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Timing Your Social Security Benefits · Money In Motion with Klaas Financial

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This is money in Motion with Class Financial, a fun and informative show designed
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to help you get answers to all your retirement questions in one place. And
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joining us this morning our our retirement planning professionals from Class Financial, Malia Quavis
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and Eric Schwartz. Don't forget as we talk with Malia and Eric this morning.
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Phone lines are open to you and your questions. Love to hear from
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you. Telephone number six O eight three two one thirteen ten. That's six
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O eight three two one thirteen ten gets you on year with Malia and Eric.
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The website for Class Financial class financial dot com that's Klaas Financial dot com.
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From the website you can learn more about Class their separate divisions, get
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to know the team. They're also sign up for the weekly Market Pulse newsletter.
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stay current. From there, you just sign up and then you get an
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going on in the markets. Also a link to the most recent programs podcast.
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Again that available to you at Class financial dot com. The telephone number
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six eight four four two five six three seven. No charge for that initial
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get to know your appointment Deck Loss Financial. It will be complimentary to you
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again their number six O eight four four two five six three seven and the
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number to join us on Aaron Get on the Show six O eight three two
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one thirteen ten At six O eight three two one thirteen ten. Eric,
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how are you doing this morning? I am doing great, Sean, glad
1:21
to be here. Great to have you back. Malia. How is your
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week so far? So far, so good? It's already Thursday, Oh
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it is, it's it's great. It's funny how the weeks just fly by.
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It's great to talk with both of you, and we've got good,
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good information. Has always had an important conversation about fire and the questions about
1:40
social security, and this is always one of those very popular topics and of
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course one that not only folks listen back to quite often, but also we
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get a lot of calls and a lot of questions. If you've got questions,
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I love to get you on the air six O eight three two one
1:52
thirteen ten. That's six O eight three two one thirteen ten before we start
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our conversation on social security, and of course, well and exactly our full
2:00
retirement age and those type of things. Before we get on that topic and
2:04
that conversation. One of the great things that goes on on the program each
2:07
and every week. Our friends from Claus Financi will provide a price this week
2:09
at twenty five dollars gift card to Amazon for the class Quiz Question a week.
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Will be doing one of those later on in the program. Great thing
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about the class quiz question a week. Typically both the question and answer come
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up during each week's program, So listen closely, give you a lig up
2:23
on everybody else for the class quiz question week, and then we'll be doing
2:25
that a little bit later on in the program. And before we start the
2:29
topic this week, let's actually take a look back at last week's class quiz
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question weak get the question and the answer there as well. Yeah, so
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last week we had a great conversation about, you know, looking internally at
2:40
what your own risk tolerance really is as you get closer to retirement and so
2:46
forth, it is important to understand that about yourself so that you're invested properly.
2:52
So the question revolved around that it was a true or false question.
2:55
Your risk tolerance refers to your ability and willingness to take investment risks that you
3:01
are comfortable with. Correct answer was true. Congratulations to Lisa of Madison who
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called in with a correct answer. Listening carefully to today's question, and don't
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forget if you miss any part of last week's program or today's show, you
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can always listen back to the podcast Claus Financial dot com. That's Klaas Financial
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dot Com. Phone lines are open for your question right now at six eight
3:23
three two one thirteen ten. That's three two one thirteen ten. Today we're
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gonna be talking about exactly what our full retirement age and what we should be
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taking our social security should we do that at sixty two? And what do
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we need to know there? Eric, Yeah, Sean, you touched on
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this little earlier. This is a really really popular topic we hear from clients
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a lot, and I think that's because, you know, for a lot
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of people's social Security is a really really important part of their future retirement income.
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In some cases it's, you know, the only income people have in
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retirement. But beyond that, I think it's it's really difficult to find the
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I guess what you would call the perfect answer when should I draw you know
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what's the most advantageous. That's because there's a lot of different factors, right,
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how much do you have saved, separately, how much do you spend?
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The most important thing is how long will you live? And we're still
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working on a calculator for that. We don't know exactly how long everybody's going
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to live, but that is that's the biggest factor when it comes to you
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know, when the opportune time to take Social Security is. But let's let's
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just look at a couple of important things to know for our conversations today.
