Your tune to the Haven Financial Group Radio Show with your hosts Larry Kolvig and Kim carigain your guides to weekly retirement confidence. If you're interested in protecting and growing what you have, let us be your financials safe Hey it. The phone lines are always open at six one two five oh four eighty four hundred. Now get your financial questions ready because the Haven Financial Group Radio Show starts now. Good morning. I'm Larry Calvin, and you're listening to the Haven
Financial Group Radio Show. I'm founder and CEO, and we have many different things we want to talk about today, retirement topics, things that are fresh in your mind, and you can reach us at Havenfinancialgroup dot com or call in at six one two five zero four eight four zero zero. Kim, good to be with you today. It's good to be with you as well. And we're making our way through January, right cold boy, it's been a tough week across the country. Yeah, cold and gray, Yeah,
cold and gray. That that equals January. We're afraid, you know, Learry you when you talk about thinking about the show, I have been thinking about this idea. My husband and I have tossed this idea around. I don't know if you and your wife are doing this at this stage of the
game yet. Are but we're talking about next winter. Do we want to stay for the entire winter or do we want to start making some plans maybe slowly, you know, not necessarily buying something in warmer weather, but maybe renting something for a few weeks and getting our feet wet when it comes to, you know, getting away during the winter months. Are you guys ever talk about that. Well, we're still at college age, daughters and our
youngest being in senior at Prior Lake High School. But you know, you mentioned just kind of testing the waters a little bit. You know, the folks that we sit down with, we have a lot of a lot of snowbirds, those that go somewhere warm. Why wouldn't you if you're able to and testing the waters and just renting to see if you're going to like the place. That's really smart. And we have numerous clients that have done that and they go, you know what, we really didn't like it there,
or we liked it here better. So, you know, from a retirement perspective, checking these things out rather than just jumping in and buying and then finding out you know what, maybe we don't like it so much, and now you have another property, so that that's really smart to be doing that. So let's talk a little bit about what you really need to do to plan for something like that. Like let's start with you know, maybe people like my husband and me who are not retired yet. But is it important
before we start to really get into this to know our timeline. Let's talk about timelines. Yes, and sometimes people think, well, I'm just too young to be thinking about it, and be careful with that because before you know it, you might be right there where you didn't think you're going to be that quickly. So knowing your time arising extremely important, whether it's five years or ten years, or what is it going to take to get there.
It's crucial to know that because as we get older, the element of time becomes, you know, that much more important. And if you haven't planned, which you and I talk about on a weekly basis, you might have to push your original retirement date back, maybe you haven't saved enough for retirement. There's you know, on a weekly basis, there's certainly benchmarks that we like to talk about to accomplish these goals and objectives and then really plan
for the expenditures or the expenses. You know, we want accurate numbers. And the reality is when we oftentimes ask folks and we sit down, you know, what are your monthly expenses? They might throw out a number there that is, let's just say three thousand, and say, you know, next time we get together, and they come back and they go, well, we put pen to paper and it was actually six thousand. So it's kind of eye opening, and we want really legitimate numbers so we can have
accurate projections. And again, timeframe is a big part of it. Absolutely, So let's go back to if we could for a second here just this idea of thinking about winters, because I think that's really a big part of a lot of retiree plans. They need to see some numbers and they need to get a sense of this. And you can very quickly overspend if you're
not careful. Oh you can, yes, you can. You might not know that particular real estate market, you know what the trends are in that area, and also be also be aware that certain states have different types of taxes and you know, I know we're here in Minnesota and for years that we've been a one of thirteen states that taxes social security at the state level. We made a law of change here this past year, this past summer.
