Speaker 1: And our phone lines are open to you right now
Speaker 1: at six oh eight three two one thirteen ten. That's
Speaker 1: six oh eight three two one thirteen ten. If you
Speaker 1: have questions for our retirement planning professionals from Class Financial
Speaker 1: love to hear from you this morning, get your ride
Speaker 1: on the air. Of course, you can learn more about
Speaker 1: COSS Financial on their website Coss Financial dot com. That's
Speaker 1: spelled klaas Financial dot com. Website's got a ton of
Speaker 1: great information about Coss Financial. Learn about their separate divisions.
Speaker 1: You can learn about the team at Costs Financial. You
Speaker 1: can also sign up right online for the weekly Market
Speaker 1: Pulse newsletter. Again, that available to you at Cossfinancial dot com.
Speaker 1: Their telephone number six oh eight four four two five
Speaker 1: six three seven. No charge for that initial get to
Speaker 1: know your appointment at Costs Financial. It will be complementary
Speaker 1: for you again their telephone number six oh eight four
Speaker 1: four two five six three seven. And you get on
Speaker 1: the air and join the program this morning, give us
Speaker 1: call six oh eight three two one thirteen ten. That's
Speaker 1: six oh eight three two one thirteen ten. Joined this
Speaker 1: week by CJ Closs and Eric Schwartz. CJI, how you
Speaker 1: doing this morning?
Speaker 2: I'm doing great. Good morning Sean, morning Cej.
Speaker 1: Great to talk with you.
Speaker 2: Eric.
Speaker 1: How have you been?
Speaker 3: Good morning Sean. I'm I'm doing great, and it's it's
Speaker 3: been a good week.
Speaker 1: It has been. It looks like a great week and
Speaker 1: great weekend ahead. And yeah, we've got a great conversation
Speaker 1: ahead as well, one of I think out of all
Speaker 1: of them, and I put it back to you guys,
Speaker 1: because I think you probably would agree on this as
Speaker 1: anytime we talk so security seems to be one of
Speaker 1: those biggest, bigger topics and we get a lot of
Speaker 1: questions and a lot of interaction as well, so it
Speaker 1: should be it should be a pretty good show ahead. Again,
Speaker 1: we'll be talking about navigating that social security maze and
Speaker 1: certain terms and things that you hear when it comes
Speaker 1: to social security and why they matter and how they
Speaker 1: matter as well as mentioned of course, oftentimes get questions
Speaker 1: about social security and whether it's on the exact topic
Speaker 1: we're talking about, or if you just have a question
Speaker 1: about retirement planning in general. We'd love to have you
Speaker 1: join us helpful number here at station six eight three
Speaker 1: two one thirteen ten. That's six oh eight three two
Speaker 1: one thirteen ten. Before we start this week's conversation though
Speaker 1: about so scarity, let's actually take a look back at
Speaker 1: last week's program. Of course, each and every week we
Speaker 1: do the Class Quiz Question week. This week will be
Speaker 1: no exception, chance to win a great prize from our
Speaker 1: friends at class Financial, chance to win a twenty five
Speaker 1: dollars gift card to Sephora. Typically the question and answer
Speaker 1: come up during the program, so listen closely for the
Speaker 1: question and answer for the Class Quiz Question week. We'll
Speaker 1: get you more details on how you can win it
Speaker 1: later on in the program. But again, before we get
Speaker 1: rolling on this week's topic, let's actually look back at
Speaker 1: last week's program and talk about the click Closs Quiz
Speaker 1: question week. Get the question and the answer there as well.
Speaker 3: Yeah, so thank you to everybody for listening. As always,
Speaker 3: in big congratulations to our winner from last week, and
Speaker 3: that was Penny from Stoton. The question was there are
Speaker 3: three simplified types of investor personalities and it's a fill
Speaker 3: in the blank so that they are conservative, moderate, and
Speaker 3: blank and the answer was aggressive. So again congratulations to
Speaker 3: Penny forgetting that question right.
