How to Navigate Social Security Like a Pro (With 2 Registered Analysts!)

6.20.25: Audio automatically transcribed by Sonix

6.20.25: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker1:
Any examples used are for illustrative purposes only, and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment, and is not a solicitation or recommendation of any investment strategy.

Speaker2:
Welcome to Retirement Results, the national radio show and podcast for listeners like you who want to protect and grow their hard earned money. In a world filled with so much uncertainty and financial risk, we seek to cut through the noise and build successful plans for hardworking Americans on their road to financial freedom. Retirement results is powered by Active Wealth Management, a team of fiduciary advisors who always place your needs first. And now your host. He's a registered social security analyst, member of the Forbes Finance Council, and author of multiple books on retirement planning. Here's your chief financial advisor Ford Stokes.

Speaker3:
And welcome to. Retirement results result drivers on Ford Stokes your chief financial advisor got a new co-host with me this week. It's that time of year. Yes, it's the summer. We welcome back Matthew McClure. Matt McClure is back with us. He's our roving reporter. Series 65 License Advisor. And is Bradley newly licensed and certified as a registered Social Security analyst? He's one of 23 Social Security analysts along with me in the state of Georgia. Matt, welcome to the show. Thanks so much for doing the co-hosting the show with Sam out in Kansas City, playing in a member guest golf tournament this weekend with his father in law. I mean.

Speaker1:
You know, a good excuse for him to to be going somewhere. I guess there are worse excuses in the world, but no, I'm any excuse that I get to be on the show here with you. I love it, so thank you for having me, is the thing.

Speaker3:
Oh that's awesome. So for those of you who don't know who Matt McClure is, Matt was the reporter on the floor of the New York Stock Exchange for a year and a half. Two years with New York one. There's pictures to prove it, actually, and we'll put we'll put one of those pictures on this episode if you want to check it out at retirement results. Com forward slash episodes, you just go click the episode section. We'll put it on the transcript for this this show. And I'll tell you, Matt, it's so great to have you here instead of Sam, because both of us are registered Social Security analysts. And when the two of us are going to get on a call like this and on an actual show, we're going to talk about Social Security. And the number one topic for the title for this show is navigating your Social Security income benefits. We're going to give you that roadmap to smarter claiming and more lifetime income, if that's of any interest to anybody. And then we're also going to talk about the new 6040 portfolio. Matt's got a problem solver that he's done for a gentleman down there in Midtown. And I have a problem solver as well. We'll try to cover mats in segment three and we'll cover mine in segment four. But first of all, I'm just so glad you're here with us there, Matt. It's awesome. But, Matt, can you go ahead and share the financial wisdom quote of the week for the folks?

Speaker4:
And now for some financial wisdom. It's time for the quote of the week.

Speaker1:
This week's quote comes from Warren Buffett, the Oracle of Omaha himself. And he said this and I love it. Never depend on a single income. Make investment to create a second source. I mean, never depend on a single. And, you know, very apropos of this week to Ford because, you know, this week's show is so much about Social Security and so many people, survey after survey has shown so many people rely only on Social Security as that primary source of income in retirement. Far too many.

Speaker3:
Yeah, for sure. It's either the number one or number two source of retirement income for a majority of Americans out there. And the decision of when you're going to take Social Security when your spouse is going to take Social Security is going to be likely the number one or number two decision regarding retirement income you're going to make throughout your entire 30 plus year retirement. So we want to make sure we help you do a great job with that. Matt. And I would be remiss if we didn't tell you how to get in touch with us and how to actually get your XML files from SSA. Gov. So if you go to sign up, get your your account with SSA gov. And instead of downloading the PDF where they're aggregating certain decades and they're 5% off to your detriment, by the way, we encourage you to download the X files, the x ray Mary Lema file. That's what it stands for. Those are those three letters XML. If you can get that to us, we'll get your top 35 earning years and we can run your RSA roadmap, which is a Social Security maximization report. Matt, you and I are doing that for folks all the time. You recently had a seminar over at South Springs Library in Hall County where you and Josh live. And I got to tell you, it was 100% of the people that were there were like, yeah, I want that as a roadmap. So what we need to do, Matt, is make sure that 100% of the people that are listening to us on the radio are going to maximize their Social Security and get in touch with us at retirement results. Dot com. They can also go to retirement plan, um, and put their information in. We'll call them get started right away. Again that's retirement results.com/plan. But Matt your thoughts on the on the wonder and information that is included in a registered Social security analyst roadmap.

Speaker1:
I mean it really is priceless information because it gives you an entire look in depth at your different options for filing Social Security. You know, we often will talk about and it's very true. You know, you can max out your benefit by waiting until age 70 to file for that benefit. But does it make sense for you in your individual situation or your situation with your spouse and your family? Um, you know, it can it also, it takes into account not only what you've earned and what what the you know, Social Security Administration will tell you what you know, what you've earned in the past. It can, you know, project out, you know, projected earnings in the future until you plan to retire. And take that into account and then also take things like longevity into account. So if you live to age 95, you know what would be the smartest strategy? It really is. It's less about maybe, I guess, maximizing Social Security benefits and more about optimizing Social Security benefits for you and for your situation. And it really will give you, you know, not only the maximum option, but also we'll give you three more options of when you and or you and your spouse can file and and you kind of, you know, can see mapped out what that's going to mean over the rest of your life. It really it's a it's a big deal.