Thankfully, we're heading in the right directions. And you know, a lot of folks, well, I'm gonna move to Tennessee, Arizona, you know, one of those other states, Florida, et cetera. There's other attaxes that are applicable and taxes are also relative that to that particular state. So you know what planned for these vacations. You know, we factored them into our planning. Because if it's something you like to do, make sure
you're planning accordingly. Just don't add it in later because it might not be there in the budget. So accurate budget planning. So, Larry, if someone is identified maybe a vacation or a city or a state that they'd like to go to for a few months to get out of the cold, but it's going to require them to dip into their savings, what would you say
to that. What would you say to a retireee, Well, if they are retired and they're over the age of fifty nine and a half and there's no penalties and fit you know, it fits into their long term plan. Well maybe that's okay, but be careful that you know, there's not penalties, there's not unnecessary costs. Make sure you're maintaining a high level of liquidity. You know, we see liquid monies, there's benchmarks, we see do you have protected investments? Is everything at risk in the market? And you
know the big part of this is going to be driven by income. You know, understand your income sources. Can they support you know, an additional rent payment or a mortgage payment? What are interest rates? And you know not every has pensions, but you factor in your social security and your pensions and any other things that can generate income. Okay, maybe maybe then you're in a good position. But ultimately your retirement lifestyle expectations will come down to
is how much can you afford? How much of you've planned? What is your financial situation? And again coming back to the timeline, budgeting and income, those are the big factors that we really, we really hone in on
because that's what's going to matter in retirement. Sure, absolutely, I want to talk about income sources here in just a second, but first I want to remind our listeners that you're listening to the Haven Financial Group Radio show, and if you'd like to reach out to Larry and his team, you can do so at six' one two five zero four eighty four hundred, or you can get more information from Havenfinancialgroup dot com. That's their website again,
it's Haven Financialgroup dot com. So let's talk a little bit about income sources, Larry, because that's certainly an important part of retirement. Let's walk through some of the potential income sources that some of your retired clients might have. Let's start with four to one ks. Yeah, four on one k's those employer sponsored plans that you've been putting pre tax money in for years and years and years. Now it's time to start drawing in the most tax efficient way
possible. Taxes are going to again drive everything as far as the income needs, and that's going to rely on social Security and pensions and you know, guaranteed income is really the name of the game. And identifying those income sources and factoring them in because the biggest thing over all the years of work is you've been getting a paycheck. Now you have to create your own paycheck. It's not just just tapping into well, if we want to tap into this
account or this account. What are the tax ramifications? Forward thinking tax planning, especially in retirement, because you know, we're in business with Uncle Sam, whether we like it or not, with those four to one k's. Uncle Sam owns a big junk of that, and we want to make sure we're paying our part but not doing too much. So those rollovers. By the way, if you are fifty nine and a half, you have the ability to do what you want with that. Might want to roll it into
a traditional IRA. Maybe you don't need to be taking the risk that you're taking. Or sometimes people use annuities to guarantee income. Maybe appropriate, maybe not appropriate. But then it comes back to what we do is education. You know, just this past week we had a full house at Porter Creek
and Burnsville where we discussed all different retirement topics. People really want to be educated and they want to feel that people are the people that are working with are spending time and getting them a good understanding because most often retirees only retire once, and you don't want to go back to work, so let's get
it right the first time. Absolutely, you've got that right. Yeah, So again we're talking about possibly, you know, thinking through how you might want to spend your winters as a retire higher, and some of the steps that you'll want to think about before you start to make those plans. And one of those, of course is budgeting, and budgeting is all based on reviewing your income that you will have as a retiree. We've talked about for
one ks iras. Of course, social security is another form of income for a lot of retirees, and there's a lot associated with social security, isn't it, Larry, Yeah, it's highly politicized. Imagine this. It's going to be part of the election process, I'm sure, because it always is, no matter which side you're on. But thinking through should I take it at sixty two, wait till full retirement age, wait till seventy A lot
of thoughts should go into that. Now it doesn't have to be rocket science, but this is all the different types of classes that we offer and you can find those on our site. You know, retirement that you dream of doesn't necessarily it's not going to come overnight. It takes careful planning, preparation, understanding the expectations, and again the time, that element of time, and if you don't plan, what's sealed, saying, Kim a failure to
plan as a plan to fail. We don't want that, and we certainly don't want to derail your retirement plans that we do not. Yeah, Ultimately, your retirement lifestyle expectations are going to come down to how you prepare and take care of your financial situation when it comes to your timeline, to your budget, and to your income, all things that Larry has touched on.
All right, still coming your way, Larry, as we continue down this path of trying to figure out those fabulous warm for most people winters when it comes to retirement, we're going to talk about the risk your investments might face when it comes to the ups and downs of the market. You're listening to the Haven Financial Group Radio Show. Don't stray too far searching for more financial nuggets and wisdom. The Haven Financial Group Radio Show will be right back.
