Social Security
Social Security is the foundation of your retirement income plan. Beginning at age 62, you have 96 different start date options when you can turn on Social Security. Starting your check at the right time can make a difference of tens of thousands of dollars during your, and your spouse’s, lifetime.
Social Security timing is more than just an algorithm; we must take into consideration your personal wants and needs for income. Some clients just want to start it early, some need it early, others want to delay until 70 to make their check as large as possible.
It is crucial to make the right decision when it comes to starting your Social Security check. You do not get a redo.
Questions we can answer
- When should I take my Social Security check?
- What is my Social Secuirty Full Retirement Age?
- Can I claim my spouses, or ex-spouse’s, Social Secuirty?
- Can I get more money from Social Secuirty?
- Should I take my Social Security check if I’m still working?
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Cardinal is offering you a complementary Social Security timing report for you to learn about your Social Security decisions. Complete the form below to start the process of getting your report.
Cardinal Lessons on Social Security
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Social Security Maximization – 2 Examples
Welcome to today's Cardinal lesson! In this session, we thoroughly examine Social Security maximization, exploring key terms like Full Retirement Age (FRA) and crucial decisions impacting your retirement income. Understanding when to start your Social Security benefits—from age 62 to 70—can significantly impact your financial future. Join us as we discuss real case studies and strategies to help you make informed decisions tailored to your unique situation.
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Social Security Trustees Report May 6, 2024
We’re diving deep into the Social Security Trustees Report released on May 6th. Amidst the headlines proclaiming Social Security is running out of money by 2035 and benefits will be cut to 80%, we found a lot of misconceptions. Many articles didn’t seem to reflect the actual content of the Trustees Report. Watch the video to learn more.
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Age For IRA Catch-Up, Social Security, Medicare, FRA, RMD, & QCD
Welcome to today's Cardinal lesson where we're discussing the key ages and milestones as you approach and enter retirement. Understanding these ages is crucial to making informed decisions and avoiding costly mistakes. From early ages like 50 to critical milestones at 65, 66, and beyond, we cover what you need to know and do at each stage.
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Delay Social Security? Take It Early? Wait Until 70?
Today we examine one of your most significant retirement decisions: when to start claiming Social Security benefits. Should you claim early, delay until age 70, or choose somewhere in between? We bring clarity to this complex topic by presenting detailed financial calculations and scenarios to illustrate the impact of each choice on your retirement income.
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Income Tax on Social Security?
Today's episode of Cardinal Lessons is an insightful plunge into the world of Social Security taxes. We tackle some common questions and misconceptions about how Social Security benefits are taxed. Whether you're preparing for retirement or just curious about how your benefits might be affected, this video is a must-watch!
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7 Worries – Retirement Planning
Welcome to our special video where we explore the essence of what we do at Cardinal. Our journey on YouTube started somewhat accidentally, but it's blossomed into a thriving community. Today, we focus on the core of our mission: addressing the seven critical worries in retirement. These worries aren't just about what keeps you up at night; they're about making informed decisions in pivotal areas of your retirement planning, often in your 60s, but sometimes earlier or later.
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Social Security Increases For 2024
Welcome to the Cardinal Show! In today's episode, we delve into the upcoming Social Security increases for 2024, a crucial topic for anyone approaching retirement. The increase of 3.2% in Social Security checks nationwide is significant, and we're here to explain what it means for you.
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Social Security Pay Back
In today's cardinal lesson, we delve into the Social Security payback system. If you've taken Social Security before reaching the full retirement age and then earn an unexpected amount from a job, you might be in for a surprise. Tom and Hans discuss why understanding this system is crucial to avoid any future pitfalls.
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Retirees Running Out of Money Late in Life
In today's episode, Tom and I dive deep into what many consider the greatest retirement fear: running out of money. It's the elephant in the room that many of our clients are hesitant to address initially, but it's a fear that dictates their behaviors, decisions, and overall retirement planning. Remember, the right knowledge can pave the path to a stress-free retirement. #RetirementPlanning #FinancialSecurity #AvoidingRetirementPitfalls
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Social Security Early
In this informative video, financial planning experts Hans Scheil and Tom Griffith delve into the intricacies of taking Social Security benefits early. They emphasize that early, in this context, refers to any time before the age of 70. While their previous videos often advocated for delaying benefits, they acknowledge that individual circumstances vary and sometimes it may be beneficial to start receiving benefits earlier. Through two detailed case studies, Hans and Tom illustrate different scenarios where taking Social Security before 70 may be a viable option. They address factors such as the size of the individual's IRA or 401(k), income tax implications, and the overall income needs of retirees. By considering all seven key factors, including government programs and individual circumstances, they provide tailored recommendations to help viewers make informed decisions about their Social Security benefits. To supplement the video, Hans and Tom provide show notes available in the video description or on their website. These notes include a visual aid, a snapshot of a Social Security statement, and highlighted key details for further examination. They encourage viewers to review these resources to better understand the discussed concepts. Hans and Tom emphasize that Social Security decisions are highly impactful for one's retirement and should not be approached with a one-size-fits-all mentality. They stress the importance of comprehensive financial planning and highlight the lifelong nature of Social Security benefits. The goal is to optimize benefits while considering factors such as spousal benefits, IRA size, income needs, taxes, and long-term financial stability. While the case studies presented are hypothetical, they demonstrate how different circumstances and age differentials can influence the decision-making process. Additionally, they mention the potential benefits of Roth conversions and reducing future tax burdens. Hans and Tom conclude by reiterating their availability to discuss individual situations and provide personalized advice. Whether you're considering early Social Security benefits or seeking a comprehensive financial plan, their expertise can help guide you toward a more secure retirement. Join them as they explore the complexities of Social Security and empower you to make informed choices.
