July 31, 2025 • 27 mins
#SafeMoney #JonHeischmanSr #TakingSocialSecurity
In this week's episode host Jon Heischman, Senior talks about when to begin taking Social Security benefits and reasons why that start time may differ for individuals.
Call Jon at (888) 426-0177 with questions, comments or to get a free copy of Top 10 IRA Mistakes and How to Avoid Tax Traps. Visit www.heischmanfs.com/ for additional information.
In this week's episode host Jon Heischman, Senior talks about when to begin taking Social Security benefits and reasons why that start time may differ for individuals.
Call Jon at (888) 426-0177 with questions, comments or to get a free copy of Top 10 IRA Mistakes and How to Avoid Tax Traps. Visit www.heischmanfs.com/ for additional information.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
People really don't know what their expenses will because they
don't know how long that they're going to live.
Speaker 2 (00:06):
The Americans are worried they won't have enough safe for retirement.
Speaker 3 (00:09):
Now more than ever, retirement's going to cost for many folks.
Over a million dollars is no short thing in investing.
Speaker 4 (00:16):
But a lot of people think that annuities may come
close to that.
Speaker 3 (00:19):
It's going to more safe, safe, safe, safe things that
they know.
Speaker 5 (00:22):
If they know they're going to need that money to
supplement the retirement, well then you can't play that rest.
Speaker 4 (00:27):
This is the Safe Money and Retirement Show. But John Heischman, Senior,
Founder and partner of Heisman Financial Services serving the Columbus
and surrounding areas. John specializes in educating pre retirees and
retirees about safe money strategies and ideas. Now is the
Safe Money and Retirement Show. Here's John Heischman, Senior.
Speaker 3 (00:48):
The decision about when to begin receiving Social Security retiring
benefits may be the most significant decision in the retirement
income planning process. Let's talk about that this morning on
(01:08):
the Safe Money and Retirement Show. Welcome, I'm John Heischmann.
I'm glad you took the time to listen to my show.
Very important to make the correct decision as to starting
your Social Security retirement income. If you live until your
(01:33):
exact life expectancy, there's no advantage of delaying receipt of
benefits or starting early, because all will be equal. Determining
a retiree's longevity, however, is one of the big unknowns
(01:54):
in retirement planning, which makes it difficult to determine the
ideal start date. A retiree needs to frame the decision
of whether to file for Social Security retirement benefits as
an insurance decision. Why is that well, social Security works
(02:20):
like an annuity. It provides needed protection against the longevity
risk and the risk of outliving one's money. In fact,
social Security could be the best annuity available because it
is inflation adjusted and it's guaranteed by the government. Tough decision.
(02:48):
This decision isn't a one fits all. I think retirees
need to consider a number of factors, including whether whether
they're still going to be employed and will be impacted
by the earned income penalty or marital status. Health, personal wealth,
(03:13):
personal risk tolerance, and investment savvy will also need to
be considered. I have to take all these different factors
into consideration when advising the best time for each individual
(03:34):
to start their Social Security retirement benefits. For someone to
say take it as early as possible, or to wait
until age seventy doesn't know your detailed situation, or as
I mentioned earlier, all the factors that will help you
(03:57):
make the right decision getting ready to retire, or as
many early retirees are, in a situation where they have
not started their Social Security you should have your situation
(04:18):
reviewed with a plan where we can determine what is
best for you. And I know a lot of times
it could seem a difficult situation, but I don't think
it really is. And that's why I've helped many determine
what's best for them because I find out all the
(04:43):
factors and I know their situation. Therefore, I can advise
correctly accurately with their plan. Eight eight eight four to
two six zero one seven seven. That's the number to
contact me if you're at the point of deciding when
(05:08):
to take your Social Security benefit triple eight four two
six zero one seventy seven. Why claim early? Well first,
and most importantly, some will have no choice but to
begin their Social Security benefits at age sixty two due
(05:32):
to lack of other sources of income, and this is
when planning is very simple because there are those that
have no other sources of income, so it's kind of
a no brainer as to when to start it. The
(05:53):
challenge of funding the bridge period between retirement and the
beginning of Social Security benefits cannot be underestimated. Individuals need
to balance the positive of buying a larger inflation adjusted
(06:17):
income source in the future with the need for current income.
