Social Security planning and advice with Cardinal Guide

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.

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Cardinal Lessons on Social Security

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.

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

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.

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.