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Good morning, and welcome to the Haven Financial Group Radio Show. I'm Larry Kolbeck, founder and CEO of the Haven Financial Group, and we really appreciate listening. Feel free to give us a call at six one two five zero four eighty four hundred, or visit us online at Hanfinancialgroup dot com. Every week we talk about retirement mistakes, common mistakes, what we can do again, feel free to give us a call and Kim, good to be with you, and the new year is well on its way.
That it is, and it's great to be with you as well. I'm looking forward to today's show because I like shows that, you know, sort of give us some information that maybe will prevent us from making mistakes. As you mentioned, we're going to talk about some of the changes that retiree should pay attention to in twenty twenty five.
And you know, Larry, I know this is something that your company is very good about, and that's keeping your clients updated on some of these changes, and it's one of the really important reasons why people should partner with somebody like Haven Financial Group.
You're right, because it's an ever changing world. It's the new year. We got changes that have come down the pipe with the Secure Act two point know Medicare adjustments that Glenn will give us some assistance later in the show, healthcare changes, tax bracket changes, potentially, there's always change. And having a partner that you that's going to keep you up to date on these changes, we find it's so important.
And I can't tell you all the years that I've done this, how many times people they establish a relationship, yet it doesn't go anywhere. Maybe once a year they get together, maybe twice a year. But as you and I have talked on our show many many times, retirement has a lot of puzzle pieces together that are put together with it.
And it requires more time.
If you're really being fair to yourself, or if others are being fair to you that are helping you, it should require more time, effort, energy, education to give you the confidence that, hey, I'm doing what I should be doing right now, which was probably considerably different than it was five ten years ago. So we can't stress the
the partnership and the education piece. It's the new year and we just had classes this past week and they're very well attended, and you can go to our website and see all the different events that we have coming up. And it is an educational approach because that's where a lot of times people feel comfortable learning.
Well, we're going to prove to our listeners that what you've just said is so incredibly true. And that being that, if you know, if you're not meeting with someone and partnering with someone and spending time with them on a regular basis. Changes will come about very very quickly, and you could miss out. So we're going to talk about some of those areas that are changing just since last December. I mean this, you know, that's how quickly things will evolve.
So let's begin with Secure Act two point zero. Now, this is this really can have a real big effect on people's investments and their plans. We're talking about things like catch up contributions and automatic enrollment rules of course, tax benefits, so on and so forth. So let's get started by talking, Larry, if we could, about the enhanced catch up contributions that is so important for people who have reached that age and maybe a lot of people don't know what that age is.
Yeah, and before I jump into those, whether you're listening and you're younger, middle age, close to retirement, or in retirement, this affects you to some degree. So sometimes people will while I'm five years removed from retirement, so this doesn't matter at this point, which couldn't be further from the truth.
And yeah, the SECURE two point zero, the.
Updates the catchup contributions for individuals between sixty and sixty three. They can make additional contributions this year up to that eleven two hundred and fifty, which the standard typically increase over the years has been seventy five hundred for those fifty and older. Now it's up to eleven two hundred
and fifty. So it's a great means to start improving those retirement funds that you maybe have been lack on putting money away, or life was tough, inflation affected your your money the last years, and this really creates a great opportunity and four to one K plans if that's you and your four oh one K or four h three B or maybe some other eligible retirement plans. There's an automatic enrollment now, which some would say, well automatic, I don't know if I like that, because I'd like
it to be an individual decision. Yet there's a lot of people that have lacked the discipline to start saving early on, and that's really showing up in retirement for some of these people. So this mandate is they're going to automatically enroll you in a certain contribution rate that will increase why one percent annually. That contribution is somewhere between three and ten percent it's part of your plan.
Maybe talk to your HR, your four to one K department to really maximize, you know, getting it up to ten to fifteen percent. And you may not do that obviously in a month or six months, but even at one to two percent, increase annually out of sight, out of my money.
Probably won't even notice it, but.
Will when you will notice it is when you retire. And wow, I'm sure somebody gave me that advice early on.