Speaker 1: And of course, if you want to listen back to
Speaker 1: last week's program, or maybe a miss part Today Show,
Speaker 1: or catch any of the programs. You can always head
Speaker 1: on over to Clossfinancial dot com. That's Closs k l
Speaker 1: a as financial dot com. Listen to the podcast and
Speaker 1: subscribe there as well. Congratulations. As Eric points out to Penny,
Speaker 1: you two can be like Penny, listen close to the
Speaker 1: program because again typically the question answer to class quiz
Speaker 1: question we come up during the show, and of course
Speaker 1: we're diving into social security and kind of that maze
Speaker 1: this week and full retirement age of course starts sixty two.
Speaker 1: What's kind of the real deal and let's kind of
Speaker 1: get that get that low down CJ. Nope, did we
Speaker 1: lose CJ? Oh No, Eric, are you able to.
Speaker 3: Charms to hear me?
Speaker 1: I can hear you, lon and clear. For some reason,
Speaker 1: we're not we're not hearing CJ. But would you like
Speaker 1: to like to take this one? Take a take a
Speaker 1: crack at it.
Speaker 3: I sure can, excellent. Yes, yes. So. One of the
Speaker 3: biggest questions we get, you know, as it relates to
Speaker 3: retirement is surrounding social security. This is a big piece
Speaker 3: of the puzzle for a lot of folks, and it
Speaker 3: seems to be in the news. No matter what's going
Speaker 3: on in the world. So let's just kind of dive
Speaker 3: into to some of the I'll say, like big details here.
Speaker 3: So first things. First, full retirement age or FRA. Think
Speaker 3: of this as your Social Security sweet spot. Okay. It
Speaker 3: is the first age at which you can receive your
Speaker 3: full Social Security benefit without a reduction for claiming early.
Speaker 3: So full retirement age it does vary a little bit.
Speaker 3: It's somewhere between sixty six and sixty seven. For folks
Speaker 3: who are born between nineteen forty three and nineteen fifty four,
Speaker 3: your full retirement age is sixty six. And then those
Speaker 3: folks born between fifty five nineteen fifty five and nineteen
Speaker 3: fifty nine, you will have your Social Security full retirement
Speaker 3: age be sixty six and some number of months it varies.
Speaker 3: And then finally for people born after nineteen sixty, it's
Speaker 3: pretty simple. Sixty seven is your full retirement age. And
Speaker 3: again this is where you're gonna get one hundred percent
Speaker 3: of your benefit. Now, you can start receiving benefits before
Speaker 3: your full retirement age, okay, So you can start as
Speaker 3: early as sixty two. Now there's a trade off. You're
Speaker 3: gonna get less each month, right, but you are collecting
Speaker 3: for potentially more years. And the other thing is you
Speaker 3: can start as early as sixty two, but you can
Speaker 3: start on any month between sixty two and seventy. Okay,
Speaker 3: So sometimes people think, gosh, I can only collect at
Speaker 3: sixty two, sixty five, and sixty seven. No Social Security
Speaker 3: will will pro rate your benefit down to the month,
Speaker 3: so you can start anytime between between sixty two and seventy.
Speaker 3: How much will you get? When we get this question
Speaker 3: on the best place to get that information is to
Speaker 3: get a personalized number is to go to SSA dot
Speaker 3: gov make an account, and historically we away to wait
Speaker 3: for things to be mailed to us and they would come,
Speaker 3: you know, maybe once a year, sometimes not. And SSA
Speaker 3: doc gov has a ton of great tools just to
Speaker 3: understand what your benefits going to look like, how much
Speaker 3: you can get, and what your options are. So I
Speaker 3: really really encourage people go to SSA doc gov and
Speaker 3: find out more about your Social Security benefit and when
Speaker 3: is the best time to collect? Oh, this one is
Speaker 3: another good one. It depends, you know. We love to
Speaker 3: say that, but waiting until you're full of retirement age
Speaker 3: usually means you'll get bigger checks. The reason we always
Speaker 3: say it depends is we can't really answer this question
Speaker 3: perfectly unless we know exactly how long everybody's going to live.
