Latest / Money In Motion with Klaas Financial / When to Wait

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When to Wait · Money In Motion with Klaas Financial

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This is Money in Motion with Coss Financial, a fun and informative show designed
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to help you get answers to all your retirement questions in one place. Cetiphone
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lines are open for you right now. Love to hear from you this morning.
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If you have questions for our retirement finding professionals from COSS Financial, I
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get a news pickup phone gifts a ring six oh eight three two one thirteen
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ten. That's six oh eight three two one thirteen ten gets you on the
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air with CJ and Malia from Coss Financial. Trovegate. Can learn more about
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COSS Financial on their website coss financial dot com. That's k l aas Financial
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dot com. Great website resource to learn more about COSS Financial. Also an
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opportunity to listen back to the podcast and subscribe to the weekly Market Pulse newsletter.
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Again, that's all available to you at cossfinancial dot com and the telephone
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number six oh eight four four two five six three seven. No charge for
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that initial get to know you appointment at costs Financial. It will be complementary
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to you. Again their telephone numbers six oh eight four four two five six
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three seven and then number to get on the air. This morning. Six
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SOH eight three two one thirteen ten. That's six SOH eight three two one
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thirteen ten. Without any further adue, let's welcome in CJ and Malia.
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CJ, how you doing this week? I'm doing great. Good morning,
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Sean, good morning. Great to talk with you. Malia. How is
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your Christmas in New Years? Very good? Happy New Year to you.
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It's great to be back on with both of you. We got the gang
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all back together, and we've got a really important conversation to add something.
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I know that people really can take some time for good reason to consider,
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which is delaying taking your Social Security benefit in those eight percent credits, what
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that means, and some of the things to think about when you make that
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plan. We'll get the details from CJ Closs and Malia Quavis this morning in
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our conversation on Money in Motion here on thirteen ten Wiba, as mentioned,
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phone lines are open. Six SOH eight three two one thirteen ten. That's
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six oh eight three two one thirteen ten. Coming up a little bit later
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in the program, I'm gonna do the Closs Quiz question the week, a
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chance for you to win a fantastic prize to one of my favorite places on
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Earth the twenty five five dark gift card to the Cheesecake Factory from our friends
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at Class Financial. Little tip listen closely to the program because often both the
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question and answer to the class Quiz question the week come up during the program.
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And again we'll tell you the details on how you can win that a
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little bit later in the show. And before we start our conversation about delaying
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Social Security benefits and some of the things to be weighing and considering there,
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let's take a look back at last week's class Quiz question the week. Get
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the question and the answer there as well. Yeah, so last week we
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had a great conversation regarding whether or not you might want to seek out a
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financial planner, the pros and cons of utilizing one, or if you want
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to remain a do it yourself for so, great conversation last week, and
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the question was true or false. In twenty twenty two, approximately thirty five
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percent of Americans worked with a financial planner. The answer was true And a
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shout out to our winner that sounds like a stage name, Marlene of Monona
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just goes really well. Congratulations there her. She was the first one that
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replied with a correct answer, so shout out to her. Listen carefully for
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today's question. Congratulations Marlene, and don't forget you too. We'll have a
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chance to win later on in the program with the class quiz question of the
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week. Tell phone lines they are open for you if you've got a question
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about this week's specific topic or anything when it comes to retirement planning in general,
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we'd love to hear from you. Sixh eight three two one thirteen ten.
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That's sixh eight three two one thirteen ten. As mentioned, we are
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going to be discussing whether it makes sense to delay taking your Social Security benefit
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until the age of seventy and of course take advantage of that eight percent credits
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that take place. And I guess the question is should we wait CJ or
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should we take? Yeah, that is the million dollar question, isn't it.
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So? I do encourage people if you have questions about this as we
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go through this topic today, feel free to call in because there's a lot
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of interesting nuances to social security, especially when you apply it to different family
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circumstances, so you know, second marriages and death of a spouse and Emilyiah.
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We'll be talking about some of that more as we move forward. But
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here's the key. The decision when to claim social Security is a top concern
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for retirees, and it's for a good reason, because claiming too early and
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locking in a lower payment can prove to be a mistake for people who experience
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longevity. Of course, while delaying in order to secure a higher payment could
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perhaps have a problem if you die sooner than expected, which could leave money
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on the table. And we should note that for most people planning for retirement,
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sociecurity remains an important part of their future income. For some perhaps it's
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their only source of income. And that's actually true for twenty percent of the
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population, or I should say twenty percent of the population receiving Social Security benefits
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that it's their only source of income. In fact, more than sixty six
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million Americans currently collect Social Security. Another seven point five million collect what are
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called supplemental Social Security income benefits. So that is a lot of Americans.