So Larry, let me ask you about that. So, if you work for an employer who has a four H one K program and you're not already enrolled, then January one, were you automatically enrolled? So you know, if we have people who are listening and maybe they had that opportunity but they had passed it up, are they now enrolled?
It's only new four one K four three B plans, So if it's the new ones now, if you haven't existing, you might want to check with them to say and maybe increase it. Maybe just tell them to increase it or ask them about it again. More information potentially is good and good and valuable information. And now there's an emergency savings account that also can be linked to retirement plans. Again, some would say it's a forced type of savings plan. Yeah,
but for some people that that's necessary. Really give some advantages to highly compensated employees. Gives you an ability to save up to another twenty five hundred dollars in a roth after tax type of account where you won't have to pay taxes on it, pay hour, pay later. So it's kind of a forced emergency saving. So it's another change that's come down the pipe.
Sure, Absolutely, small business tax credits, that's a change that's coming.
Well, you know, we just came off a highly politicized December or the fourth quarter of twenty twenty four, and you know, depending on what side the I are on, there's there's some incentives for small businesses as a not a small business as we are, but a smaller business.
You know, there's some increased incentives here and tax credits available that I really think are really going to really push small businesses and you know, giving them the ability to establish some retirement plans, and you know there's some other administrative costs that can be covered in these So for small business I see this as a good advantage. Some would say that's going to that could lead to tax issues and all the other things, and there's always
a political debate on either side. But I think it's a positive as the new administration comes into play.
Well and certainly something that if you're a small business owner you want to look into.
Correct all one hundred percent believe that, I really do.
Yeah, how it will affect you.
And we can do that.
Lance will be on later our CPA. We help people in those areas. If it's an employer plan, then you will want to contact your U four oh one K employer sponsored plan department, and you know other things that are part of the Secure Act q AX, which most people probably aren't familiar with. It gives the ability to delay some of those required minimum distributions out to the out to a later age in life. There's only a few companies that do them. It's not your typical annuity contract.
I had a Toro executive that had longevity in his family, had a lot of pre tax money that he benefited from it. We don't see it much, but just find out what these different changes are, what these deadlines are.
There's a new deadline.
I think that's very valid that employers have until December thirty. First to extend, to amend their retirement plans to comply. So another reason to stay up on this. Don't hesitate to call your four OW and K department, Come in and a.
Visit with us. We'll help you out with it as well.
These are changes that a lot of people aren't going to be aware of unless they sit down with somebody and talk to somebody. All of them won't affect everybody, but find out which ones affect you.
So, Larry, if people are listening and they've this is sort of you know, ring a bell for them. Maybe there's someone who really wants to catch up on their contributions and they're ready to do so. Is that something you guys can help them do immediately when they come in to see you or is that a long process? How does that work?
Well, we take everybody through our same proprietary process of you know, coming in and discovering you know, who we are, who you are, where you're at.
You know.
Yes, we focus on those that are planning for retirement, close to retirement and in retirement. But I'll tell you just this past week a true testament to our staff.
I had a twenty two year old grandson of one of our clients that was in and three years ago I sat down with him and he's a tradesman, went to college, got a tradesman's job, and his grandparents were in over the client our appreciation event and said, our grandson still talks about how you gave him advice on his four to one k. He's thriving, he's twenty two or twenty three years old, and he boasts about the advice that we gave him. And we're not paying ourselves
on the back. But he was in three years later removed. He's got a great retirement plan, he's making good money, and he gives credit to the information that was received three years ago. And I can tell you that is that puts smiles on people's faces, including his grandma and grandpa.
Yeah, and we'll continue to put a smile on his own face because exactly great advice.
And his would soon to be fiance. I didn't mention any names, so I hadn't let the cat out of the bag there.
Yeah, be careful there now. If we're talking about something that might ring true to you, and you'd like to sit down with the experts at Haven Financial Group, if you're looking for a partner here in twenty twenty five, then give them a call. It's six one two five zero four eight four zero zero. We'll give you that number again throughout the course of the broadcast. Coming up next, we're going to talk about Medicare changes. This is something
that affects a lot of retirees, that's for certain. Glynn Raimie, our insurance specialist, will join us in just a moment. You're listening to the Haven Financial Group Radio Show.
