WEBVTT 1 00:00:01.439 --> 00:00:03.680 And our phone lines are open for you if you 2 00:00:03.799 --> 00:00:07.400 have questions for our retirement planning professionals from Class Financial. 3 00:00:07.360 --> 00:00:08.640 All I got to just pick up phone dial in 4 00:00:08.720 --> 00:00:10.320 right now. Tellphone I'm gonna get on the air six 5 00:00:10.400 --> 00:00:13.560 SOH eight three two one thirteen ten. That's six oh 6 00:00:13.599 --> 00:00:16.280 eight three two one thirteen ten. We'll get you on 7 00:00:16.320 --> 00:00:19.239 the air with CJ. Coss and Eric Schwartz. Great show ahead. 8 00:00:19.239 --> 00:00:23.079 We're gonna be talking this week about social Security benefits. 9 00:00:23.079 --> 00:00:25.280 And I know this is one that always gets a 10 00:00:25.280 --> 00:00:27.719 lot of questions, a lot of calls, a lot of conversation. 11 00:00:27.839 --> 00:00:29.359 Love to hear from you this morning again, tell phe 12 00:00:29.440 --> 00:00:31.719 number to get on air six SOH eight three two 13 00:00:31.960 --> 00:00:34.960 one thirteen ten. That's six SOH eight three two one 14 00:00:35.079 --> 00:00:37.439 thirteen ten. You can learn more about Class Financial on 15 00:00:37.600 --> 00:00:41.439 their website Class financial dot com. That's Coss k l 16 00:00:41.560 --> 00:00:45.240 Aasfinancial dot com. Teleph number for the office right here 17 00:00:45.240 --> 00:00:48.039 in Madison. Six O eight four four two five six 18 00:00:48.200 --> 00:00:50.520 three seven. No charge for that initial get to know 19 00:00:50.560 --> 00:00:53.079 you appointment tech Class Financial. It will be complementary to 20 00:00:53.119 --> 00:00:55.240 you again their number six O eight four four two 21 00:00:55.399 --> 00:00:57.719 five six three seven cold out of the number as well, 22 00:00:57.759 --> 00:00:59.039 coming up a little bit later on the show, we're 23 00:00:59.039 --> 00:01:00.920 gonna have the coss Quiz question the week your chance 24 00:01:00.920 --> 00:01:04.120 to win a fantastic prize from our friends at Class Financial. 25 00:01:04.159 --> 00:01:07.079 This week's prize a twenty five dollars gift card to 26 00:01:07.280 --> 00:01:10.599 pet Smart. So listen closely oftentimes just about every time, 27 00:01:10.640 --> 00:01:14.120 to be completely fair, the question and answer just about 28 00:01:14.120 --> 00:01:16.439 every show come up, so you get a little leg 29 00:01:16.519 --> 00:01:19.280 up on everybody else by paying close attention. It definitely 30 00:01:19.359 --> 00:01:21.480 benefits you a number of ways to pay a close 31 00:01:21.519 --> 00:01:25.400 attention to the program. Speaking of the closs Quiz question week, 32 00:01:25.439 --> 00:01:28.079 before we get rolling on this week's conversation, let's actually 33 00:01:28.159 --> 00:01:31.280 take a look back at last week's show and get 34 00:01:31.280 --> 00:01:34.159 the question and answer there as well. Eric, first off, 35 00:01:34.200 --> 00:01:36.560 welcome to the program. Let's take a look back actually 36 00:01:36.599 --> 00:01:39.120 at last week's show and get the question and answer 37 00:01:39.159 --> 00:01:39.920 there as well. 38 00:01:40.959 --> 00:01:43.280 Yeah, thanks Sean, we had a great show last week. 39 00:01:43.879 --> 00:01:46.680 In our congratulations first of all to our winner, who 40 00:01:46.840 --> 00:01:51.680 was Jillian from Madison and Jillian. The question Jillian got 41 00:01:51.760 --> 00:01:54.359 right was if you are fifty five years old in 42 00:01:54.400 --> 00:01:57.280 twenty twenty five, how much can you contribute into your 43 00:01:57.359 --> 00:02:00.280 retirement plan at work? So the choices were twenty five 44 00:02:00.319 --> 00:02:04.359 thousand or thirty one thousand in Jillian shows the correct answer. 