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I think last I checked, there's about three hundred and twenty million total Americans,
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and so you're talking sixty six plus seven, you're talking a seventy million
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plus of the three hundred million or so here in the United States are receiving
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some sort of benefit through social security or social security supplemental income sources. So
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the first question is when can you first take your soci security benefit versus perhaps
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when the benefit is most ideal for your situation. And so you've heard us
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talk about this on the air before. But you can choose to collect your
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own benefits starting as early as age sixty two or any time up until your
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age seventy. Now, what we're focusing on here is social security retirement benefits.
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There are other benefits you can receive through sociecurity. We just mentioned one
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earlier, the supplemental soci Security income benefits, but for now we're focusing on
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retirement benefits. So the earliest being sixty two, the latest generally being seventy,
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is the age range in which America can start their social scurity benefits.
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Now, those who collect early, which is defined by Social Securities anything prior
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to your full retirement age. Okay, so we talked about sixty two up
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to seventy, but it's defined as anything early is before your full retirement age.
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And if you draw early, you'll get something less than your full retirement
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age benefit amount, which is why they call it a reduced benefit but of
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course this term full retirement age, known as FRA, you have to know
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what that age is. So if you were born between nineteen forty three and
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nineteen fifty four, your full retirement age is sixty six. If you are
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born between nineteen fifty five and nineteen fifty nine, your full retirement age is
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sixty six plus some number of months two months, four months, six months.
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If you were born after nineteen sixty, which I was, so I'm
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raising my hand here, my full retirement age or yours would be sixty seven.
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So again, think of it as three critical ages. Sixty two is
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the earliest I can draw, but it's going to be a reduced benefit.
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Sixty seven, in my case is my full retirement age amount. And then
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if I wait beyond sixty seven, I can wait up until age seventy.
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Okay. So those are kind of three key distinct ages to know about now.
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When you delay your retirement past your full retirement age, social security benefits
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are increased by a certain percentage if you delay that benefit. These are known
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as delayed retirement credits, and they can allow your benefit to increase up to
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eight percent per year until you start taking benefits, or until you reach age
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seventy. So to be clear, delayed retirement credits of eight percent per year
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would be applied to your Social Security benefit if you wait to collect beyond your
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full retirement to age. So in my case at sixty seven, if I
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waited to sixty eight, I would have eight percent, more to sixty nine,
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another eight percent, and then to seventy. It is kind of my
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maxed out benefit at age seventy. It's pretty nice feature there. As we
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talk with CJ. Closs and Malia Quavis, our retirement planning professionals from Class
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Financial. It's a new year, it's a great day to get on the
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phone and give us a call. If you've got a question. CJ and
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Malia would love to answer it for you. I got to just give us
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a call at station six oh eight three two one thirteen ten. That's six
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oh eight three two one thirteen ten. Learn more about Class Financial on their
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website colss financial dot com that's coss Klaas Financial dot com and their telephone number
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six oh eight four four two five six three seven. So, CJ,
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what's the bottom line with this stuff? Yeah, bottom line is if you
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collect early, your payment will be reduced by as much as thirty percent from
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that full retirement age amount. So again solid security, if you views that
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as your unreduced benefit amount at your full retirement age. But if you draw
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early, you know, at sixty two, let's say, it could be
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reduced by about thirty percent. But if you wait and apply late, so
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think of this as that eight seventy amount, your payment goes up by as
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much as thirty two percent. And since those eight percent delayed retirement credits stop
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at age seventy, there's really no reason to wait beyond age seventy. So
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again, think of it as this window for retirement benefits between sixty two and
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seventy. Somewhere in the middle of that, at sixty six and some months
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or sixty seven is your full unreduced benefit amount. If I draw early,
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it's reduced. If I wait, I get like more than one hundred percent
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right one awight or one hundred and sixteen percent. So that is the concept,
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or that's the language that Social Security Administration uses to discuss this. Now
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some interesting statistics. Statistically speaking, you will receive roughly the same total dollar
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amount whether you start claiming at sixty two or seventy or any time in between.