Don't go too far. We're gathering more important insights and retirement. Please go the Haven Financial Group Radio Show. We'll be right back. Stick around. You've got questions, We've got answers. Your tune to the Haven Financial Group Radio Show with your host Larry Kulvig and Kim Karagan. Now back to the show.
Welcome back, listeners, and thanks for listening to the Haven Financial Group Radio Show. I'm Larry Kalvig, founder and CEO of the Haven Financial Group. Thanks for listening and give us a call at six one two five four eighty four hundred. Visit us online at Havenfinancialgroup dot com. Kim, weve got Glenn Raimie to talk about some of the Medicare changes that are coming down in twenty twenty five, and again to be abreast of all the changes is extremely important.
Yeah, it's always great to have Glenn because he certainly enjoys talking about this and he is an expert. And Glenn, I got to tell you, I find Medicare to be confusing when there are no changes. So now they have the audacity to add these changes in twenty twenty five. So let's step through a few of them. Maybe maybe I should ask you, just right off the top here, what's the biggest change that you see coming on the horizon.
The absolute biggest change this year was the new drug benefits under Medicare. So the first time in Medicare's history, we now have what we considered an out of pocket cap on prescription drug cost of two thousand dollars. And that's regardless of insurance company, of plan design, of the premiums of a policy. All drug plans in Medicare now have this two thousand dollars of pocket limit on them.
So I hope our listeners shot their Medicare plans out this year during the annual roament period that just passed in twenty twenty four. Because of these changes, a lot of my clients had to change policies or just reevaluate because the insurance companies were modifying other benefits to offset this new cost that they had on the prescription drug side.
Sure these changes because enrollment is in the fall. These changes though, are taking effect as of January one.
January, these changes took effect.
Yep, Okay, let's talk about it. The other changes that are coming about Part B. Apparently monthly premiums are going to change.
Yeah, So the monthly premium for Part B is going up to one eighty five per month with an h IERMA or an income related just amount table now starting at one hundred and six thousand for a single individual and two hundred and twelve thousand for a couple. And for listeners not sure what IRMA might stand for an income related monthly adjust amount is that's the means testing
on Medicare. Medicare does a two year look back on what our income is for that year we're going to be buying Medicare premiums for and to price our Medicare, And if our income is above those thresholds I just mentioned, then you would have to pay more for that Part B than that one to eighty five I just quoted.
Okay, so I mean I guess that could be some good news for some people.
Yes, yeah, some people might fall under those numbers now, absolutely. And a reminder any consumer first entering Medicare that might find out they're subject to IRMA, there is a waiver form to this that you can find with Social Security, and you're leaving your job or reducing hours at an employer are just two examples of what would allow someone to file that form to get out of that URMA if they're.
Subject to it.
Okay, let's jump to Part A. In patient hospital deductions are changing.
Yeah, so the hospital deductible benefits went up a little bit on that. But I'll say this on this, most consumers are not going to pay those numbers with their Medicare. So most consumers are either going to do what would be called a Medicare advantage plan or otherwise called Part
C of Medicare or a Medicare supplement plan. A Medicare advantage plan would supersede those Medicare benefits kind of replacing them in essence, and we'd be using our insurance companies benefits, not that part A benefit of Medicare and someone with a Medicare supplement would have their part A deductibles and copay is likely paid by their supplement policy, not exposing them to those charges.
Okay, I'm looking here about daily co insurance for hospital stays is also part of Part A. I keep seeing all the costs going up, which I don't love that part of again. So unfortunately, yeah, unfortunately, I'm reading here sixty one to ninety days that cost is going to go up.