45 00:02:04.120 --> 00:02:06.840 With your thirty one thousand dollars in twenty twenty five. 46 00:02:07.239 --> 00:02:10.919 Congratulations Jillian, great work there, and again we'll have a 47 00:02:10.960 --> 00:02:13.360 chance for you to win again this week with the 48 00:02:13.439 --> 00:02:16.199 Class Quiz Quash Week. Pay close attention to the program 49 00:02:16.400 --> 00:02:18.479 smatch the full lines. They're open if you've got a question, 50 00:02:18.560 --> 00:02:20.080 love to have you join us. Six oh eight three 51 00:02:20.159 --> 00:02:22.759 two one thirteen ten. That's six soh eight three two 52 00:02:22.800 --> 00:02:25.960 one thirteen ten. Mentioned earlier the website colss financial dot 53 00:02:26.000 --> 00:02:29.400 com that's coss klaas financial dot com did get a 54 00:02:29.439 --> 00:02:31.560 chance chance to mention all the great features. You can 55 00:02:31.639 --> 00:02:33.479 learn more about the team at Costs Financial. You can 56 00:02:33.560 --> 00:02:35.639 learn about their separate divisions. You can also sign up 57 00:02:35.680 --> 00:02:38.759 for the weekly market Paul's newsletter all on the website 58 00:02:38.800 --> 00:02:41.280 class financial dot com. So today we're gonna be talking 59 00:02:41.319 --> 00:02:45.240 about Social Security benefits in the various ages folks may 60 00:02:45.280 --> 00:02:48.599 become eligible to receive certain benefits and CJ. What do 61 00:02:48.639 --> 00:02:49.439 we need to know there? 62 00:02:50.719 --> 00:02:51.000 Yeah? 63 00:02:51.039 --> 00:02:52.520 Well, first off, I hope you can hear me. 64 00:02:52.560 --> 00:02:56.000 Okay, so great, we're having some trouble there, sound fantastic. 65 00:02:56.360 --> 00:02:57.639 Okay, great, Yeah. 66 00:02:57.680 --> 00:03:00.560 So to begin our discussion, I want to outline the 67 00:03:00.599 --> 00:03:04.400 various types of social security benefits someone could become eligible 68 00:03:04.479 --> 00:03:08.479 to receive throughout their lifetime. Now, for those who have 69 00:03:08.599 --> 00:03:10.319 listened to our show for a while, I actually want 70 00:03:10.360 --> 00:03:13.719 to encourage you listen closely. Today's show is going to 71 00:03:13.759 --> 00:03:16.919 go quite a bit deeper into elements of social security 72 00:03:17.159 --> 00:03:19.719 I don't know that we've ever talked about on this show. 73 00:03:19.800 --> 00:03:23.479 So for those who are interested in sociecurity benefits, whether 74 00:03:23.479 --> 00:03:25.439 you're drawing it now or drawing in the future, this 75 00:03:25.479 --> 00:03:27.319 is going to give you some additional insights into the 76 00:03:27.400 --> 00:03:30.439 various types of benefits that soci security provides, along with 77 00:03:30.560 --> 00:03:31.680 different calculation. 78 00:03:32.000 --> 00:03:33.199 So hang tight. 79 00:03:33.919 --> 00:03:37.759 But the various types of sociecurity benefits include the following 80 00:03:38.280 --> 00:03:42.360 number one, retirement benefits. This is what most people think 81 00:03:42.400 --> 00:03:44.479 of when they think of soci security. They think of 82 00:03:45.000 --> 00:03:48.759 retirement benefits, but believe it or not, Outside of retirement benefits, 83 00:03:48.840 --> 00:03:56.039 there are the following other benefits, disability insurance benefits, survivor benefits, 84 00:03:56.879 --> 00:04:03.240 family benefits, and supplemental Social Security income benefits. Now, according 85 00:04:03.280 --> 00:04:06.360 to SOCI Security Administration, here are quick definitions of each 86 00:04:06.479 --> 00:04:09.919 type of benefit, someone could become eligible to receive throughout 87 00:04:09.960 --> 00:04:13.000 their lifetime. Because you actually think about it, you could 88 00:04:13.080 --> 00:04:16.680 become eligible to receive any one of those five different 89 00:04:16.680 --> 00:04:19.720 types of soci security benefits I just mentioned at different 90 00:04:19.759 --> 00:04:24.079 points throughout your life. So let's define them first. The 91 00:04:24.120 --> 00:04:27.800 soci security retirement benefit is a monthly check that replaces 92 00:04:27.879 --> 00:04:30.759 part of your income when you reduce your hours or 93 00:04:30.800 --> 00:04:34.720 stop working altogether. It may not replace all your income, 94 00:04:34.839 --> 00:04:37.399 so it's best to identify other ways to pay for 95 00:04:37.439 --> 00:04:41.759 your monthly expenses as you age. Again, everybody, these are 96 00:04:41.800 --> 00:04:45.279 actually definitions right off the Soci Security website. So again, 97 00:04:45.839 --> 00:04:49.759 that was just a definition for Social Security retirement benefits. 