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That is, assuming you live to average life expectancy. So here's the
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point. We hear this all the time. People go, oh, social
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Security wants you to wait because they know they're running out of money, and
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so they want you to wait to seventy. That's why they're giving you more
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money. Wrong. Wrong. As a matter of fact, statistically speaking,
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they could care less, because if you die at average American mortality, you
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will get exactly the same dollar amount whether you draw at sixty two or seventy.
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Now, interestingly enough, that's not to say that there's not strategy and
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when to draw relative to your longevity. Because if you know that everybody in
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your family lived way beyond average life expectancy and they lived at ninety to one
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hundred years old, well that's interesting because social Security may not care when you
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draw, but you do, because now you could wait to say age seventy,
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get that highest dollar amount, and then live long enough to be money
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way ahead because of the longevity in your family. Or let's say the opposite
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is true, and you retired at sixty two and everybody in your family didn't
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live beyond age seventy, Well, my goodness, you want to start that
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thing as soon as you can, especially if you have some sort of chronic
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illness. There are ways to make educated, smart decisions. But I will
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tell you when you talk to most most people, the main reason they are
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drawing social Security is because one they retired and they want the income. Two
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they're fearful that soci Security will run out of money, so they just you
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know, take the money and run kind of attitude. Or three because a
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friend or family member told them to. And what we would say is all
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of those are fine. They're may be just not the full scope of the
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considerations of what you should be looking at. So you know, as I
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end my section here and pass it off to Malia here in a moment,
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just would really encourage you. Social Security can be a big part of your
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future income stream, and so you do want to be aware of what your
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options are and kind of that ideal time for you to be drawn. These
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are important things to be planning on. Don't forget. As we talk with
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Cjmalia, phone lines are open for you. Love to get you on the
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air six O eight three two one thirteen ten. That's three two one thirteen
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ten or more online coss Financial dot com that's coss K l AA S Financial
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dot com. And of course they're telephone numbers eight four four two five,
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six three seven. No charge for the initial get to know your appointment tech
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Loss Financial. It will be complimentary to you again the number six oh eight
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three two one thirteen ten to get on the air at six so eight four
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four two five six three seven to contact Loss Financial. And the reason I'm
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getting my phone numbers jumbled up a bit here. It's got a note from
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a call or didn't want to go on the air, but Jane from Madison
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called and said I wanted to know should you have federal withholding taken from your
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Social Security? And Jane called in and what do you want to go on
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the air? I understand that, but cj what's the what's the guidance there?
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Well, first off, Jane, thanks for submitting the question, and
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please others call in. We actually love it. Keeps us on our toes,
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makes us think proactively. And yes, this is a live recording.
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By the way, this does go out on the live air, So if
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you stump us then you can you know that's your claim to fame. Okay,
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Jane, great question, Should you have federal incomesax with held from your
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Social Security benefit. Absolutely, if you will owe federal income tax. So
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the amount of tax you owe on your soci security is driven by your total
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income, and there's a calculation that you can look at is called provisional income.
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But if you look at that total income between you know, pensions and
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Social Security and portfolio distributions and maybe part time working income, it will come
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up with some sort of you know, effective or marginal tax bracket that you're
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running into. We would focus on the effective, and then you can add
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a tax withholding. There's actually a form, I think it's called the w
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WP four form or something like that, but it's a Social Security Tax withholding
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form. It's readily available online if you just Google for it, and you
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can fill that out and easily add a tax withholding. Or for those of
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you who have an SSA dot gov log in, you can actually log in
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and write through your log in at a federal income tact withholding. So the
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answer is absolutely, but you need to know how much to be adding to
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that, and your accountant or advisor should be able to give you guidance.
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Fantastic question. You two can be like Jane loveda. Have you join us
13:56
this morning. I can just pick up hone gifts call six so eight three
13:58
two one thirteen ten. That's six oh eight three two one thirteen ten.
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Get you right on the air with our retirement planning professionals from Class Financial,
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CJ Class and Malia Quavis. The website coss Financial dot com. That's k
14:09
l Aasfinancial dot com. Fantastic website to learn more about Class Financial. Also
14:15
an opportunity to listen back to this in previous shows podcasts again all available to
14:18
you at Cossfinancial dot com. Their telephone number six oh eight four four two
14:22
five six three seven. No charge for the initial get to know your appointment
14:26
tech Loss Financial. It will indeed be complimentary to you again their telephone number
14:31
six oh eight four four two five six three seven, and the studio lines
14:33
are open at three two one thirteen ten. That's three two one thirteen ten.