Speaker 3: Right If we know that, I mean, it's really easy
Speaker 3: to determine, you know what, when is the most opportune
Speaker 3: time to start. So where we tend to start with folks,
Speaker 3: is say, okay, well, based on the other income sources
Speaker 3: you have in retirement, based on how much you've saved,
Speaker 3: how much you want spend. That's how we can help
Speaker 3: you figure out when you need to draw your Social
Speaker 3: Security to kind of accomplish your goals of having retirement income.
Speaker 3: And you know, maybe you have some legacy goals, so
Speaker 3: we can use Social Security as a tool to kind
Speaker 3: of help you those hit those targets. Now, if you
Speaker 3: wait past your full retirement age, so remember that's between
Speaker 3: sixty six and sixty seven, you do get an increase
Speaker 3: each year until you get to age seventy. So you
Speaker 3: are actually going to have an eight percent increase to
Speaker 3: your monthly benefit every year until you turn seventy. Now
Speaker 3: that is a pretty good deal. We at Class Financial,
Speaker 3: we obviously have an investment management team here and they
Speaker 3: would tell you eight percent guaranteed is a pretty good deal.
Speaker 3: When you get to seventy though, that is pretty much
Speaker 3: that is go time. There are very few reasons to
Speaker 3: wait past age seventy to actually start your benefits.
Speaker 1: A great information there from Air Schwartz and CJ. Closs,
Speaker 1: our retirement planning professionals from Class Financial. And before we
Speaker 1: get to some of the math of the CJ, is
Speaker 1: there anything you wanted to add to that add to
Speaker 1: that last section?
Speaker 2: There no sorry about that. I my microphone kind of
Speaker 2: went blank there, but I'm back in.
Speaker 1: Good to have you along. Yet, technology is, as we
Speaker 1: all know, is fantastic. When it works, then it's like,
Speaker 1: oh goodness, but good to have you back with us.
Speaker 1: Back with us CGF course talking with CJ. Closs and
Speaker 1: Eric Schwartz, as mentioned, our retirement planning professionals from Class Financial.
Speaker 1: Phone lines are open if you've got a question six
Speaker 1: oh eight three two one thirteen ten. That's six soh
Speaker 1: eight three two one thirteen ten. You can learn more
Speaker 1: about Class Financial on their website COSS Financial dot com.
Speaker 1: That's Coss k l Aasfinancial dot com Telpha number six
Speaker 1: oh eight four four two five six three seven. No
Speaker 1: charge for that initial gets to know your appointment at
Speaker 1: loss financial it will be complementary to you again their
Speaker 1: number six oh eight four four two five, six three seven.
Speaker 1: So Eric, let's break down that that math when it
Speaker 1: comes to those numbers and kind of calculations when it
Speaker 1: comes to your your Social Security benefit. And I think
Speaker 1: a lot of folks wonder is will I ever get
Speaker 1: a boost?
Speaker 3: Yeah? So, at a very basic level, in order to
Speaker 3: qualify for Social Security benefits, you have to earn what
Speaker 3: are called credits, Okay, So you have to essentially work,
Speaker 3: pay payroll taxes, and earn those credits over your working years.
Speaker 3: So in twenty twenty five, if you earn one eight
Speaker 3: hundred and ten dollars, that is equal to one credit,
Speaker 3: and you can earn a maximum of four credits per year.
Speaker 3: And in order to qualify for benefits, you need to
Speaker 3: have forty credits. Okay, so four per year, forty credits.
Speaker 3: That's ten years of work history. That is the goal
Speaker 3: to qualify for Social Security benefits. Now, if you don't
Speaker 3: have forty but you are, Let's say you work for
Speaker 3: maybe five years and then something takes you out of
Speaker 3: the workforce. If you return later, you can keep adding
Speaker 3: to your total and and get get up to that
Speaker 3: forty credits. They don't need to be consecutive.
Speaker 2: Now.
Speaker 3: The reason that this is one we hear a lot
Speaker 3: so talking about talking about how how your benefit is calculated.
Speaker 3: I'll have people say to me, you know, towards the
Speaker 3: end of their working years, gosh, I got to make
Speaker 3: sure that you know, I'm putting in as many hours
Speaker 3: as I can and making as much as I can
Speaker 3: because they're gonna they're gonna calculate my Social Security based
Speaker 3: on my you know, my last years of work, right,
Speaker 3: maybe my three or my five last years. That is
Speaker 3: not true. So Social Security is going to use your
Speaker 3: thirty five highest earning years to calculate your your benefit.