Stick around. You're listening to the new and improved Haven Financial Group Radio Show, where we bring you comprehensive weekly financial wisdom from the professionals. It's all about helping you solve retirement problems so you can make your nest egg last. Welcome back. I'm Larry Kolvig, founder and CEO of the Haven Financial Group, and you're listening to the Haven Financial Group radio show. Our number is six one two five zero four eight four zero zero. Feel free to call
in. We'll gladly take the call and address questions or Havenfinancialgroup dot com shoot us an email. We'll get back to you with all those questions you may have about retirement. Now, let's talk about market volatility. You know, especially in retirement. You know, do you have the willingness to take risks, need and nobility? Those are key questions and you know, over time, we're all for the market. We have an investment team of twelve.
We manage, we do wealth management. But ups and downs are part of the territory. And what changes in there is the l element of time and we get older. So again, market volatility, it happens. You just got to be prepared for it absolutely. You know, you mentioned it in our last segment when we were talking about four or one k's And sometimes you don't exactly know where that money is being invested and it may be at risk, and there sometimes comes a point where you need to roll it out and
maybe roll it into an iri. At what point do you start to talk to your clients about, hey, let's back off a little bit. And for some clients I would imagine that's difficult to do. Yeah, habits are hard to break when you're younger. Okay, you have you have longer period of time as you get closer the retirement. And first of all, it's in my opinion, never for us to tell them, you know, what
they should do. First of all, we get to know people and we find out because when we ask the questions that we do spend a lot of time, you know, in our process of discovery and suggestions and recommendations. You know, we ask, We ask a lot of folks and they say, we're more conservative now or maybe in our mid sixties or whatever it may be. But yet they're unaware and they don't know, and surprises can there
can be inopportunity surprises as far as the timing. So first of all, helping them get an understanding of how much risk they are taking, you know. I you know, back in ninety nine oh one, there was a correction O seven to nine, another correction and you know that was called the Lost Decade, and then we got pretty spoiled for almost fourteen years, and you know, can you really afford a fifty percent decline in your portfolio at
this stage of life. And it's so it's why we encourage first understand what you're doing, and we help people do that. Sequence of returns is extremely important. But if you retire in the markets down in the early years compared to in the latter years, it makes a huge difference with the numbers that we're talking about. And keep in mind, if you lose fifty percent of your money, you need one hundred percent just to get it back, And
oftentimes people don't see it that way. M hmmm. Sure. Now, I'm sure you have other people though, in other clients who are just the opposite of what we've talked about. We've talked about risk takers, but I would to imagine you have people who, you know, by the time they are fifty, they're very nervous, they've watched the market go up and down, maybe they got hit just a tad. What do you tell folks like
that? Do you suggest that they stay in or give me a sense of what you say to those who are a little nervous about the market early on. Yeah, we're you know, everybody's wire differently. I'd say it's very normal for a married couple to one say I don't want the risk, and the other one says, hey, I'm okay with risk, and you know, then it's just finding the happy medium, because you know, we all
like to hit home runs. Just this past week, we've seen the DOW and the s and P five hundred hit all time highs, and we're always a little cautious with that because just because the SMP hit an all time high, that doesn't mean your portfolio hitting all time high because you're probably not following this one hundred percent. So we're always a little concerned when that happens, even though it's a good thing. But you know, can you sleep at
night or do you get nervous? Do you want to jump off the cliff when things are rocky? You know, really looking at all the options that are out there, And there's a lot of psychology that goes with investments in money, and it's developing a plan and sticking to the plan, whatever that plan is that you're comfortable with. The problem is that cuntluff comes down to most people just don't know. And for many as you get closer to or
in retirement, limiting that market exposure might be appropriate. You know, do you have any investments that the principles protected? Have you padded those CDs or
savings accounts to get the right amount of cash on hand? You know, bonds oftentimes were the least risky, and of course the year before last they were at fifty year lows, and you know, just reassessing what you're doing and making sure that you're entertaining all the options, maybe you know, a fixed annuity or just creating the right diversification and not having all your eggs in one basket. That's the secret to a portfolio that can weather the storm.