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We'll take your call next to also talk with Malia about some of the
14:39
benefits in delaying your Social Security benefit with those details from Malia and take your
14:45
call next. As Money in Motion with Class Financial continues here on thirteen ten.
14:48
WIBA. This is Money in Motion with Class Financial, a fun and
14:56
informative show designed to help you get answers to all your retire Ironman questions in
15:01
one place. Our phone lines are open for you right now six oh eight
15:03
three two one thirteen ten. That's six oh eight three two one thirteen ten,
15:07
chatting with our retirement planning professionals from Class Financial, CJ. Closs and
15:11
Malia Quavis. The website for Class Financial class Financial dot com. That's klaas
15:16
Financial dot com and their telephone number six oh eight four four two five six
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three seven. No charge for the national gets to know your appointment at Loss
15:22
Financial. It will be complimentary to you again. Their number six oh eight
15:26
four four two five six three seven. The number to get on the air
15:28
this morning is six oh eight three two one thirteen ten. That's six oh
15:33
eight three two one thirteen ten. Headed on over to the Dodge, Columbia
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County line and Pat from Randolph joins us this morning. Pat, welcome to
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the program. You're on the air with CJ. Closs and Malia Quavis.
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We have Pat. Oh we're not hearing from Pat. Pat was had a
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uh at a question about social security and other sources of income. Did we
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yes? Yes? She said that she has a uh some rental income and
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wants to work part time after she's retired. How does that affect your Social
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Security? Oh, another great question, Leave that to UCJ. Yeah,
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so real quickly, pat Well, great question. This is where that full
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retirement age date or age matters for you a lot. So as I mentioned
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for myself, based on my date of birth after nineteen sixty, my full
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retirement age is sixty seven. For some of our listeners that age could be
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sixty six and six months. It just depends on when you were born.
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But identifying that age is critical because if you're working and generating income before your
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full retirement age and you decide to what we call double dip. Right,
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the double dip is I'm not yet fully retired, I'm generating working income.
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It's active working income. So passive income from real estate rental income does not
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count towards us, by the way, But if you are generating active working
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income and drawing Social Security simultaneously, that's that double dip. Then social Security
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limits the amount of earnings you can have before they start taking back some of
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that Social Security benefit. Now they don't actually take it back and just steal
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it from you. They just it's a calculation that they put it out beyond
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your full retirement age. But the point being they're disincentivizing you to have active
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working income while also drawing Social Security before your full retirement age. Now,
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once you reach full retirement age, you can double dip all day long.
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So you could be say sixty seven years old, turn on your Social Security
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and have half a million dollars of working income. Soci Security doesn't care.
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It's between sixty two and your full retirement age. If you go to do
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that double dip, you got to be careful. And that number, by
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the way, is about twenty ish thousand dollars of working income. Once you
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go over that level, that's when they start taking benefits back from you.
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So great question. I love it. Great question, great calls this morning.
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Pat, Thank you so much. You two can be like Pat.
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Love to get you on the airpad as well as I else. I had
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heard from Jane this morning. Six eight three two one thirteen ten. That's
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six oh eight three two one thirteen ten. If you've got a question for
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CJ and Malia love to have you join us. And so Maliah, when
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we talk about some of the other benefits. There are some excuse me,
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some benefits to delaying your Social Security benefit, aren't there absolutely? So the
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first pro we'd like to point out is you're locking in a larger lifetime quotations,
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lifetime stream of income, which is really really important to understand that.
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It's probably the most obvious reason in favor of delaying, as CJ was explaining,
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but it goes beyond the higher monthly payment at the beginning. Most people
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think of that larger starting amount as the sole reason to delay, but it's
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not the biggest reason, which is that the delay leads to substantially higher monthly
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benefits in your eighties and nineties. So that's really a question mark for yourself,
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you know, does there's no guarantees, but does longevity run in my
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fan? Am I going to be here into my nineties and so forth?
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So that may be a reason to lock in that larger lifetime stream of income.
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CJ said, Social Security doesn't care. He's probably right about that.