Speaker 3: And that is adjusted for inflation. So when you look
Speaker 3: at your Social Security statement, you may look back and see,
Speaker 3: you know, twenty five years ago, maybe you earned less money.
Speaker 3: But when we adjust it for inflation, it, you know,
Speaker 3: it brings the dollars back up to today's time value
Speaker 3: of money, and it it provides you with a larger
Speaker 3: larger benefit than it looks like. But if we think
Speaker 3: about this thirty five year average of working work history,
Speaker 3: we all start with thirty five zeros right, if we've
Speaker 3: never worked before, we have zero's for thirty five years.
Speaker 3: So every year that you work, regardless of how much
Speaker 3: you're earning, you are increasing your Social Security benefit because
Speaker 3: you are taking away one of those years of zero earnings. Okay,
Speaker 3: So no matter how much you're earning, you are you
Speaker 3: are improving your benefit by working. Now, you'd asked about
Speaker 3: will you ever get a boost on your Social Security benefit?
Speaker 3: So that is what we would call a cost of
Speaker 3: living adjustment or a COLA. And you do get cola's
Speaker 3: starting at age sixty two, even if you wait to
Speaker 3: get your benefit. And twenty twenty five that was two
Speaker 3: and a half percent, and then the year before last
Speaker 3: year was three point two percent. Okay, So definitely we'll
Speaker 3: be seeing those cost of living adjustments over time.
Speaker 1: Talking this morning with Eric Schwartzee J. Coloss. They are
Speaker 1: our retirement planning professionals from Claws Financial online Class Financial
Speaker 1: dot com. That's Class k l a as Financial dot
Speaker 1: Com Telpha number six oh eight four four two five
Speaker 1: six three seven. No charge for that initial gets no
Speaker 1: appointment at Class Financial. It will be complementary to you. Again,
Speaker 1: they're number six oh eight four four two five six,
Speaker 1: three seven, Things are a little different if you are
Speaker 1: a government worker.
Speaker 3: Correct, they are. They are. And we I feel like
Speaker 3: we talk about social Security with quite often on the
Speaker 3: show because it's such an important program, but it's an
Speaker 3: old program and we don't often have a lot of
Speaker 3: new things to talk about related to it. This is
Speaker 3: a this is an exception here. So beginning in twenty
Speaker 3: twenty five, specifically back on January fifth, the Social Security
Speaker 3: Fairness Act was signed into law, and that made some
Speaker 3: pretty big changes for folks who worked for or who
Speaker 3: have a government pension. So the Social Security Fairness Act
Speaker 3: ends what's called the Windfall Elimination Provision or WEB and
Speaker 3: the Government Pension Offset GPO. So these are these two provisions.
Speaker 3: They've essentially reduced or eliminated the Social Security benefits of
Speaker 3: over three point two million people. And those were folks
Speaker 3: who received a pension based on work that was not
Speaker 3: covered by Social Security, so they had a non covered pension. Okay,
Speaker 3: so this is probably strange to hear for a lot
Speaker 3: of folks, especially in Wisconsin. We don't have very many
Speaker 3: positions in our state government that don't pay into that
Speaker 3: don't pay into Social Security, but our neighbors to the south.
Speaker 3: In Illinois, there are a number of positions working for
Speaker 3: the state government where actually instead of paying into Social Security,
Speaker 3: employees actually pay into all of their retirement contributions into
Speaker 3: the state pension. So the Social Security Fairness Act it
Speaker 3: increases social secure benefits for certain types of workers, including teachers, firefighters,
Speaker 3: police officers in some states, federal employees who are are
Speaker 3: covered by the Civil Service Retirement system, and people whose
Speaker 3: work had been covered by like a foreign social security
Speaker 3: system for example. So complicated topic, but it is a
Speaker 3: big change. So if you are one of those workers
Speaker 3: who has a government pension and maybe have been impacted
Speaker 3: by this, go to SSA dot gov and get up
Speaker 3: to date information on how this might affect you.