98 00:04:50.279 --> 00:04:54.399 Now here's a definition for Social Security Disability Insurance benefits 99 00:04:54.439 --> 00:04:59.959 also known as SSDI. Soci Security Disability benefits provides more 100 00:05:00.079 --> 00:05:04.360 monthly payments to people who have a disability that stops 101 00:05:04.560 --> 00:05:09.000 or limits their ability to work. The third type of 102 00:05:09.000 --> 00:05:13.199 benefit is the Social Security survivor benefit, and that provides 103 00:05:13.279 --> 00:05:16.600 monthly payments to eligible family members of people who worked 104 00:05:16.839 --> 00:05:21.079 and paid Social Security taxes before they died. So again, 105 00:05:21.160 --> 00:05:23.959 survivor benefit would be say I have a parent who 106 00:05:24.000 --> 00:05:28.199 died and it could be eligible for different family members. 107 00:05:29.160 --> 00:05:32.360 The fourth type of soci security benefit is Social Security 108 00:05:32.680 --> 00:05:36.879 Family Benefit. This provides monthly payments to certain family members 109 00:05:36.959 --> 00:05:42.720 of people who are eligible for retirement or disability benefits. 110 00:05:43.680 --> 00:05:48.639 And finally, Social Security Supplemental Security Income Benefit known as 111 00:05:49.000 --> 00:05:52.319 s SI. So remember the other one was ssd I. 112 00:05:52.519 --> 00:05:56.600 This is known as s SI provides monthly payments to 113 00:05:56.639 --> 00:06:00.360 people with disabilities and adults who have little or no 114 00:06:00.600 --> 00:06:05.399 income or resources. So listen, everybody, here's the example of SSI. 115 00:06:06.120 --> 00:06:09.399 What happens when somebody is born with a disability? Right, 116 00:06:09.879 --> 00:06:12.839 how do they function in the world. Maybe that disability 117 00:06:12.959 --> 00:06:15.160 doesn't allow them to work a normal job, but maybe 118 00:06:15.160 --> 00:06:19.360 they can still be in society and add add meaningful 119 00:06:19.519 --> 00:06:21.120 value and love and connection. 120 00:06:21.560 --> 00:06:23.000 But how do they live if. 121 00:06:22.920 --> 00:06:25.160 There's no you know, no employer that's going to pay 122 00:06:25.199 --> 00:06:29.120 them enough for sustenance? And the answer is often SSI. 123 00:06:29.360 --> 00:06:32.000 So here's what I want everybody to realize. With those 124 00:06:32.079 --> 00:06:37.800 five definitions in place, social security is fantastic for a 125 00:06:37.879 --> 00:06:40.959 society like ours to have some sort of a system 126 00:06:41.000 --> 00:06:44.319 in place that takes care of either the least of 127 00:06:44.360 --> 00:06:48.199 those in our society or provides a minimum sustenance, income 128 00:06:48.279 --> 00:06:52.319 and retirement. I believe we should all be proud of 129 00:06:52.399 --> 00:06:55.439 the fact that we have a social security benefit. Now 130 00:06:55.480 --> 00:06:57.800 I'm not saying this is not a political statement, right, 131 00:06:57.839 --> 00:06:59.079 That's not the point of this. 132 00:06:59.480 --> 00:07:01.560 It is rather just to say that as. 133 00:07:01.399 --> 00:07:06.319 A as a developed society like ours, it is nice 134 00:07:06.360 --> 00:07:08.240 to know that they're that there are these kind of 135 00:07:08.240 --> 00:07:12.720 like five fallbacks for people as the age or become unhealthy, 136 00:07:12.879 --> 00:07:16.399 or become disabled or born with a disability. Is nice 137 00:07:16.439 --> 00:07:19.279 to know that we we have developed the system. 138 00:07:19.279 --> 00:07:21.800 Talking this morning with CJ. Closs and Eric Schwartz, they 139 00:07:21.839 --> 00:07:25.000 are our retirement planning professionals from Class Financial, the website 140 00:07:25.000 --> 00:07:28.040 class financial dot com. That's Claus k l a as 141 00:07:28.160 --> 00:07:30.759 financial dot com and their telephone number six o eight 142 00:07:30.920 --> 00:07:34.040 four four two five six three seven. No charge for 143 00:07:34.079 --> 00:07:36.000 that initial get to know you appointment tech Class Financial, 144 00:07:36.079 --> 00:07:38.480 It will be complimentary to you again their number six 145 00:07:38.519 --> 00:07:41.480 oh eight four four two five six three seven. And CJ. 146 00:07:41.600 --> 00:07:44.160 You alluded to and as folks kind of heard you 147 00:07:44.240 --> 00:07:49.240 discuss those those five different different types of benefits, folks 148 00:07:49.240 --> 00:07:53.000 could experience multiple, if not all of these in their lifetime. 