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They really don't care when you decide to collect, but it is a personal
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decision. Hopefully when you'll sit down with your advisor and kind of try to
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map that out. The second pro is your benefit increases each year you delay,
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as CJ mentioned, up to eight percent per year when you postpone it
19:30
beyond your full retirement age. We talk about this quite a bit on this
19:33
show. Show us any other financial product out there that has a guaranteed eight
19:38
percent annual return these days, and we'd love to see that because that doesn't
19:45
really exist out there. So at this point, you know, for many
19:48
of our listeners, this could be the right answer to allow that Social Security
19:52
benefit to increase. So going on to our third item, which a pro
20:00
your cola increases will be larger, so the cost of living adjustments and the
20:06
longer you wait. So each year, the Social Security Administration obviously announces those
20:11
around November, and that's the one figure all of our clients seem to know
20:15
when they walk in for their reviews is oh, I know my Social Security
20:18
is going up or it's staying the same. And this year the amount was
20:22
an increase of three point two percent. So what we're looking at for a
20:27
majority of folks out there, depending on where their monthly amounts lie, approximately
20:34
fifty dollars a month or more is what they're going to see as an increase.
20:38
So point being, you're going to see those compound over the years.
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So delaying Social Security benefits not only allows you to lock in a higher starting
20:47
amount, but it increases over the years as well. So that's important to
20:52
understand. Number four pro would be you can change your mind at any time.
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And we say this because people get mistaken and they go, well,
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I know I can collect it at sixty two, and I think sixty five
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and CJ's mentioned sixty seven. They get wrapped up in these numbers sometimes,
21:10
And yes, you can't start it before sixty two unless there's extenuating circumstances.
21:15
However, you can decide, you know what, I can do it at
21:19
sixty two and a half or sixty three or sixty three in a few months.
21:23
Again, you want to know what your full retirement age and how that's
21:26
going to affect your benefit. But many people think there's like this deadline they
21:30
have to pick up by a certain month and so forth. You just want
21:34
to be careful you understand the implications. In fact, something interesting to know.
21:40
Once you exceed your full retirement age, so you're beyond the FRA,
21:45
you can elect to receive up to six months retroactive benefits in a lump sum
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so that's one of the concerns that people have sometimes is they might regret delaying
21:55
Social Security benefits if suddenly they had a health donosis that wasn't favorable, or
22:00
another circumstance that there could in fact be a situation where you could go retro.
22:06
And then finally, we look at tax diversification as a pro While social
22:11
Security does become taxable once your total income exceeds the annual limit, even at
22:17
its highest inclusion in taxable income, only eighty five percent of that benefit is
22:22
taxed. So what that means is if you delay Social Security while spending down
22:27
say pre tax retirement accounts through your sixties, you'll likely also be reducing your
22:33
future required minimum distributions your rmds, which we talk about quite a bit in
22:37
the show, because rmds are going to be one hundred percent taxable. So
22:41
perhaps replacing that income in your seventies and beyond with lower tax social Security benefits
22:48
might make sense for your personal situation. So, again, as CJ mentioned,
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you know, figuring out what that perfect time to start receiving Social Security
22:57
income is a per personal situation. Don't compare yourself to everybody else out there.
23:03
You want to sit down and figure out what's best for you. Some
23:06
fantastic benefits, some great options, but you want to make sure, as
23:08
Malia points out, that you're weighing those options. Is a great data start
23:11
that conversation. So we talk with CJ. Closs and Malia Quavis, our
23:15
retirement planning professionals from Class Financial. You can give them a call six soh
23:18
eight four four two five six three seven. That initial get to know your
23:22
appoyment at co loss Financial. It will be complementary to you again their number
23:25
six oh eight four four two five six three seven. The website coss financial
23:29
dot com. That's k l Aasfinancial dot Com. We'll take it down the
23:33
home stretch next with the class Quiz question Leak as well as Money in Motion
23:37
with Coss Financial continues right here on thirteen ten WIBA. This is Money in
23:45
Motion with Class Financial, a fun and informative show designed to help you get
23:49
answers to all your retirement questions in one place. Chatting with our retirement planning
23:55
professionals from Class Financial, CJ. Coss and Malia Equavis. They're telephone number
23:57
six oh eight two five six three seven, no charge. That in you'll
24:02
get to know you appoyment, tech, loss financial, it will be complimentary
24:04
to you again. They're number six oh eight four four two, five,
24:07
six three seven. Time really does fly in a great show this morning.