Speaker 1: Talking this morning with Eric Schwartz and Cjcklass, they are
Speaker 1: our retirement planning professionals from Class Financial, I hope you've
Speaker 1: had a chance to check out the website. If not,
Speaker 1: head on over their COSS Financial dot com that's coss
Speaker 1: k l a a s financial dot com. Can of
Speaker 1: course learn more about everyone at COSS Financial, the separativations
Speaker 1: as well how they can help you or if you're
Speaker 1: an employer, some options there and what they all can
Speaker 1: provide at COSS Financial. I'll send up for the weekly
Speaker 1: Market Pulse newsletter that at the website COSS Financial dot com.
Speaker 1: Tell for number six oh eight four four two five
Speaker 1: six three seven. No charge for that initial get to
Speaker 1: know your appointment tech loss financial. It will be complementary
Speaker 1: to you again. Their number six oh eight four four
Speaker 1: two five six three seven. Talk about you hear that
Speaker 1: term break even. We'll find out from c Jan Eric
Speaker 1: what that is and is it possible to figure that out?
Speaker 1: What We'll get all those details and so much more
Speaker 1: as we continue our conversation Money in Motion here at
Speaker 1: Costs Financial on thirteen ten. Wuib I walking this week
Speaker 1: with our retirement planning professionals CJ. Closs and Eric Schwartz.
Speaker 1: Of course they come to us from Class Financial the
Speaker 1: website colss financial dot com. That's coss k l aa
Speaker 1: as Financial dot com at telephon number six O eight
Speaker 1: four four two five six three seven. No charge for
Speaker 1: that initial gets to know your appointment tech loss Financial.
Speaker 1: It will be complementary to you again. Their number six
Speaker 1: oh eight four four two five six three seven talking
Speaker 1: this week about social security and h CJ one of
Speaker 1: the things you often hear folks wondering about is picking
Speaker 1: that right age, and what exactly and where exactly is
Speaker 1: that break even point? What do people need to know there?
Speaker 2: CJ. Yeah, So social security and retirement planning, it's kind
Speaker 2: of like a personal puzzle that you have to figure out.
Speaker 2: And this is often why people will come to us
Speaker 2: as a retirement planning expert to say, hey, I've got
Speaker 2: these different income streams, whether it be a pension or
Speaker 2: a Social Security income stream, or like Eric was talking about,
Speaker 2: Hey I was part of a non covered pension in
Speaker 2: the state of Illinois and now there's a change. I mean,
Speaker 2: these are complicated things with significant impacts over the remainder
Speaker 2: of your retirement years. So this is often how and
Speaker 2: when and where we get involved. But when you're thinking
Speaker 2: about your future retirement income streams, including social Security, consider
Speaker 2: all of those income sources. What we would do is
Speaker 2: we would sit down and say, hey, what investments do
Speaker 2: you have, what pensions do you have, what Social Security
Speaker 2: income will you have? Anybody working? When do you want
Speaker 2: to retire? When can you afford to retire? And then
Speaker 2: based upon all that data, we will say you should
Speaker 2: draw from here first Now for the somebody who's not
Speaker 2: in the industry, that might sound like, oh my goodness,
Speaker 2: I have no idea how to do that analysis. But
Speaker 2: it's not actually that complicated once you're on our side
Speaker 2: of the fence and understand kind of the tax impacts
Speaker 2: of each of these income streams. Social Security, this is
Speaker 2: not right within my topic right now, but social Security
Speaker 2: is a little bit unique. Social Security can be legitimately
Speaker 2: in the state of Illinois or a state of Wisconsin
Speaker 2: at least completely tax free. If your income is low
Speaker 2: enough on a provisional basis, you will have no tax
Speaker 2: federal or state on sociecurity. Now, if your total income
Speaker 2: or was known as your modified adjusted gross income gets
Speaker 2: high enough, then they start taxing your Social Security. And
Speaker 2: then if your income is much much, much higher, you
Speaker 2: cap out at eighty five percent of your Social Security
Speaker 2: being income taxable. So you get the idea. It's important