Speaker3:
Yeah, I agree, I think it's great. And um, it's not just optimizing, but it's it's also understanding. You really get an understanding of your Social Security and benefits. And also we encourage people not to just trust whoever they're talking to, the Social Security Administration, cause because those folks are not fiduciaries. They're not there to put your needs ahead of their own. They're busy folks. They've got all the things to do. And I would encourage you to listen to a licensed fiduciary and a certified registered Social Security analyst. And Matt and I are two of the 23. We're almost 10% of the registered Social Security analysts in the state of Georgia. So pick up the phone and give us a call at (770) 685-1777. Again, that number (770) 685-1777. And we're happy to get back to you and help you better understand and optimize your Social Security income benefit. So let me give you an understanding of the rest of today's show. We're going to give you an overview, if you will. We're going to talk about the truth about timing and when to claim your Social Security benefits, or give you that breakdown of pros and cons of claiming at age 62, full retirement age or even age 70, and how to make the timing work for your goals. Because we don't want you to withdraw money from your portfolio.

Speaker3:
We want you to stay within that 4% withdrawal rate, or lean on some fixed index annuities as a bond replacement strategy, and or consider Roth ladder conversion plans between now and when you turn 73 years young when RMDs kick in. We're also going to talk about the hidden cost of going it alone, and why the Social Security Administration can't give you advice, and how misinformation leads to costly Social Security mistakes for retirees. We're going to discuss spousal and survivor benefits and what most people actually miss. I mean, Matt, you're going to talk specifically about the powerful and often overlooked benefits available to married couples, divorced spouses and widows, and how to unlock them. Uh, we're going to talk about how you shouldn't leave money behind and other benefits you might qualify for to look at disability benefits and dependent benefits and restricted applications. If you are part of, you know, a second family where the husband's a little bit older. Uh, you you may have high school aged kids that are eligible for benefits as well. We'll talk about, you know, we'll help answer. The question is finally, is is your Social Security actually taxed? And hopefully the current administration will do something about taxation on Social Security benefits, since you've already put money in there.

Speaker3:
We'll learn the thresholds, formulas and how to manage your other income sources to avoid surprise tax bills, and then also will future proof your income plan. And we'll we'll also talk about, you know, those problem solvers that fit right into this. And um, I'm just super excited about it. We're also in segment two. I want to talk about the new 6040 portfolio that also has something to do with income, and also how we work with high level and high quality custodians so that there's no Madoff of your money situation. And we've only got a couple of minutes left in this segment. But Harry Markowitz came up with modern portfolio theory in 1952. It's it's over 70 years old. That strategy and it said 60% stocks and 40% bonds. And it'll generate an efficient investment frontier for you. Because the premise is when money rushes out of stocks, it'll rush into bonds. We're not seeing that these days anymore. And, you know, Matt and I'll talk about this right when we come back for the break, but I'll just share this. I mean, bonds did very poorly over the last 4 to 5 years and the the rising interest rate environment. And I'm we're really concerned about people being too highly leveraged in bonds, especially with a go forward PE ratio of 135 to 1.

Speaker3:
I don't know if I necessarily trust somebody that's got to get 135 times their earnings to pay me my money back. I would prefer to be invested into fixing annuities, replace those bonds, also be invested with high quality custodians and managed portfolios, and tactically and strategically managed portfolios that we offer, even structured newsletters, all kinds of different strategies that are available to you when you work with a private wealth management firm, you work with advisors like Matt, Sam and myself. We can help you do that absolutely at no cost to you. All you've got to do is give us a call at (770) 685-1777 or visit retirement results. We give you a free financial plan and a free portfolio analysis with a registered Social Security analyst roadmap. Absolutely no cost to you on the front end. It's a $2,500 value. All you got to do is reach out to us at (770) 685-1777, and we come back for the break. We're going to dive into everything Social Security. We're going to talk about the truth about timing and when to claim benefits. Right. We come back with break. You're listening to retirement results on Am Natural and The Answer and Matt McClure's former radio station as a radio host.

Speaker2:
One Retirement results. We'll be right back. To learn more and schedule your complimentary retirement consultation, visit retirement.com. Visit Retirement results.com to schedule your free, no obligation consultation today. Now back to the show.

Speaker3:
And welcome back drivers to retirement results. I'm for Stokes our chief financial advisor. And we got Matt McClure here with us, one of our senior financial advisors and our roving reporter for retirement results. He is in the building folks. He's in the studio this week. And Matt, we just mentioned it right before the break. We're now airing around the lake. And you live, you and Josh live in in Hall County. You actually do seminars in Hall County at South Springs Libraries and other places, and you are now on your former station where you got your start in radio.

Speaker1:
Yeah, it's kind of crazy over, over 20 years ago. Um, my, one of my longtime friends and mentors in this business, uh, Bill main, uh, who is the general manager and, uh, I think senior VP some, some big, lofty title, you know, decided he was going to take a chance on a, on a college kid, um, working at, at the radio station. And I'm so glad that that he did. I was on what then was, uh, the oldies format. Magic 102.9. Um, and then on one on the Am side. But now, of course, they are one, and it's on both the Am and the FM as one, but it's so it's, it's, uh, wild to be back and I, I absolutely love it. Um, because, you know, it's nostalgia for me. I can't help myself.

