Unknown: So you're about to enter into retirement, counting
on that income to get you from here to the end of your
retirement. And oh, there's something you hadn't thought of,
there's a tax, or a surprise, with regards to the Social
Security income you thought you were going to get. And I'm going
to share with you three of those rules that many retirees miss,
that could be very costly. But before we get there, subscribe
to my channel, hit the notifications Bell, I have over
30 years in this business. And we've made it a point to really
become expert for our clients in the area of social security. So
let me share with you some of those conversations we have with
them so that you don't step on the same landmines. Now, I'm
going to go through with you those three rules. But I also
want to give you a couple extras, if you will. And the
first one's really important, particularly if you're not yet
taking Social Security. So Social Security for years
delivered to your doorstep in a hard copy your statements. And
then for a number of years, they didn't do it at all. Now they
deliver those statements for those only who are 60 or over
and have yet to claim their Social Security benefit. So how
do you know what your benefit is going to be? So I'm going to
share with you on the Social Security website, there's a
particular thing you need to do to register, which is to go on
to my statement. Now, there's a couple of reasons why you want
to go on to my statement, one, find out what your benefit is
going to be have access to all the information, that's really
important. But even the more important reason, particularly
for those who are further away from Social Security, maybe in
their 50s is that with all the cyber hacking that is going on
and stealing of social security numbers. By going on and
registering for my statement, you put a stake in the ground
that this is your social security number. You can also
find out when you go on whether or not others have claimed
benefits off of your number. So go do that immediately after
this video is done. Now I understand that there are 567
different claiming strategies. So you're aware of that. There's
a lot of confusion out there. And if you would, if you wish
to, you can go up to my banner, we have a second chapter of my
latest book don't outlive your money in retirement is
completely devoted to Social Security. So so hit the banner,
I'll get you a couple of worksheets for that as well. So
you'll have a little bit more clarity on which one of the 567
strategies is good for you. There was a recent study done by
Jackson, by the way, this is not one of the three rules. This is
just fact. Okay, that upwards of 56% of people claim their Social
Security early. Some studies show that upwards of almost 40%
take it when they're eligible at age 62. And that could be very
costly down the road. So I need for you to understand when is
the best time for you to take it go through the calculators on
the Social Security site. This is why we have seven different
calculators for our clients to understand what the best timing
is. So you don't lose out on 10s of 1000s of dollars for your
household income. So the first rule to be aware of really
important if you have not yet achieved your full retirement
age, call it somewhere between 66 and 67 depending upon when
you were born. And you're still working and then claim Social
Security early. There's an earnings limit. So let me take
you to my screen for just a minute. So if you apply for
Social Security before full retirement age and you work $1
In benefits will be withheld. For every $2 you earn over
$18,916 in the year of 2021 of a benefit will be adjusted at full
retirement age. But it's important that you be aware of
that because if you do go about to take this then it may be a
nasty surprise. Let
me give you a quick story. number of years ago I had a
client who wanted to take her grandkids to Disney. She said I
got to work A little bit more part time at the job she had,
she was only about 6465. So it was before her full retirement
age, but she was still working. And she said she needed about
$8,000 in extra income. Well, we crunched the numbers myself and
her account. And we found out, unfortunately, she hit the
particular thresholds, that, in essence, almost 78% of the
income she was going to get from the $8,000 was actually going to
go back to taxes. So we said to her, Listen, you know, it's not
a good idea. So, before you go about and make this decision,
before you count on this income, make sure you understand the
earnings difference. The second rule that you need to be very
aware of, and we talk about this for household income, is that
spousal benefits, do not continue to grow beyond full
retirement age, if you're divorced, or widowed, it's a
different story. But for spousal benefits, what I want you to do
is to take a look at our video, to see the difference between
spousal widowed, and divorced benefits, make sure you get all
that you can and you understand it. And finally, rule number
three. And by the way, I'm going to give you a little bit of a
tip after this as well. For those who may have some health
issues. This is really important from an advanced planning for
Social Security, claiming strategies. But let's stick with
number three for just a moment. And it's understand that your
Social Security income will more than likely be taxed. So let me
go to my screen for just a moment. So Social Security
identifies what your provisional income is. Provisional income is
your adjusted gross income plus one half of your Social Security
benefit, plus any tax exempt interest, which is typically
municipal bond income. And as you take a look at married
filing jointly, if that provisional income is between
32,000 44,000, upwards of 50% of that social security benefit
will be subject to tax, and over $44,000, up to 85% of it will be
subject to tax, it's a different story. If you are single, it's
upwards of 34,000 of provisional income, where 50% of your Social
Security could be subject to tax and over $34,000 means that of
the Social Security income, upwards of 85% of your Social
Security benefit could be taxed. So you need to be very aware of
the income coming in, and the taxes you may be exposed to. Now
that advanced planning strategy, I wanted to talk to those of you
who may have a health issue, particularly one that may impact
your life expectancy. If you are the primary earner, you were the
high income wage earner. And your spouse is going to be
depending upon a spousal benefit from your work record, you'll be
maybe better off to take your benefit and delay it to the age
of 70, if at all possible, because when you pass again, it
gets back to the difference between the spousal and the
widowed benefit that we don't benefit can get the benefit of
deferred credits if you wait till age 70. So you really want
to crunch some of these numbers if you have a health scenario
where it may impact your life expectancy. To make sure you're
claiming at the right time. And for more information, certainly
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