Speaker 2: to know these things because it has an impact on
Speaker 2: when you draw in where you draw in all these things. Now,
Speaker 2: longevity is another important question because some people like us
Speaker 2: will say, hey, you should wait to draw later, which
Speaker 2: we'll talk about here in a moment. But then if
Speaker 2: you're very unhealthy, and you're retired at sixty two, you
Speaker 2: probably just want to draw it as early as you
Speaker 2: can to try to get as much benefit out as
Speaker 2: you can. Because here's the kicker with social Security. If
Speaker 2: you don't have a spouse or somebody who's going to
Speaker 2: be claiming on your record after you die somehow, then
Speaker 2: there's really not a lot of benefit of waiting if
Speaker 2: you are sick or ill, or if you expect to
Speaker 2: die at an earlier or earlier than average age. Now,
Speaker 2: with all of this being said, you asked the question
Speaker 2: of what is this break even thing? Well, listen, break
Speaker 2: even is actually not that complicated of a concept. Imagine
Speaker 2: you have an Excel spreadsheet or even just a piece
Speaker 2: of paper in front of you, and you know that
Speaker 2: if you draw at age sixty two, which is the
Speaker 2: earliest that you can draw, that your benefit's going to
Speaker 2: be lower. As a matter of fact, it's about for
Speaker 2: somebody who's full retirement age is, you know, sixty six.
Speaker 2: In some number of months, if you draw aus early
Speaker 2: sixty two, you're only getting about seventy four percent of
Speaker 2: your full retirement age benefit. So if I draw sixty two,
Speaker 2: it's a lower amount, but I'm money ahead, right, that's
Speaker 2: the key. I'm money ahead of the other version of
Speaker 2: myself that would have waited to full retirement age. And
Speaker 2: I'm way money ahead of the other version of myself
Speaker 2: that would have waited to seventy Everybody gets this. But
Speaker 2: if you kind of put those that Excel spreadsheet down
Speaker 2: and you say, but if I had waited to seventy,
Speaker 2: the benefit is larger, and therefore I start catching up
Speaker 2: on the former version that drew earlier. So this is
Speaker 2: just a simple, you know, nominal math equation. We're ignoring
Speaker 2: expected returns and inflation right now. We're just basically looking
Speaker 2: at at the nominal dollar amount, and at some point
Speaker 2: in the future those numbers break even. Well, here's the kicker, everybody.
Speaker 2: For most Americans under most situations, that break even a
Speaker 2: hers somewhere between seventy eight and eighty. Okay, So meaning
Speaker 2: if I draw at sixty two, sixty three, sixty four,
Speaker 2: sixty fivety six, sixty seven, sixty eight, sixty nine, or
Speaker 2: seventy they all break even somewhere between seventy eight and eighty.
Speaker 2: Now why does this matter, Because that's about that's about
Speaker 2: life expectancy. So listen, If you think that the Social
Speaker 2: Security Administration cares when you draw, social Security, you clearly
Speaker 2: don't understand how they built the math. They just don't
Speaker 2: care when you draw because on average, it's irrelevant. Now,
Speaker 2: notice what I just said there, On average, here's the key.
Speaker 2: If everybody in your family live to ninety or older,
Speaker 2: you could actually game it a little bit. You could say, hmmm,
Speaker 2: well social Security doesn't care, but I care. And I
Speaker 2: know that if I wait and get a larger benefit
Speaker 2: and I live to age ninety, I'm money way ahead.
Speaker 2: So you get the idea social Security Administration could care less.
Speaker 2: Do we as financial planners as we work with our clients,
Speaker 2: do we care about your family medical history and your
Speaker 2: personal medical history and expectations of you know, when you'll
Speaker 2: pass away?
Speaker 3: Oh?
Speaker 2: You bet you? And that has a big impact on
Speaker 2: when we give suggestions around when you should draw.
Speaker 1: Talking this morning with CJ. Closs and Eric Schwartz, they
Speaker 1: are our retirement planning professionals from Class Financial website, Class
Speaker 1: Financial dot Com tel forh number six So eight four
Speaker 1: four two five six three seven So, CJ, what if
Speaker 1: we heard talk a little bit about credits earlier? What
Speaker 1: if you don't have enough credits.