Yeah, So Medicare adjusts the rates are deductibles and out of pockets on Medicare every year based on a trustee report, trying to make sure the program is solving right. And so consumers should be aware that if they're under original Medicare benefits, there's a deductible for the first sixty days of a hospitalization, and then if that hospital stay goes
beyond sixty days, they start incurring a daily copey. And that daily copay goes up after ninety day or six ninety days in the hospital and becomes an even higher copay for the next sixty days after that. And here's something that I say to consumers on why they shouldn't only have Medicare while they should really consider an advantage or something playing with their insurance is because after one hundred and fifty days of being in a hospital, your
original Medicare benefits would stop paying your hospital stay. You would now be fully responsible for the full charge. Sorry, I'd like to remind consumers that Part A of Medicare is a limited benefit plan, in essence, only covering a maximum of one hundred and fifty consecutive.
Days in the hospital.
And I don't think anyone would want to find out that on one hundred and fifty first day they're paying full price. And on top of that, if you add up on that deductible in all those copays you're referring to, you'll probably be close to fifty thousand dollars in medical debt getting to one hundred and.
Fifty day stay in the hospital.
So please don't do that to yourself. Talk to someone who can help you, flying you up with the insurance that they'll be right for you on either that advantage or supplement market.
And you know, it's a bit shocking. I think no one believes that they'd be in the hospital for one hundred and fifty days, But I actually have a relative who's been in the hospital now for almost a full year. So these things do, unfortunately.
Happen absolutely, And by doing a Medicare advantage plan or a Medicare supplement, you're going to have coverage beyond that one hundred and fiftieth day.
Now it wouldn't have that cap.
Anymore, surely, Kim, Kim, if this sounds really confusing or complicated to the listeners, it's let's be honest, it is complicated and confusing. And I've been listening to Glenn for years and just listening to him still makes it very complicated. He helps simplify him and Isabella at our office helps simplify things for people. And they should shop it out every year. They should make sure that their plans haven't changed,
that they are not better suited somewhere else. And we had the privilege at Haven, through Glenn and Isabella to help hundreds and hundreds of people last year in this area of retirement, which is a very important one. In all the areas that we teach in retirement, they're all important, but you could say they're optional planning strategies Medicare. Everybody's going to have to look at it at some point.
You don't have to do it alone. You don't pay anymore by having somebody like Glenna Isabella assist you with it. You know, let somebody else do the work for you. Let somebody else make sure that you're at the right place, the right doctor, the right clinic, and if you travel, to make sure you factor that into the equation. So it is complicated. We try to simplify it, and guess what, just when you figure it out, then they change the rules.
Absolutely, no two ways about that. Well, Glenn, when you sit down with folks, what do you think is probably the most confusing part of all of it for them?
Just all the new rules and timeframes that we have to deal with in medicare. One of them, I'd say, the number one question I get that often has the wrong answer at the consumer level that they don't understand is when they need to sign up for Medicare. Right, so, most of us know that Medicare would begin at usually the earliest other than disability or health conditions, when we
turn AID sixty five. Right at the birth month that we turn AID sixty five, they give us a seven month enrollment window three months before birth month three months after it to our Medicare in order So oftentimes I'll have a consumer coming in saying, hey, Glenn, everybody's telling me that I need to sign for Medicare because I'm
about to turn sixty five. But then they disclose that they're still working, or their spouse still works and they still have great healthcare coverage from that job, or it's really inexpensive, or they have a younger spouse so they want to maintain that insurance to keep their spouse insured.
And what they don't know is that as long as that employer has more than twenty full time employees and has what would be deemed credible insurance for Medicare, which is equal or better than Medicare's coverage, they're actually allowed to delay their Medicare for as long as they like to, as long as someone's still working to have that health insurance in place.
So that's one of.
The most common confusing things that I hear people come into me with. And I can't count how many meetings a week I might have where someone's coming in saying, hey, Glenn, everybody's telling me to send it for Medicare now, and in the end we find out, no, they didn't. They actually have their employer plan their golden they can wait till they're ready to leave their employer and retire fully to transition to Medicare without any penalties incurred at that time.
But if you are going to sign up and need it when you're sixty five, you said three months before your birth month and three months after, which gives us the seven months to sign up. Correct, Okay, great, so it should you start on that very first day of those three months prior or is it going to take that much time?
