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Decoding Social Security: A Guide to Maximizing Retirement Income · The Millionaire Dentist™

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  Speaker 1: Hello, everyone, Welcome to the Millionaire Dentist Podcast, brought to
• 0:07
  Speaker 1: you by Four Quadnance Advisory. On this podcast, we break
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  Speaker 1: down the world of dentistry, finances and business practices to
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  Speaker 1: help you become the millionaire dentists you.
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  Speaker 2: Deserve to be.
• 0:17
  Speaker 1: Please be advised we do speak with an honest tongue
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  Speaker 1: and may not be safe for work.
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  Speaker 3: Hello and welcome.
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  Speaker 4: This is Casey Hires back at the Millionaire Dentist Podcast
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  Speaker 4: in studio with co host Jared Bridgeman.
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  Speaker 3: Ad As always, Casey, how are you thriving? Well? We've
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  Speaker 3: got Will Crispin today in Four Quadrant Advisory. He is
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  Speaker 3: the planning onboarding specialist. You also have a lot of
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  Speaker 3: letters after your name, Casey, can you run through all
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  Speaker 3: the letters.
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  Speaker 4: That he's got AWMA, ABFP, CFP.
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  Speaker 3: All right, what are those? So?
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  Speaker 2: First leg I got my CFP in November and I
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  Speaker 2: was officially certified Financial Planner YEP, Certified financial Planner. Before that,
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  Speaker 2: I got my accreditation for an Credited Wealth Management Advisor
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  Speaker 2: that would be the AWMA, and then I also picked
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  Speaker 2: up what they call the ABFP, which is just an
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  Speaker 2: accreditation for behavioral finance.
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  Speaker 4: So what that means for our listeners. Is the topic
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  Speaker 4: we're going to cover today. We have a lot of
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  Speaker 4: expertise on some technicals that I would say Jared and
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  Speaker 4: I know on a high level, but Will can get
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  Speaker 4: into some of the details and what do you want
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  Speaker 4: to talk about today?
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  Speaker 2: Yeah, so, I really just wanted to touch base on social security.
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  Speaker 2: It's something that's kind of became a buzzword in the
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  Speaker 2: media talking about viability since the forties. Since the forties. Yeah,
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  Speaker 2: so I wanted to discuss that some of the fashion.
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  Speaker 3: Tag social security back on the old newspapers periodicals.
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  Speaker 2: But I just wanted to touch on social security and just
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  Speaker 2: go over some of the hot topics that I'm seeing
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  Speaker 2: in the news. And I know many individuals who are
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  Speaker 2: coming up to retirement might have questions on and then
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  Speaker 2: you know people that are that are my age that
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  Speaker 2: might have a few questions on and how it works.
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  Speaker 3: Take it away.
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  Speaker 2: One of the major things that happened when soil security started.
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  Speaker 2: There was a study done at Stanford and the National
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  Speaker 2: Bureau of Economics, and it's a nineteen seventy seven study,
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  Speaker 2: so it's a little dated. It might be more of
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  Speaker 2: your guys' speed. That year.
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  Speaker 4: I was going to make fun of Stanford quite frankly,
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  Speaker 4: the worst mascot in the history of mascots. It's a moron,
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  Speaker 4: a tree outfit. Yet they're the cardinal. But you went
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  Speaker 4: for our age. It was a personal I was going
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  Speaker 4: to attack Stanford. Yeah, Will's coming after us.
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  Speaker 2: All right, I'm so sorry, so sorry, don't talk about
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  Speaker 2: my hairline on the podcast. But what happens all I
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  Speaker 2: can't see it?
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  Speaker 3: Are six eleven?
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  Speaker 2: Only sixty six? Michael Jordan and I share that together.
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  Speaker 2: But what they were looking at ages as a percentage,
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  Speaker 2: Just as in the labor force, you had ages fifty
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  Speaker 2: five to fifty nine, and nineteen fifty seven, ninety one
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  Speaker 2: percent of those individuals were still working. You go down
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  Speaker 2: the line to nineteen seventy four and it's down to
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  Speaker 2: eighty five point seven percent.
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  Speaker 3: A larger percentage of people were able to retire. Exact okay,
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  Speaker 3: exactly history lesson Will.
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  Speaker 2: Yeah, yeah, but it's important to know how to use
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  Speaker 2: solid security for our own advantages as well.
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  Speaker 3: Well. Let's get into that.