Speaker 2: Yeah, good question. So you may still have some options.
Speaker 2: So if you don't have enough credits, Eric mentioned it earlier,
Speaker 2: but you there's these credits that you earn. You can
Speaker 2: earn up to four credits per year, and so they
Speaker 2: say forty credits is the minimum that's required to be
Speaker 2: eligible for your own Social Security benefit. If you understand
Speaker 2: that four credits per year, forty credits, well, that sounds
Speaker 2: like ten years. CJ. That's right. If you have about
Speaker 2: ten years of working history, then you will be eligible
Speaker 2: for your own benefit. Some people don't have that. I'll
Speaker 2: take my spouse as an example of this. She has
Speaker 2: worked outside of the home, but not for accumulative ten years,
Speaker 2: and therefore, on her own record, she would get nothing.
Speaker 2: But let's just pause for those of you who have
Speaker 2: listened to us talk on the air. Enough about this,
Speaker 2: you go, But but but wait a minute. If CJ
Speaker 2: were to die, wouldn't his wife be eligible for his benefit? Yes?
Speaker 3: She would.
Speaker 2: And wait a minute, I've heard you talk about you're
Speaker 2: eligible for all of yours or half of your spouses,
Speaker 2: whichever is greater. So even if CJ's alive and he draws,
Speaker 2: couldn't she get half of his. Yes, she could. So
Speaker 2: you get the idea. Just because my spouse is not
Speaker 2: eligible based on her own record, it doesn't mean she
Speaker 2: won't get a Social Security benefit. If I pass away,
Speaker 2: she could get a benefit. Now there's limitations on when
Speaker 2: she can get that benefit, but she could get a benefit.
Speaker 2: And then also if even if I'm alive and I draw,
Speaker 2: she's eligible for half of mine, even though she may
Speaker 2: not qualify on her own record. And then there's other
Speaker 2: things like well what if a divorce happens, So what
Speaker 2: if I'm not eligible on my own record, but I
Speaker 2: was married to somebody for ten years who was eligible. Well, yeah,
Speaker 2: that may apply, but here's a key. Generally you had
Speaker 2: to have been married for ten years, and generally you
Speaker 2: can't have remarried before I think it's sixty or sixty two.
Speaker 2: So you get the idea. There are a lot of
Speaker 2: kind of quirks and things to be aware of relative
Speaker 2: to Social Security. If you have an odd situation where
Speaker 2: you don't know how it'll work. So think of a
Speaker 2: divorce from many years ago, or if you were recently
Speaker 2: a widow or widow where we would just highly suggest
Speaker 2: schedule an appointment at the Social Security Administration Office, explain
Speaker 2: your situation and get a summary of what your benefits
Speaker 2: might be.
Speaker 1: Talking this morning with CJ. Class and Eric Schwartz, retirement
Speaker 1: planning professionals from Class Financial, the website class financial dot com.
Speaker 1: That's coss k l a A S financial dot com.
Speaker 1: They're telephon number six o eight four four two five
Speaker 1: six three seven, which if your conversation with c gen
Speaker 1: Eric next has money in motion with Coss Financial continues
Speaker 1: right here on thirteen ten Wui b A talking with
Speaker 1: our retirement planning professionals c J. Closs and Eric Schwartz.
Speaker 1: Of course they come to us from Class Financial, the
Speaker 1: website coss financial dot com. That's coss k l a
Speaker 1: A S Financial dot com. Telephone number six oh eight
Speaker 1: four four two five six three seven. Don't forget no
Speaker 1: charge for that initial get to know your appointment tech
Speaker 1: Loss Financial. It will be complementary to you again their
Speaker 1: number six oh eight four four two five six three seven.
Speaker 1: Talking with Cjen Eric this week about Social Security. And
Speaker 1: you know we've talked about taking social social Security early,
Speaker 1: but what about folks that are still working? Are their
Speaker 1: income limits orre some restrictions that folks there need to
Speaker 1: know about.
Speaker 2: Yeah, that's a great question, Sean.
