Social Security check, or your Social Security check in a little bit else you knock out any taxes at all. That's a good thing right at the other thing that like my mother-in-law. I can pick a lot of people around Social Security may have something that they feel like they're working under which apparently are these numbers that you just described. Like I can't make over this argument have to start paying tax. They do that if you make just over it is just a little bit of tax safety. Just get over the threshold a little bit.

It's not a cliff thing where it's 25,001, may not scoop it in and grab it half your Social Security check.

Okay, right, or 25,010 or even 28,000 or 29,000 across the threshold. It just drives some tax on the general point is if you stay under a certain level you can make your Social Security tax. That's a good thing for people very moderate. It's also a good thing for people that haven't saved or they've had some unfortunate circumstances that all their savings is gone but yet when they discover that there Social Security check is pretty substantial and they don't have other income, then at least they're going to have that Holst substantial Social Security check to live off of the new a lot of people out there getting 20 503,030 500 a month and so security and then their spouses getting if they didn't work. Half of that if they did work with her getting some other malamute you start getting to a 4000 $5000 a month.

I have plenty of clients that have that kind of money coming in Social Security. If they don't have other money. At least they got $4000 a month of net income because not pay any taxes because they don't have and some of the first things that you told me, and I imagine you tell most appliances. We need to run the Social Security statement.

In fact may not know another friend of mine you help for first thing he told her to do was need to run this to see HLN run that's okay.

The dark again were coming up on Christmas dinner later. She's gonna run it, but it yet you can go online on the SSA.gov and set up of my Social Security account you can get you with use to mail you, you can print one of those every day or downloaded as a PDF and you don't have to do this before you call me but it did give me a call and you want a little bit of help getting that advance. I can look right at that thing as I did. You and it takes me about five minutes that this Tennessee with the pictures and then we look at your other assets were talking about taxation is that you put together a plan. So today show again is on the video chains of darkness when it comes to Social Security and how our ignorance or AR in our arrogance and we don't know what we don't know may center arrogance can get us and all sorts of situations so those of us listening today hopefully will shed some light on the beach change the darkness.

If you want some other light shed, you can get our notebook or Tom's book someone so the show is based on the book 7 chapters of the book and if you listen to our show regularly need to get a copy of the book getting on Amazon get through our website Col. guy.com.

If you go on our website just email my assistance, Mackenzie just email me she'll get it and give us your address and will be glad to send a copy of the book out to you this whole radio show series is based on the seven worries in retirement, one of which is Social Security so big and I did get a copy of that book are informative in some way to bring all kinds of light because it at least it can give you. Even if your faithfulness in the radio show LPR nip podcast later that you would even give you a basis for which these other things begin to make sense and are sure help me here on the road to get rid of any of my chains of darkness, so we had to go to a break when we come back and get to really some solution for those who have other income opportunities. IRAs on the darkness of 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 Hahn's expertise and qualified charitable contributions veterans aid and attendance IRAs Social Security care and long-term care. Just go to Cardinal guy.com and contact to schedule a live recording of finishing well your church Christian or civic group contact contact Cardinal guy.com that's Cardinal guide.com. We hope you are enjoying finishing well you by Cardinal guy.com visit Cardinal guy.com for free downloads of previous shows, including episodes about Social Security and Medicare, IRAs, long-term care, life insurance, investments and taxes as well as Hahn's best-selling book, the complete Cardinal guide to planning for and living in retirement. Plus the accompanying workbook.

If you want to follow along with today's topic download free PDF Cardinal guy.com by going to the seven worries tab of today's show topic, just scroll down to useful documents once again for free resources show to get Hahn's book the complete Cardinal guide to planning for and living in retirement or the work go to Cardinal guide.com you have a question, comment or suggestion for future shows.

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Once again that's Cardinal guy.com Cardinal guide.com now finishing well by Cardinal guide.com welcome back to finishing well, a certified financial planner harm shot today show chains of darkness, Social Security. Of course Jesus was talking about or Paul excuse me was Peter second Peter where he was talking about that these angels were put in these chains of darkness, which really kinds of keeps the mayor where they can get out and hurt anybody will arrogance when you look up the word in Hebrew has the sky cover that's over the top of this, Alice, and also that Alpha person where we get the thinking we know what were doing God provides darkness and we don't get out there and herself. I can think of a place that this applies on the conservative side will be qualified and I have a client who they're facing.

It is a serious illness on his part and are taking care of them and going through and helping them financially prepare for this thing and then prepare for her retirement. You people are in the 60s 3500 a month of Social Security benefits 42 grand a year and you say well it doesn't sound like much, but these people have their home for because they downsize and they went into smaller house with two bedrooms and a senior community get their cars paid for and they got about $300,000 in the IRA and they can close to another hundred thousand dollars in another account that they don't spend any.

So where am thinking about you know, arrogance, and I certainly wouldn't call these folks arrogant and all but the same thing if they can got it all figured out is is that they realize they don't pay taxes at 3500 a month and so they live off I think they might even have a little bit extra to give to the church and the whole thing, but this is the sin they live on that don't pay any taxes and sincere in their 60s, there have all this other money that's discounted for later. They haven't really figured out exactly what later is or with this illness that they're prepared to spend some of it for his care. When I pointed out to is there leaving about $15,000 withdrawal out of their IRA on the table every year many qualified as another time you apply this formula that I read earlier on the show they could make about $10-$15,000. I'm getting the number exactly form and I get to get it done before the end of 2019 here because we can make a withdrawal out of the IRA and so they're going to have likenesses say $10,000 of other income that then I can spend. These people are not spending religious deposit that savings account and do not and pay taxes on that 10 granite income or barrier, and then I can pay taxes on the Social Security because they're under this number in the formula. So for those of you that are living off of Social Security and keeping your money tied up in your IRA.