That's what we have to calculate. Others they're hesitant to
spend down their retirement savings early in retirement, as that
will result in less liquidity, which is very important in
(06:40):
retirement in their later years, and they'll have less money
to leave their heirs. Some retirees, due to poor health,
are not concerned with protecting against longevity, and it may
turn out that age sixty two makes the most sense.
(07:03):
Some believe their personal investments can outperform the approximately eight
percent annual delayed retirement credits provided by Social Security. This
could be a very dangerous assumption and I feel must
(07:26):
be pointed out and calculated because to beat that eight
percent roll up, we have to look at what are
the odds that you're going to get an eight percent
return year after year for say the next eight years.
(07:47):
The main point is don't rely on what your friend, relative,
or neighbor did. The odds are they're in a totally
different s that you are, and their decision or their
advice probably isn't the right advice for you. I think
(08:11):
it's critical to work with an advisor that knows Social Security,
that gets to know your situation and work with you
to determine when is the best time to start your benefits.
And of course that's what I do.
Speaker 5 (08:32):
All right.
Speaker 3 (08:33):
Why delay? You know, aside from the obvious benefit associated
with increased payments due to the accumulation of delayed retirement
credits deferring receipt of Social Security income, it has a
number of additional benefits and I think one of the
(08:56):
best examples is the compounding cost of living adjustment they
call it cola's. Another example is the reduction in one's
overall investment risk and investment experience because self managed accounts
(09:18):
typically are drawn down early in retirement. Delay can also
be attack savvy strategy for those who decide to delay.
It's so important to get it right at the beginning,
and if you don't and you realize it in a
(09:40):
short period of time, you can come back and make
a change. But that really doesn't happen that often, and
when a retiree realizes that they've made a mistake on
claiming too early, for example, it's too late to make
(10:01):
that change. Those of you the tuned in to my
show last week where I talked about early retirement and
one of the problems was health insurance cost, and that's
if you retire prior to age sixty five. The same
(10:23):
could be said for taking Social Security benefits early at
age sixty two and retiring, you'll have three years before
Medicare picks up your healthcare cost. And in the meantime,
that individual policy that you're going to have to purchase
(10:47):
is going to be extremely expensive. So many because of
that one reason, they're going to delay benefits until age
sixty five. And I've done a lot of planning in
that particular situation to where we determine where the income
(11:11):
is going to come from, you might say to bridge
that gap to cover health insurance premiums until age sixty five.
So the bottom line here is one size doesn't fit
all be careful of the advice you get, but make
(11:32):
sure that you talk to an advisor that knows Social Security,
the coverages, and when is the best time for you
taking everything else into consideration to start your benefits. And
that's why I'd like for you to contact me, especially
(11:52):
if you're not working with an advisor that just doesn't
do retirement planning. Maybe here's if he only does investment planning.
Eight A eight four two six zero one seven seven.
There's your number, triple eight four two six zero one
(12:14):
seventy seven. I want you to stay tuned and I'm
going to continue my discussion after the break. I will
return shortly.
Speaker 5 (12:26):
Thanks for listening to The Safe Money and Retirement Show
with John Heisman. For more information, call one eight eight
eight four two six zero one seventy seven. That's one
eight eight eight four two six zero one seven seven,
or visit their website at heischmanfs dot com. More of
The Safe Money and Retirement Show In a moment.
Speaker 1 (12:53):
Avoiding mistakes can save owners of iras four to oh one,
CA and TSP plans, as well as other retirement plans
a fortune and taxes.
Speaker 2 (13:08):
Penalties, fees and loads. These potential mistakes are addressed in
the free book entitled Top ten IRA Mistakes. This is
John Heischmann from the Safe Money and Retirement Show, offering
a complimentary copy by calling eight eight eight four to
(13:31):
two six zero one seven seven again that's triple eight
four two six zero one seven seven.