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  Speaker 2: With solid security there comes different rules, So there's different
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  Speaker 2: full retirement ages, just typically for when you're born. So
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  Speaker 2: if you were born after nineteen sixty your full retirement
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  Speaker 2: age is sixty seven years of age. Now, you can
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  Speaker 2: still take that benefit at age sixty two, but it's
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  Speaker 2: going if you take it at sixty two your first year,
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  Speaker 2: your benefit's going to be cut by thirty percent from whatever.
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  Speaker 3: So for those of us listening her, thirty forty ISSU
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  Speaker 3: years old taking the benefit again, and you're saying, like
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  Speaker 3: tapping into your and withdrawing your retirement money from Social
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  Speaker 3: Security exactly.
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  Speaker 2: So let's say you are full retirement age, your benefit's
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  Speaker 2: going to be one thousand dollars. Just so I can
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  Speaker 2: do some quick math, thirty percent. You're going to be
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  Speaker 2: receiving seven hundred dollars a month at age sixty two
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  Speaker 2: compared to one thousand dollars at age sixty seven. So
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  Speaker 2: that's how that aspect works, and that benefits cut every
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  Speaker 2: month before sixty seven that you receive it. If you're
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  Speaker 2: looking at it purely mathematically, you would get five ninths
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  Speaker 2: of every one percent for every month you started early
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  Speaker 2: that gets cut. So at a lot of math out there.
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  Speaker 2: I encourage everybody to check on their Social Security benefit.
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  Speaker 2: You can do that. Five ninths of a percent, five
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  Speaker 2: ninths of one percent per month. So yes, it's very
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  Speaker 2: very yep yep. But when you're when you're taking a
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  Speaker 2: look at that, if you don't start your Social Security
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  Speaker 2: benefit until you know, say age seventy, they actually bump
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  Speaker 2: you up because you're going past that full retirement age.
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  Speaker 2: So that's something that starts to be a big subject
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  Speaker 2: for retirees. And there's a lot of cases where taking
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  Speaker 2: into early makes sense. There's a lot of cases where
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  Speaker 2: waiting makes a lot of sense, and it all depends on,
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  Speaker 2: you know, the goals of an individual and their families
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  Speaker 2: and what they're trying to do with their funds.
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  Speaker 3: So what would be a benefit of saying waiting until
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  Speaker 3: maybe you're seventy instead of sixty seven to take your benefits?
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  Speaker 2: Yeah, great question, Jared. So when you're taking a look
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  Speaker 2: at delaying your Solid Security benefit, you're going to get
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  Speaker 2: eight percent each full year you delay the benefit. That's
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  Speaker 2: why it sometimes makes sense to actually delay it a
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  Speaker 2: little bit more. But after age seventy, if you wait
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  Speaker 2: until seventy one, you're not getting any extra benefit for
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  Speaker 2: not receiving your benefit.
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  Speaker 3: What is the benefit disadvantage for a practicewner who may
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  Speaker 3: have retired at early with us, Like I say, fifty five,
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  Speaker 3: would you recommend holding off, would you recommend taking early?
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  Speaker 3: I mean they've hopefully if they retired at fifty five,
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  Speaker 3: they've got pretty good nest Egg. Yeah.
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  Speaker 2: Absolutely, And people's situations differ in a lot of different
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  Speaker 2: ways of portfolio draw with so security changes that if
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  Speaker 2: you wanted to take so security a little bit earlier,
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  Speaker 2: it probably would be dependent on your asset base that
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  Speaker 2: you have to retire on and that nest Egg, and
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  Speaker 2: then how risk averse you are to withdrawing from that portfolio.
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  Speaker 2: So one of the interesting things when you retire, people
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  Speaker 2: assume I'm going to be spending less money in retirement.
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  Speaker 2: I'm not gonna be really doing anything. I'm going to
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  Speaker 2: be watching the NFL on Sundays. When that ends, I
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  Speaker 2: have the NBA I'm going to watch, and then in
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  Speaker 2: the summer I'm going to hang out by the Yeah.
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  Speaker 3: But now you have to subscribe to like eighteen different
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  Speaker 3: things to catch.
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  Speaker 2: On that exactly.
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  Speaker 3: So it's already tripling your price. And Casey and I
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  Speaker 3: have talked about that before. If you're sitting around at
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  Speaker 3: home with really nothing to do, you're you're gonna your
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  Speaker 3: mind's gonna boggle, so your people are gonna go do things.
