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How to Retire 100% Tax Free! || How to Maximize Income From Social Security || Part 3 of 3 - YouTube
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hello everybody joe orbit coming at you
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today we are going to finish off our
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series on social security our first
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video covered the basics you need to
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watch that one get into it understand
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social security better the second video
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went into your benefits individual
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benefits
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married benefits divorce spousal
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benefits survivor benefits important
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information everybody needs to
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understand and today we're going to talk
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about how do you maximize your income
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from social security because what i want
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you to really take home today
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is social security is your money you
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funded it this isn't the government's
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money because every time you were paid
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about six percent of your income went
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into social security and then your
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employer matched another six percent so
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about 12
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of your earnings over your lifetime have
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gone into the system that's your money
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so make sure you get back as much of it
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as you can
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don't just take it at 62 think this
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through watch the first two videos when
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you're done come back and watch this one
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and we're going to cover how can you
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maximize it we're going to talk about
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three different strategies in order for
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you to get the most so you can get more
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money back and most importantly
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spend less in taxes so let's get started
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so our first strategy we're going to
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cover is simply check your earnings
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report we've talked about earnings
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reports in our first video on social
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security go online to social security
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log into your account and order a copy
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of your earnings report you should do
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this each and every year and check it
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for accuracy and then you want to start
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counting numbers you're trying to get 35
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numbers any zeros in there as i said
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before it's going to bring down your
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income so if you go through the report
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and you count that you have 33 numbers
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and you only have you know because
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they're going to count 35 numbers if you
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have 33 years worth of earnings and two
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zeros in there if you work two more
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years you'll get rid of those zeros
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replace it with your current income that
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will raise your benefit simple easy
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order your report every single year and
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look at it number two spousal benefits
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if you're currently married if you are
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married for at least 10 years and
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divorced or if you're a widow or a
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widower you need to figure out how to
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claim spousal benefits because those
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benefits work in conjunction with each
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other and it gives you
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and your spouse more income the easiest
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one is called the hybrid strategy simple
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easy here it is the higher earner pushes
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off their benefit the lower earner can
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claim as early as 62. now typically i
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don't recommend claiming at 62 because
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you're only going to get 70 to 75 of
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your benefit but if you were married or
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if you're currently married you can
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claim early for the lower benefit and
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push off the higher benefit and the
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cumulative payout
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could be almost the same as if you both
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push it off till age 70. so again i call
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that the hybrid strategy it's the idea
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that the lower earner take it as early
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as they want 62-63
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but in order for this to work the higher
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earner needs to push their payoff till
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at least age 70 not beyond 70 but you
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want to get as close to 70 as possible
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so you're earning those eight percent
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deferred credits you're getting the
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extra cost of living adjustments and
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when you combine these two together it
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gives you an incredible amount of income
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it lets you get income early it lets you
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get income later if one of the spouses
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passes away the other spouse has a much
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higher earnings for the rest of their
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life and number three and the reason why
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you're here and you didn't even realize
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it let me show you how you can retire
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100
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tax free
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now most people don't realize but social
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security income by itself
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is tax-free if the only income you have
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is social security you pay
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zero income taxes
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now i know some of you are out there
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thinking well i have social security joe
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and i pay taxes that's because you have
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other sources of income and let's cover
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those sources of income there's only a
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few of them you notice some chuckling
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here because a lot of different types of
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income can come into play and ruin the
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tax-free benefit of social security and
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those sources of income are
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interest
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dividends
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capital gains rental income municipal
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bond income
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earned income
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pension income so the reason why i
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started with those incomes first is
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because there are ways that you can go
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about deferring that income say you have
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investments that are kicking off
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interest dividends or capital gains you
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can move those investments into an
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account that aren't creating interest
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dividends or capital gains or maybe you
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have a large muni bond portfolio and you
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do that for tax-free income well the the
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interest that the muni bonds kick off
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are tax-free but that interest causes
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your social security to become taxable
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so you can look at these different
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streams of income we can look over your
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tax returns show you where those income
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streams are and show you how to defer
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those are easy one that's a little bit
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more difficult is pension income i will
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be doing a video later on on how to
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maximize your pension if you have the
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opportunity to receive a lump sum you
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should really take a hard look at that
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because you can benefit greatly from
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that lump sum payment other than that
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there's one major income source that
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will destroy your social security
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tax-free ability and that is your r
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m
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d your required minimum distribution if
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you've had a chance to watch my video on
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iras please pause this and go watch it's
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a quick video explaining iras and
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explaining in detail what a required
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minimum distribution is but the fact of
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the matter is that is a 100
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taxable income and that rmd will in turn
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cause your social security to become
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taxable i need you to be thinking about
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this so what i like to propose to you
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now is a system i've developed over the
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last 22 years working exclusively with