Speaker 5 (13:53):
Welcome back to the Safe Money and Retirement Show with
John Heisman. Contact John. The number to call is one
eight or two six zero one seven seven. That's one
eight eight eight or two six zero one seven seven.
Once again, here's John Heisman.
Speaker 3 (14:10):
Welcome back to the second half of the Safe Money
and Retirement Show. I'm your host, John Heischmann. I appreciate
my listeners as well as their feedback and request for information.
The book that I offer, Top ten IRA Mistakes, is
(14:36):
I think I must read for those getting ready to retire.
It's my gift to you for listening, no cost, no obligation,
so request your copy by calling adaight eight four two
six zero one seven seven eight eight eight four two
(15:01):
six zero one seven seven. As a continuation of the
first part of the show, in determining when to take
your Social Security income, it's important to know your estimated
(15:22):
life expectancy. For example, a man reaching age sixty five
today can expect to live on average until eighty four
point three years, and a woman retiring at age sixty
five today can expect to live on average until age
(15:47):
eighty six point six. About one out of every four
sixty five year olds today will live past age ninety
one out of every ten age sixty five year olds
will live past ninety five. Individuals can get an estimate
(16:09):
of howlong they are likely to live by using life
expectancy calculators. It's available on the Social Security website, or
if you'd like to receive a copy, I'll be happy
to send it to you. Just call the number that
(16:30):
I give you throughout the show. But it's important remember
these figures are just an average fifty percent. They're going
to live beyond these averages, and these figures they don't
take into consideration such factors as current health, lifestyle, family history,
(16:57):
all of which could increase or decrease life expectancy. When
evaluating life expectancy for a couple, we always want to
plan for the partner who is likely to live the longest.
The probability that one member of that couple is going
(17:19):
to reach ninety two it's right around fifty percent, which
is a percentage that doesn't take into consideration lifestyle factors
that could push that percentage even higher. In retirement planning,
I always want to plan income for the oldest stage
(17:43):
and tack on five years in correlation with social security
because it's real simple. I don't want my clients to
run out of money because of a miscalculation of life
is expectancy. And again it's nice to have tables, but
(18:04):
you have to keep in mind that's just an average,
and from a planning standpoint, each retiree needs to go
beon what that average expectancy age is. I want to
talk a little bit about calculating the break even age,
and you've all heard someone say I might as well
(18:27):
take social Security early because I have to live to
an old age to break even compared to if I
wait until age seventy. The break even age that's the
age at which the total number of the higher benefits
(18:47):
the retiree is going to receive from delay equals the
total amount of the lower benefits that they will have
received at that point from starting early. It may sound
a little bit complicated, but it's easy to calculate and
(19:09):
of course, I can help you with that. Now, this
is without trying to adjust for inflation. It's a simple
calculation that is often used for retirees that determine whether
they should begin or delay social Security benefits. But you
(19:31):
need to keep in mind there is problems with this
simple break even analysis, and I want to touch on
a couple of those. And the first is we cannot
know for certain the individual's actual life expectancy. Second, do
(19:54):
you have a spouse which has a need for survivor benefits.
If this is the case, delaying to increase this benefit
makes sense regardless of each individual's own life expectancy. This
consideration is often ignored by the break even approach, and
(20:20):
I think this approach also ignores the insurance component of
Social Security as well as the benefits associated with transferring
one's longevity risk. And third, and perhaps what I think
is the most important, this approach assumes that the individual
(20:47):
is retired. It does not take into consideration lost earnings
and benefits the person would give up if they choose
to actually retet hire. Based on the break even analysis,
so we can determine the approximate break even point. But
(21:12):
as mentioned, I need to go Beyond that, other considerations
need to be taken into the income plan design. When
I talk to a potential new client, referral or radio listener,
I have heard many times that they wish they had
(21:36):
delayed taking their Social Security income benefit. I have also
heard that they wished they would have taken their Social
Security benefits starting at age sixty two. So I can't
stress enough the importance of determining that magic age based
(22:00):
on each individual's situation, not what you read, not what
you hear, but your situation. And if you're thinking about
taking Social Security, which means you're probably around age sixty
one or earlier, and you want to get an idea
(22:25):
of where you're at, am I retirement ready from a
financial standpoint, what does the picture look like? What's it
going to look like in three years, five years, seven
or ten. I can help you project that based on
(22:45):
your situation at this time, So don't guess. Take advantage
of a free consultation about your income including Social Security.
