Don’t let Social Security be an afterthought in your retirement planning. We’ll guide you through key decisions, explain how benefits are calculated, and share tips to optimize your financial security.
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About the show:
On the show, you’ll learn key strategies to help protect and grow your wealth and provide for lifetime guaranteed income. Mike is committed to helping retirees hold onto more of their hard-earned wealth and is a big advocate of helping his clients reduce the total taxes they’ll be required to pay during their retirement.


1.24.25: Audio automatically transcribed by Sonix
1.24.25: 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 Money Matters with Mike, with your host, Mike Zeno. Mike works hard each day to educate Americans like you on how to reach the financial freedom they've worked so hard for. And he can help you too. So now let's start the show. Here's Mike Zeno.
Speaker3:
What's up people? Welcome to the show where we dive into the strategies, the insights, and the tools you need to secure a confident and stress free financial future. I'm Mike Zeno, and my mission is to help you protect your nest egg, outsmart retirement risks, and live the life you've worked so hard to achieve. Whether you're nearing retirement or already enjoying it. We're here to guide you every step of the way. Because peace of mind starts with a solid plan. And boy, do we have a ton of great information for you today. On today's show, we're going to guide you through Social Security and show you how making the most of your income benefits in retirement should be tops on your list. As always, I have the distinct honor and privilege of being joined by the one and only my co-host and producer extraordinaire, Mr. Matt McClure. Matthew, how are you today, sir?
Speaker1:
I'm doing great, Mike. You know, we've been, uh, kind of frozen out here over the last little bit, but hopefully things will warm up. Um, you know, thank goodness for central heat. That's all I can say.
Speaker3:
Buddy. I agree with you there. I was amazed that people in Florida along the beaches were walking out, you know, of their doors to snow on the sand. And I think what blew my mind the most is in Louisiana. They had like ten inches of snow down in swamp land and Cajun ville. So it's like, what? Yeah, is happening. It was.
Speaker1:
Weird. It was. It was very much like a backwards snowstorm this time where the mountains were spared. But everybody else south got it. Um, but hey, you know, we're we're warming up, hopefully, and digging out of it. And hopefully everybody's nice and warm and. Okay. Uh, despite all the cold and the snow and all the stuff. And I did want to say and take a moment here to mention just off the top, of course, we love our listeners, Mike. Of course. Because without them, as we always say, we would not have a show. And speaking directly to you as the listener, whether you are listening on the radio, on in the greater Charlotte area or on 106.1 FM talk now in the Raleigh area, right in the in the Research Triangle area of North Carolina. We thank you so, so much for listening. We really do appreciate it. And we hope that you'll get something wonderful to take with you out of this next half hour as we talk a lot about your income and specifically spending a lot of time on Social Security. Now, if this is your first time joining us here for the show, go online to Money Matters with mike.com. That's Money Matters with mike.com. You can set up a free consultation with Mike Zeno and we'll talk more about that coming up as the show goes along. You can also give Mike a call 704 560 1573. That number again (704) 560-1573. And he will actually answer the phone. And if he doesn't, he'll call you back. It's a rare thing these days, but it does happen just like that. Um, remember you can subscribe to the podcast anywhere you listen to podcasts. So just search Money Matters with Mike there. Find us on YouTube. Find us on Facebook. Any of the places just search for Money matters with Mike. You know Mike and you can find us. As we say often, if you're not finding us, you're just not looking because we're out there everywhere.
Speaker3:
Absolutely. And folks, you know, we would love to meet with you to discuss how we can help you reach your financial goals. And we can help you with a lot of things retirement, whether it's planning, whether it's risk management, whether it's estate planning, and a whole lot more, because building sound financial plans just exclusively for our listeners is what we do best. So 704 5601573 rings my phone directly in my pocket. It's the only number I've had since 1997, and millions of people have it. But I promise you, if I don't answer, I will call you back and you won't have to press one to speak English. Okay. You can also visit. Like Matt said, Money Matters with mike.com and fill out the contact page on the web.
Speaker1:
Very good. Well, of course we're going to talk a lot about the state of Social Security coming up and maybe talk about some other issues surrounding Social Security, a lot of decisions that need to be made. And you might say, well, do I there are actually any decisions for me to have to make for Social Security. I thought I thought I'd, you know, just started claiming it one day. Well, there are actually a lot of different decision points here, and we'll go over several of them, several different considerations for you to, well, take into consideration. But first, let's get some inspiration for this conversation, shall we? And we'll do that with our quote of the week.