Speaker3:
It's really good stuff. It's also nice that you're back as a series 65 license advisor, a registered social security analyst, life and health licensed. You're helping families protect and grow their hard earned and hard saved money. You're probably one of the few reporters who actually reported on the floor of the New York Stock Exchange who actually became a financial advisor. So that's pretty great stuff. You and I are talking about Social Security. We're this whole show, and we're talking about the truth about timing and when to claim benefits here. Um, you know, when to claim your Social Security income benefit, like we said in the last segment, is one of the biggest decisions you'll make in retirement planning. I mean, claiming at 62 full retirement age or it's or around 66 to 67, depending on if you're born before or after 1960, congratulations. If you're born after 1960. Your full retirement age is 67. Um, or if you want to go all the way to 70 years old, if you can do that, the difference in lifetime payouts is significant. Matt, talk to the folks. Don't you think they deserve a little bit more than just $0.70 on the dollar if they take it at age 62.5?

Speaker1:
Yeah. You know, I mean, people a lot of times I feel like we'll say, you know, Yeah. As soon as I'm eligible for it, I'm just going to take the money and run, you know, like the old song. And, uh, it's it's not always the best thing. It could be the best thing for you in your situation. But don't just go into it blind and say, oh, I'm. I gotta got this money. I got to take it right now, right? Waiting to at least get to that full retirement age. So you get 100% of your benefit that you are eligible for and entitled to then is, you know, you know, you got the money that you deserve in that way, you know, but then you can also max out your benefit by waiting. If your full retirement age is 67, just wait three more years and you get 124% of your benefit at age 70. So that could be advantageous, especially if you've got longevity on your side. If your people tend to live into their 90s and upwards of 100, that could definitely be something that you want to really think about. But, you know, if your people tend to croak out in their 60s, then, you know, you might want to look at the other end. It's, you know, you gotta you gotta take all things into consideration. And that's where, you know, working with us is as rsas that registered Social Security analyst can really help because you could look at all of those different options and and taking your situation, your longevity into account and all of that.

Speaker3:
Well, now we've you've coined a new phrase that's very technical in nature. Croak out. Yeah. So that's that's interesting.

Speaker1:
It's, you know, I just like to invent things, I guess.

Speaker3:
Let's go through let's go through these three big buckets on when a lot of people file. I'll, I'll take the claiming at 62, you can take the claiming at full retirement age and then we'll I'll try we'll both try to take claiming at age 70. So if you claim at 62.5 the pros are you get your benefits early. Um, it can help if you need income due to job loss or health issues or limited savings. A lot of people did that when Covid hit. Um, and they took early retirements, things like that, but they also lost a lot of earning years, and they lost a lot of growth years, too. And they lost deferred growth on their Social Security income benefit to the cons on this is your monthly benefit is permanently reduced by about 25 to 30%. We think you deserve more than $0.70 on the dollar. We really do. This lower amount also reduces survivor benefits for your spouse as well. Also remember folks, if you are going to file spousal benefits, your spouse must file before you file for you to receive the spousal benefits. Also, it's best for those with shorter life expectancies. Those people that croak out too early, like Matt just said. Um, or if folks that have immediate financial need um. And go ahead, Matt, why don't you take kind of the pros and cons and what is best for for folks claiming at their full retirement age.

Speaker1:
Yeah. So if you are listening to the sound of my voice right now, um, and have not yet claimed Social Security, chances are your full retirement age is either 66, 66 and some months or the age of 67. As Ford said a few minutes ago, everybody born after 1960. It's the age of 67. And so that is the the number that you need to keep in mind as your full retirement age, whatever the case is for you now, the pros are yeah. You receive your full monthly benefit at your full retirement age. No reductions, no penalties there. Um, it avoids, you know, any income restrictions. If you keep working, you know, you're not going to have to worry about, am I going to have a higher taxable income if I claim Social Security and I keep working? What's my tax burden on that going to be? Well, if you're not claiming Social Security, obviously you don't have to pay taxes on Social Security, at least not yet. Um, and then the cons though, we have to wait longer to start receiving income, obviously. So, you know, you're not claiming it 62 or 3 or 4 or 5 or, you know, 66. If your full retirement ages later than that, you know, you're claiming at that 66 age or 67. So you've got a weight. You've got a you've got a longer time period, maybe between when you quit working and when you claim income, and then you have to look and see, okay, well, who is this going to be best for? Well, it's best for retirees who are in good health. People who don't croak out a little bit earlier and they can cover their expenses, you know, without taking benefits early. So if you've got your monthly expenses covered, if you don't have a lot of debt, if you don't have, you know, a lot of monthly payments that you've got to be making early in retirement could be a good strategy for you.

Speaker3:
For sure. And then claiming at age 70, I'll take the pros, you can do the cons and who's the best for. So the pros on this is your benefits increase 8% per year beyond your full retirement age is what we call an 8% roll up. So you're getting 8% rolled up into additional income guaranteed. Uh, your maximum monthly benefit, a $2,000 check at 67 becomes $2,480 at age 70. Bigger survivor benefits for your spouse as well. There are a couple cons there. There's a con and then also Matt. Really? Who is this best for?

