Відео

Inflation is never going to stop increasing or even keep goods and services at the current prices and proof is below with historical averages of the cost of living increases that beneficiaries receive in the past 48 years. The cost of living increase for Social Security Benefits between 1975 to 2023 is 3.8%. Of course, that'sj just the average. There were some yearsi with 0% increases (most recently, 2015) and some with double-digit increases (1980 andi 1981). There has been no increase of 6% or more since 1983 -- except for 2022, which featured an 8.7% hike. That means that inflation rate increase total of 182.4% over the past 48 years! Which in 1975 the average benfit was $257 and if that individual lived in 2023 their benefit would be $1540 a month. In saying that not being proactive and not planning personal finances for future inflation of goods and by budgeting, eliminating debts, and saving for the future unexpected expenses will lead to financial hardships. 0:45

The 1983 changes kicked the can down the road about 50 years. I guess the can needs to be kicked down the road another 50 years.

Very interesting work, easy to understand data - Thank you!! A few things that I think one could add (making things more complicated). Life expectancy in the USA has risen from about 70 in 1960 to over 76 in 2021- so it seems only logical to raise the retirement age for SS accordingly. USA demographic's (population pyramid) would suggest that the amount of people taking SS will remain pretty stable for a while, and perhaps not such a massive increase that has been seen in the past. It's most probably a good idea to ensure that immigration into the USA remains strong (more tax payers) to ensure that the Chinese, Japan et al effect (more retirees supported by less workers) does not happen here. And perhaps the SS fund could consider making changes to its investment policy to own credit bonds to increase the yield on the portfolio.

Thanks for the information.

The politicians missed used the money for their projects, Seniors wouldn't need to suffer!!!!

Not get political but why don’t you see an investment policy change that would allow the money to grow more as an option. Small changes there would make up the difference.

When you look at the Social Security report, the real drag on solvency is the Disability program.. it is running the biggest deficit and some changes there would help the total program the most. The psyche of the humanoids come into play. Cut the cola and people will raise hell as if they cut the benefit.. even tho it is just cutting the Increase in the benefit. Easier on the mentality of the people is to tax the benefit more.. people still see their benefit increase and won't realize its a cut until tax time when its thrown in with all the other stuff in a return.

"Socialism works until you run out of others peoples money." -Margaret Thatcher

Just an off the cuff estimate, but if 0.1 percent payroll tax produces 20 billion dollars, then to cover a 40 billion dollar deficit would need a 0.2 percent bump in the payroll tax. Is this rocket science? LOL. And we have politicians saying get rid of Social Security. I guess that is what happens when you elect lawyers not accountants.

Thanks guys

Great review of Social Security .. I have so many friends that took Social Security at 62 for they were afraid SS would run out of money ... Now these early takers of social security are struggling to meet their expenses due to poor planning.

Thank you for your video! This was the first video I have seen that clearly delineates the Social Security funding, and where we are at currently. It is certainly a cause for concern, but not a reason to panic. Panic inherently leads to bad decisions.

Thank you for this video. I will reference it to those that I discuss the topic with.

I’m someone who can and planned to self insure LTC. I spoke with Hans and Tom soon after retirement and they explained the benefits of a hybrid Life/LTC policy. After considerable research and consideration I bought a policy for my wife and myself and couldn’t be more pleased. I was reluctant to consider a LTC policy as I feared a recurring retirement expense for a need that may or may not be required. Instead, with a single premium hybrid policy I consider it to be an investment as part of my asset/ risk diversification plan. I took investable assets and allocated them to a policy that will return my premium after 5 years if I change my mind (highly unlikely), pay benefits well beyond my initial investment if I need care, or pay a death benefit to my heirs if I do not need the care. The challenge of self funding care is that when you most likely need it is later in your retirement years when you are living off of Social Security and IRA withdrawals. Each dollar of care funded from an IRA requires an additional 20-25% withdrawal to pay the taxes. Payments from the LTC policy are tax free.

Excellent Advice. You guys really know what you are doing and explain it well with the white board, and all the charts for taxes. Thanks. PS ...I hope your knee heals up well. I am 66 and fell about 9 months ago also and twisted my knee. I have no insurance yet as my medicare was too high, but I was lucky and am healing almost 100% now . The first week I had to use a walker. Best.

Great video guys. I just realized by looking at your tax brackets for 2024 that I can do another 100k + conversion for 2024 and still be in the 35% bracket. Thanks

You give an EXCELLENT explanation step by step. The majority of the public is not used to all these financial terms that other videos just throw at you. With your hand written board and patiently explaining each step, you make very clear sense. Thank you for posting.

I always love your charts. They are so easy to follow.

You might want to spell check your board

you said pulling lots of money from 401k or IRA to cover LTC triggers a large taxable event. Does this account for LTC cost being tax deductible if over the 7.5% AGI?

Hans very interesting life story of you. I’m in your old home state of Minnesota. I’ve just found you and your company on UA-cam a few days ago. Very interesting stuff. My wife and I are 59 and 57. And I am starting now to watch yours and many other videos. Thank you, Sup.

In 2026 will they still have the same standard deduction of $29200 plus over 65 $ 1550 or it going to change

Being 62 yr old I truly appreciate these. I assume there might be a tax on transferring from IRA to annuity? Or are we just pulling first 8 years from IRA and or Roth?