Speaker4:
And now for some financial wisdom. It's time for the quote of the week.
Speaker1:
And this week's quote comes from Paul Craig Roberts, who said the real Social Security crisis is that the government does not have the money to redeem its IOUs. Boy, those are some very true words, Mike.
Speaker3:
Yeah, and they're kind of scary words. And, you know, the purpose of the show is not to scare you, not to instill fear, but it's to kind of shake you a little bit, rattle your cage, and get you to wake up.
Speaker2:
Hungry for something to chew on. Here's some meat on the bone.
Speaker3:
According to the Social Security Administration's trustees report for this past year, 2024, which gives a very, very comprehensive overview of the financial status of Social Security. Well, that report highlighted several critical findings and challenges that the program will face within the next ten years. Okay. And that report is crucial for understanding the future of Social Security and the necessary steps that must happen in order to ensure its sustainability. So, Matt, we're going to dive into some of those key findings of that annual trustees report.
Speaker1:
Yeah. Let's do it. And first here, Mike is going to be the reserve depletion date. Um, you know, we've gotten a little bit of a reprieve, I guess. Um, we got another year, I guess, to hold our collective breaths. Right?
Speaker3:
Yeah. So the the projected reserve depletion date, that means when they're going to run out of money for the combined old age survivors and disability insurance, which on your pay stub is reflected as a SDI that trust fund depletion date is now 2035, which is a year later than previously projected. Doesn't that give you a lot of confidence in the system? Specifically the old Age and Survivors Insurance, which is Oasi trust fund that is expected. That fund is expected to pay full benefits until 2033, consistent with last year's projection. Meanwhile, the disability insurance, which is the Dei Trust Fund, is projected to maintain full benefit payments through the end of the 75 year projection period all the way up to 2098. So if you're not disabled, if you're just claiming Social Security, um, you got until 2033.
Speaker1:
A goodie Unless something happens, of course. And of course, it's kind of like, who knows what's going to happen in Washington these days. But we, uh, are, you know, sitting here with our fingers crossed that they will actually do something to shore up Social Security going forward. Um, but, you know, I mean, the big problem here, Mike, really boils down to what's coming in versus what's going out, right? When it comes to Social Security funding.
Speaker3:
The report notes that the OAS annual cost will exceed total income throughout the 75 year projection period. Uh, and after the projected trust fund reserve depletion in 2035, continuing income would only cover 83% of program costs, declining further to only 73% by the year 2028. And that indicates a significant funding shortfall that will need to be addressed, uh, in order for folks to maintain full benefits in the future.
Speaker1:
Yeah. That's right. I mean, and there are some challenges reflected here in this report. As you've been saying, the primary one that has been identified by the Social Security Administration is that projected depletion of trust fund reserves by 2035. And of course, as you're saying there, Mike, without legislative action, they're going to have to cut benefits.
Speaker3:
They are. And that shortfall underscores the urgent need for policy interventions. They have to make changes to the program in order to ensure its long term viability.
Speaker1:
Yep. Absolutely right. And so, you know, as we move further on here into 2025, the state of Social Security is really painting a kind of a mixed picture of the slight improvements that we saw, that one year reprieve that we're getting on when the combined trust fund is expected to run out of money and then face a shortfall. Um, so, you know, as we talk about that trust fund. And and it provides benefits for retirees, right. And their families. It's expected to pay full benefits, as we said, until 2033. So that means when the rubber hits the road, Mike, that starting in 2034 without action in Washington, the fund will face a shortfall.
Speaker3:
Yeah, I mean that's eight years away. So the implications for beneficiaries are significant. Okay. If they're depleted, folks are in trouble. And the trustee's report serves as a crucial call to action, urging Congress to implement measures that could extend the solvency of the fund. Right. Potential solutions could include adjustments to payroll taxes. They could be changes to benefit formulas. They could be raising the retirement age. And, you know, unfortunately, that is not what the general public who's been paying into this I mean, I've been paying into it. I'm 54. I've been paying into it since I was 14 years of age. And, you know, just the possibility of me not getting what I put into it is kind of catastrophic.
Speaker1:
It really, really is. I mean, you know, you expect to get what you pay for. And, um, if that is, you know, if the Social Security is in the situation that it's in and it remains that way without any adjustments, we're all going to be very frustrated that we're not getting what we paid for. And the importance here, I think, Mike, is to highlight the fact that you really need an income plan. You don't need to be relying solely on Social Security in your retirement, right?