And so you're not making some knee jerk reactions that go, it's down, I'm jumping ship, because when do you get back in? That also is the big question. Sure absolutely. Larry Coolving is the founder and the CEO
of Haven Financial Group. And if Larry is talking about some issues that are hitting home for you, maybe you're thinking about putting together a retirement plan, you're concerned about volatility in the market, Maybe you're thinking about putting together a plan for winters starting next year, and you'd like to talk to Larry and his team you can reach them at six' one two five zero four eighty
four hundred. It's six one two five zero four eighty four hundred. You can set up a free consultation with the Haven Financial Group or if you want more information about the group itself and some of their seminars that are coming up. These are educational opportunities. Havenfinancialgroup dot com is where you go again, that's Havenfinancialgroup dot org. I know you mentioned bonds just a moment ago, Larry, but let's talk a little bit more about some of the strategies that
help to protect against volatility. Let's spell some out, for example, certificates of deposit savings accounts, bonds, annuities, that kind of thing. Yeah, it's really tapping in and looking at all the various ways you can do it. You know, CDs used to be the thing that people did as they got older because it was a fixed rae to return. You know, at the banker credit Union you used to be able to get something for a return and then off for fifteen years until the last year and a half,
we weren't able to get anything. And so looking at that, you know, making sure that you understand that the term maybe it's not as liquid as it should be. Savings some money market accounts, and you know, we're finally able to get some interest for those that want to be more conservative, you know, looking at the right mix, you know of US stocks, value stocks, bonds, mutual funds, all these things. And don't forget about costs. You know, aren't the end all be all. And I
say, nothing is free. But I think at the couple that came in for Eating Prairie this week. They came out to one of my classes. They took advantage of the strategy review session and came in and visited with one of our advisors and then with me, and they go, We've been with the same company for several years and we never get any attention. And I asked the question, gentlemen, I asked him, what are you paying? And he goes, he threw out a number which was three times the going
right in the industry. And we spent We've spent four hours together on two different meetings. He goes, you've already spent more time with us than we've gotten in the last five years. Now, that's unfortunate, and a lot of times people are not getting the attention that they should, but it's no secret we're looking to cultivate a long term relationship. We want to be relatable, we want to be have a good understanding of what people are trying to
accomplish. And you know that's different for different people, and that that's where we really want to spend the time to get to know folks and be available answer questions. And I see that, and we see that on a regular basis, So don't be afraid to ask the questions. Our job description is
to answer questions. Sure, absolutely well. And you know, it seems to me that by getting to know people, then you understand if they're nervous because of volatility, You understand if they're willing to take a little more risk. You can you know, understand what their plan is and when they're planning to retire or if they're already in retirement, and what their concerns are.
These are all things that come up in these conversations, right, yes, And if you're a married couple, as much as one person may like this stuff and the other one doesn't, make sure the spouse is involved. And I know I mentioned it before, because there might come a day where that spouse is unable and or passes away or what have you, and that is not time for the spouse to be trying to interview and get a handle on things. So making sure if you're a married couple, that both of you
are involved. It's not just one and many stories over the years of people enjoying and then all of a sudden somebody passing away, and make sure you have that cover. That's another reason for both people to be involved. And you know the element of time. You know, the stock market over time will always perform. If it doesn't, we got bigger fish to fry. But what is your timeline? Is that five years, ten years, twenty years At the end of the day, that's really what matters. People retired
in two thousand to twenty ten. Unfortunately that was bad timing. Now it wasn't their fault, but that it created opportunity for the today's generation. Do we not want to learn from those mistakes that others made and making sure we're in a position of, hey, if something goes bad, we're okay, We've looked at all the investment options. We've got a good handle on the way things are, and we're not going to panic and doing projections out ten
twenty thirty years. If you have lung making educated decisions for you, your spouse, your kids, your grandkids, et cetera. All right, well and Haven Financial They're going to look at your unique situation create a strategy to help you protect and grow your retirement funds. You've heard that right straight from Larry today. So if you'd like to get hold of Larry and his team, here's how you do so. Six one two five zero four eighty four
hundred. You can dial six one two five zero four eighty four hundred, or you can go to the website. It's Havinfinancialgroup dot com. All right, Larry, coming up next, We're going to give folks a quick refresher on the effects of inflation on a variety of components when it comes to their financial planning. You're listening to the Haven Financial Group Radio Show. Ready to find your financial safe haven. Your dream retirement is in reach. Don't go