Speaker 3: So this is a really common point of confusion, especially
Speaker 3: as people are are thinking about taking benefits early. So
Speaker 3: if you claim your Social Security before your full retirement age,
Speaker 3: which you remember right now is somewhere between sixty six
Speaker 3: and sixty seven depending when you were born, and you
Speaker 3: continue to work so earn earned income, not your pension income,
Speaker 3: not your investment income, but actually working income, your benefits
Speaker 3: can be temporarily reduced. So hang onto that word. They're
Speaker 3: temporarily as well. Okay. The earnings test applies again only
Speaker 3: if you're collecting prior to full retirement age. So if
Speaker 3: you hit full retirement age, you can work to your
Speaker 3: heart's content. Social Security administration does not care. But in
Speaker 3: twenty twenty five, if you are under full retirement age
Speaker 3: for the entire year, Social Security will deduct one dollar
Speaker 3: from your benefits for every two dollars that you earn
Speaker 3: above twenty three thousand, four hundred dollars. Okay, so essentially
Speaker 3: you're gonna have to pay back one dollar for every
Speaker 3: two that you earn over twenty three four hundred dollars. Now,
Speaker 3: in the year that you reach full retirement age, the
Speaker 3: rules are a little bit different. So in twenty twenty five,
Speaker 3: social Security will deduct one dollar for every three dollars
Speaker 3: that you learn that you earn above sixty two and
Speaker 3: sixty dollars. So this only applies to earnings before the
Speaker 3: month that you reach your full retirement age. But if
Speaker 3: you are still working, you really want to think twice
Speaker 3: about taking benefits before full retirement age. Once you get
Speaker 3: to your full retirement age, there is no earnings test,
Speaker 3: and you can earn as much as you want now mention,
Speaker 3: I remember earlier I said to hang on to that
Speaker 3: temporarily reduced comment. So these deductions are not lost forever.
Speaker 3: When you reach your full retirement age, social Security will
Speaker 3: actually recalculate your benefits and you'll receive a higher monthly
Speaker 3: amount to account for the benefits that were withheld. So
Speaker 3: the earnings, the earnings test, It can be a nuisance,
Speaker 3: but theoretically you should receive those benefits later. And again
Speaker 3: it only applies to working income, not your pension or
Speaker 3: other retirement income.
Speaker 1: Pretty a lot of really great information, as always pretty
Speaker 1: interesting stuff as we talk with our retirement planning professionals.
Speaker 1: Eric Schwartz and CJ Closs don't freaking learn more about
Speaker 1: Eric CJ and the whole team at Loss Financial on
Speaker 1: their website Coss financial dot com. That's Coss Klaas Financial
Speaker 1: dot com. Telphon number six oh eight four four two
Speaker 1: five six three seven. No charge for the initial gets
Speaker 1: to know you appointment at Loss Financial. It will be
Speaker 1: complementary to you again their number six oh eight four
Speaker 1: four two five six three seven. Want to hold on
Speaker 1: to that telephone number because time now for the class
Speaker 1: quiz question the week. It works like this, In just
Speaker 1: a moment, I'll ask you the class quiz question the week.
Speaker 1: You will then have thirty minutes from the in today's
Speaker 1: program to call the Class Financial office right here in
Speaker 1: Madison at six oh eight four four two five six
Speaker 1: three seven. If you are the first caller, you win
Speaker 1: this week's prize, which is say twenty five dollars gift
Speaker 1: card to Sephora. This week's class quiz question week is this.
Speaker 1: According to Social Security, if you were born after nineteen sixty,
Speaker 1: your full retirement age FRARA is considered. What age is
Speaker 1: it sixty five or sixty seven? Telphia number six oh
Speaker 1: eight four four two five six three seven. First call,
Speaker 1: correct answer when the twenty five dollars gift cartoof Sephora
Speaker 1: and again that's Class Financials Office right here in Madison,
Speaker 1: Telpha number six oh eight four four two five six
Speaker 1: three seven CJ. Eric. It's always fantastic chatting with both
Speaker 1: of you guys. You enjoy this beautiful day.
Speaker 2: Thanks Sean, Thanks Sean, see you guys.
Speaker 1: News comes your way next year. Thirteen ten wu ib
Speaker 1: A