Speaker1:
Yeah. Yeah. So the con is, you know, you've got a delay again. You know, you're waiting farther beyond even farther beyond your full retirement age. So you're eligible at 62. Right. But you get that penalty. So if you want to max things out though, you've got to wait another eight years beyond age 62. So that would be the con is the kind of the timing thing there. But it's really best for as I said earlier, those people who have longevity on their side, their family tends to live longer. And so maybe it's it's those folks and they also have other income to kind of cover that gap between age 62 and age 70 as well. So you don't necessarily need that Social Security income. And you can let it grow for a few more years.

Speaker3:
Yeah. You bet. So some of the timing strategy tips here, you want to think just beyond the numbers. You want to consider your health, your work plans, and also your family situation. Uh, Matt and I also would urge you to just please understand, like what Dave Ramsey says, your income is your greatest wealth generator. It's even better than what? What Matt and I can do for you from an income perspective. We'd like you to work that extra year, if you could. Um, just because you really enjoy retirement that much more. Um, as George Foreman said, it's not really at what age I want to retire. It's what income I want to retire at. And, um, you know, you gotta trust the guy that came up with, you know, that was the licensee on the George Foreman Grill. I mean, you gotta love the George Foreman Grill, so. Um, also coordinating flaming strategies, like one spouse claiming early while the other delays can boost lifetime income as well. Um, that's a big deal. And then Social Security decisions can also affect Medicare enrollment and income taxes. So please plan accordingly. There is a two year lookback on Medicare. So if you're thinking, oh, I'm going to be good, I'm not going to have Medicare surcharges because I'm not going to be working this this past year. Guess what? They're looking back at your income the year before as well. So you gotta make sure you understand there's a two year lookback on Medicare too.

Speaker3:
We provide listeners with free consultations and retirement income gap analysis, too. All you got to do is reach out to us at retirement results. Com. I've got my brand new book, The Smart Retirement Plan. It's chock full with 193 pages of great information, with 16 different information packed chapters for you to check out. But also, if we announce this a little bit over a month ago, Matt, the audiobook is out. So if you want to just listen to the audiobook in 2.9 hours, you're done. You don't have to keep reading. Uh, Michael Jost did a great job narrating the book. It was. I was very disappointed that Sam wouldn't produce the book this time like he did the annuity 360 book, so I wasn't able to read it. But everybody benefits. They don't have to hear my voice. My old boss is one of the most prolific and successful narrators of books on audible, and we were very fortunate that he agreed to do that. When we come back, we're going to talk more about what we can do for you, and we'll talk about the three important Social Security facts you need to know, and the cost of going at it alone. If you're making decisions on when it takes US security, you're listening to retirement results right here on Am 912. The answer and WD you.

Speaker2:
Call (770) 685-1777 to schedule your free, no obligation meeting with us today. You're listening to retirement results.

Speaker5:
Hi. I'm.

Speaker1:
Not affiliated with or endorsed by the Social Security Administration or any other government agency.

Speaker2:
Are you concerned about rising taxes and how that could affect you and your family during retirement. If you have an IRA balance over $400,000, you could save six figures in retirement taxes than you would be paying during a 35 year retirement. Find out how much you could save today by scheduling your no obligation Roth conversion consultation with Ford Stokes of retirement results. Learn more and schedule an appointment at Retirement Investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Visit Retirement Results for more information. Schedule your free, no obligation consultation today by visiting Retirement results.com. Now back to the show.

Speaker3:
And welcome back result drivers I'm not social chief financial advisor. I've got Matt McClure here with us. He is a special guest with Sam Davis out at a member guest in Kansas City, Missouri with his father in law, which is pretty cool that he got invited, by the way, Matt to play golf with his father in law. Many people don't know this, but, um. Bailey was adopted by her mid 20s career coach when her father died. And she was part of recommending that her adopted mother. Um. Date this guy, and he's now her adopted father. And he's been very successful, which is great. And so Bailey did a great job vetting and getting the right person for her adopted mother to, um, to absolutely date and marry. So she did a great job there. And she also did a great job, um, marrying Sam. Sam's a great guy. And I just think it's a big deal that your adopted father in law will ask you to go play golf. I mean, it shows the kind of quality guy that Matt is. I mean, that that Sam is. But, Matt, you're a quality guy as well. But you didn't get invited by your father to go play golf, so, um, I that was a big deal. And so we're really glad you're here with us, Matt. It's great to have a former reporter on the floor of the New York Stock Exchange. And also, I mean, you've you've been a registered Social Security analyst for a little bit over a couple of months now. And it's it's nice to have you on here to talk Social Security. And thanks for being here, man.

Speaker1:
Yeah. No. No problem. It's, um, it's great to be here on the show anytime, but I feel like the stars all aligned this week because the the plan was, anyway, to talk about Social Security. And then Sam's like, peace out, you know. So.

Speaker3:
Right. It's like, well there's not many times you're going to get two registered Social Security analysts talking about Social Security and on one show so that that's good. Hopefully we won't bore you to bad guys and gals. So let's get let's give them three important Social Security facts. I'll let you give each one of these. We're going to talk about the cost of going it alone a little bit to Matt on Social Security and why you really shouldn't do that. And then I really want you to share your problem solver in segment three here before we get done in this segment.