If you want your effective date to be your birth month, I would strongly encourage people to apply that three months in advance, and that's only if they're not collecting Social Security. I should also mention it, if you're collecting Social Security prior to age sixty five, you get automatically enrolled into party and be of Medicare. You don't have to sign
up for it. It's those individuals that want Medicare to begin at that time but aren't yet collecting Social Security that would need to do a manual application to get signed up for those benefits. And yes, I would absolutely encourage them to do that in the first of those three months, giving time for Social Security to process that application and get their card in their hand, know they're ready to go for their insurance effective date.
And the great part about this, and I've heard you say this and I understand it, but is that you don't have You can draw your Medicare, but you don't have to be drawing social Security. You can independent from each other.
Although social Security is the enrollment hub and biller for Medicare, you don't have to have both to have them. You could have Social Security without all of Medicare, and you could have Medicare without any of Social Security.
Anything else you want to add that people should know in twenty twenty five when it comes to Medicare.
And something that isn't advertised as far as enrollment periods are concerned, that I think consumers should be aware of is not just the annual ROME period that goes from October fifteenth to December seventh, that's a really important one, but there's also the Medicare Advantage Plan open enrollment period that goes from January first to March thirty first. This allows people to make a one time change on a
Medicare advantage plan. So if we've missed that in roment period and still wanted to make a change, or we didn't pay attention to the changes that were happening and found out we're not happy with our plan anymore. There's still that opportunity to make one change within those first three months of the year, as well as anyone that might have want delayed Medicare or or is on a Medicare advantage plan and wants to transition back to original Medicare.
This is the disenrollment period as well for Medicare advantage to go back to original Medicare, for someone to exercise their rights.
To do so. Larry and Glenn, what I hear you saying is that this is almost a twelve month period that we have to be involved. But certainly this right now is a very important quarter when it comes to Medicare and making decisions.
Yeah.
Absolutely, it won't be advertised, there won't be commercials about it. You're not going to get letters in the mail about it, but it is an enrollment period that exists with Medicare.
Six one two five zero four eight four zero zero. If you'd like to talk to the experts, Glenn, as we've heard and Isabella there at Haven Financial about your Medicare benefits, give them a call. This is an important time and Glenn's just told us that. And certainly if you have decisions that need to be made in twenty twenty five, this is the time to start to discuss them. Glinn, thanks, great to see you. Happy new year with the project him.
You bet when we come back, we're going to talk more about taxes and the changes that are happening in twenty twenty five. Lance Larson, a CPA with Haven, will be our guest. This is the Hen 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. Are you worried that your financial strategy might be missing something, Well, you're in the right place. Larry Kolvig is back and ready to help you find your financial safe haven.
Good morning and welcome to the Haven Financial Group Radio Show again.
Thanks for listening.
Feel free to give us a call six one two five zero four eight four zero zero or.
Havenfinancialgroup dot Com.
All kinds of retirement tools, schedule of educational events, all kinds of things that are on that site. I courage you to go to it, and we're talking about changes. We just got done talking about Medicare changes. It's the start of the new year. They don't stop with those types of changes. We have Lance, Lurs and our CPA in house here at Haven Financial Group and Kim. We're
going to talk about tax changes. There's always change and taxes, you know, the Tax Cuts and Jobs Act, the expiration of some of these tax brackets or the extensions of or the changes too. There's a lot of dynamics with it, and there's a lot of it that will be to be determined over the course of this year and the
new administration. But I think it's important to address these and have ongoing education and discussion to make sure we're not missing opportunities because it's all about taking advantage of tax opportunities.
Most definitely it is. And Lance, I'm going to start with you asking you the exact same question that asked Glenn in the last segment related to Medicare. When you look at the tax changes for twenty twenty five, what do you think is the most impactful change that people really need to know about.
I think the biggest one is going to be on the four to one K contribution limits. So every year the four to one K contribution limits go off a little bit, and that's what they did this year. They went up from twenty three thousand last year at twenty three to five. But it really is that catch up
that really changed. Normally it's seventy five hundred dollars, but now there's a new caveat for those ages sixty to sixty three that instead of that catch up being at seventy five hundred, that ketchup actually goes up to eleven two hundred and fifty bucks. That one, I think would be the most significant change here that we can plan on for twenty twenty five.