24:11
If we have time flying just about four o'clock today will already be one percent
24:17
through the year twenty twenty four. So we're already into the new year,
24:19
well into the new year, so you want to make sure you're getting your
24:22
ducks in a row. And as we as we wrap up this segment,
24:26
we'll get to the class quiz question a week in just a moment. But
24:29
talking this morning about some of the great benefits and some of the things to
24:33
consider with Social Security, are there some reasons why you may not want to
24:38
wait to begin that Social Security benefit? I'm still just trying to figure out
24:44
how you came up with one percent through the year. So, wow,
24:48
you are a super nerd sean a number of seconds in a leap year,
24:52
and seriously, I get it, but too much time. But something to
24:59
think of. It does fly, doesn't it? It is one percent through
25:03
the new year. Time is slipping away. Yes, there would be some
25:07
reason you may want to wait to collect your benefits, and we'll talk about
25:11
some reasons why people choose to and then some and not all of them are
25:15
good reasons, but they are reasons in and of themselves. So con number
25:21
one to drawing your or waiting to draw your social security I should say would
25:26
be the break even point is typically twelve to fourteen years away. So for
25:30
a lot of people that are going, what are you talking about? Break
25:33
even points is this simple concept of if I draw it, say sixty two
25:37
the earliest I can, my monthly amount is lower. If I wait to
25:41
seventy, my monthly amount is higher, but I'm eight years behind, right
25:47
in that example of my former self. So you know, hey, the
25:51
former self that drew at sixty two has eight years worth of income. So
25:53
the question becomes, if I wait to age seventy, even though my monthly
25:56
amount is more, I'm still much need behind in dollars. So how long
26:02
does it take me to catch up? And so the answer is twelve to
26:03
fourteen years, And so often people say I just don't want to wait that
26:08
long. Now. Of course a next natural question comes into that, which
26:12
is longevity, right, family history of longevity. But often people just don't
26:18
want to be that patient. Another condu to waiting to draw your Social Security
26:23
would be that. Some people tell us it's not just about the money,
26:27
and we would agree with that. So again, assuming your health status and
26:30
family history support if you live beyond age eighty two and you can afford to
26:37
put off receiving those monthly payments, then delaying your benefits until age seventy could
26:42
still It could could be a good idea, but it may cause you some
26:45
anxiety of the unknown of what the health history might be in the future.
26:51
So this idea of hey, waiting because of my grandparents' age and my parents'
26:57
age makes makes mental sense, makes math sense, but in my heart,
27:03
it gives me anxiety because I just don't know if that will happen, and
27:07
all the meanwhile, I'm having to draw off my investments, which as the
27:11
market goes up and down, can cause again anxiety because you're drawing down those
27:14
investments or your savings account more rapidly. And we get that, so we
27:18
would say, yeah, sure, we understand, because there is no guarantee
27:22
this case. It's kind of like wrath accounts when people say to us,
27:23
wroth irays are the best thing ever and everybody should save him to a roth
27:26
iray, we say that's that is not a factual statement. That's a statement
27:33
as an unknown statement about future circumstances. In a similar way, if somebody
27:37
says to you, every American should draw a social Security at sixty two or
27:40
sixty seven or seventy, that is not a factual statement because you would have
27:44
to know the future to make a factual statement like that. And so ultimately
27:48
all of us are just doing our best to what I call stack the deck
27:52
in the favor of you, right who's going to draw? But the key
27:56
is that a lack of knowledge drives and when fear enters the equation, what
28:02
do people do? They draw at sixty two because they know no better.
28:06
And so our job is to kind of work with people to come up with
28:07
a more educated opinion about what they should do. Con Number three would be
28:14
health issues and a fear of sudden death. This kind of is similar to
28:17
con number two. Again, if you have chronic health conditions, draw sol
28:22
security right away. Con Number four would be stock market fluctuations causing uncertainty in
28:26
your portfolio. So if you think about this, let's say you retire at
28:30
sixty five, so you have no more working income, you jump onto medicare
28:36
and you wait to draw sold security because people like us are telling you to.