Speaker1:
Yeah sure thing. So yeah three important Social Security facts to to know here. Um, as we kick off this part of the conversation. And number one really is that Social Security is an individual benefit. You know, I mean, even if you're married, right, each person has to qualify and apply for their own benefit. It's not like there's some sort of joint Social Security account. Um, you can though, qualify for a benefit based on your spouse's earnings record, but you've got to file for those benefits individually, right? It's not going to be an automatic thing that's given to you. So it really is an individual benefit. But if your spouse's primary insurance amount, which is the amount that they get at full retirement age, if that's more than twice yours, then it would behoove you to then take that spousal benefit and then that'll that'll basically top off, uh, what your own benefit would be to then be 50% of your spouse's benefit at full retirement age. So there is that as well. And a lot of people don't know that I'm I'm finding as I talk to more people about Social Security and the benefits that are out there. Um, and you can sort of alluded to this earlier, you can work and still collect if you're, you know, past full retirement age, if you're past age 62, even, you know, you can still work, you can earn and the, uh, Social Security, uh, paycheck every month. You can get that, receive that check every month, and you can still work.

Speaker1:
If you're past your full retirement age. You can work and earn any amount without reducing your Social Security benefits past that point. Um, but you got to think about the tax implications of all of that as well, and how much taxable income you're going to have and how much of your Social Security benefit, because up to 85% of it could be subject to taxes at this point. Um, and another Social Security fact that you need to know is there are these things called colas. And you're thinking to yourself, oh, I love cola. You know, a little coke, a little Diet Coke, you know, maybe. Maybe a doctor Pepper or, you know, Mountain Dew every now and then. Not that kind of cola. We're talking about a cost of living adjustment. Cola. Right. And so that adjusts for inflation each year. Now, there have been years where there's been a zero Cola because, you know inflation has been just minute right. But then there are years that we had just a couple of years ago where we saw, you know, 9% essentially, um, increase in the cost of living adjustment because of high inflation. Now, as to whether or not the Cola actually keeps up with the real rate of inflation, um, probably not, but it is at least adjusted. So it's, you know, you do get that raise pretty much um, each and every year.

Speaker3:
Yeah. It's helpful. Uh, hopefully Congress will figure out what's going on with the old Age Survivors Insurance Trust fund and make sure that that's fortified and not set to deplete as it is set right now in year 2035. A35 at a few years ago was as soon as 2033, but I got pushed out a little bit I think. Also, the current administration working on reducing waste, fraud and abuse will help as well. I do think they're going to have to extend the 6.2% that you pay, and the 6.2% the company pays um, in FICA for Social Security. I think they're going to extend that for the full year, not just but part of the year based on up to an income level. Um, now let's talk about the cost of going at it alone. So here's the problem. The Social Security Administration or the SSA can give you information, but they can't give you advice. I mean, that distinction really matters. Matt, in our super passionate about this, it means the SSA staff won't tell you when to claim how to coordinate with your spouse, or how taxes and Medicare premiums could impact your actual income. Three things the SSA can't and won't do.

Speaker3:
Number one is that they will not recommend when to start your benefits based on your life expectancy. Or your own personal finances. Number two is they will not advise on spousal strategies or survivor benefits. And those strategies and benefits are really important in optimizing and maximizing your Social Security income benefit for both you and your spouse. And then number three is they will not help you evaluate how taxes or Medicare premiums impact your net income. Either. You need to work with a registered Social Security analyst to do that. We're happy to help you do that. All you gotta do is reach out to us at (770) 685-1777 or visit retirement results.com. Click that schedule consultation button in the upper right corner. And Matt and I are happy to help you with your registered Social Security analyst needs. No problem there. And also, just again, the phone number one more time is (770) 685-1777. Schedule your free social Security consultation and financial consultation right now you can go and visit retirement results. Com and Matt, why don't you go ahead and share what's going on with your problem solver. How much you helped this one gentleman out in. He lives in midtown.

Speaker2:
It's time for this week's problem solver.

Speaker1:
This one particular client who came to mind here, and it just shows you how things can change in life, you know, I mean, I often say my crystal ball is broken. It's been at the shop for a long time, and they just can't figure out what in the world is going on with it. So my crystal ball is broken. I have no idea what's going to happen in the future. And that was the case for this particular client as well, who said initially when I met with him last year, he had planned on continuing to work until right around the age of 67. And so that's the plan that we put in place for him and his situation. You know, that we got him into a fixed indexed annuity that is going to grow until that point. And then he's going to turn on an income stream from that. Well, circumstances change. He's the guy who works in the tech business. He's got his own tech business, actually, and contracts out with some big companies. And one of the big companies that he's worked steadily with over the past several years has sort of sent signals that that contract, which is renewed on an annual basis as of next year, may not renew. So he just said, look, regardless of what happens, he said, I'm just going to take the initiative and just retire. He's like, I can't go into that blind and maybe I'll have a job, maybe I'll have income, maybe I won't.

Speaker1:
So what we were able to do is bridge that gap. You know, I mean, he has that, um, you know, just it will be at the time about a 5 or 6 year, almost, almost a six year gap between when he's going to retire and when he thought he was going to retire. And so to fill that gap, we needed to create an income. And we were able to get him into another annuity that's going to start paying out next spring and will generate an income for him that he can live on, and then some each and every month up until the age of 67. And then he turns on income from that other stream from the other fixed indexed annuity that we got him in. And then that income is going to be there for the rest of his life, no matter how long that life is. And so, you know, the problem, obviously, was how do I fill this income gap that I have for these years that I thought I was going to be fine? And we came up with that solution for him, and I'm so glad that we were able to because, you know, absolutely great, great guy. And really, you know, things do change and you've got to know what, um, the answers are to the questions in life and the what ifs in life. And that's why you come to people like us here at retirement results.