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So there's a difference between when you're first eligible to clux social Security and when
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you actually meet your full retirement age or FIRA. So you're eligible to draw
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as early as sixty two, but your full retirement age is going to depend
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on when you were born. So if you were born between nineteen forty three
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and nineteen fifty four, full retirement age is sixty six, and for those
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between born between nineteen fifty five and nineteen fifty nine, it's a little more
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complicated. It's sixty six and some number of months. And then for everyone
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born after nineteen sixty, full retirement age is sixty seven. And this full
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retirement age is when you are actually eligible to collect one hundred percent of your
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retirement benefit. So it's gonna be a big, a really important topic as
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we go through today. Your full retirement age is when you are collecting one
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hundred percent of your retirement benefit. Talk this morning with Eric Schwartzimile E.
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Quavius our retirement planning professionals from Class Financially. If you've got a question,
5:35
love to get you on the air six O eight three two one thirteen ten.
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That's six O eight three two one thirteen ten. The website for Class
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Financial Class Financial dot Com TELF number six O eight four four two five six
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three seven. No charge for finitial because no you eployment TCH Class Financial.
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It is complementary to you. Again that number six O eight four four two
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five six three seven and number get down the air three two one thirteen ten.
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That's three two one thirteen ten. So Eric, are there things you
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need to be thinking about if you want to are considering taking benefits early?
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Yeah? Absolutely so. You can draw as early as sixty two. You
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can also wait until as late as seventy to draw benefits. Now if you
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draw benefits as early as sixty two, you are going to be getting a
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smaller benefit because theoretically you would be collecting benefits for a longer period of time,
6:23
so the amount that you actually get with each payment would be would be
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smaller. Now, if you want to get an idea of what your personal
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benefit looks like, what is my sixty two benefit versus my sixty five seventy,
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you can actually go to SSA dot gov and you can log in and
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view your work history, your expected benefits, pretty much everything that you need
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to know about your personal situation. Now, when we're thinking about when's the
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best time to collect, you know, we love to say this, but
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it depends on your situation. Okay, So we generally like to see clients
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if they can wait until they've reached their full retirement age to start collecting Social
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Security, not only because the benefit is larger if they wait until they reach
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their full retirement age. But the other thing that comes into play that not
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a lot of people think about is if you draw your benefits before you meet
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your full retirement age, and then let's say you're working part time or maybe
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you're still working full time, social Security actually limits the amount that you can
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earn from working income while you're collecting your benefit before Social Security. So let's
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say you're sixty two and you're collecting your benefit and you are earning more than
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I think the number of this year is just over twenty one thousand, you'll
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actually start having part of your Social Security benefit deducted for every two dollars you
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earn over that amount. Now it ends up coming back to you later on
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in the form of higher benefits. But it's just kind of an administrative thing
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that people generally like to avoid. But just to kind of get back to
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the best time to collect depends on your situation a lot of different factors,
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but generally we like to see clients if they can wait till full retirement age.
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You can. Oh no, it's okay. I just say, talking
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this morning with Eric Sports and Lea Quamas, our retirement planning professionals for clause
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financial full lines are open six to eight three two one thirteen ten. That's
8:20
six o eight three two one thirteen ten. So you mentioned best time to
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collect, what are some of the other areas people need to know about there?
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Eric, Well, you can delay, as I mentioned, you can
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delay to your full retirement age. You can also delay all the way up
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to seventy, So again as early as sixty two, as late as seventy,
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or any combination of months in between. There people often think, oh,
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I can only collect at sixty two, sixty five, sixty seven or
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seventy. The truth is you can collect at any point in between sixty two
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and seventy. Now if you delay benefits beyond your full retirement age. So
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let's say, for example, your full retirement age is sixty seven. For
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each year there after that you delay benefits, you're actually getting increase of up
9:05
to eight percent per year until you begin taking your benefits. Now at Class
9:11
we obviously are in the business of managing investments, and I think we would
9:16
agree that it's pretty tough to find a guaranteed eight percent increase on a benefit
9:22
in the investment world. Doctor this morning with our retirement planning professionals, Eric
9:28
Schwartz and Malia Quavis. Course, they come to us from Class Financial mention
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the website class financial dot com that's klaas financial dot Com. A lot of
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great information there. I noticed a little easter egg as well on class financial
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dot Com. If you have time this morning, head on over to the
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website, click on about, and then when you go to about, go
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to our team and just scroll over everybody's picture at class Financial. A little
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surprise there for you, A really nifty thing at class financial dot com.