Speaker3:
You're right, because each of those options comes with its own set of economic as well as social implications that need. They demand careful consideration. So when we sit down and we look at your portfolio and we look at your assets, we're going to discuss all of your financial goals, your vision for retirement. We'll take a look at your current plan if you have one, as well as what assets you have within your portfolio. And we'll come up with what a plan that we would recommend and answer as many questions that you have about your retirement, including how to not have to depend on Social Security. We like to have Social Security as the cherry on top, and we want to go into retirement with 100% confidence, no matter what happens with the Social Security trust funds.
Speaker1:
Yeah, you don't want to be dependent on that. Definitely. So get a plan started for yourself today. Your own customized retirement plan. Mike Zeno can help you with that and get one in place so that you can have peace of mind, which really is priceless. After all, money matters with Mike. Com is the place to go. Money matters with Mike. Com or you can give Mike a call directly at (700) 456-0157 three. That's (704) 560-1573. All right Mike. So we talked about a lot of different considerations that need to be taken into account. And of course, you know, people as I, as I mentioned earlier, might think that they could just start claiming Social Security at a certain age and they don't really have to think about anything else. But before you do that, there are a lot of different considerations that really need to be taken into account. I mean, you can't just go into it blind.
Speaker3:
Yeah, absolutely. I mean, the different situations could be like, okay, marital history. Have you been divorced before? Have you had, you know, multiple divorces? Are you a widow? Are you a widower? What about survivor benefits? What about if you have two working spouses, the potential for differing earning histories. Okay. And we're going to discuss some key points that you need to keep in mind when planning for Social Security benefits. Yeah.
Speaker1:
That's right. And eligibility for spousal and survivor benefits really is at the top of the list here. And you know, you're you're talking about some very important things that need to be taken into account that can affect a lot of people from kind of across the great spectrum of humanity. Right.
Speaker3:
No, absolutely. So, you know, let's talk about marriage recognition. Now, obviously, you have people that get married in a church or get married by the justice of peace, or go out to Vegas and go through a drive through wedding and get married by Elvis. Right. But what about common law marriages? What about LGBTQ in that subset of of the population? Right. Make sure your marriage is legally recognized. Social security for the benefits for spouses as well as survivors, are only available to married couples or to divorce couples who were married for at least ten years. That's very important on the marriage recognition.
Speaker1:
Yeah, absolutely. And then, you know, survivor benefits as well. I mean, you got to take your your income and earnings throughout your working life into account when you're thinking about survivor benefits.
Speaker3:
Very important it is because if one partner has a significantly higher earnings record than the other, may be eligible for a larger survivor benefit. If the higher earner delays taking their Social Security benefit until age 70. I'll use myself and my wife as an example. Okay. We have a plan. I'm 20 months older than my wife. As soon as she turns 62, we're going to jump on hers. My wife is a teacher. She loves what she does, has a passion for it, and is an amazing teacher. Right. I make a lot more money than my wife does. My wife's people also live a lot longer than my people. So by me delaying until age 70, eventually when I pass away, I'm setting her up for a much greater benefit down the road. Okay. And then the other thing that we mentioned before is people who are divorced. Okay. If an individual is divorced after a marriage that lasts at least ten years. They still may be eligible for spousal or survivor benefits based on their ex's, uh, earning record. So that is huge. And people need to be aware with that of that. And I'm amazed at how many people have absolutely no idea.
Speaker1:
Yeah, it's absolutely right. I think a lot of people, just as I said earlier, kind of fly into it blind here and don't really take the time to educate themselves about the choices and the considerations that really need to take effect. Here's something to Mike that you alluded to a minute ago, and that's the timing of benefits. And explain why that is important, because, you know, you're essentially if you're able like in your individual situation, you, you know, are are able and you're able to plan for this, to delay your benefits until you reach the maximum benefit. Um, you're essentially giving yourself a raise each year. You go beyond full retirement age, right? Absolutely.
Speaker3:
And that raises is pretty significant. It's 8% compounded for every year that you wait beyond your full retirement age, which for most people listening to the show is going to be 66, 66 in some months or age 67. So and that could be especially advantageous for the higher earning spouse as it maximizes those survivor benefits. And then too, if one partner is significantly older, the timing of when each claims those benefits may need careful consideration to optimize the overall lifetime benefit that is due them.