Speaker3:
Yeah. For me, it was a big deal because this gentleman was 61. Yeah. He was he wasn't even at 6 to 2 and a half to be able to start Social Security. He also wasn't at Medicare age, so he's got to figure out his health care as well. And you were able to get him. Great solution. Get him to the incoming needs where he really doesn't have to turn on Social Security until 6567. He's probably going to turn on at 67. And that retirement income gap analysis was crucial. But also just understanding his portfolio and getting a lot safer replacing the bonds in his portfolio, considering a Roth ladder conversion plan later. There's just so much that you did for him in a short period of time. Um, I just think it was a great result, and I'm so glad you shared that problem solver. When we come back. We're going to talk about the risk of doing it yourself and going it alone and making your own decisions on Social Security myths that can actually cost you money, and also working while claiming we want to make sure you know the rules and how it's really not just about Social Security. And I've got a great problem solver as well. And segment four. Come right back or listen to retirement results.

Speaker2:
Hang tight. We'll be right back to continue helping you navigate today's financial landscape. Stay tuned for more of retirement results.

Speaker6:
When the night has come.

Speaker2:
An active wealth management. We know you've worked hard for your money, and you've worked even harder to save it when it comes to wealth management and planning for retirement. Ford Stokes of Retirement Results is passionate about helping people protect and grow their wealth while educating them on all their options so they can choose what's right for them. Visit retirement results to schedule your no obligation consultation today. It's a $1,500 value provided at no cost to you. Book yours now at retirement results.com. Miss. Part of today's show retirement results is available wherever you listen to podcasts and online at retirement results.

Speaker3:
And welcome back to retirement results. Result drivers on Ford Sosa, chief financial advisor we got Matt McClure here with us standing in for Sam Davis, who's out there hitting a little white golf ball with his father in law and a member guest in Kansas City, Missouri. Um, so, Matt, it's just great to have you here. We're going to talk a little bit more about the risk of kind of going it alone and doing your own thing with Social Security versus working with a registered Social Security analyst like ourselves. Um, and then also, a lot of people might be wondering who a driver is. We keep talking about result driver every break, a result driver is somebody that wants to build a tax efficient, fee efficient and market efficient portfolio. Uh, Diane and her team are standing by at (770) 685-1777 to take your calls, and they'll get you in touch with Matt and myself. Again, you can just call us at (770) 685-1777 to get your free registered Social Security Analyst roadmap, which is a Social Security maximization optimization kind of understanding report, if you will. And let's talk now about the risk of going it alone and kind of the the DIY decisions. If you make Social Security decisions without guidance, that can lead to costly, irreversible actual mistakes. I mean, climbing to early locks in a reduced benefit for life, claiming too late without a backup plan could force you to burn through your savings. Many retirees lose out on tens of thousands in potential income by guessing. Believe it or not, when they do studies like this, it's over 90% of people are missing out on benefits. They're making a mistake. There's over 2000 decision points within Social Security. Let us run an RSA roadmap and kind of take the wonder out of it and help you make the right decisions. Also, Matt, can you share like, the myths that kind of cost folks money here a little bit?

Speaker1:
Yeah. No, it's there are a lot of them surrounding Social Security. And that's one of the things that we learn, you know, more and more, I think, every day about all the different myths that are out there. And so there's more than 2000 decision points with Social Security. There's probably about 2000 myths out there that we've run across. But some of the most persistent ones that push people into those making those bad DIY decisions, like you were talking about, um, number one is, you know, it's going broke. I got to take it now. And that is often false and financially harmful. Yeah. You know, the Social Security Trust Fund is slated to run out of money in about a decade, but that doesn't mean that Social Security itself will then go away. That means benefits could be reduced if nothing is done. But I am of the belief that Congress is going to do something to shore that up in the meantime, because otherwise, you know, political suicide there. But that is just that's my personal opinion. But I'm the the Social Security trust fund may run out of money, but benefits would still continue even if that were to happen, the second one that we hear about a lot is if I don't claim early, I'll lose it.

Speaker1:
You know, if I don't claim early, I'll lose it. No, that's a misunderstanding of how benefits are guaranteed and protected, right? So, like if you don't claim as soon as you're eligible, you're not going to lose your Social Security benefit. If you wait, you're actually going to receive more each and every month than you would if you were to claim when you're first eligible, or even at full retirement age. Now, don't wait until past age 70, because there's no point in doing that, because it doesn't go up past age 70. But 124% of your benefit amount is what you would be eligible for if you were to push it out until age 70. And that could be a thing, a good thing for you. And I mean, don't the thing that we want you to know about these myths surrounding Social Security don't follow fear instead of facts, because that's the thing that leads to premature decisions. It leads to uneducated decisions, and then it leads to lower claims, and then you're stuck with that benefit amount for the rest of your life. There's no do over.

Speaker3:
Yeah. Also, there's a couple of things that you and I like to share. So if you if you work and you start claiming before your full retirement age, they're going to tax one and every $2. But if you wait till after you turn 67, your full retirement age and you're still working, you're going to tax one and $3 and they give you a much higher earnings test credit, if you will. And you're going to see that you're going to be able to hold on a lot more of your Social Security benefits, because quite honestly, the US government wants you to go to age 67 at least before you're claiming so they can get, you know, help pay other people, right? In 1950, there were 16.1 workers for every Social Security recipient. Today there's 2.6 workers for every Social Security income benefit recipient. So we need to make sure that we try to wait a little bit longer, but also we don't want to overdraw. We don't want to draw more than withdraw more than 4% of our assets in a given year. Also, Matt and I can help you figure out how to generate a consistent income, even plan for that eventual loss of 33%, at least of your Social Security income that comes into the household when there's a death of the spouse. We actually build income plans for just that.