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And I've been on the website probably a thousand times and I had never noticed
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this before. So check that out and get to know the team at lost
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Financial also little a little bit about them, even just by scrolling over the
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pictures at class financial dot com. Our top number six O eight four four
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two five six three seven, no charge for the initial gets no appointment tech
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Class Financial, it will be complimentary to you. That's tolph number to get
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on the air this morning six eight three two one thirteen ten. That's six
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O eight three two one thirteen ten. Head down to Stoughton where Dennis is.
10:20
Dennis, welcome to the program. You're on the air with Eric and
10:22
Malia of Class Financial. Good morning. I have a question on Social Security
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that's always been confusing to me. I had to sign up for course and
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they give you this date, and I got all worried because I wouldn't sign
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up at time. And I finally signed up and all of a sudden started
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receiving checks when I turned sixty five a couple of months after that, and
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I don't want to I didn't want to read get any checks until my full
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retirement age. And so I tried paul in him and this was during COVID
11:00
and they had their office supposed they wouldn't take any appointment, and I couldn't
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get through. I left the message. And so now I've had checks.
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It's about mid twenty two, and I'd like to stop them, pay back
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the amount and if that's possible, even if there's interest, because I'm now
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making more money now than I did during that time, and I hear there's
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this pal penalty. What's my options? Y, Eric, you want to
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take that? Sure? I will. I will take that. So first
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here your question about the penalty for earning too much while you're collecting your benefits.
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Just to be clear there, the penalty is you do have to pay
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it back, but it will be included in your work history, obviously,
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which would increase later benefits. So provided that you pay those dollars back,
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there shouldn't be a penalty. But what you're talking about doing is suspending your
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your Social Security benefit. It sounds like inadvertently you've signed up for benefits probably
12:13
around the time you were enrolling in Medicare, I would imagine at sixty five.
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But the ability to suspend your benefits, you can do that and you
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can pay back your the benefits you've received and still received those delayed retirement credits.
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So you would just need to work directly with Social Security on doing that.
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But to answer your question, yes, you are able to do that.
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Really good question this morning. Yeah, that's great to hear as well.
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Great answers also, Dennis, thank you so much for the call.
12:46
You two can be like Dennis if you've got a question, love to get
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you on the air this morning with Malia and Eric are Retirement Planet professionals from
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Class Financial teleph number six eight three two one thirteen ten. That's six O
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eight three two one thirteen ten telef and all Class Financial sixzo eight four four
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two five six three seven. No charge for the initial kids know you Employment
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Tech Class Financially, it will be complimentary to you again. They're number six
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eight four four two five six three seven and the website Class financial dot com
13:11
that's k l as financial dot com. Looktinue our conversation, we'll talk about
13:16
how exactly that benefit with Social Security. How is that determined? We'll get
13:20
the details next and take your call as Money in Motion with Class Financial continues
13:26
right here on thirteen ten wi Va. This is Money in Motion with Class
13:33
Financial, a fun and informative show designed to help you get answers to all
13:37
your retirement questions in one place. Rights help a number here at station six
13:41
eight three two one thirteen ten. That's six O eight three two one thirteen
13:46
ten. The website for Class Financial. It is class financial dot Com.
13:48
Get to know the team out of that about table, scroll over the pictures
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again. A little little easter egg for you this morning night, Melia.
13:56
I've never noticed that before, and now it's one of the games. Relate
13:58
to the game I am whoever, whoever's idea that was, I'm gonna I'm
14:01
gonna say it was yours, Malia. It's it's very clever, it's very
14:05
very neat. Again, that's class financial dot Com. That's klaas Financial dot
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Com. There tell for number four four two five six three seven. No
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charge for the finitially get to know you employment at Class Financial. It will
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be complimentary to you. Hanging out this morning with Malia Quavis and Eric schwartzon
14:20
if you've got a question, get you on the air six O eight three
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two one thirteen ten. That's six O eight three two one thirteen ten,
14:24
and Matt joins us. Matt, welcome to the program. You're on the
14:28
air with Malia A. Quavis and Eric Schwartz of Class Financial. Hi,
14:31
good morning. You have a question regarding money market account versus uh CP and
14:39
that I've had about one hundred and fifty thousand in a money market for the
14:45
past year or so, so I'm earning, you know, around four hundred
14:50
pour twenty five an interest every month. But I've been wondering would it be
14:58
worth it to maybe pull uh one hundred and twenty five thousand out of that
15:05
and invest in a seven months CD and UH see what I can get that
15:11
way. So what are your thoughts that are? What are the pros and
15:16
cons on that is it? Matt? I'm hearing Olly you want to take
15:26
that one, and you want to sure I can take that, So Matt,
15:28
I think again, as we always say in our show, it depends
15:33
on your entire situations. So we don't want to just give off the cover
15:37
suggestions to you. We are starting to see you know, CD rates slowly,
15:43
you know, decrease, so I mean they're they're a little random.