There's a number or a small amount of money that we could draw out of your IRA before 70 and just put it over and account word to draw generic plaintext currency at some point in time. If you need the extra income.

For whatever reason, this income up over here is tax-free because you are paid the tax on it in prior years when you're detecting it through. We find a lot of these people in their 70s is taken. The minimum distribution out of their IRA, but that minimum distribution is not enough to drive any income taxes under Social Security and they could take more and still stay under these thresholds. In this formula and so we're going to sit down with them were to recommend they take more than we run into people in their 70s that are drawn and I Social Security check, and they are paying taxes because there taken big withdrawals out of their IRA and paying taxes on everything all good paying taxes on their other income substantial taxes and are paying taxes on the Social Security check and will sit down with those folks. If they really want to do something about will get that money in the IRA converted over to our or possibly by some cash value life insurance out of the minimum distribution so that they that doesn't show up on their on their income statements for the government drive down the taxes on both that there is a little there's a lot of things we can do to make money tax-exempt right in the end. Again, the overall concept we talked about is that there's so many regulations that are involved in the so security thing in our tax code that oh my goodness, you know, we need to be praying my God, you need to spring some like Mike, let there be light on the subject and in one of the ways that he can do that is obviously through the show so the book the complete Cardinal guide to planning for living in retirement and also just calling Cardinal guide and saying you know Hans if you got some they can work with me, tell me you know what's going on in my situation because every one of these things is different and every one of them requires a study prayer always things to maximize the resources I got well any just we look at taxes philosophically different than most people, and that a lot of CPAs South people look up at taxes as a result so the taxes just are so that you take a formula like this. You plug it in, you do it three months after the year is finished and you just calculate what my tax and then you pay so are philosophical differences no difference for 2019, April next year, but are philosophical differences. We actually don't look upon this as a result we look upon this as a result that we can we can target another were to be going to do things I can do things in a planning we can make plans to reduce this for 2020 2021 and reduce it for the rest to your retirement by implementing certain things to just lower the tax meaning more spendable income, leaving more income that you can pass to the next generation tax-free and there's no they called us of the MBA school leveraging chemical so much a "certain different levers and do things to reduce your tax That is if you wanted to make once we get in and do a plan discussed we put a plan together for you doesn't mean you have to do all sexist and we have people that just kind of feel like while my taxes. I'm fine with Alan living off of this just fine.

I don't really want to do 70s and that's fine and we we all learned to do is register Sherry the numbers in the things you can implement that you can do to lower your tax bill which is to leave you more money to spend more money possibly get to the church and I money to leave your heirs to see TCD). You know something again that to me about my arrogance. What a man I know. I merely could do this list on Q CDS Q CD is a qualified charitable distribution and you need to be over age 70 1/2. So if you're under that we can plan to do this in a few years if you're over that and you have IRA money we can leave money to the church. You can leave money to the church and its the income that you left them is never going to show up on the church may be able would actually have money.

I shall give money to the church next to you give money to the church this year or next year so the latest.

My understanding now that you can teach me for allotment anathema to bring a tunnel like that. My understanding is that so if I normally am giving 10% of my income and say that's $4000 a year, and $40,000 in your income that I could if I had a minimum distribution of $4000 right you can make your minimum distribution.

Anything you wanted your distribution at my distillation, the $4000 as a Q CD and so now I'm taking this money out of of an IRA not a Roth IRA but a regular at IRA and it would not be taxable because it was a qualified charitable distribution.

Thus being able to save that tax money that I would know you and and been able to give more to the church or provide more into my estate. Yeah, this is qualifications and so only by taken my advice I give over the radio like one of them on Italian and a bite my tongue you can still do this in 2019. Q CD qualified charitable distribution needs to be the first distribution out of the IRA. Getting so in other words, if you've Artie taken a distribution in 2019. You can't during 2019. Just now here in the end of the year say now I get this amount to the church got away till next year and we can do this on January 2, January 3 will will do a Q CD. The amount you want to give to the church settlement money will never show up on your tech and again and says it's another way that that the leverage in the current tax situation enough to have more resources for the kingdom you would be surprised the number seven on the number of financial advisors that either don't know it or they don't know how to do it properly and they don't want to touch South. Make sure that if you do this with your financial advisor and money on your IRA that they know how to check all the right boxes for a Q CD that advice can you give me a call be happy to coach them or coach you just just make sure that is all properly and the money gets you may be wondering how I call Hans when you go to Cardinal guide.

Don't forget to guide after Cardinal and Cardinal guide.com and there you can find the book itself. You can get from the complete Cardinal guide to planning for living in retirement and see the seminaries had to get a PDF of this whole thing on so security absolutely free or you can just email Mackenzie and ass are just are you just go on the website or you give us a call numbers on the website and will ship a book out to you when I can charge all ideas, let there be light. There's no reason for chains of darkness, you know, we appreciate your listening if you can get to hear the whole show today go back and listen to the podcast and is tell your phone case.

Sherry Allen was to the finishing well podcast. Thanks, Tom.

Thank you. We hope you enjoyed finishing well to my kind of guy.com visit Cardinal guide.com for free downloads of the 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 you 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 a word. Once again that's Cardinal guide.com Cardinal guide.com