away, The Haven Financial Group Radio Show will be right back. You've worked. It's hard for your money, but do you know how to make it work hard for you? You need a team with experience, vigilance, and a strategy to help you live the retirement you deserve find your financial safe haven with Haven Financial Group Today. Good morning, you're back to the Haven Financial
Group Radio show. I'm Larry Kalvig, founder and CEO of the Haven Financial Group, and you can reach us at six one two five zero four eight four zero zero or our website, our newly revamped website Havenfinancialgroup dot com where you'll find out all the different speaking engagements in workshops, lots of tools on that site. Or shoot us an email and we'll answer questions. So welcome back to the show, Kim. This is an interesting segment. Yeah,
it's sure is, you know, Larry. Inflation obviously has been something that everyone has been talking about for the last year and a half. It is certainly a buzzword. And while we've seen inflation come down, it is still well above the two percent that Federal Reserve would like to see and that may be the case for an extended period of time. So it's really important. It seems to me that your clients sort of stop and take that issue of
inflation into account. So let's talk a little bit about, you know, some of the strategies and the ideas that the Haven Financial Group talks to clients about. So let's start with an understanding of how it affects retirement, starting with the fact that it reduces purchasing power, doesn't it. Yeah, your gas just doesn't go as far. And you're right, inflation has been top of the mind for the last several years. It's real people's pocketbooks, normal
pocketbooks are really feeling it still, depending upon what you're buying. Yes, you know, gases down to just under three bucks and other things, but otherwise costs are still very expensive. The dollar just doesn't go as far. You're not able to buy as much as you were before, which can reduce your standard of livings significantly. Health Care costs, Yeah, that can get very confusing and frustrating. It's why we help lots of folks in the health
care healthcare, medicare bridging the gap, et cetera. And those costs continue to rise, and I hope people are planning for it. Higher interest rates can be beneficial for retirees because that's where we've seen the higher interest rates on some of those fixed accounts, money markets, etc. At least for now. You know, social Security benefits when inflation those two years, the last three years, we've gotten big increases. Two really big increases and that can
affect social security. So again, for those that are considering social security, get the information. If you come on in, we'll provide a very detailed Social Security report that people find very very beneficial. And you know, inflation can affect your bond market. Oftentimes they work in different directions, and if you have longevity in the family, you may need to save more or actually continue to get maximize that income because we need to cover those expenses for the
long run, not just for the short run. The biggest questions we get, Larry, do we have enough money to retire? Or what is that year when we run out of money? And you know, for oftentimes those aren't very fun conversations, but important and sometimes people are in much better position than they think they are. Well, Larry, let's let's back up just a second, and let's talk about some of the advice that you have given
retirees in the last year and a half when we watched inflation sore. I mean, I'm not retired, but I know that every time I go to the grocery store, I'm shocked by the bill at the end, and it seems that I'm taking fewer and fewer bags of groceries out. So when you're talking to some of your retirees, what are you advising they do during these times of high inflation that maybe they weren't prepared for. Well, first of
all, we've always factored in inflation. You know, over the years, I've had folks say, well, my guy, our gal doesn't factor in inflation, and inflation is a game changer, you know in recent years, you know, we encourage folks to take a really close look at those expenses and in those projections, we increase those expenses because that was the accurate thing to do. You have factor in inflation because you know over time it can have a drastic effect. Now you mentioned it, Yes, inflation has come
down. Depend about what you're talking about. But some would say we're at three percent or a little higher. The goal is two percent. It is really difficult for the Feds to get it from three to two. I mean that is really a difficult feat. Will we get there I don't know, or will three percent be the new thing? But again, have a plan, stick to a plan, to just modify the plan, because certain things of life and the economy and all these things, they don't they're not stagnant,
they're constantly changing. So again, factor it in, look at all the various categories, and be careful. It's concerning to me in others, the US consumer credit card debt is higher than it's ever been because the pocobas books are feeling it. The credit card is coming out, and be careful with that interest that your credit card may or might be paying. That really
eat into your budget and that's a tough hole to get out of. Sure, absolutely, I would imagine it's quite a conversation you have to have with some of these younger individuals who are coming in putting retirement plans together, and you're saying to them, look, we have to plan for this kind of inflation. And they're thinking, you know, oh, that's that's crazy. It'll never be like that. But it's certainly we've seen it in the last year. Yeah, we have. You know, the one year we had