Speaker3:
All you have to do is reach out to us at retirement results. Com click that schedule a consultation button in the upper right corner. We're happy to help you do that. And listen it's not just about Social Security. Um, your choice can make all kinds of ripples. It can also affect your Medicare surcharges. It can also force you to take larger withdrawals from your for your IRAs. Just all kinds of different things you really need to consider when you're considering taking Social Security and when you're going to do that for your retirement. And the last thing here, I just kind of want to talk through spousal and survivor benefits real quick. You've got, you know, somebody, let's say the husband works and he gets $30,000 a year. The wife kind of works in the home but doesn't work outside the home. And she's filing spousal at age 67 and she's getting 15 grand a year. So it's 45,000 coming in to the household. If he dies, she gets his and and and she loses hers or she'll lose 33% that comes into the household. That's a concern. You got to have a plan for that. Matt, I can help you, like we said, and that, but also for spousal. Let's say she files for her own. Let's say she's getting like $900 a month or whatever.

Speaker3:
But then when she comes to age 67. She can then file spouse on it, will top off her income benefits that spousal plus her her normal which dedicated for her own social security benefits. And so many couples math that we see do that wrong. They have a they don't really do a good job. They either take it early, never file the spousal. Uh, my stepmother was one of those people until I caught it. Um, and there's just a lot of opportunities. Also, remember to get spousal benefits. You got to be married at least ten years. If you're married ten years and less one day, you don't qualify. If you're married ten years to the day, you do qualify for spousal benefits and also divorce, um, spousal benefits as well. There's also survivor benefits, uh, where you could receive up to 100% of your late spouse's benefit. Survivor benefits can be claimed as early as age 60 or 50 if disabled, but earlier claiming equals reduced payments. If you're eligible for both survivor and your own retirement benefit, you can strategically switch between the two. To maximize your income, we can help you do that. And obviously, if you're a divorced spouse, you do need to have a plan and we can help you do that too. Matt, your thoughts on the spousal and survivor benefits aspect to it?

Speaker1:
Yeah, I think it's probably some of the most misunderstood, um, aspects of Social Security benefits. And, you know, because one of the, you know, you mentioned earlier, the Spouse Springs Library, uh, seminars that that we did. And at one of them, I remember specifically and, you know, great turnout for this one. And, and the there was a few people there who had wanted me to explain and then re-explain these different, especially spousal and survivor benefits because they didn't quite understand exactly how it all worked. And so, you know, what I would encourage people to do is, is reach out retirement results. Com You know, go there, schedule a consultation. You can schedule, you know, that it's absolutely free of any cost or any obligation. And we can provide you with that free analysis of your own individual situation that goes in-depth into all of the different scenarios that you could possibly claim Social Security, and going to show you what the maximized version of that plan is. I mean, it's really a great a great thing. And it's available free of charge. There's a there's a lot of value there provided absolutely free.

Speaker3:
Yeah, I would hope people take advantage of that. And we only have just a little bit of time for our final countdown.

Speaker6:
It's the final countdown.

Speaker2:
So let's recap what you may have missed. It's the final countdown.

Speaker6:
The final countdown.

Speaker3:
So on this week's show, we had Matt McClure here with us filling in for Sam, who's running around playing golf with his father in law in Kansas City, Missouri. Um, Matt is a registered nurse. Matt is a registered social security analyst and a licensed financial advisor in the 65 license, life and health license, all that great stuff. And we talked about navigating Social Security benefits because Matt and I are two of 23 registered Social Security analyst in the state of Georgia, and we talked about truth about timing, when to claim benefits, hidden costs of going it alone. And we also talked about spousal and survivor benefits and what people miss the absolute most. We hope you enjoyed this special edition of Retirement Results. Thanks so much for being with us and have a great week, everybody.

Speaker2:
Thanks for listening to Retirement Results. You deserve to work with an independent team of fiduciary advisors that will strategically work to protect and grow your hard earned assets. To schedule your complimentary financial consultation, call us now at 1777. That's (770) 685-1777 to connect with a qualified advisor. To learn more about our mission and our team visit retirement results. Investment advisory services offered through Brookstone Capital Management, LLC, BCM, a registered investment Advisor, PCM and Active Wealth Management are independent of each other. Insurance products and services are not offered through PCM, but are offered and sold through individually licensed and appointed agents. Investments involve risk and, unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results.

Speaker1:
Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients, and to make full disclosures of any conflicts of interest. Please refer to our firm brochure, the advertised item for for additional information.

Speaker3:
Hey, this is Ford Stokes with active wealth management and the retirement results radio show. Are you worried about outliving your retirement savings? Nationwide's peak ten fixed index annuity is designed to help you feel secure and confident. With Nationwide peak ten, you will receive protection for your principal, keeping it safe from market downturns, growth opportunities tied to market indexes but not invested directly in the market. Guaranteed lifetime income and protection for your loved ones with spousal income options and a death benefit. Call us now at (770) 685-1777 or visit Active Wealth. Com to connect with an advisor and learn how peak ten can help you retire with confidence.