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retirees and i call it my reverse
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retirement system let's first go over
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the government's plan this is what they
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want you to do this is how they want you
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to handle your iras and your social
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security they want you to retire at 62
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and claim social security see by doing
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that you're getting a lower benefit 70
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maybe 75 and you're gonna get that for
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life so that's less income the social
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security administration has to pay out
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so now you have a lower income from
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social security and you're pushing off
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your ira see i hear this all the time
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from people people tell me well joe you
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know the ira money that's my money and
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the social security money that's the
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government's money so i'm going to spend
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the government's money first and i'm
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going to push off the social security no
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that's not the way it works social
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security is your money the ira is your
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money let me show you how to get more of
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both and pay less taxes so what they
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want you to do they want you to retire
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early claim social security at 62
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receive a lower benefit in the entire
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time your ira balance is growing it's
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growing tax deferred but it's growing
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it's getting larger and larger and so
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then your rmd comes into play at age 72
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and i tell you it's like this big rock
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just falling off a cliff and hitting you
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in the head with taxes you had no idea
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it was going to happen i've seen people
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go from a few hundred dollars a year of
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income taxes to multiple thousands tens
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of thousands of dollars of extra income
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taxes all because of that rmd
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so let's not go the government plan
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let's not go that route i've devised a
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system i call the reverse retirement
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system and here's how it works you want
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to retire early great retire early don't
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take social security
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i want you to push off your social
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security benefit because every year you
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pushed it off as we talked about in my
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other video it's growing it's maturing
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it's earning about two to three percent
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cost of living and every year beyond
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your full retirement age it's earning
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eight percent so we push off social
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security
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it's growing i want you to start
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spending your ira and at the same time
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while you're spending i want you to be
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converting i want you to go from an ira
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over to a roth ira now there are taxes
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involved in that and that's something
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you want to you know talk to your cpa
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talk to your certified financial planner
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let them walk you through this system
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but you can be spending and converting
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spending and converting and the idea is
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to lower the value of your ira
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so that by the time you hit 72 your rmd
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is small enough that it doesn't cause
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any of your social security to become
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taxable so think about it you retire
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you spend you convert the entire time
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you're doing that your social security
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is growing by eight percent plus cost of
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living you hit 72 your rmd is small
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enough that it doesn't cause your social
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security to become taxable so now you're
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receiving social security tax free if
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your rmd is small enough your standard
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deduction will wipe it out and then you
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can take any extra income from your roth
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ira and that also is 100 tax free i have
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helped individuals retire with 80 90 100
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110 000 of income and pay
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zero taxes you can do this as long as
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you don't have too big of a pension now
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if you do have a big fat pension there
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are things we can still do so don't
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count yourself out just by doing the
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conversions you can have significant tax
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savings and when i say significant i'm
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talking about upwards of hundreds of
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thousands of dollars and if you're young
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enough maybe even millions of dollars of
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tax savings over your life expectancy by
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deploying this tactic again it's called
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the reverse retirement and the idea
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behind it is we're pushing off social
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security and we're spending and
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converting our iras if you would like to
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learn more about the reverse retirement
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plan reach out to us send us an email i
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can put together a detailed report
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showing you specifically how much income
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tax you're going to pay over your life
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expectancy going the ira route and how
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much you're going to pay an income tax
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go in the push off social security
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convert my ira to a roth ira route and
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it will be
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incredibly helpful to you to take a look
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at that report and see how much tax you
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can save not only could it possibly save
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you hundreds of thousands of dollars of
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taxes over your life expectancy
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when you pass on and you leave this
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benefit to your heirs
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you now give them a roth ira which is
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received income tax free so we're
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talking about giving you income for life
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we're talking about having that income
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be tax-free and then creating a legacy
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that could be significantly larger than
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the legacy you'd leave if you just went
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about the government's plan and had
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everything stay inside the ira
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now i know we started talking about
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social security here but social security
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and iras go hand in hand you need to
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understand how the two work with each
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other because those are your two main
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sources of income in retirement social
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security and iras and you don't want
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them together you want social security
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and roth iras that is going to give you
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more income with less taxes
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i hope this video was helpful if you'd
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like some more information please reach
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out to us we can send you our customized
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reports specifically for you showing you
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how to go about this process
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if you'd like help in this manner reach
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out to us there or find a qualified
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certified financial planner in your area
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to walk you through this we're available
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by zoom i'm creating this series of
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educational videos to number one help
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the public but number two if you have
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questions get a hold of us if you'd like
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to learn more you can always go to the
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website you can always go to amazon
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order a copy of my book i don't talk
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about my book but i am a best-selling
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author everything they never told you
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about retirement you can get a copy of
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the book on amazon i hope today was
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helpful as always if you liked the video
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make sure you hit the like button if
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you'd like to subscribe please send us
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an email we'll get you on the mailing
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list i enjoy doing these videos for you
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i look forward to seeing you on the next
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