you know, inflation from four to six. You know, I think the highest we saw was almost nine percent. That's why we got two big increases when it came to Social Security. You got to plan accordingly, make sure you buffer in enough liquidity for retirement. You know what, at the end
of the day. It takes money. And if you haven't planned accordingly, or if you haven't looked at it for several years and you've just been kind of on cruise control, no better time than the present because before you know, what you have done to prepare for retirement is going to be the net result of what it happens in retirement. Absolutely, Haven Financial Group and Larry is the founder and the CEO. Six one two five zero four eighty four
hundred. Get your free consultation. As Larry says, you know, there's no time like the present because it's all about timing. And if you're maybe somebody who has a retirement plan but you haven't looked at it for a while and it's time for some new advice, be sure you give them a call six one two five zero four eighty four hundred and get a free consultation. If you are interested in learning more, maybe let's say about social security specifically,
maybe it's healthcare. There are issues within retirement that you have questions. Haven Financial Group has a number of seminars throughout the year. They're educational opportunities for you and you can learn more about those at Hanfinancialgroup dot com. You can even sign up there see if it if it works for your schedule. Hanfinancialgroup dot com, be sure you check it out and see when the next
seminar comes up and what it might mean to you. So, Larry, there's people pople who are out there and they're listening and they're saying, oh, you know, we're trying to protect we're trying to be cautious. We're trying to make sure that we're doing all the right things. But life is short. Life is short, and we want to be active. And you know, the winters we don't as we've we started at the beginning of this show, the winters, we don't want to spend in the cold anymore.
So how do we get around inflation to still do all of the things that we were planning to do well. There's no singular plan that can protect against all your retirement risks, inflation, et cetera. But it's just adapting to what's going on in the economy and making sure you're well positioned to your best of your ability, because the fact is a lot of people just don't know,
they don't know who to lean to. Eventually, you've got to trust somebody, and if you don't, well you're doing it on your own. We're talking a lot about inflation and moneies and expenses and stuff today. I don't want to limit it just to that, because there are a lot of folks that have planned and saved. The baby boomer generation, for the most part, has done it very good job, and for some people it's legacy.
So yeah, take care of what you can on your end, but a lot of folks, you know, make sure that your estate plan is also in order, that you have a will or a trust or something that is going to help avoid some of the pitfalls if something happens, because you know, everybody says nothing ever happens, nothing ever happens, but eventually something happens. So Carrie is our estate planning attorney, and I just yes, all of it's important. All the retirement puzzle pieces need to be put together,
and there should be coordination. Whether you're younger, middle aged, close to retirement, or in retirement. It's not one glove fits all, and we believe it's a conversation that requires more attention than once or twice a year for forty five minutes. That's not enough. You're not getting enough enough time for what you're paying sure. Six one two five zero four eighty four hundred is the number Haven Financial Group, or you can go to their website.
It's Havenfinancialgroup dot com. Larry, when we come back, I want to talk about the pillars of retirement. There are three pillars of retirement. I remember someone once said to me, it's like a table with three legs, and if one leg is missing, then you could most definitely have some issues. So let's talk about those pillars of retirement when we come back. You're listening to the Haven Financial Group Radio Show. Don't stray too far searching for
more financial nuggets of wisdom. The Haven Financial Group Radio Show will be right back. Stick around. You've got questions, We've got answers. You're tuned to the Haven Financial Group Radio Show with your host Larry Kolbig and Ken Carigan. Now back to the show. Welcome back. I'm Larry Kolvig, founder and CEO of the Haven Financial Group, and you're listening to the Haven Financial Group Radio Show. Six one two five zero four eighty four hundred is the
phone number. Feel free to give us a call and take advantage of that retirement readiness review, or visit our website. Havenfinancial Group dot Com. Now, Kim, there's three different pillars of retirement, and they're so very very important. It's what we spend a lot of time on. This is the cornerstone of a retirement. Absolutely. So let's start with the first one. And I don't know if you put these in a priority, but let me start with this one. You know, if one is more important than the
other, you can certainly tell us that. But let's start with social Security. This is certainly one of the three pillars. Explain that to us if you will. Yes, you've been paying in your whole life. You want something back. Of course, now, there certainly talk about changes to social Security. There have been for years. Change is inevitable, and there probably needs to be some changes because by twenty thirty three we have a major shortfall.