Speaker2:
Investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Guarantees and projections referenced are subject to the claims paying ability of Nationwide Life and Annuity insurance Company. Nationwide. Pg ten is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Neither nationwide nor its other entities are associated or affiliated with Active Wealth Management.

Speaker1:
I'm speaking with Robin Crawley, head of consumer deposits at Bank of America. Robin, thank you so much for taking some time for me. I really do appreciate it.

Speaker7:
I'm glad to be with you today.

Speaker1:
Well, you know, there are a lot of new trends that we're seeing emerge online. I know that loud budgeting is one that I've seen quite a bit and read quite a bit about. Cash stuffing is another one. Those are just kind of two examples here. What about those trends and others, and how can people really kind of sift through those and and determine what might be right for them.

Speaker7:
Yeah. You know, loud budgeting that is a newer trend that came from, you know, I would say went viral on TikTok in early 2024. And it's really that instance where you're more comfortable declining social opportunities, like grabbing dinner with friends when you get that invite because you want to be able to stick to your budget, right. And so you're feeling more empowered to share. Thank you so much for that invite. But I'm not going to go with you because I really want to stick with my budget. You know, in times past, those are the types of things that we really wouldn't talk about. We would just say, no, I'm not going to be able to go tonight. So, you know, really understanding whatever the trend is, making sure that you've, you know, you've done your research to figure out how can this align to your strategy is really important. And something like cash stuffing, that one has been around for quite a while. And, you know, it can be as simple as taking an envelope and literally stuffing cash in that envelope and writing your, you know, your bucket category on it. And if it's for, you know, dining out, well, once you spend whatever cash you had in that envelope, then you're done for the month, right? That is what you budgeted and that's what you've spent. So I think understanding those trends are very important of what they entail. And then asking yourself, how does that trend fit into your broader financial goals, as well as your financial budget and planning techniques? Some folks are, you know, much more diligent in terms of, you know, getting into the details of their budget and tracking each week, but others need a system like the, you know, cash stuffing works very obvious. If there's no cash in the envelope, you're not going to be spending anymore.

Speaker1:
Yeah, that's very true. And sometimes, you know, I mean, I, I where we live, um, there's not uh, well, I wouldn't say there's not a lot, but there are, there are a lot of places that have gone cashless. Um, and so that trend might not necessarily be the most convenient for certain people, but for others, it might be the absolute, um, you know, perfect solution for them to help budget because, you know, it's like it all depends on your current situation and also like just how you sort of operate in your daily life. Right?

Speaker7:
I agree completely. Yeah. Budgeting is so personalized and so you can't compare yourself to your, you know, your friends or your family or you know, or anyone else for that matter. You have to really understand what works best for you.

Speaker1:
Very good. And so, you know, I mean, when you're looking at your own personal financial situation, what kind of steps can people take to say, okay, I really need to to kind of clamp down on my budget. I am, you know, looking at these trends, I'm deciding what's going to be best for me. Should they kind of, you know, first, though, just sort of get a grasp of where their situation actually is and do kind of a check in on their finances.

Speaker7:
Yes, certainly. You know, first things first, right? I mean, you have to understand where you are today to determine how are you going to get to where you want to be in the future. Right. And so that means making a realistic assessment of your current spending and your current savings. And you know, we have to ask ourselves the hard questions. You know, our are our financial habits today helping us make progress towards our goals. Or do we find ourselves feeling stressed and anxious as we're trying to pay our bills each month? Right? Maybe we just don't have enough money because we've overspent. And you know, if you find yourself in that latter category, I always say it's okay because you can. Course correct. Right. You can take it back to the basics of budgeting. And you know, we find that many of, you know, our clients and consumers out there, they have great intent in terms of setting up a budget. But life gets busy and setting up a budget seems daunting. So it never actually happens, right? They're not able to track their spending against the budget because they don't have it. And you know when if that is the case, I always recommend just, you know, keep it simple with the with the budget. I mean, you can use the 50, 30, 20 rule. And that really is taking 50% of your after tax income and using that to cover your needs. So like your rent or your groceries, 30% for your wants, those are things like dining out, you know, buying a pair of shoes, going golfing, whatever it may be, and then 20% you put into savings. And once you really have those guidelines, then it's easier to take what you have found in your, you know, your financial assessment, your spending and your savings. Compare it against those kind of rules of thumb the 50, 30, 20 and figure out, you know, are you overweight a little bit in terms of where you're spending on your want? And if so, then let's figure out where you can pull back. And that'll hopefully enable you to start saving more.

Speaker1:
Yeah great advice there. Because you know, I mean it's so important to not only, of course focus on the here and the now. You know, obviously people have bills to pay and they you know, you have to live, you have to eat and do all of the things. But you also need to not forget future you and pay, you know, pay yourself, um, as well. So, uh, great. Great advice. Uh, there. Well, Robin, just about time to, uh, to run here. We're just about out of time, but anything else that you wanted to share before we have to go?

Speaker7:
Yeah. If your listeners are interested in learning more about financial guidance or any tips or tools, they can visit Bank of America's website at Better Money Habits.

Speaker1:
Com easy to remember Robin Crowley with Bank of America. Thank you so much for your time. Really do appreciate it.

Speaker7:
Yeah. Thanks again for having me.

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