149 00:07:53.680 --> 00:07:56.040 Yeah, that's right. So a couple things on this. 150 00:07:56.160 --> 00:07:58.120 So we do understand that social Security can get a 151 00:07:58.120 --> 00:08:02.399 bad reputation due to its funding problems or how politicians. 152 00:08:01.839 --> 00:08:03.319 Use it for political leverage. 153 00:08:03.360 --> 00:08:05.600 I mean, listen, just just watch a couple of the 154 00:08:05.680 --> 00:08:09.279 more recent debates in political land, and it's like social 155 00:08:09.279 --> 00:08:12.240 Security is a big topic. However, as I mentioned, at 156 00:08:12.279 --> 00:08:16.600 its core, social security is a modern financial marvel and 157 00:08:16.639 --> 00:08:20.360 it positively impacts the lives of tens of millions of 158 00:08:20.399 --> 00:08:25.600 Americans and it keeps countless more out of extreme poverty. 159 00:08:25.800 --> 00:08:28.920 That's the key, right, it keeps countless more out of 160 00:08:28.959 --> 00:08:31.720 extreme poverty. Now, I'm not saying there's not abuse in 161 00:08:31.759 --> 00:08:34.840 the system. I'm not saying that politicians haven't managed it well, 162 00:08:34.840 --> 00:08:37.480 that it doesn't have funding problems. Those are all true statements, 163 00:08:37.759 --> 00:08:41.200 and I'm not disagreeing with that. But at its core, 164 00:08:41.639 --> 00:08:44.440 what a blessing to our American society that we have 165 00:08:44.559 --> 00:08:47.919 found a way to try to provide minimum sustenments. Now, 166 00:08:48.080 --> 00:08:50.360 with all of this being said, today, we will be 167 00:08:50.440 --> 00:08:56.799 primarily focusing on social Security, retirement benefits and family benefits 168 00:08:56.840 --> 00:08:59.120 for the remainder of our show. And the reason is 169 00:08:59.159 --> 00:09:03.919 because these two categories, again, retirement benefits and family benefits 170 00:09:03.960 --> 00:09:07.840 account for about sixty five percent of all Social Security 171 00:09:07.879 --> 00:09:10.559 benefit recipients. So that is where the remainder of our 172 00:09:10.559 --> 00:09:11.639 show will be focused, and. 173 00:09:11.600 --> 00:09:13.679 We're going to talk a little bit about I think 174 00:09:13.679 --> 00:09:15.240 one of the big questions every time we talk SOS 175 00:09:15.279 --> 00:09:18.399 security is the when, and we'll find out from Cjan Eric. 176 00:09:18.399 --> 00:09:20.399 We will do that and so much more. As Money 177 00:09:20.399 --> 00:09:23.240 Motion with Coss Financial continues, don't forget about the website 178 00:09:23.399 --> 00:09:26.399 class Financial dot com. That's coss k l aa S 179 00:09:26.480 --> 00:09:29.159 Financial dot com. There telphon number six oh eight four 180 00:09:29.240 --> 00:09:31.720 four two five six three seven, and the phone lines 181 00:09:31.720 --> 00:09:33.399 are open here at station. If you have questions for 182 00:09:33.519 --> 00:09:35.200 Eric and CJ, I'll can just pick up phone give 183 00:09:35.240 --> 00:09:37.679 us a ring six oh eight three two one thirteen ten. 184 00:09:37.720 --> 00:09:40.679 That's six oh eight three two one thirteen ten. More 185 00:09:40.720 --> 00:09:43.159 of Money in Motion with Coss Financial is next right 186 00:09:43.200 --> 00:09:47.519 here on thirteen ten. WIBA talking this week Social Security 187 00:09:47.559 --> 00:09:51.240 with our retirement planning professionals from Class Financial, joined by CJ. 188 00:09:51.360 --> 00:09:53.960 Closs and Eric Schwartz. Again, they are our retirement planning 189 00:09:54.000 --> 00:09:56.440 professionals from Class Financial. Hope you've had a chance check 190 00:09:56.440 --> 00:09:59.399 out the website Coss Financial dot com. That's coss k 191 00:09:59.639 --> 00:10:02.000 l a as financial dot com. Maybe when you get 192 00:10:02.039 --> 00:10:03.960 into the office this morning, take a peek over there. 193 00:10:04.039 --> 00:10:06.440 Another cool thing to online at the website. If you 194 00:10:06.480 --> 00:10:08.639 miss part today's program or you want to listen back, 195 00:10:08.840 --> 00:10:10.879 or even better subscribe to the podcast. You can do 196 00:10:10.960 --> 00:10:14.440 all of that online at clossfinancial dot com. That's colss 197 00:10:14.559 --> 00:10:17.320 k l aa S financial dot com and their telephone 198 00:10:17.399 --> 00:10:20.120 number six so eight four four two five six three seven. 