Please call call me at eight eight eight four two
six zero one seventy seven. Let me give you that
(23:07):
number again triple eight four two six zero one seventy seven.
One other element to consider would be the income taxation
of assets spent to fund let's say a two year bridge,
(23:29):
and also the tax is due to the first two
years of social Security benefits. So when I say a
bridge gap, that's taking income to bridge the time period
that your delaying social Security. First of all, the social
Security benefits would be subject to income tax, but the
(23:53):
most that would actually be taxed is eighty five percent
of the Social Security income you receive. Then we also
have to look at assets used to fund let's say,
to your bridge would also have important income tax ramifications.
(24:19):
Let me give you a quick example. Money withdrawn from
a traditional IRA or non wroth four oh one k
would face taxation on one hundred percent of that withdrawal.
On the other hand, assets like a qualified roth IRA
(24:40):
distributions or let's say a reverse mortgage would be totally
income tax free. Or if you're fortunate enough to have
non qualified money, only the interest be taxed, not the principle.
(25:03):
So once you get into the principle, it's another tax
free source of income. So we need to look at
discussing the factors that one should consider when deciding whether
to file for Social Security benefits. What's the break even age?
What are the earned income restrictions? Whether you're single married,
(25:29):
will all have a bearing. So I'd like to hear
from you in reference to your social security planning. Remember,
each individual is different. It has to be based on
your situation. Okay, I'm at the end of my time
for the show this morning. It costs quickly. I wish
(25:52):
we had another couple of hours to where I could
give you some more information, but I don't so questions, concerns, requests,
book information Ada eight four two six zero one seven seven. Again,
I want to thank you for joining me and be
(26:15):
sure to tune in next week to the Safe Money
and Retirement Show.
Speaker 4 (26:21):
The Safe Money and Retirement Shoe John Heisman Senior. To
get in touch with John, call one eight four two
six zero one seven seven. That's one triple eight four
two six zero one seven seven. For more information about
Heisman Financial Services, visit their website Heisman FS dot com.
(26:42):
That's h E I, S, C, H M A n
F S dot com. Join us again next time for
the Safe Money and Retirement Show with John Heisman Senior
People really don't know what their expenses will because they
don't know how long that they're going to live.
Speaker 2 (00:06):
The Americans are worried they won't have enough safe for retirement.
Speaker 3 (00:09):
Now more than ever, retirement's going to cost for many folks.
Over a million dollars is no short thing in investing.
Speaker 4 (00:16):
But a lot of people think that annuities may come
close to that.
Speaker 3 (00:19):
It's going to more safe, safe, safe, safe things that
they know.
Speaker 5 (00:22):
If they know they're going to need that money to
supplement the retirement, well then you can't play that rest.
Speaker 4 (00:27):
This is the Safe Money and Retirement Show. But John Heischman, Senior,
Founder and partner of Heisman Financial Services serving the Columbus
and surrounding areas. John specializes in educating pre retirees and
retirees about safe money strategies and ideas. Now is the
Safe Money and Retirement Show. Here's John Heischman, Senior.
Speaker 3 (00:48):
The decision about when to begin receiving Social Security retiring
benefits may be the most significant decision in the retirement
income planning process. Let's talk about that this morning on
(01:08):
the Safe Money and Retirement Show. Welcome, I'm John Heischmann.
I'm glad you took the time to listen to my show.
Very important to make the correct decision as to starting
your Social Security retirement income. If you live until your
(01:33):
exact life expectancy, there's no advantage of delaying receipt of
benefits or starting early, because all will be equal. Determining
a retiree's longevity, however, is one of the big unknowns
(01:54):
in retirement planning, which makes it difficult to determine the
ideal start date. A retiree needs to frame the decision
of whether to file for Social Security retirement benefits as
an insurance decision. Why is that well, social Security works
(02:20):
like an annuity. It provides needed protection against the longevity
risk and the risk of outliving one's money. In fact,
social Security could be the best annuity available because it
is inflation adjusted and it's guaranteed by the government. Tough decision.