Speaker1:
Yeah, absolutely. And, you know, I'm kind of going back a little bit to your own personal example as well. You know, you said about an earnings disparity between yourself and your wife, that's something important to take into account as well. No matter your, you know, other situation in life, you've got to make sure that those earnings levels are taken into account because it can make a big difference in your Social Security claiming your benefits.
Speaker3:
It can make a big difference. I mean, a big difference. The lower earning spouse may benefit from those spousal benefits, which can be up to 50% of the higher earners benefit at full retirement age. And so the higher earner delaying benefits will increase the amount of spousal or survivor benefits for his or her partner.
Speaker1:
That's right. And then health is something you know, you have to take into account as well when it comes to planning, especially for those survivor benefits. Right. I mean, you talked about your people not living nearly as long as your wife's people. So that's another thing that that goes back to your own example. I mean, this is just a real life thing about all of these different considerations that have to be taken into account.
Speaker3:
There is absolutely no doubt with that. I mean, if you're in good health, consider delaying. If you're in poor health, then you may want to jump on it. Or if your family history is such that no one really makes it out of their 70s, then you probably want to jump on it earlier. But if all of your people live past age, say 85, if most of them are 85 or older, by the time you know they become room temperature, then yeah, you want to delay. And even delaying one, two, three years is significant and will add up over that length of time.
Speaker1:
Yeah, it can make a big difference there. And of course, you know, with the Social Security Administration and with anything that happens as far as government records go, you need to make sure that your government records are up to date as well. I mean, if you've had something like a name change or something like that, um, you got to make sure that all of your records are updated so that there's no at least delay in getting that benefit.
Speaker3:
Yeah, because errors or inconsistencies will delay you receiving your Even your benefit, uh, benefits that are due to you. So make sure. Okay. And here's the big one. Children, dependents. Right. If you have any dependents, whether their biological children or adopted, they may be eligible for benefits based on your earnings record. If you claim Social Security before they reach age 18 or 19, if they're still in high school. So, you know, that could be huge for you in your particular situation. Exactly.
Speaker1:
And you know, another big consideration here, Mike, is everyone's favorite subject to talk about. And that is taxes. You got to consider the tax implications here.
Speaker3:
Yeah. So a lot of people don't realize that up to 85% of your Social Security benefits can be taxable depending on your combined income. So joint filers may face higher thresholds for taxation. So planning for this is absolutely essential.
Speaker1:
Yeah that's right. And my biggest piece of sort of advice to our to our listeners here of any of these points. And my favorite one of these points that we'll mention is to seek professional advice. Don't try and go it alone. If any of this is, you know, sounding confusing or overwhelming to you, seeking that professional advice from someone like Mike Zeno is absolutely essential, I think.
Speaker3:
Yeah. I mean, consulting with a financial professional who understands all of these issues can help tailor your claiming strategy to your individual and unique situation. And just like if I had a toothache, I would go to a dentist. If I had something wrong with my eyes, I'd go to an optometrist or ophthalmologist. Right? If I had something wrong with my vehicle, I'd go to a mechanic. They're professionals in their fields. Same thing with financial planning. Also the same thing with legal advice. So make sure that your estate plans, your wills, your powers of attorney documents. They are all up to date to make sure that you and your family are protected.
Speaker1:
Essential, essential to do that as well. And folks, if you would like to get underway with the plan of your own, Mike Zingo can help you out along those along that road there or along those terms. Money matters with mike.com is the place to go. That's money matters with mike.com. You can schedule a consultation by just reaching out there via the website. Or you can call Mike Zeno. Talk to him directly today. (704) 560-1573. That's (704) 560-1573. So like, you know, the whole point of reaching out to you, um, as a, as a, you know, retirement and financial professional, someone who does this every day is to get people a plan in place so that they're not having to just rely on Social Security because, you know, in retirement income really is so important. And a lot of people think that, oh, you know, I've got to build up this big nest egg or whatever, But no, saving for retirement is great, but you got to have a retirement income plan in order to really, you know, make ends meet at the end of the day and then have that excess as well, so you can do what you want to do in retirement.