199 00:10:20.360 --> 00:10:23.759 Talking this week about social security and CJ laid out 200 00:10:24.159 --> 00:10:27.720 the different types of Social Security benefits there are, and 201 00:10:27.799 --> 00:10:29.559 we're going to kind of break down in a great 202 00:10:29.639 --> 00:10:32.960 rundown from CGEN those various types of social Security benefits. 203 00:10:33.120 --> 00:10:35.960 But I've got to think for most folks, Eric, they 204 00:10:36.039 --> 00:10:38.600 just want to know at what age should I be 205 00:10:38.679 --> 00:10:41.080 taking and starting my own retirement benefit. 206 00:10:42.919 --> 00:10:45.200 Yeah, Sean, That's that's pretty much what everybody wants to know. 207 00:10:45.279 --> 00:10:48.759 That's the most common question we get from from our clients, 208 00:10:48.799 --> 00:10:52.639 from the general public. And I mean, unfortunately my answer 209 00:10:52.720 --> 00:10:54.799 is going to be a little bit unsatisfying for listeners. 210 00:10:55.159 --> 00:10:57.720 It is accurate, though it depends on a lot of 211 00:10:57.759 --> 00:10:59.320 factors that are unique. 212 00:10:59.039 --> 00:11:00.919 To individuals and their families. 213 00:11:01.120 --> 00:11:04.320 So before we jump into kind of you know how 214 00:11:04.440 --> 00:11:05.960 timing and when you take your. 215 00:11:05.840 --> 00:11:08.559 Benefits effects the amount you get. 216 00:11:08.840 --> 00:11:11.200 Let's just talk a little bit first here about where 217 00:11:11.240 --> 00:11:14.000 our Social Security retirement benefits come from. 218 00:11:14.080 --> 00:11:14.279 Right. 219 00:11:14.320 --> 00:11:17.879 CJ was talking about this you know robust program that 220 00:11:17.919 --> 00:11:20.559 we have we have in our society here, but what 221 00:11:20.639 --> 00:11:25.480 actually funds Social Security? So the benefits that are received 222 00:11:25.519 --> 00:11:30.000 are actually funded through payroll taxes. So we look at 223 00:11:30.000 --> 00:11:33.799 our paycheck and we see the fight attack on the 224 00:11:33.840 --> 00:11:38.279 deductions area, A portion of that is going to Social Security. 225 00:11:38.360 --> 00:11:40.399 So six point two percent. 226 00:11:40.639 --> 00:11:45.840 Of your wages to go to the Social Security Administration. 227 00:11:46.200 --> 00:11:49.159 Your employer also kicks in six point two percent of 228 00:11:49.200 --> 00:11:51.879 your wages, so that the total of twelve point four 229 00:11:52.799 --> 00:11:56.399 and that is applied to your wages up to what's 230 00:11:56.440 --> 00:11:59.799 called the Social Security wage base or the cap on earning. 231 00:12:00.519 --> 00:12:02.759 So the wage based cap for twenty twenty five is 232 00:12:02.759 --> 00:12:06.480 one hundred and seventy six thousand, one hundred dollars per individual. 233 00:12:07.200 --> 00:12:10.000 So this means that what if an individual is a 234 00:12:10.039 --> 00:12:12.279 higher earner and they earn more than one hundred and 235 00:12:12.320 --> 00:12:15.879 seventy six thousand, one hundred dollars, there will no longer 236 00:12:15.919 --> 00:12:20.440 be Social Security payroll tax taken out over and above there. 237 00:12:20.480 --> 00:12:23.679 So we often hear folks that we talk to who 238 00:12:23.759 --> 00:12:25.879 maybe higher earners, say, oh, towards the end of the year, 239 00:12:25.919 --> 00:12:27.639 I actually get a I get a little bump in 240 00:12:27.679 --> 00:12:30.039 my paycheck, I get a little raise. And what they're 241 00:12:30.039 --> 00:12:32.039 saying there is, you know, their take home is more 242 00:12:32.120 --> 00:12:36.080 because that that's six point two percent is actually no 243 00:12:36.159 --> 00:12:38.840 longer being being taken out. Now that changes when they 244 00:12:38.840 --> 00:12:43.159 flip into the new year, obviously, and they start, you know, 245 00:12:43.240 --> 00:12:47.279 we start the clock over. But the funding mechanism for 246 00:12:47.399 --> 00:12:49.240 the Social Security system. 247 00:12:49.120 --> 00:12:50.720 Is is payroll taxes. 