(02:48):
This decision isn't a one fits all. I think retirees
need to consider a number of factors, including whether whether
they're still going to be employed and will be impacted
by the earned income penalty or marital status. Health, personal wealth,
(03:13):
personal risk tolerance, and investment savvy will also need to
be considered. I have to take all these different factors
into consideration when advising the best time for each individual
(03:34):
to start their Social Security retirement benefits. For someone to
say take it as early as possible, or to wait
until age seventy doesn't know your detailed situation, or as
I mentioned earlier, all the factors that will help you
(03:57):
make the right decision getting ready to retire, or as
many early retirees are, in a situation where they have
not started their Social Security you should have your situation
(04:18):
reviewed with a plan where we can determine what is
best for you. And I know a lot of times
it could seem a difficult situation, but I don't think
it really is. And that's why I've helped many determine
what's best for them because I find out all the
(04:43):
factors and I know their situation. Therefore, I can advise
correctly accurately with their plan. Eight eight eight four to
two six zero one seven seven. That's the number to
contact me if you're at the point of deciding when
(05:08):
to take your Social Security benefit triple eight four two
six zero one seventy seven. Why claim early? Well first,
and most importantly, some will have no choice but to
begin their Social Security benefits at age sixty two due
(05:32):
to lack of other sources of income, and this is
when planning is very simple because there are those that
have no other sources of income, so it's kind of
a no brainer as to when to start it. The
(05:53):
challenge of funding the bridge period between retirement and the
beginning of Social Security benefits cannot be underestimated. Individuals need
to balance the positive of buying a larger inflation adjusted
(06:17):
income source in the future with the need for current income.
That's what we have to calculate. Others they're hesitant to
spend down their retirement savings early in retirement, as that
will result in less liquidity, which is very important in
(06:40):
retirement in their later years, and they'll have less money
to leave their heirs. Some retirees, due to poor health,
are not concerned with protecting against longevity, and it may
turn out that age sixty two makes the most sense.
(07:03):
Some believe their personal investments can outperform the approximately eight
percent annual delayed retirement credits provided by Social Security. This
could be a very dangerous assumption and I feel must
(07:26):
be pointed out and calculated because to beat that eight
percent roll up, we have to look at what are
the odds that you're going to get an eight percent
return year after year for say the next eight years.
(07:47):
The main point is don't rely on what your friend, relative,
or neighbor did. The odds are they're in a totally
different s that you are, and their decision or their
advice probably isn't the right advice for you. I think
(08:11):
it's critical to work with an advisor that knows Social Security,
that gets to know your situation and work with you
to determine when is the best time to start your benefits.
And of course that's what I do.
Speaker 5 (08:32):
All right.
Speaker 3 (08:33):
Why delay? You know, aside from the obvious benefit associated
with increased payments due to the accumulation of delayed retirement
credits deferring receipt of Social Security income, it has a
number of additional benefits and I think one of the
(08:56):
best examples is the compounding cost of living adjustment they
call it cola's. Another example is the reduction in one's
overall investment risk and investment experience because self managed accounts
(09:18):
typically are drawn down early in retirement. Delay can also
be attack savvy strategy for those who decide to delay.
It's so important to get it right at the beginning,
and if you don't and you realize it in a
(09:40):
short period of time, you can come back and make
a change. But that really doesn't happen that often, and
when a retiree realizes that they've made a mistake on
claiming too early, for example, it's too late to make
(10:01):
that change. Those of you the tuned in to my
show last week where I talked about early retirement and
one of the problems was health insurance cost, and that's
if you retire prior to age sixty five. The same
(10:23):
could be said for taking Social Security benefits early at
age sixty two and retiring, you'll have three years before
Medicare picks up your healthcare cost. And in the meantime,
that individual policy that you're going to have to purchase
(10:47):
is going to be extremely expensive. So many because of
that one reason, they're going to delay benefits until age
sixty five. And I've done a lot of planning in
that particular situation to where we determine where the income
(11:11):
is going to come from, you might say to bridge
that gap to cover health insurance premiums until age sixty five.