Speaker3:
You have to reinforce your retirement plan with an income plan. So if you haven't thought about how you're going to, um, descend from Mount Everest, you know, people prepare for years to climb that mountain. And I'm using this analogy because it is so critically parallel to financial planning that most of the deaths when climbing Mount Everest actually don't occur on the way up. They occur on the way down. So we don't want you dying a financial death because you have not planned for the income and distribution phase of retirement. And part of that is not solely depending upon Social Security benefits for your income. And that's due to several critical reasons, right? First, Social Security benefits, they're often just not enough to cover all of your essential living and healthcare costs, particularly in the face of rising expenses. And originally, Social Security was intended to supplement, not substitute, both pensions and personal savings. And the average monthly benefit right now is approximately $1,706, which may, I would say will prove inadequate for most retirees. And moreover, the replacement rate of pre-retirement income by Social Security decreases as one's earnings increase.
Speaker3:
So when you're in your 50s and your 60 and your prime earning years, and you're earning more and more and more money, you're making this. But when you retire, it's going to drop to this, okay. And Social Security is likely only going to bring it up about a third of the way. So it's really, really important to make sure that you understand that you need more than just Social Security. Okay. Additionally, Social Security benefits lack the flexibility and the features that are offered by many retirement accounts, like the option to withdraw all funds at once or to take loans against the account balance. And obviously, there's the uncertainty about the future of Social Security, with projections suggesting that the program's trust fund is going to be basically bankrupt by the year 2033. And then into 2035 now, which is is going to, you know, potentially lead to reduced payouts for retirees. So, you know, these are things that people need to be aware of so that they don't count on Social Security and they have a plan for their income in retirement.
Speaker1:
As you said, Mike, the whole point of the show is to get you to wake up here and really be aware of these things, but also know that there is help available and there are ways to fix it. So let's go through a few ways here, Mike, before the show is up here, just in a couple of minutes, that people can really secure income that's going to meet their needs in retirement. They got to sort of diversify their retirement plans is really what it comes down to.
Speaker3:
Yeah, Matt, it is absolutely diversification. I mean, you need to first off assess where you are currently. And unless you know where you are, it's going to be hard to get you to where you either want to be or more importantly, need to be. You need to set clear retirement goals. Okay, what you want your lifestyle to look like? How much do you want to travel? What other expenses are you going to have, and then figure out a way to pay that right? So you also what's really, really important is the fact that you need different retirement account types. So maximizing your contributions to various accounts whether their Whether there are 401 403 BS IRAs, if you're a federal employee, a thrift savings plan. By maximizing all of those options that are available to you, you'll be able to benefit from diverse tax advantages as well as savings opportunities, right? If you're if your companies offer you the option to pay the tax now in a Roth 401 K or Roth version of whatever plan you have, you might consider setting up that type of of bucket investing in different asset classes, right? Whether they are stocks, bonds, mutual funds, ETFs, all of that will help mitigate risk and enhance your potential returns. But the biggest thing is to stay informed and to stay educated by continuously updating yourself on the, you know, state of the financial markets and different retirement planning strategies. And so ultimately, consulting with a financial professional is always going to be better off than not, because that professional is able to help customize a retirement plan that meets your specific needs and helps you ultimately reach your goals.
Speaker1:
And I know just the guy for you to talk to. And his name is Mike Zeno. You can reach out at Money Matters with Mike. Com or call Mike at (700) 456-0157 3704560 1573. All right Mike. Well that is going to do it for this edition of the show. It has come and gone quickly, sir, but I thank you for everything you bring to the table each week. And we'll do it again next time.
Speaker3:
Absolutely. Matt, I'm going to leave our listeners with this set of questions. You know, do you want to just wait and see what the market is like when you decide to retire? Or do you want to get to the guarantees and start planning what you're going to do with the paychecks that you've turned into play checks each and every single month. So whatever you're doing this weekend, I hope you enjoy it to its fullest extent and as always, make it a great day.
Speaker2:
Thanks for listening to Money Matters with Mike. You deserve to work with a licensed financial and insurance professional who can offer strategies for protecting and growing your hard earned money. To schedule your free, no obligation consultation, visit Money Matters with mike.com or pick up the phone and call 704 560 1573. That's 704 5601573. Not affiliated with the United States government. Mike Zeno does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be to be educational in nature and does not provide a guarantee or a specific result. All copyrights and trademarks are the property of their respective owners. Amara Life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.
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. Remember, all of Mike's listeners receive a free financial consultation just for listening to the show. Visit Money Matters with Mike. Com to learn more and schedule an appointment. Thanks for listening to Money Matters with Mike and subscribing wherever you listen to podcasts.
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