248 00:12:51.480 --> 00:12:54.360 But more to your question here, let's let's talk a 249 00:12:54.440 --> 00:12:58.480 little bit about how soon people can take their benefits 250 00:12:58.480 --> 00:13:01.279 and what is the right age. Unfortunately it's a little 251 00:13:01.320 --> 00:13:03.679 bit more of an art than a science, but let's 252 00:13:03.679 --> 00:13:05.399 talk about a couple of the things here that we 253 00:13:05.759 --> 00:13:08.759 think about. So the first thing is we want to 254 00:13:08.799 --> 00:13:11.559 remember there's a difference between when you can first take 255 00:13:11.600 --> 00:13:14.399 your Social Security benefits, so when you are first eligible 256 00:13:14.440 --> 00:13:16.360 to get some level of benefit. 257 00:13:17.039 --> 00:13:19.799 And when you receive your full. 258 00:13:19.639 --> 00:13:23.720 Social Security benefit, which is at your full retirement age. Okay, 259 00:13:23.759 --> 00:13:26.519 so let's begin with a little bit of a background 260 00:13:26.559 --> 00:13:29.240 here on what is meant by full retirement age so 261 00:13:29.279 --> 00:13:32.559 accordinate to social security. If you were born between nineteen 262 00:13:32.600 --> 00:13:36.480 forty three and nineteen fifty four, your full retirement age. 263 00:13:36.399 --> 00:13:38.320 Is sixty six, okay. 264 00:13:38.320 --> 00:13:41.320 But for those born between nineteen fifty five and nineteen 265 00:13:41.360 --> 00:13:42.159 fifty nine. 266 00:13:42.240 --> 00:13:44.320 Your full retirement's a little more complicated. 267 00:13:44.759 --> 00:13:48.759 It's sixty six plus some number of months based on 268 00:13:48.799 --> 00:13:52.240 when you were born. And then for everybody after nineteen 269 00:13:52.320 --> 00:13:57.559 sixty that's all age sixty seven. So your full retirement age, 270 00:13:57.799 --> 00:14:00.000 which is also known as your FRA, and you'll hear 271 00:14:00.159 --> 00:14:03.080 us refer to that here throughout the show, that's the 272 00:14:03.120 --> 00:14:07.320 agent which you become eligible to receive your full unreduced 273 00:14:07.559 --> 00:14:11.039 Social Security benefit. Okay, So notice I said you're full 274 00:14:11.159 --> 00:14:15.720 and unreduced social Security benefit. You are actually able to 275 00:14:16.080 --> 00:14:19.159 collect as early as age sixty two, and a lot 276 00:14:19.200 --> 00:14:19.639 of people do. 277 00:14:20.799 --> 00:14:23.840 You're able to collect as early as sety two. You 278 00:14:23.840 --> 00:14:26.240 can also wait until you're seventy. We'll talk about that 279 00:14:26.279 --> 00:14:26.559 more in. 280 00:14:26.559 --> 00:14:30.600 A moment, but you know, really between sixty two and 281 00:14:30.639 --> 00:14:33.720 seventy you can collect anywhere in there, you know, kind 282 00:14:33.720 --> 00:14:36.120 of down to the I think whole a lot of times, 283 00:14:36.240 --> 00:14:38.639 think okay, I can take it at sixty two, maybe 284 00:14:38.679 --> 00:14:42.600 sixty five and my full retirement age. Not true. 285 00:14:42.679 --> 00:14:45.080 You can take it any month in between there, and. 286 00:14:45.080 --> 00:14:48.480 Social Security is actually going to you know, pro rate 287 00:14:48.559 --> 00:14:49.759 your benefit so to speak. 288 00:14:50.080 --> 00:14:52.159 If let's say you take it at sixty two. 289 00:14:51.960 --> 00:14:54.960 And six months, okay, so you'll get a larger benefit 290 00:14:55.000 --> 00:14:57.120 than at sixty two, not quite as much as if 291 00:14:57.159 --> 00:15:00.759 you wait until you wear your sixty Let's talk to 292 00:15:00.799 --> 00:15:04.240 here a little bit about how much you actually received 293 00:15:04.519 --> 00:15:09.039 as a benefit. This is a really really difficult calculation 294 00:15:09.559 --> 00:15:12.360 and that try to recreate it on our own. 295 00:15:12.840 --> 00:15:14.720 And it can be done, but it takes a long time. 296 00:15:15.200 --> 00:15:18.960 We actually have a great resource available to us at 297 00:15:19.120 --> 00:15:22.120 SSA dot gov, So anybody can go to SSA dot 298 00:15:22.120 --> 00:15:25.399 gov and. 299 00:15:24.159 --> 00:15:25.720 Create a profile for yourself. 300 00:15:26.000 --> 00:15:29.559 You can see your earnings history, you can get an 301 00:15:29.600 --> 00:15:32.360 idea of what your actual benefits. 