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  Speaker 2: Think of it in retirement to a normal person who
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  Speaker 2: works in forty hour week and for practice owners, you're
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  Speaker 2: probably working sixty. You know that that big you know,
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  Speaker 2: hourly shift that you have to put into make sure
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  Speaker 2: the business operates well.
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  Speaker 3: Yeah, not just in the chair, but you know, running
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  Speaker 3: your books and you know all.
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  Speaker 2: That stuff absolutely, and think about all the time you
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  Speaker 2: spend doing that now has to be filled with some
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  Speaker 2: sort of activity because most of us aren't able to
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  Speaker 2: sit on a couch and relax or maybe just go
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  Speaker 2: for a walk. There tends to be more vacations. There
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  Speaker 2: tends to be you know, even going out to eat
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  Speaker 2: become something that starts to really eat away at monthly
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  Speaker 2: expenses just because there's not that forty to sixty hours
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  Speaker 2: that you have to fill that you were making money. Well,
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  Speaker 2: you hit on something important. When I'm not working, I
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  Speaker 2: tend to spend more money our clients. We want them
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  Speaker 2: to have a better lifestyle in retirement.
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  Speaker 4: And not use the bullshit excuse of well I'm just
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  Speaker 4: going to spoon less and you're rationalizing why you've undersaved
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  Speaker 4: or you're not going to be strategic, and then your
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  Speaker 4: retirement plan is, in my opinion, call it mediocre. Like
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  Speaker 4: the goal is as a dentist to have provided such
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  Speaker 4: good dentistry and to have mastered the business, tax and
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  Speaker 4: all the sides of your practice. So you have so
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  Speaker 4: much in retirement that your lifestyle is better. Social security
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  Speaker 4: you forget about because it's icing on the cake and
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  Speaker 4: it's really a non issue. Unfortunately, people that haven't mastered
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  Speaker 4: the business side of dentistry. I'll hear them all the time. Well,
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  Speaker 4: I won't have as many of expense, and i won't
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  Speaker 4: have as much debt or any debt, and you know,
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  Speaker 4: I'm just not going to spend more, and I can downsize,
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  Speaker 4: and I'm going to get social security. Those all those
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  Speaker 4: things may be true, But if that's your plan, yikes.
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  Speaker 3: Well, let's get to the elephant in the room. What's
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  Speaker 3: the viability of social Security?
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  Speaker 2: Yeah, so I really think that social Security is going
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  Speaker 2: to continue into the future to what extent, to the
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  Speaker 2: extent that it is today, I'm not sure. I don't
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  Speaker 2: think anybody can give you a clear cut answer, because
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  Speaker 2: there's obviously some expense that comes with Social Security that
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  Speaker 2: we as the American taxpayer are paying, and we'll see
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  Speaker 2: how that translates into the future. But I don't necessarily
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  Speaker 2: think it would ever be one hundred percent.
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  Speaker 4: Listen, some people depend on it, but sorry, If you're
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  Speaker 4: a practice owning dentist and specialists and you depend on that,
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  Speaker 4: you've done something wrong correct, which can again points to
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  Speaker 4: you're going to practice dentistry for ten twenty thirty years.
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  Speaker 4: Don't be the dentist who retires with you know, three
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  Speaker 4: and a half million dollars. Be the dentist that retires
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  Speaker 4: with eight, ten, twelve million dollars because you've masked, you've
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  Speaker 4: treated the business side of your practice with the same
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  Speaker 4: expertise that you treat the clinical and this should just
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  Speaker 4: be icing on the cake. Selling your practice should be
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  Speaker 4: icing on the cake. Social security should be an afterthought
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  Speaker 4: because you've done the right things, You've had good cash flow,
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  Speaker 4: you've saved, you've had a plan like that's to me,
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  Speaker 4: that's what all this screams, because again I hate the
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  Speaker 4: phone calls with practice owners who talk about the sell
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  Speaker 4: of their practice and social security and living a reduced
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  Speaker 4: lifestyle is their plan. To me, that's not a plan.
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  Speaker 4: To me that you've been derelicting your duty, or you
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  Speaker 4: haven't had the right people helping you and now you
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  Speaker 4: have less options, and this is your plan by default,
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  Speaker 4: not by preference.