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Social Security Beyond the Headlines
The Social Security Trust Fund finished 2022 with $2,829,000,000,000. The US Government bonds in the Social Security Trust Fund make up 9% of the total US debt. During 2022, Social Security spent down $22,100,000,000 of the Trust Fund which is less than 1% of the total Trust Fund. Payroll Taxes collected in 2022 totaled $1,106,000,000,000 at the rate of 6.2% personally and 6.2% from employer or 12.4% total. The trust fund earned $66,400,000,000 of interest and collected $48,600,000,000 of income taxes from high income Social Security recipients in 2022. A link to the 2022 Social Security Trustees Report, released last Friday evening, is embedded in the video attached. Hint: it?s not real interesting except to retirement planning nerds like me. The headlines on this issue are ridiculous. They scare many of my clients. The fix is pretty simple and will come from a bipartisan solution like Tip O?Neal and Ronald Reagan crafted in 1983. A phased in raise in the retirement age for those under 40-50 and a raise in the payroll tax. We have a problem, we need to address it in a bipartisan way, we don?t need to scare the elderly that we?re trying to protect. Watch the video!
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Your Social Security Statement
If you?re in your 60?s or approaching, open a MySocialSecurity account at SSA.gov. You?ll need it to sign up for Medicare at 65 and then to start your Social Security check at whatever age you choose. If you?re married, ask your spouse to open a MySocialSecurity account as well. Your benefits now and in the future could be dependent on each other. Today's Cardinal Lesson reviews a sample Social Security statement. This person is almost 65 and not retired. If he starts his monthly check at 66 + 8 months (Full Retirement Age), he is projected to receive $3657 monthly for the rest of his life. If he waits until 70 (40 months later), he is projected to receive $4,696 monthly for the rest of his life. If his spouse outlives him, she will also receive the $4,696 for the rest of her life. Watch the video!
The Cardinal Guide To: Social Security
Listen to learn:
You can start collecting reduced Social Security benefits as early as age 62. However, if you’d like your full Social Security benefits, you’ll have to wait until your Full Retirement Age (FRA). For those born between 1955-1959, your FRA is 66 + a few months depending on your birth year. For people born in 1960 and later, FRA is 67.
You can delay starting Social Security as far out as age 70. The longer you hold off, the larger your check will be. Benefits grow every month that you delay your check. Signing up for a My Social Security account at SSA.gov gives you access to your projected benefits at every age.
Spousal benefits and spousal survivor benefits are affected by the age at which the primary earner starts receiving benefits. If you are collecting spousal benefits, you are entitled to half your partner’s Social Security benefit at FRA. If your partner starts their check early, they could diminish your survivor benefit as well.
Divorcees can collect on their ex-spouse’s earning record if they meet some requirements. Widows or widowers can collect Social Security as early as age 60. Certain actions, such as remarriage before age 60, can affect eligibility for these benefits.
You’ll pay income taxes on your Social Security check if your other income exceeds certain levels. This is based on your “combined income”. In 2021, if you are single and make more than $25,000, or married and make more than $32,000, up to 85% of your Social Security check will be taxed. State taxation will differ; some states do not tax Social Security at all, while others tax it as regular income.
Social Security planning has long-term care implications. Social Security is the base income used to pay your long-term care bill, and the remaining amount is made up from other income. This applies if you don’t have long term care insurance. The average Social Security check is $1,400, while the average monthly cost of home health care $4,500. There is a large difference between these numbers.
You’ll pay income taxes on your Social Security check if your other income exceeds certain levels. This is based on your “combined income”. In 2021, if you are single and make more than $25,000, or married and make more than $32,000, up to 85% of your Social Security check will be taxed. State taxation will differ; some states do not tax Social Security at all, while others tax it as regular income.
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