15:50
Right now, you're seeing you know, maybe nine months at a certain certain
15:52
point, you're seeing if you go further out, you're seeing them not necessarily
15:56
at a much higher rate. So really, you know, we're talking about
16:02
liquidity here. We want you to get the best you know, bang for
16:06
your buck, so to speak. But at the same point, when you
16:08
put it into a CD, we know there's that locking up situation. So
16:12
when I say with regards to your situation, you know, we're always looking
16:17
at is their debt you should be paying off first, rather than you know,
16:21
just trying to get the best dollar return for your for your money market
16:26
or your CD. If you've got debt taken care of, if you're okay,
16:30
you know, with that short term lockup of money to get a little
16:34
better advance on your money, that that could make sense. But we are
16:37
big fans of liquidity and that's what the money markets do afford you, and
16:44
those rates tend to be pretty competitive. So those are my thoughts, Eric,
16:48
Do you have anything to add to that, No, I would I
16:52
would agree with that. I think the big thing is whether or not you
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think you're going to need access to the dollars in the timeline of the CD.
16:59
Now you mentioned that one hundred and twenty five thousand of the one hundred
17:03
and fifty thousand, so it sounds like you're thinking about having some that's still
17:07
liquid to you obviously. But to Malia's point, money markets the rates,
17:14
because they they're a little bit more fluid, because they're not based on a
17:19
specific timeline, they have become really competitive. So I would I would be
17:26
a little bit cautious jumping to a CD just because maybe it's a little you
17:30
know, a little bit higher on interest, because the liquidity of a money
17:33
market is really really attractive. Matt, great question this morning. I hope
17:38
that helps, and again don't forget. As always, you can learn more
17:41
about Claus Financial on their website Claus financial dot com. Alright self number six
17:45
or eight four four two, five, six three seven, No charge for
17:47
the financial get to know you appointment to at class Financial. It will be
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complimentary to you. Talking this week with Malia Quavis and Eric Schwartz of Claus
17:53
Financial. Talking this week about about social security and Malia, I think one
17:59
of the big questions that people often wonder is where does this number come from?
18:02
How exactly is because it's obviously individual to your work history and all those
18:07
other things. How exactly is that benefit determined? And will it ever go
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up over time or going down? Yeah, those are great questions, not
18:15
for you, Sean, Yours will never go up, okay, But this
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word we talk about credits, and that's what you need is you're earning Social
18:23
Security credits as you work. Now that that term used to be called quarters,
18:27
so not to confuse people, but today we call them credits. So
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this is what you need to know. In twenty twenty three, you actually
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earn one credit for every sixteen hundred and forty dollars in earnings, so you
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can only earn a maximum of four credits per year, So it doesn't matter
18:45
if you make more than that. At this point that you can only earn
18:48
four credits, So the amount of money needed to earn one credit usually goes
18:53
up every year, just slightly so, and then most people do need forty
18:59
credits or ten years of work to qualify for their own benefit. So if
19:03
you stop working before you've got enough credits to qualify for your benefits, your
19:07
credits will stay on your record, and then if you return to work later
19:11
on, more credits could be added on. So we see this a lot
19:15
with stay at home moms or dads, where you know they were in the
19:19
workforce maybe for you know, eight years, and their benefit has not increased
19:26
because they were staying home raising children. Then they go back into the workforce
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they can start earning credits to get to those that magic number of forty.
