Karen, Aaron Spitzer, Joe Still discussed on Kowal Investment Show
Welcome back with Joe Still and Aaron Spritz ner from the Koel Investment group. Okay, a little bit more in Social security. We've got the sexy segment coming up. If you got a retirement question, you can certainly call us Or Texas on the Econ. It line 799 11 30 back to Social Security. I thought Spitzer said before Joe 62 is when we can start taking it doesn't mean we have to add 62. Right, right? Yeah, we And if you have questions and need help about Social security, we do this every day. We have this conversation with every single one of our clients. When do I start taking benefits? And when does it make the most sense? We can help you with that 26 to 5 to 2 40 40 will help walk you through that process. That's 26 to 5 to 2 40 40 yes or the cold hallway dot com. Yep. We we post a lot of great. Information through our blog's We have all of our advisors writing regular blog's and post a lot of good information on retirement investing. All those topics so getting back to how do we fix this issue that were running into with so security and and our annual costs and so security exceeding the income coming in? We talked a little bit about increasing payroll taxes. And the next one we talked. We started to broach this subject of increasing that limit on wages subject to tax. So the current cap right now is $142,800. So once you hit that, um They don't take out so security anymore. So you know if you're in that if you're above that income annual income bracket, you would see your income. Go up your paycheck go up a little bit at the end of the year. Once you hit that number, so the you know one option would be to start. Increasing that on higher income earners s. Oh, there's a big debate going out right now between you know the bite administration and some others on you know, do we increase? That, um, limit on wages above 400,000. And then those individuals would pay more. But they would not get the benefit to that. You know, you guys awesome do pop quizzes and ask me questions. It's your turn. Callers are calling your social security questions. Ready to answer. We'll give it our best shot. We'll give it a world. At least we'll get a couple in quickly here before we get to the sexiest segment. Aaron Spitzer, You've got something for us, too. You want to give us a little tease? On your topic. No. Yeah, We're going to talk a little bit more about income planning A Z mentioned before with Social security, You know another way to supplement your retirement income is with your portfolio or your investments, your savings and how much you can pull from your savings. We'll talk a little bit about what that percent is that you can safely pull out and maybe some revisions to that percent by the founder of the 4% rule. The 4% rule is Yeah, there. You got some news on that. So we'll leave that. That's also not just Social Security about any retirement question about your plan. Give us a call. We've got lines open. Let's go to Karen, who's calling from Watertown. Good morning, Karen. Good morning. How are you guys doing? Great. Thanks for calling Karen. But actually, I have two questions is yourself security attacks. First when it pulled out and then when you receive it, and second question is As a spouse. And I draw on that at any time or do I have to wait for husbands to draw him? So the first question Um yes, You could, um Be taxed up to 85% of your so security is subject to tax when you start Taking your benefits. So that is questioned. One. Um and there's there's a formula that goes into that. Obviously, I don't want to get into that here, but we could help you with that offline. Um And then the next question is, um Do you? Are you eligible to collect on your spouse's benefits? And the answer to that is? Yes. Um you have to reach age 62. On Dure spouse has to start Collecting on his or heard s Social security. If you, um If your spouse does not hit full retirement age than the Benefits that you receive on your spouse would be would be lowered. So if your spouse waits till they're full retirement age to collect their benefits. And you start saying at 62 collecting on his or her benefits. Um, the Max, I think is about 35% that you could collect on his number. You can get up to 50%. If you wait until you hit full retirement age to collect on his benefits, So her benefits so yes, absolutely. And that's one thing we help our clients with all the time is figuring out that strategy of when Each spouse should start collecting on baby. It makes sense for one spouse to start collecting early at 62 on their benefit, the other way qualified and the other wait. And then, um, because if you do wait, there is a benefit. It's about 8% a year. Your benefits will go up pretty significant amount. Yeah, and I always look at it to, um If you're not going to take the income from Social Security, and you need it to live on, Where would you take it from? That's a huge question to answer if you're going to take it out of your IRA. Um, you may want to start taking so security early. If you want to leave some of that irate to your heirs at some point s. Oh, there's there's a lot that goes into that conversation. That's why I said, if each situation's a little different, and it it can get pretty complicated. So give her office a call. We'd be happy to help. Okay. Thanks for the call. Yeah, Karen, thank you for the phone call. So we mentioned your office phone numbers to 6 to 5 to 2 40 40 for the Koel investment group. A lot of people call the office Monday through Friday with questions. What do you think that Joe still passed that pop quiz. Oh, yeah, I think he got it. All right, so I was fact checking him here you get are notorious for putting me on the spot, So I had to take a question. One other thing, too, is like you just got to be careful. If you're taking Social Security benefits early and you're working, They'll actually withhold benefits from you. If you earn over certain threshold of income, I think it's like 18 19,000 so Withhold benefits will give them back to you once you had full retirement age, But it's just one of those things to be careful if you're gonna work part time. Just make sure you you are mindful of what those income limits are. Yeah, it is interesting, Joan, you're talking about when to start taking Social security. There's a certain strategy there and I'm sure that's what you work within your clients. I don't mean to interrupt your whole Social Security topic. Did you finish the important parts? Pretty much the last one I had was just raising the full retirement age. Is another fix. So in I wanted to I wanted I'll wrap this up right now. I I think most likely what we're going to see to fix. This issue is a combination of a few of these fixes. You know, I think they're probably gonna have to raise the full retirement age for younger generations. Uhm If you are in this pointed this, they made this point in the article. If you are 55 or older And you're collecting source security Right now. You should not be overly worried about your benefits being cut. And I agree with that. Uh, so don't worry. If you're in that boat of I'm already taking benefits. I'm getting close to taking benefits. They're not going to cut your benefits. So I'm okay. Yeah, You should be okay. I'm 54. Yeah, they're gonna look out and most likely cut the benefits of the younger generation if they need to, But they can fix these issues by a you know a combination of a few of these things, but to get back to our original point. Our original advice. Yeah. How much save early? Save often exactly that that social security What did you say? 33% 33% goes to your overall retirement plan, so People. 65 older 33% of their income comes from so security So, yeah, so most people have saved outside of that on bats are advice. Uh, you know, people get fixated on returns and everything. It's how much you save over over a long period of time is really going to determine how successful your retirements personal responsibility. It's really up to you. And if you need help, That's why you guys are there as an advisor, But you've got to look in the mirror and say this week Chairman account is up to me. I got to make this happen. Absolutely mean. Usually it's done through 401 k. Maybe pension and some cases up..