Okay, terrific, Larry. I know you mentioned this right off the top, But Tax Cuts and Jobs Act that expires this year. This is something that we have talked about quite a bit. Of course, our administration is changing as well, administration that was very supportive of this act. What do you think, Lance, what's going to happen?
So, without being Claire Warrington or anything, the expectation is that they're going to at least extend the tax Hutson Jobs Act. So like right now we have the higher standard deduction for this year, it's going to be about between thirty thousand for normal married couples to the thirty three thousand for our senior couples. So less things that we know are going to be as part of the
Tax Huts and Jobs AC before they expire. If it gets extended, we can kind of expect to see that center deduction saying to staying high our state and gift tax exemptions. We're up to almost fourteen million dollars for the state exemption. If we again we extend the Tax Huts and Jobs Act, that number is probably just going to continue to go up, being adjusted for inflation. Some of the things that are probably going to get talked about a little bit more are going to be more
corporate tax rates. They used to have a graduated tax rate before the Tax Cuts and Jobs Act. With the Tax Cuts and Job that they did to a flat twenty one percent, there's talk about lowering that down a little bit more. And then for individuals. One of the interesting things that they put in what they call the qualified Business Income deduction that people take on their ten forty that one is set to expire even if they extend the Tax Huts and Jobs Act. That is one
thing that excuse me. If they don't extend the tax Huts and Jobs Act. That's still one thing that President Trump has said that he wants to make a permanent change into our tax law.
Absolutely, well, we see changes in child tax credits.
That one's going to be up for debate on that one. Before the Tax Cuts and Jobs Act, the child tax credit was one thousand dollars. With the tax cut some jobs that they went up to two thousand dollars. During COVID period, there was actually a year that they may go up to three thousand dollars. So that is one that it's there's a discussion about whether they want to keep it higher. They want to implement kind of the advanced payments that they were doing on that during the
Biden administration. When they did the advanced payments, it was a new test it out, a new non tested out program that it went okay, could have gone a lot better. But now that the government has done that once and they've opened that door, it's a lot easier for them to try to do it again. I believe Minnesota is actually going to be trying to do that in the near future as well.
Okay, Lanth Larson is our guest. He's a CPA with Haven Financial and I want to talk to you just about when people are preparing to go into retirement, and let's say twenty twenty five is their retirement year. One of the things lands that you walk through with them for big changes associated with their taxes period, not necessarily governmental changes, but changes that they need to make as they go into retirement.
So one of the big things is for retirees, they normally only had one, maybe two sources of income, which usually they're coming from work. Now that you get into the retirement scene, now you're going to be able to draw from three, four or five different sources of income, which all have different tax implications. And because they're not
really talking to one another. Even if you had five different areas that have all taxable income, such as you have a husband's four oh one K, a wife's four oh one K, the husband's IRA, the wife's IRA, and then they might have a pension that comes in there
as well. I mean, there's lots of different scenarios, but all these different income sources they not really talking to one another, and so they go off of the payroll tables that they just do for the withholding and at the end of the day, when you get all your ten ninety nine's from these retirement accounts and you get to tax time, you'll realize that you were severely under withheld and have a huge bill to pay to Uncle Sam, probably with some penalties associated with it.
You know, it's so strange because you think about going into retirement, it's supposed to be easier, but actually I think what I hear you saying is that tax issues can be much more complicated than if you just had an employer and everybody was working.
Unfortunately, that is the case just because the systems that they're not really talking to each other. I know the IRS tried to update the W four forms for the withholding to try to account for that one. It's still not perfect, and that's why people need to take a look at what's going on where they pull on their income from is it tax bill, is it not? What else is going on, and then make the appropriate plan to pay for those taxes that are going to be owed.