So the bottom line here is one size doesn't fit
all be careful of the advice you get, but make
(11:32):
sure that you talk to an advisor that knows Social Security,
the coverages, and when is the best time for you
taking everything else into consideration to start your benefits. And
that's why I'd like for you to contact me, especially
(11:52):
if you're not working with an advisor that just doesn't
do retirement planning. Maybe here's if he only does investment planning.
Eight A eight four two six zero one seven seven.
There's your number, triple eight four two six zero one
(12:14):
seventy seven. I want you to stay tuned and I'm
going to continue my discussion after the break. I will
return shortly.
Speaker 5 (12:26):
Thanks for listening to The Safe Money and Retirement Show
with John Heisman. For more information, call one eight eight
eight four two six zero one seventy seven. That's one
eight eight eight four two six zero one seven seven,
or visit their website at heischmanfs dot com. More of
The Safe Money and Retirement Show In a moment.
Speaker 1 (12:53):
Avoiding mistakes can save owners of iras four to oh one,
CA and TSP plans, as well as other retirement plans
a fortune and taxes.
Speaker 2 (13:08):
Penalties, fees and loads. These potential mistakes are addressed in
the free book entitled Top ten IRA Mistakes. This is
John Heischmann from the Safe Money and Retirement Show, offering
a complimentary copy by calling eight eight eight four to
(13:31):
two six zero one seven seven again that's triple eight
four two six zero one seven seven.
Speaker 5 (13:53):
Welcome back to the Safe Money and Retirement Show with
John Heisman. Contact John. The number to call is one
eight or two six zero one seven seven. That's one
eight eight eight or two six zero one seven seven.
Once again, here's John Heisman.
Speaker 3 (14:10):
Welcome back to the second half of the Safe Money
and Retirement Show. I'm your host, John Heischmann. I appreciate
my listeners as well as their feedback and request for information.
The book that I offer, Top ten IRA Mistakes, is
(14:36):
I think I must read for those getting ready to retire.
It's my gift to you for listening, no cost, no obligation,
so request your copy by calling adaight eight four two
six zero one seven seven eight eight eight four two
(15:01):
six zero one seven seven. As a continuation of the
first part of the show, in determining when to take
your Social Security income, it's important to know your estimated
(15:22):
life expectancy. For example, a man reaching age sixty five
today can expect to live on average until eighty four
point three years, and a woman retiring at age sixty
five today can expect to live on average until age
(15:47):
eighty six point six. About one out of every four
sixty five year olds today will live past age ninety
one out of every ten age sixty five year olds
will live past ninety five. Individuals can get an estimate
(16:09):
of howlong they are likely to live by using life
expectancy calculators. It's available on the Social Security website, or
if you'd like to receive a copy, I'll be happy
to send it to you. Just call the number that
(16:30):
I give you throughout the show. But it's important remember
these figures are just an average fifty percent. They're going
to live beyond these averages, and these figures they don't
take into consideration such factors as current health, lifestyle, family history,
(16:57):
all of which could increase or decrease life expectancy. When
evaluating life expectancy for a couple, we always want to
plan for the partner who is likely to live the longest.
The probability that one member of that couple is going
(17:19):
to reach ninety two it's right around fifty percent, which
is a percentage that doesn't take into consideration lifestyle factors
that could push that percentage even higher. In retirement planning,
I always want to plan income for the oldest stage
(17:43):
and tack on five years in correlation with social security
because it's real simple. I don't want my clients to
run out of money because of a miscalculation of life
is expectancy. And again it's nice to have tables, but
(18:04):
you have to keep in mind that's just an average,
and from a planning standpoint, each retiree needs to go
beon what that average expectancy age is. I want to
talk a little bit about calculating the break even age,
and you've all heard someone say I might as well
(18:27):
take social Security early because I have to live to
an old age to break even compared to if I
wait until age seventy. The break even age that's the
age at which the total number of the higher benefits
(18:47):
the retiree is going to receive from delay equals the
total amount of the lower benefits that they will have
received at that point from starting early. It may sound
a little bit complicated, but it's easy to calculate and
(19:09):
of course, I can help you with that. Now, this
is without trying to adjust for inflation. It's a simple
calculation that is often used for retirees that determine whether
they should begin or delay social Security benefits. But you
(19:31):
need to keep in mind there is problems with this
simple break even analysis, and I want to touch on
a couple of those. And the first is we cannot
know for certain the individual's actual life expectancy. Second, do
(19:54):
you have a spouse which has a need for survivor benefits.