302 00:15:31.879 --> 00:15:34.120 May be based on the age at which you start. 303 00:15:34.480 --> 00:15:37.639 It's a really really great tool, So encourage all listeners 304 00:15:37.679 --> 00:15:41.159 to go out there and create a profile on SSA 305 00:15:41.320 --> 00:15:44.600 dot gov so that you can you can get an 306 00:15:44.639 --> 00:15:48.440 idea of what your benefit might be. But talking about 307 00:15:48.480 --> 00:15:51.480 the best time to collect okay, so again depends on 308 00:15:51.519 --> 00:15:56.679 your situation. In most cases, it is generally advisable. You said, 309 00:15:56.679 --> 00:16:00.200 generally advisable to wait at least until you've reached your 310 00:16:00.200 --> 00:16:04.360 full retirement age to start collecting Social Security because the 311 00:16:04.360 --> 00:16:06.960 monthly benefit is so much higher. Okay, So, if you 312 00:16:06.960 --> 00:16:10.639 were born in nineteen fifty five and your full retirement 313 00:16:10.679 --> 00:16:13.399 age is sixty six and two months, that is the 314 00:16:13.440 --> 00:16:17.080 age at which you are able to collect your full 315 00:16:17.480 --> 00:16:21.240 unreduced benefit. Now, what if you wait beyond your full 316 00:16:21.320 --> 00:16:22.480 retirement age, because we do have. 317 00:16:22.480 --> 00:16:23.120 People who do this. 318 00:16:23.600 --> 00:16:27.559 Maybe they're still working, they don't need income, or they're 319 00:16:27.639 --> 00:16:30.200 just you know, it's part of their retirement income strategy 320 00:16:30.240 --> 00:16:35.120 to push Social Security off until seventy. Okay, So the 321 00:16:35.159 --> 00:16:38.639 Social Security benefits are increased if you wait after your 322 00:16:38.639 --> 00:16:43.600 full retirement age any number of years up until seventy, 323 00:16:43.639 --> 00:16:46.840 and depending on your data birth, you are getting what 324 00:16:46.879 --> 00:16:50.240 are called delayed retirement credits, and that can allow your 325 00:16:50.240 --> 00:16:54.080 benefit to increase up to eight percent per year until 326 00:16:54.080 --> 00:16:56.960 you actually start taking benefits. Now, once you hit seventy, 327 00:16:56.960 --> 00:17:01.600 there's no more increases. So most people should not wait 328 00:17:01.679 --> 00:17:06.279 beyond seventy to take their Social Security benefits. But even 329 00:17:06.319 --> 00:17:08.519 if it means using some of you the income that 330 00:17:08.559 --> 00:17:12.319 you've saved in your retirement account. For example, it can 331 00:17:12.440 --> 00:17:16.039 still be worth it to put off that Social Security 332 00:17:16.079 --> 00:17:19.160 until seventy. It's because you're getting a risk free eight 333 00:17:19.240 --> 00:17:23.799 percent annual benefit increase. Now at Class Financial, we have 334 00:17:24.640 --> 00:17:28.720 an excellent investment management team here. Great, they did great work, 335 00:17:29.039 --> 00:17:32.160 but they will tell you that to have a guaranteed 336 00:17:32.240 --> 00:17:35.839 eight percent rate of recurry that is really, really really 337 00:17:35.880 --> 00:17:39.680 hard to beat. Okay, So pushing it off till seventy 338 00:17:39.720 --> 00:17:42.440 can be really really valuable if you have the assets 339 00:17:42.519 --> 00:17:46.799 to create income in between there and last thing Sean 340 00:17:46.799 --> 00:17:51.079 here before we go to the next question. Is I 341 00:17:51.160 --> 00:17:54.480 mentioned this earlier, but you don't when you start taking 342 00:17:54.519 --> 00:17:57.279 your Social Security benefits, you don't have to do it 343 00:17:57.400 --> 00:18:02.200 like on your birthday each year. Depending on how old 344 00:18:02.240 --> 00:18:05.039 you are, social Security either gives you a five ninths 345 00:18:05.039 --> 00:18:07.119 of one percent or a five to twelfths of one 346 00:18:07.200 --> 00:18:10.599 percent increase for each month that you wait. 347 00:18:10.880 --> 00:18:14.079 Okay, so you are getting credit for that. And I 348 00:18:14.160 --> 00:18:17.240 just want to underline here there's almost no reason to. 349 00:18:17.079 --> 00:18:19.839 Not pull your retirement benefits once you've reached age seventy 350 00:18:19.880 --> 00:18:21.640 because you're not getting any more of those to layed 351 00:18:21.640 --> 00:18:22.440 retirement credits. 