But it's why we teach a lot on social security and tax because sixty two is the earliest, seventy is the latest. Sixty to seventy percent of people turn it on right away and only one to two percent weight And that tells me there's a lack of education, which was why we're trying to help folks make an educated decision. You're not going to wait past seventy because it
doesn't grow beyond that. So again knowing when to take it and the surviving spouse might depend on it, because statistics show that the surviving spouse could live a long time. And I always joke, and it's really not a joke, is do you not want to leave your spouse with as much income as possible? Well, they like to have a lifestyle even after you're gone. So making sure you're making a good decision for you, your spouse, kids, etc. So putting a lot of thought into that, we think is
very important. Not everybody needs to wait till seventy. Susie Orman, I think says that. But again, knowing when to take it. Education and then pensions in four one ks. I mean you set up very well the three legged stool, social security, pensions and then retirement nest egg. Do you have all three legs? Are you missing one of the legs to the retirement stool? If so, how do you create How do you create that leg on your own? Because you know, a lot of people don't have
pensions anymore. We do see quite a few because we have a lot of delta clients and some big corpse they've been retired for a while. But pensions are a structure of income that employers used to utilize and then that moved over to four oh one k's and employer sponsored plans and putting that money away, socking it away, kind of just developing a discipline to make sure that there's moneies that are going to be there. My wife and I will never have
a pension, So how do we build a pension. Well, build up these retirement accounts and create an income stream after retire. Now, what factors into that again it goes is taxes. You know, I think of a couple that just retired both of them from egan at the end of the year and we sat down and put together an income distribution tax plan because this year is very different than last year. So again it's very very important. And
then please don't forget about your personal savings and your liquid accounts. I can't tell you how many times folks come in close to retirement or in retirement they have very little in the bank and everything at risk in the stock market where we have the volatility, and that is just is not a good recipe. So, you know, we talk through the benchmarks, what we you know, you know, what is a good balance Because you know I and you,
like everybody else, we want the highest returns. We want again one hundred percent liquidity, and god forbid, we don't want to pay anybody me too, sign me up for that. Unfortunately it doesn't exist, and nothing is free. And I always say, if it sounds too good to be true, ask more questions. It's probably too good to be true. So again, those are the three pillars, extremely important, and if you don't have one of those, you can create your own. Again, it's a
matter of how do you do it right? Well, let me back up for just a second and ask you a few questions about each one of these pillars. So let me start with social security. Now we were talking about the fact you know that you can begin to open it up at sixty two and a half. You say, don't go past seventy because it doesn't grow
any longer. Those strategies have to be based sort of on your personal situation, which your When you have a married couple, the two don't necessarily have to coincide, correct one one spouse may be working and doesn't need to draw well, very true, And then you want to factor in you know what is your individual social security, what is your spouse's what's the age discrepancy? Do you qualify for up to half of your spouse's social security? If so,
how do you do that? The earliest is sixty two, that's the earliest that you're going to take. And in full retirement age, where you get one hundred percent of what you paid in is based upon your birthday, so there's some that might be sixty six, two months, four months, all the wage to age seventy, So again factoring those in. If you're prior to full retirement age, there's income limits and if you make too much
income, you might not get the full effect of Social Security. And again, social security, just like tax the tax code, doesn't always make sense. That's why people we want people to spend the time. Our goal isn't try to make people wait. It's to make sure they're making the right decision. And we've had folks that are coming and they'll say, I'm just going to turn social Security on right away because I want to sock it to the
federal government. Get the frustration. However, when we have a conversation, those same folks go, well, it doesn't make any sense for me to take it right now, I'm working and I make a good salary and a good income. So again, the continued conversations and education so you know you're making the right decision. Is not one glove fits all. It is not
the same for everybody. Right, let me jump now ahead. We were talking about pensions in four one ks in This is a really interesting subject for a lot of people, and I don't think that a lot of people are really educated on this. There's a four to one k, a traditional four one k, and then there's the wroth for a one k. Can you just distinguish the two for us? Yeah, the regular four one k is
pre pre tax money. You get the tax benefits of it up front, and then in recent years, I don't know, maybe fifteen ten, fifteen years, a lot of employers have come out with the wroth for a one k. You don't get the tax benefits, but pay now or pay later? Do many think it's going to taxes are going to be lower or higher later on? Well, I think we may. We have a kind of a good idea of that. So a lot of times people say, well should I be putting half and half in the regular four o one k?