If this is the case, delaying to increase this benefit
makes sense regardless of each individual's own life expectancy. This
consideration is often ignored by the break even approach, and
(20:20):
I think this approach also ignores the insurance component of
Social Security as well as the benefits associated with transferring
one's longevity risk. And third, and perhaps what I think
is the most important, this approach assumes that the individual
(20:47):
is retired. It does not take into consideration lost earnings
and benefits the person would give up if they choose
to actually retet hire. Based on the break even analysis,
so we can determine the approximate break even point. But
(21:12):
as mentioned, I need to go Beyond that, other considerations
need to be taken into the income plan design. When
I talk to a potential new client, referral or radio listener,
I have heard many times that they wish they had
(21:36):
delayed taking their Social Security income benefit. I have also
heard that they wished they would have taken their Social
Security benefits starting at age sixty two. So I can't
stress enough the importance of determining that magic age based
(22:00):
on each individual's situation, not what you read, not what
you hear, but your situation. And if you're thinking about
taking Social Security, which means you're probably around age sixty
one or earlier, and you want to get an idea
(22:25):
of where you're at, am I retirement ready from a
financial standpoint, what does the picture look like? What's it
going to look like in three years, five years, seven
or ten. I can help you project that based on
(22:45):
your situation at this time, So don't guess. Take advantage
of a free consultation about your income including Social Security.
Please call call me at eight eight eight four two
six zero one seventy seven. Let me give you that
(23:07):
number again triple eight four two six zero one seventy seven.
One other element to consider would be the income taxation
of assets spent to fund let's say a two year bridge,
(23:29):
and also the tax is due to the first two
years of social Security benefits. So when I say a
bridge gap, that's taking income to bridge the time period
that your delaying social Security. First of all, the social
Security benefits would be subject to income tax, but the
(23:53):
most that would actually be taxed is eighty five percent
of the Social Security income you receive. Then we also
have to look at assets used to fund let's say,
to your bridge would also have important income tax ramifications.
(24:19):
Let me give you a quick example. Money withdrawn from
a traditional IRA or non wroth four oh one k
would face taxation on one hundred percent of that withdrawal.
On the other hand, assets like a qualified roth IRA
(24:40):
distributions or let's say a reverse mortgage would be totally
income tax free. Or if you're fortunate enough to have
non qualified money, only the interest be taxed, not the principle.
(25:03):
So once you get into the principle, it's another tax
free source of income. So we need to look at
discussing the factors that one should consider when deciding whether
to file for Social Security benefits. What's the break even age?
What are the earned income restrictions? Whether you're single married,
(25:29):
will all have a bearing. So I'd like to hear
from you in reference to your social security planning. Remember,
each individual is different. It has to be based on
your situation. Okay, I'm at the end of my time
for the show this morning. It costs quickly. I wish
(25:52):
we had another couple of hours to where I could
give you some more information, but I don't so questions, concerns, requests,
book information Ada eight four two six zero one seven seven. Again,
I want to thank you for joining me and be
(26:15):
sure to tune in next week to the Safe Money
and Retirement Show.
Speaker 4 (26:21):
The Safe Money and Retirement Shoe John Heisman Senior. To
get in touch with John, call one eight four two
six zero one seven seven. That's one triple eight four
two six zero one seven seven. For more information about
Heisman Financial Services, visit their website Heisman FS dot com.
(26:42):
That's h E I, S, C, H M A n
F S dot com. Join us again next time for
the Safe Money and Retirement Show with John Heisman Senior
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