Cam If I may add, you know, at Haven Financial Group, we do pride ourselves on taking a very holistic retirement planning approach all the different retirement pieces and taxes is a big one that we spend a lot of time on throughout the course of the year. You know, Lance would a test that you know January through tax deadline. He's doing tax preparation and does a lot of them very reasonable. But during the rest of the year it's tax planning time. And I know there's a lot of
listeners that they get their taxes prepared. They probably drop them off and pick them up and don't even have a conversation with their tax prepared or their CPA, and they don't know, and then they get surprised, and then they have a big bill and they don't know why. I will tell you, and I'm sure we're not the only ones, but there's not many. Lance truly is a CPA that prides himself. I'm making sure the irs doesn't
get any more than they deserve. Now, obey the rules, but understand the tax code and how you can benefit from it and what you can do coming off fourth quarter roth conversions maximizing those contributions. Maybe you're a small business owner, what things can you expense and what things can expense? Do you have rental properties? And his favorite thing is his whiteboard, explaining things, getting together, talking through
things once twice, whatever it is. Over the course of the year, and that leads to a successful tax preparation and avoiding the surprises that we don't want to hear about. Oh my goodness, every year I owe five thousand. Well, how about you solve the problem so next year it isn't a problem and there's nothing better. When they come out of Lance's office, how to go, they have a smile on their face. It's exactly what we thought, and
there's no surprises. People deserve that attention. You can get more than just a drop off, pick up up, no conversation. You know, we're in the people business here, conversations. I know the younger generation would rather text and use the phones which have no personality. And now the true colors of Larry, of being old schools really coming out. I know, Kim, But I will tell you our conversations. Our clients like
eyeballs and handshakes. They want to talk to somebody, They want to visit with somebody, including the CPA, including their investment advisor, including their medicare specialists, and anybody else in any of the other areas they're state planning. That attention gives people confidence and confidence in retirement. It goes a long way It makes for a much successful, much more successful goal than years, which I hope they are absolutely.
I think it gives people the opportunity to sleep at night without a lot of worry. And there's no two ways about it, especially when you get to, you know, the part first of the year and there are all these changes, and you know, we've just been together here for this short period of time and all the changes that we've talked about in all these important areas, it's incredible.
I real quickly hear Lance want to ask you one last question, and that being is there anything else about the changes this year that we haven't talked about that you maybe want to talk about. When it comes to taxes.
The one thing that I would say out there is that we know that the tax cuts and job doctor going to expire unless Congress does something. We expect them to do something. We just don't know what. But the way I always raise is that always plan on what you know, act upon that, and then have it in the back of your mind that hey, these changes are going to be coming, and be flexible enough to adapt to these changes as they happen.
Okay, Yeah, that's great advice. That is for certain. If you're someone who is a bit concerned about what's going to happen when it comes to these changes and taxes, or if you need someone to sit down with you and do some tax planning. I love what Larry just said. You know, why have the same mistake happen at the end of the year every single year. Instead, let's try to figure out why the mistake is happening and solve it. You can give them a call at Haven Financial Group.
It's six one two five zero four eight four zero zero six one two five zero four eight four zero zero. You can also go to Havenfinancialgroup dot com. Lance, thanks so much for being a part of the show today, appreciate it and happy New Year to you friend.
Happy to do your to you too as well. Ken, thanks for having me.
You bet all right. Social security we promised you there's changes in every every aspect of your retirement. Social security certainly one of those areas, and we're going to talk about it when we come back right here on the Haven Financial Group Radio Show.
Don't go too far. We're gathering more important insights and retirement ways, Devin. The Haven Financial Group Radio Show will be right back. Stick around. You've got questions, We've got answers. Your tune to the Haven Financial Group Radio Show with your host Larry Kulvig and Kim Karragan. Now back to the show.
Good morning, and welcome back to the Haven Financial Group Radio Show. I'm Larry Kolvig, founder and CEO of the Haven Financial Group, talking about a lot of changes today, Kim, medicare, taxes, social security, and it may sound overwhelming, like I said before, and complicated, it doesn't have to be. We like to simplify things, not because people are simple, but sometimes people can get very overwhelmed. We just had two social security
and tax classes in Savage this week. They're very well attended, which is really the topic of this segment. So if anything in this show today raises questions or eyebrows or concerns, feel free again to call us at six one, two, five four eighty four hundred. Set up a time. There's no cost for it. You have nothing to lose, maybe only information to gain. And at the end of the day, if we're able to help in any way, if any way, shape perform well, you're ahead of the game.