28:41
And then you say, well, where am I going to get my
28:44
income to live off of them? We say, you've got enough in your
28:45
after tax investment account, go ahead and draw from there, and you start
28:49
drawing in. About a year later, at sixty six, the market tanks
28:55
and so now you're both drawing out of that account and the account is down
28:57
due to bad market performance. This can be a mental challenge. You come
29:02
back into your advisor's office and they say it's all okay, don't worry about
29:04
it, and you go, well, thanks for telling me that, but
29:07
I am worried about it because my accounts down fifteen percent and I just drew
29:11
another ten percent for income. So at times the uncertainty of markets and fluctuations
29:18
can draw people to just say I'm tired of this and they turn on soci
29:22
security. But that is the beauty of what Malia just mentioned. You can
29:25
always turn it on at any time. What we would just encourage people is
29:29
don't just knee jerk react and turn it on, because for every month that
29:33
you wait, you're getting an increase. And finally, con number five is
29:38
the future of soci security is uncertain. Now, we would say this is
29:44
not a great con because actually, if you understand Social Security Trust Fund,
29:48
if you understand Congress, you understand voters and everybody who's living off of this.
29:55
There are a lot of constituents that are interested in this thing not going
29:59
bank reped. However, if you read your socialecurity statement, they will tell
30:03
you we're not going to be able to continue paying benefits at the current level
30:07
by about the year twenty thirty or twenty thirty two. And that's not that
30:10
far away. And so people go, WHOA, that scares the heck out
30:12
of me. And given that, I just want to draw it. And
30:15
so you know that the conto waiting longer is the uncertainty of the future of
30:19
social security. Now again, I just want to be clear before we finish
30:22
this point. I don't think that's a reason to draw early, because there's
30:27
a lot of reasons why we believe that day will never come where they stop
30:32
paying socialecurity benefits. But we can't guarantee you that, So back to making
30:34
factual statements. I don't know what the future holds. We just don't think
30:40
that ever becomes a reality, but we understand when that becomes a driving force
30:44
to drawing your benefit early. Absolutely fascinating stuff this week, as always from
30:48
Aleia Quavis and CJ. Closs, our retirement planning professionals from Class Financial.
30:52
The website class financial dot com that's klaas Financial dot com. Don't forget if
30:56
you miss part today's program. You can also subscribe as well well online to
31:00
the podcast at cossfinancial dot com. That's Coss k l aas financial dot com.
31:06
The telephone number for the office here in Madison six oh eight four four
31:08
two five six three seven. No charge for that initial gets to know you
31:11
appointment tech Loss Financial. It will be complimentary to you again their number six
31:15
oh eight four four two five six three seven. You want to hold on
31:18
to that telephone number now because it's time for the Class Quiz Question the Week.
31:22
It works like this. In just a moment, I'll ask you the
31:25
class Quiz question the Week. You will then have thirty minutes from the inter
31:26
today's program to call the Class Financial office right here in Madison at six oh
31:32
eight four four two five six three seven. If you are the first call
31:34
correct answer, you win this week's prize, which is a twenty five dollars
31:37
gift card to cheesecake factory. This week's coss Quiz question week is this.
31:42
If you wait till past your full retirement age FRA to begin your Social Security
31:48
benefit, what percentage per year will be added to your benefit? Is it
31:53
five percent or eight percent? Telephone number six oh eight four four two five
31:59
six three seven, first call. Correct answer when that twenty five dollars gift
32:01
card to the cheesecake factory. And again that's Class Financial's office right here in
32:05
Madison. No charge that initial gets to know you appointment deck Loss Financial.
32:08
It will be complimentary to you. Six oh eight four four two five six
32:12
three seven. Before we wrap up this week, I know you guys thought
32:14
I forgot, but I'm gonna mention new photos up at glassfinancial dot com.
32:19
You know it's changing of the season. You know before I do. Sean,
32:22
I check, I check every morning. And and Malia, I know
32:27
in the past you have mentioned you're very much involved with the change. Uh.
32:30
The problem with putting cookies on your on your homepage is it makes me
32:35
hungry for I'm not surprised that's reights at all. Great show as always,
32:40
check out the website Class financial dot com, the telephe Uber six oh eight
32:45
four four two five six three seven c Jmalia, you guys have a fantastic
32:49
day. Thanks Sean. See you guys. News comes here why next year?
32:52
On thirteen ten wu ib A, This is Money in Motion with US
33:00
Financial Asset Advisors LLC, a registered investment advisor registered with the SEC. The
33:07
content of this show is for informational purposes only and should not be considered individual
33:12
investment advice. Class Financial does not offer tax or legal advice. Any opinion
33:17
offered during the course of this show is the opinion of that particular investment advisor
33:22
representative, and not necessarily the opinion of Class Financial