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So if you don't have at least forty though, and you're not currently entitled
19:40
to a retirement benefit, your credits. As I said, stay on your
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record. So I recommend you go to this website SSA dot gov. They
19:48
have a publication called how You Earn Credits. They'll give you some more information
19:52
on that, assuming you do have enough credits. Though. This is where
19:56
Social Security comes in, and maybe Eric has an inside scoop on how this
20:03
calculation really works, but it's kind of kind of interesting. They base it
20:07
on a thirty five year average of your covered wages of your highest years and
20:12
then they adjust it for inflation. So that's the high level how they really
20:18
do it. None of us really quite know. But the point is is
20:22
that early on in your career, you probably had years where you made very
20:26
little. If you go back to when you were sixteen, seventy, eighteen
20:29
years old, maybe some years you've made nothing. So each year you work,
20:33
you're replacing some of those zeros. So that's what you need to know,
20:37
and that's very helpful to make sure that you know. Again, when
20:41
you go to collect your benefit, they are looking at the highest of thirty
20:45
five years. So looking at that, what's important to understand is that you
20:51
are eligible for cost of living benefit increases. And this is where people are
20:55
like, well, is my benefit always going to be the same as it
20:57
permanent? Those increases actually start with a year you become age eighty two.
21:03
So even if you don't get benefits until your full retirement age or even age
21:07
seventy, cost of living increases actually start beginning with the year you reach sixty
21:11
two, and so a reference point for people because they're like, well,
21:15
how much is that really? Will it go up? Well, they look
21:18
at cost of living adjustments and so for many years, quite honestly, it
21:23
was hovering in the two percent range three percent range. Back in twenty twenty
21:29
two it went up by five point nine percent, which was the largest in
21:33
many decades. But last year it went up by eight point seven percent,
21:37
So everybody in January of this year that currently collects Social Security you saw a
21:42
big hike, and that really is reflective of last October, and that's when
21:47
Social Security takes a look at things. Inflation was almost at its peak.
21:52
So again it helps you know with the cost of livings, helping you stay
21:56
within you know where we're at with inflation. So you just want to kind
22:02
of tune in every October and go, Okay, what's Social Security looking looking
22:04
like this year? How much will my benefit likely increase? And then finally,
22:10
if you're a government worker and you have a pension, they use a
22:11
whole different formula and it's applied to your average indexed monthly earnings. So if
22:18
you want to find out about windfall elimination provisions, again go to social Security
22:22
dot gov and they have an online calculator for that really good website. They're
22:26
speaking of great websites claus financial dot com. That's Klaas Financial dot com.
22:30
Outstanding website and resource to learn about class financial. Also subscribe to the weekly
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Market Pulse newsletter all online. There telephone number six so eight four four two
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five six three seven no charge for the initial get to know you appointment Tech
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Class Financial. It will be complimentary to you again the number six eight four
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four two five six three seven. So, Eric, how do you know
22:49
like what age is right? You know, and that break even point?
22:52
Do we have any numbers or statistics as far as what is that break even
22:57
point for benefits? Yeah? Well, Sean, you know, we always
23:02
have a lot of numbers and looking at looking at your your individual situation is
23:07
obviously going to be important in this. But let's just start with some examples
23:11
because I think that helps explain it the best. So let's start by what
23:15
just talking about what the actual reduction in benefits is for taking your benefit early.
23:21
So let's say you take it at sixty two when you're first eligible,
23:25
so depending on when you were born, because remember that determines your your full
23:29
retirement age, so somewhere between sixty six and sixty seven. Generally, if
23:33
you draw your benefits at sixty two, you are going to receive about twenty
23:37
five to thirty percent less than you would receive at your full retirement age.
23:44
Now, each month that you wait then after sixty two, you're actually getting
23:49
a larger percentage of your full retirement age amount. Just another example, if
23:56
you were sixty five, I'm really going to get around ninety percent of the
24:02
full retirement age benefit. Now, I you know, I was reading this
24:06
statistic and to me it was a little surprising, But then maybe it wasn't.
24:10
The The most popular benefits or age to actually draw benefits is still sixty
24:15
two. We're not big on the delayed gratification, I guess. But one
24:22
reason that people might want to take their benefits early, you know, at
24:25
sixty two, is if there is you know, a chronic health condition or
24:30
maybe not a lot of longevity in the family. So there are reasons to
24:33
take benefits early, because again they're only paying as long as you live.