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  Speaker 3: So well, overall, I mean, this is one of those
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  Speaker 3: situations where we've asked you a couple questions that we
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  Speaker 3: thought would be yes or no questions and they were, Well,
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  Speaker 3: it depends. This is not to be taken lightly. This
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  Speaker 3: is a situation should that should be spoken to with
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  Speaker 3: with your with your with your team, right, your financial planner,
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  Speaker 3: your your talk to a taxy about this stuff. Yeah, okay, sure,
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  Speaker 3: so you know, talk to your whole team. And if
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  Speaker 3: you don't have a team, or your team is just
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  Speaker 3: like I don't know, you'll you'll live for a while.
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  Speaker 3: I guess you need to talk to somebody. You can
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  Speaker 3: call Casey, you can you know, fill all a form
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  Speaker 3: on our website and all that kind of stuff. Well,
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  Speaker 3: is there anything else that we need that's like super
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  Speaker 3: pertinent today or should we bring you back to part
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  Speaker 3: two and thirty years to see where social security is?
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  Speaker 2: Yeah, I mean just piggyback off your point, Jared, Which
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  Speaker 2: is kind of sad to say that I'm piggybacking off
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  Speaker 2: of Jared, But one of the things that I believe
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  Speaker 2: with Social Security and with retirement as a whole, is
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  Speaker 2: working with a financial professional and making sure you're covered
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  Speaker 2: for any given situation, because there's so much that we
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  Speaker 2: didn't cover on Social Security as well. These are really
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  Speaker 2: just the high points, but to work with the professional
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  Speaker 2: and make sure that you're covered for any type of situation.
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  Speaker 2: To make sure your goals are lining up with what
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  Speaker 2: you want to use your Social Security benefit for and
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  Speaker 2: making it advantageous to you is extremely important. You know,
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  Speaker 2: my situation is going to be different than both of
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  Speaker 2: yours one because I'll be probably paying your guys' benefit
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  Speaker 2: and then it will go away.
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  Speaker 3: Or the home taker or the home caretaker.
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  Speaker 2: Yeah, absolutely absolutely, but everybody's benefit is going to be different.
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  Speaker 2: So it's important to get advice that is catered to
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  Speaker 2: your situation and don't get just blanket statements and hope
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  Speaker 2: for the best and hope for the best exactly. Work
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  Speaker 2: with your financial team and professionals.
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  Speaker 3: Well, thank you so much for coming in, Casey. I
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  Speaker 3: wanted to bring up something real quick that I know
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  Speaker 3: you're excited about. You're going to be presenting at the
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  Speaker 3: Thomas B. Henman Dental meeting in March, and that's in Atlanta, George,
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  Speaker 3: and it's I know you're pretty excited about that. But
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  Speaker 3: the night before the whole event, the whole meeting kicks off,
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  Speaker 3: we were hosting a social.
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  Speaker 4: Yeah, we just said one of these before the Yankee
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  Speaker 4: as well. It's a lot of fun. We run out
• 13:14
  Speaker 4: of private room to a urban tasting eat some filet
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  Speaker 4: and tomahawk and seafood towers.
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  Speaker 3: Yeah, and then we you.
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  Speaker 4: Know, talk about who we are for ten minutes, right
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  Speaker 4: and our impact and you know, we had people come
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  Speaker 4: up going I just came because it's a cool restaurant,
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  Speaker 4: but I need what you guys do. Can we talk?
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  Speaker 4: And yeah, absolutely, that's part of the reason why we
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  Speaker 4: do it. It used to meet good people. But yeah,
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  Speaker 4: we'll be doing that in the Buckhead area, that's right, yep.
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  Speaker 3: So if you are in the Atlanta area or you're
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  Speaker 3: going to the hym Men, you can go visit four
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  Speaker 3: Quarters Advisory dot com slash events and you can register
• 13:48
  Speaker 3: for the social, or if you're going to be in
• 13:50
  Speaker 3: the him Man, you know, if it hasn't sold out yet,
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  Speaker 3: sign up for Casey's course.
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  Speaker 2: Beautiful.
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  Speaker 1: Hello everyone, Welcome to the Millionaire Dennis Podcast, brought to
• 14:00
  Speaker 1: you by four Quadnance Advisory. On this podcast, we break
• 14:04
  Speaker 1: down the world of dentistry, finances and business practices to
• 14:07
  Speaker 1: help you become the millionaire dentist you deserve to be.
• 14:10
  Speaker 1: Please be advised we do speak with an honest tongue
• 14:12
  Speaker 1: and may not be safe for work.