Or should I put some in the wrath for one K. Now, these are tax discussions. We on one on one basis. We look at that and in the tax planning process, maybe your early years of retirement, you want to make sure that you're looking out to your R and D age, which by the way, is seventy three. It's going to be going in
nine years to seventy five. Because if you and your spouse, if you're married, or even if not, have put a lot of money in pre tax dollars or pre tax investments at seventy three, you're going to have to start drawing. And here's what we hear Off and Larry, we make more now than we did when we were working. And I politely just have to say that's a good problem to have, even though it may not feel like it because of the tax situation. So again, continued conversations and analysis of
individual situations. Yeah, over and over again we say this, but you know it's not one size fits all. And certainly education is what this is all about. That third pillar is personal savings, and I just wanted to ask you about. You know, a lot of times people have their money in accounts that worked for them prior to retirement. But they get to retirement and they realize that they want to draw some of that money, but they're
penalized because they're they're drawing it out too early. So what do you suggest that people do? What kind of account should they utilize when it comes to their savings to make sure that they have access to that money when they need it. Well, there's life always happens, and there's always a need. It seems like there's always something, you know, just recently, we had to put a new boiler in our house for infloor heating, and we like
our infloor heat, especially in the wintertime. And washer goes out, dryer goes There's always something kids, birthdays, grandkids, et cetera. So you need there's benchmarks. You know, we like to see folks have fifty plus thousand, fifty to one hundred grand in a liquid type of account where they're maybe getting a little interest but don't tie it up. Problem is, we don't see most people with that. Again, these are just benchmarks. You
know, people don't have to get riled up about it. If your your situations, your situation, these are simply benchmarks. And also, you know, we always say Americans shouldn't rely on more than forty percent of their income should be coming from social Security. Now your whatever, your whatever, your situation is yours. But just have a good understanding of all the options that are out there, maintain good liquidity, don't get don't get wrapped up in
some of these ill liquid investments that are out there. You know, maybe they're appropriate at some point in time, but you know, I remember back in seven oh nine when the real estate market when went bad and people had a lot of some individual ruts and then their money was tied up and they couldn't even access it. So you don't want to get caught up in that. And just understand and have an awareness of what you're doing. Are you
comfortable with it? And are people that you're working with are they explaining it? And again these coordination of taxes and investments and estate planning and insurance and haven't even talk you know, long term care. And again that's the important part. Those are all the puzzle pieces. We want to make sure we have all of them. Absolutely. Education education, education seems to be just such a big part of this, and Larry is a real advocate for that.
Larry, I know you guys have seminars. Do you have any coming up here in the near future that are open that people can still jump into. Yeah, we just had two retirement dinners that were both completely full and you can find them on our website at Hanfinanciergroup dot com. We do them throughout the throughout the year. We do have a Medicare one oh one workshop
at Dakota County Technical College. You know, Medicare is one of those confusing things as well, when when you get to close to sixty five, they're
going to bombard your mailbox. And we have access to all the companies as an independent firm, just looking at all the various options and maybe you're a few years away from it, but what better time than now to get the education, start the process, develop a plan, get comfortable with somebody and work with somebody that it's gonna walk you through a process, get to know you, ask a lot of questions. You do the same because we're not
perfect for every company for everybody. But at the end of the day, our goal is geared towards retirement planning in all the different pieces to retirement planning. All right, folks, the number again is six, one, two, five, zero four, eighty four hundred. That's the Haven Financial Group telephone number. You can go to their website Havenfinancialgroup dot com if you're interested in signing up for one of those seminars. Are learning more. It's cold,
Larry. We should all be headed south for the winter, that's for sure, but we've got to do some planning before we can do so. Yes, it's Minnesota, it's January. It is cold. But at the end of the day, I've lived here my whole life. I guess I'm used to it. We'll take it with that. Well, you have a great week. Thanks for being having me again and being with everyone. Absolutely
have a blast week. Him. Investment advisory service is offered through Guardian Well Strategies Llcinancial Group and Guardian Well Strategies LLC are not affiliated companies, and investments involve risk, and, unless otherwise stated, are not guaranteed. Please consult with the qualified financial advisor and or tax professional before implementing any strategy discussed herein and comments regarding it Safe and secure investments and guaranteed income streams only refer to
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