24:38
But one one question we get asked a lot related to waiting or starting earlier
24:45
is related to what we call the break even age for Social Security. So
24:51
I describe this as, if you decide not to take your benefits at sixty
24:56
two, and you decide to wait till you are sixty seven, Let's say
25:00
that it's your full retirement age. Starting at sixty two, you're eligible for
25:04
a Social Security check every month, right, So if you wait until you
25:08
are sixty seven, basically you need to pay yourself back for the five years
25:12
that you didn't collect benefits, right, the twelve monthly payments a year that
25:17
you didn't get, Well, how are you going to pay yourself back those
25:21
dollars. It's in the form of the larger benefit you're getting at sixty seven,
25:25
Okay. So basically, let's say your benefit at sixty seven is five
25:29
hundred dollars a month more, while every month you're paying yourself back five hundred
25:33
dollars for the benefits you didn't get. So the break even point is the
25:37
point at which you have fully paid yourself back, okay for waiting. So
25:41
let's look at an example of this. I think it makes a little bit
25:42
more sense. Let's say you were born in nineteen sixty So, like we've
25:48
learned earlier, that means your full retirement age is sixty seven, and if
25:52
you choose to begin getting benefits at sixty two, that would mean that you
25:57
are going to have a thirty percent reduction in your benefit. So let's say
26:00
your full retirement age benefit is a thousand dollars a month. If you start
26:04
at sixty two, you would get seven hundred. Right, that's a thirty
26:07
percent reduction. Now, if you waited until your full retirement age five years
26:15
later, your benefit would then be a thousand dollars each month. You'd be
26:18
receiving twelve thousand dollars a year instead of collecting eighty four hundred dollars a year.
26:25
Now, that eighty four hundred dollars a year for the five years that's
26:27
forty two thousand dollars that you did not collect because you were waiting for that
26:32
larger benefit. So essentially, the extra three hundred dollars a month is what's
26:37
paying back that forty two thousand and so in in this example, your break
26:41
even age is seventy eight and eight months. That's the point at which your
26:45
extra three hundred dollars a month pays you back for all of the benefits you
26:49
didn't collect. Now, the conventional in halth would say, well, as
26:55
long as you think you're going to live to seventy eight and eight months,
26:57
then you should, you should till you're sixty seven. But I think Malia
27:03
would probably say, we've. We've don't often have people come into our offices
27:06
at seventy eight and eight months and say, I did it. I got
27:08
back all the money I didn't get and now I'm happy and everything's yet.
27:14
So just keep in mind that the math is one piece of it, but
27:17
there are other factors longevity and you know what else you have saved and how
27:22
you want to live in the early years versus the later years. So as
27:25
always, the math is one piece of it, but there's also a life
27:29
to consider as well. Fascinating stuff this week, as always, from our
27:32
retirement planning professionals from Claus Financial, Malia Quavis and Eric Schwartz joining us this
27:36
week. Learn more online Class Financial dot com. That's Klaas Financial dot com.
27:41
They're telephone number six O eight four four two five six three seven.
27:44
No charge for that initial get to no appointment at Class Financially. It will
27:48
be complimentary to you again the number six O eight four four two five six
27:51
three seven that X may be of value to you. We'll find out what
27:55
that means exactly. We'll talk about that, we'll do the class quiz question.
27:57
The week next is money and with Class Financial continues right here at thirteen
28:00
ten WYBA. This is Money in Motion with Class Financial, a fun and
28:10
informative show designed to help you get answers to all your retirement questions in one
28:14
place talking with our retirement planning professionals Malia Quavis and Eric Schwartz of Class Financial,
28:18
the website class financial dot com. That's k l as financial dot com.
28:22
And the telephone number six O eight four four two five six three seven.
28:26
No charge for the initial get to know you appointment deck Class Financial.
28:30
It will be complimentary to you again the number six to eight four four two
28:33
five six three seven. And before we get to the class quiz question question
28:37
of the Week a little bit earlier mentioned, of course, how to earn
28:40
credits to qualify for Social Security. Some folks may have been listening, going
28:45
but I haven't achieved that, or I'm not entirely sure if I have.
28:48
There are other things you can do if you've never earned enough credits to qualify
28:52
for Social Security. Correct, Malia, that is true. So sometimes people
28:57
get really nervous about this, or like, I mean, I didn't I
29:00
didn't work all those years, and I didn't get my own benefits, So
29:03
what are my options? So if you're not entitled to benefit retirement benefits based
29:08
on your own work record, you still might be entitled based on the work
29:12
record of a current or a divorced spouse, So people perk up when we
29:18
start talking about this. So to qualify for let's just start with this.