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

Like the board instead of a screen, must be getting old. You can create a roll over window between retirement and SS. Taking SS later is best longevity insurance, but also gives bigger window. Nice window after retirement but before IRMA (63) also. I also like a roll over as a hedge against a bear. I will not roll over any this year or probably next as still working, but I will do if the market tanks - move more for less basically. Thanks

In December 2022, 18 months after my Mom died, her trust got its first taxable income when a forgotten IRA was closed. It was $15,000, so hit the 37% trust tax bracket. There was a "final" tax return filed in 2021, but this meant a "real final" return had to be filed for 2022. All other, prior, income to the trust was non-taxable. There were THREE children (me + 2 siblings). We were told to get Schedule K-1s created, with $5000 going to each child, with taxes paid at our individual tax brackets. Problem solved. $600 for the "real final" return filing and the 3 K-1s. But done and clear. Husband and I don't have kids. The bulk of our retirement savings is in various IRAs, so directly naming beneficiaries would be difficult and it seems to us that distributions to siblings/nieces/nephews would have to come from a central source. The secondary beneficiary is our trust, with the funds to be distributed to various siblings and nieces/nephews. I'm assuming K-1s would also need to be created at that time? Are there any alternatives in situations where assets are in multiple accounts--many pre-tax--and beneficiaries are numerous (at least 12).

Great info! Would love to see you explore a scenario in a similar manner comparing a leading MYGA, Fixed Index Annuity and Income Annuity to see how they contrast and compare.

Great video. Question for future planning. If the annuities do not accept people at age 85, 87, then what are the strategies after that? For estate planning, nursing home planning, to leave to heirs? Hopefully CD's and high yield savings account the only options after that? Under the mattress?

If you are still working and will be in a lower tax bracket at retirement, then a MYGA that matures when you retire will defer all the taxes on the interest until you are in a lower bracket! In the example, one could buy the MYGA and in 10 yrs have $344,000 guaranteed to roll it into a SPIA then, and I imagine get a higher annual payout than the income annuity.

great info ,

What a great and informative video! I learned so much in this video of how your company operates and it gives me great confidence in everything that you do

Is there any benefit from having the traditional or 401k in a trust? I understand the tax consequences, thanks to you.👍

Yes over half,because I work and I m single now.

Thank you Hans and Tom ! another micro tip.. leave an amount to your minor grandchildren as they get taxed at zero to low rates for up to $2600 of income a year for unearned income. Plus they get a longer than 10 year rule.. 10 years from the time they become adults. So 20-25 k would be mostly taken out at tax advantaged rates over 10% a year distribution rate.

Thank you for this insight...

What if you started taking IRAs earlier at 62 y/o does 10 year apply?

Hans, Tom; I've subscribed to, and watched your videos for a few years. Very good information. This discussion is especially useful to me. I'm going to investigate LTC more actively now because you've clarified some of the things I've been thinking about for a while. Thank you for sharing your experiences and insights. You have helped me.

really good idea to categorize this and have it protected from lawsuits, greedy second spouses and the like; like the party-goer who had one too many and now sues you because he fell on the property banging his knee....or the uninsured driver, etc. remember OJ had big judgment against him but his money was protected by categorization. There are actually doctors offices who specialize in cutting toenails of injured parties such as those who have fallen now using walker and cannot reach their toes easily. Many other cases you don't consider, I am putting money away in this.

When calculating the IRMA income does it also include the STD Deduction amount?

Hans and Tom, you both told us very compelling stories that made me reflect (forward) as an 85 or even 95 yr old. How much is a "large $$$s on self" What is a reasonable range of of IRA $s to pay for such LTC? Thank you.

Biggest unknown expense when doing retirement planning ! Everyone has a story.. my mom went into a facility and had to fight like hell to get her LTC insurance company to pay a dime.. they are known for delay tactics to deny you the benefits you paid for.. AND the premiums go up dramatically each yr you get older before you use the benefits. But the charges are crazy ..my brother in law, age 78 just went into a memory care facility and is paying $7000 a month in nevada, for a double occupancy room !! Tax deductible expenses : I believe only the medical care you receive is tax deductible.. you have to carve out the room and board expenses. Besides a ltc policy.. one can buy a Deferred Income Annuity to start in x years to help offset ltc expenses, or a QLAC if coming from an IRA. IF you are working and can get a HSA set up, DO IT.. to help pay for health care expenses in retirement.. its tax free pay outs too. When you retire and take some time to travel.. or before.. visit some places in Mexico or other countries that offer LTC for a fraction of the price.. not for most people.. but an option many are doing that don't have the assets for the enormous costs here.

Thanks for yet another excellent info video. One thing I got from this I didn't know was the tax deductibility of long term care and home health care. That seems like it amounts to a potential ideal tax arbitrage for 401k funds. Is that correct?

Excellent stories. Keep us thinking on this subject.

Plan G. Mutual of Omaha. Two of us. Total $234 per month (up from $221 last year, so a 5% increase). So $117/mo each.

Thank you for this message; we always learn something! We have been on Medicare only a couple of years and we are not yet taking Social Security. When we do take S S, we are hoping that our Medicare premiums will NOT be 'taken off the top' of our SS benefits. We like to keep those things separate in our own minds and in our bank statement, too. It seems to me it would be easier to know the amount of money coming in from SS and the amount of money going out to Medicare if they would remain separate, although we have heard that it is very common for the Medicare premiums to come directly out of SS benefit checks before the benefit is added to your bank acct. Is that true?

It was a calculated long-term tax cut for the rich and a short term tax cut for the rest of us. It is also the main reason our deficit is so high.

Great video... We really appreciate what you are doing by sharing this valuable information. I have been on medicare for two years and i feel i am paying a little extra with my United Healthcare AARP. you just confirmed this. Thank again ... Good job.

Thank you ! Great service and calculator. How is it the same company is listed several times, each with a different premium for the same plan G ? In looking at the ratings, how can a company have 5 star customer satisfaction and only a 2 star Market Experience ? What is market experience ? Looking at the price increase ratings may be important as you might save $$ one year and then they raise rates higher than other companies in future yrs... and if your health changes then you are stuck with them.

Knowing the fundamentals is pivotal.🎯

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