352 00:18:22.680 --> 00:18:25.759 Really important information there. Eric Schwartz and CJ. Closs out 353 00:18:25.839 --> 00:18:29.680 retirement planning professionals from Class Financial online Class Financial dot com. 354 00:18:29.720 --> 00:18:33.039 That's Coss k l aas Financial dot com. So CJ, 355 00:18:33.440 --> 00:18:36.200 how is this your specific soci Security benefit? How is 356 00:18:36.240 --> 00:18:40.119 that determined? And does that increase what's kind of the 357 00:18:40.519 --> 00:18:41.319 understanding there? 358 00:18:42.440 --> 00:18:43.279 Yeah, good question. 359 00:18:43.880 --> 00:18:47.680 First, you need to have enough credits to even qualify 360 00:18:47.839 --> 00:18:51.039 to receive Social Security benefits. So for our listeners who 361 00:18:51.640 --> 00:18:54.200 listen quite often, up till now, we've talked about a 362 00:18:54.240 --> 00:18:56.519 couple of things you maybe haven't heard on social security. 363 00:18:56.839 --> 00:18:58.680 But here's where we're going to get into some fun 364 00:18:58.759 --> 00:19:01.000 these last two sections. We're going to talk about these 365 00:19:01.039 --> 00:19:05.160 calculations and it's it's quite interesting, so stick with us. So, 366 00:19:05.240 --> 00:19:07.880 as you work and pay taxes, you earn Social Security 367 00:19:08.160 --> 00:19:09.039 that are credits. 368 00:19:09.079 --> 00:19:09.960 They're known as credits. 369 00:19:10.240 --> 00:19:12.799 In twenty twenty five, you earn one credit for each 370 00:19:12.880 --> 00:19:15.920 one eight and ten dollars in earnings, up to a 371 00:19:15.960 --> 00:19:19.440 maximum of four credits per year. The amount of money 372 00:19:19.480 --> 00:19:22.559 needed to earn one credit usually goes up every year, 373 00:19:22.599 --> 00:19:25.720 by the way, but most people need forty credits or 374 00:19:25.839 --> 00:19:30.839 ten years of work to qualify for their own retirement benefit. Now, 375 00:19:30.920 --> 00:19:34.880 notice I emphasize the word their own retirement benefit. 376 00:19:35.240 --> 00:19:36.599 Harken back at the beginning of. 377 00:19:36.599 --> 00:19:39.200 The show, we talked about there's actually five different benefits 378 00:19:39.200 --> 00:19:41.640 that soci Security can pay. We're honing in on a 379 00:19:41.799 --> 00:19:45.000 retirement benefits, and now I'm honing it even further on 380 00:19:45.039 --> 00:19:48.400 your own retirement benefit. You need at least forty credits 381 00:19:48.440 --> 00:19:52.079 are about ten years worth of earnings to even qualify 382 00:19:52.200 --> 00:19:55.319 for your own retirement benefit. Now, if you do not 383 00:19:55.440 --> 00:19:58.359 have at least forty credits, you are not currently entitled 384 00:19:58.400 --> 00:20:01.640 to a retirement benefit. Stop working before you have enough 385 00:20:01.640 --> 00:20:03.160 credits to qualify for benefits. 386 00:20:03.200 --> 00:20:05.359 Your credits will stay on your record. 387 00:20:05.759 --> 00:20:08.279 If you then return to work later, more credits will 388 00:20:08.319 --> 00:20:10.480 be added. So again, you can go to the SSA 389 00:20:10.559 --> 00:20:13.680 dot gov website and read their publication how you Earn 390 00:20:13.799 --> 00:20:17.640 Credits for more information. Now, assuming you have enough credits, 391 00:20:17.680 --> 00:20:20.839 your Social Security uses a calculation based on your highest 392 00:20:21.000 --> 00:20:26.920 thirty five year inflation adjusted average of covered wages. 393 00:20:27.200 --> 00:20:29.039 Let's dig a little deeper on this. Now, this is 394 00:20:29.039 --> 00:20:29.720 where it gets fun. 395 00:20:30.640 --> 00:20:34.480 Every American begins with one hundred and forty credits or 396 00:20:34.559 --> 00:20:38.799 thirty five years worth of zeros in their Social Security 397 00:20:38.839 --> 00:20:43.400 retirement benefit calculator. Okay, so again, if they're going to 398 00:20:43.480 --> 00:20:47.279 use thirty five years worth of inflation adjusted earnings or 399 00:20:47.279 --> 00:20:49.599 one hundred and forty credits, that's just thirty five times four, 400 00:20:50.319 --> 00:20:52.519 Then what do I begin with the answer is one 401 00:20:52.559 --> 00:20:55.920