29:22
Your spouse is benefit. You must be at least sixty two years of age
29:26
or any age. If you're caring for a child who's younger than age sixteen
29:30
or disabled, you are entitled to receive benefits on your spouse's records. So
29:34
you're currently married. So if you start receiving benefits as a spouse at your
29:38
full retirement age, so you've got to be full retirement age. According to
29:42
what you'll find on SSA dot gov. If you go there, you will
29:45
get fifty percent of the monthly benefit your spouse would receive if their benefits started
29:52
at full retirement age. So if you start receiving benefits sooner than your full
29:56
retirement age, then your benefit is permanent reduced, and that's important to understand.
30:02
Once it's reduced, it's reduced, so you don't go back. The
30:06
other thing to know, we work with this quite a bit is the if
30:08
you're a widow or a widower, you have benefits available to you as early
30:15
as age sixty. However, this is what you need to understand. You
30:19
can start collecting If you're a widow or widower, you can collect Social Security
30:23
benefits based on your own record, and then you can then you can later
30:30
switch to survivor benefits because if you start survivor benefits early, again, it's
30:36
a done deal and you have permanently reduced them. So you really want to
30:40
look at that situation if it applies to you. When is the best time
30:44
to collect your own and then switch over to survivor not necessarily just start with
30:48
survivor because you can. And if you're divorced and you're looking at survivor benefits,
30:52
if you're at least sixty and the marriage lasted at least ten years and
30:56
you didn't marry before age sixty, you may be able to collect your late
31:00
spouse's benefit. It gets really hairy because some people are married more than once,
31:04
maybe they've lost a husband, and you want to make sure you're getting
31:07
the best, honestly, the best benefit possible, So you do want to
31:11
sit down with Social Security, lay it out to them so that they're making
31:15
sure they're paying you the best benefit for you, and sit down with your
31:19
financial advisor and make sure that you're not missing something as well. Real vital
31:23
there and real quick, Malia, what about And we had an earlier caller
31:26
that it mentioned may have inadvertently signed up for Social Security? When when should
31:32
you actually apply? How? How does that process go? Yeah? So,
31:34
assuming Social Security is working on time, which I hear it is right
31:37
now, you can apply up to four months to Social Security before you want
31:45
your retirement benefits to start. So let's give you an example. If you're
31:48
if you're going to turn sixty two next April of next year, you can
31:52
actually apply for benefits as early as December so that they kick off in time
31:59
in April. So you do want to plan ahead to make sure that you're
32:01
going to get the check when you want the check to start. So get
32:05
on too, SSA dot gov. Make an appointment so you can be ready
32:08
to go a lot of really important information in this week's show. Don't forget.
32:12
You can always listen back to the podcast at class Financial dot com.
32:15
That's Klaas Financial dot com. The telephone number six O eight four four two
32:20
five six three seven. No charge for that initial get to know your appointment
32:22
tech Class Financial. It is complimentary to you again. The telephone number six
32:27
SO eight four four two five six three seven. Hold on to that number
32:30
now because it's time for the class quiz Question the Week. It works like
32:32
this. In just a moment, I'll ask you the class quiz question the
32:36
week. You will then have thirty minutes from the interday's program to call the
32:37
Class Financial office right here in Madison at six eight four four two five six
32:43
three seven. If you are the first call with the correct answer, you'll
32:45
win yourself at twenty five dollars gift card too Amazon. This week's class quiz
32:51
question the week is this, According to Social Security, if you were born
32:54
after the year nineteen sixty, what do they consider your full retirement age FRA
33:01
A to B. Is it sixty five or age sixty seven? Telephone number
33:07
six eight four four two five six three seven. First call, It's Greg
33:10
Dancer. Win the twenty five dollars gift card to Amazon. Don't forget as
33:14
well. That is Claus Financial's office here in Madison six eight four four two
33:17
five six three seven. Malia, Eric, it's always great chatting with you
33:21
guys. You enjoyed its most beautiful day. Thanks son. We'll be talking
33:24
take care, We'll be talking baseball. Two games left in the regular season,
33:28
for the Madison Mallards at Warner Park and the playoff hopes they are on
33:31
the line. Will be checking in general manager of the Mallard Samantha Rubin.
33:36
We will do that next here on thirteen ten WIBA. This is Money in
33:45
Motion with Class Financial Asset Advisors LLC, a registered investment advisor registered with the
33:52
SEC. The content of this show is for informational purposes only and should not
33:57
be considered individual investment advice. Class Financial does not offer tax or legal advice.
34:02
Any opinion offered during the course of this show is the opinion of that
34:07
particular investment advisor representative, and not necessarily the opinion of Class Financial