Listen before we get finished today here on this broadcast, I want us to talk a little bit more about some of those educational seminars and how people can learn more about what's coming up in twenty twenty five. So we'll get to that in just a second, but first let's do talk about some of these changes with Social Security, starting with COLA numbers. I think we have a pretty good idea of what those are because we learned them
really last fall. But why don't you tell everybody, Larry, what's going on when it comes to cost of living adjustments.
Well, first off, social Security is one of the largest income streams for retired Americans. It's why we teach a lot on it because there's always these pre ideas that I'm just going to turn it on at sixty two, which is the earliest. Incidentally, about seventy percent of Americans turn it on that early without giving it much thought, which can cause a decrease in monthly payments, could cause
more tax issues or complications. So making an educated decision as to when you take it full retirement age based on your birthday. By the way, if you're born after nineteen sixty, that went up to the full retirement age of sixty seven. Now in twenty twenty five, it's based upon your birthday. So listeners, you maybe have based on your birthday sixty six, two months, four months up to age sixty seven. Waiting to that you get one hundred percent of what you paid in no reduction. And if
you wait till seventy, well you max it out. Now only one to two percent of Americans wait till seventy. Does that mean everybody's making the right decision. No, I'd say that's the wrong decision. However, that's not simply me or us telling you you should wait till seventy. Susie Orman says everybody should wait till seventy. I respectfully disagree. It depends upon a variety of variables, income, situation, marriage,
if you need the money, longevity. So for those that attended our classes or those listening, come in and have social Security questions, you'll sit down with us, we'll walk you through. You'll leave with a Social Security maximization report. If we get to that point where we plug all your information. People find it extremely beneficial. Kim, it's really a good, better best name based on normal life expectancies
of when and how you should take it. If you're a married couple, if you're a single you know, oftentimes for married couples who say that it should be a wee decision, maybe the higher bread winner turns it on or waits longer, the lower bread winner turns it on earlier. So there's a lot of factors that go into this.
And maybe you are a listener that's called the Social Security Office before and I can't hear you, but I sense the gasp of frustration because that was a phone call that was probably an hour or two hours long. You didn't get the answers. They can't give you advice that you don't want to do. A lot of times they don't know. And it's why most of us, as financial professionals industry, we teach on it because how could we be in a retirement advisory firm without talking about
one of the biggest income streams. Absolutely, and a lot of my fellow advisors out there, they don't feel comfortable because if you're working with twenty thirty or forty year olds, mostly you're not having this conversation where we're working with those that are planning for retirement or in retirement, where it is now a decision that needs to be made and it should be the proper decision or otherwise you might leave a lot on the table.
Right, absolutely, I think that's probably. Wouldn't you say that's one of the bigger mistakes that people make in retirement, taking their retirement too early or just not knowing enough about it. They're taking your social security.
I mean, yeah, I would say that is one of the biggest mistakes, not intentional, but at times, a lot of times the water cooler mentality, Oh my sister did this, my brother did this, my best friend did this. Yeah, but why are they still working? What's their health, their longevity? There's so many factors. And I know for years social security has been highly politicized on both sides of the aisle.
And I know even.
Now the new administration is going to do away with social Security. Both sides have said that for years they're not going to do away with Could there be changes?
Could be? I don't think there's going to be. There's going to have to be some.
Changes because the financial solvency of the Social Security Trust Fund is not in good shape, so eventually there's going to have to be some changes. But just know that when we sit down, or if you sit down with somebody that knows what they're talking about.
You know, there's.
Earnings thresholds that need to be taken into equation if you're not the full retiremin age. There's income thresholds if you make too much, they can withhold a certain amount of for social security.
You want to know about these things.
Sure, yes, the cost of limiting adjustment was only two and a half percent this year, disappointing compared to previous years. Hopefully that means inflation is truly going down. As you mentioned in October, it's announced every year for the upcoming year, and we've seen some great increases. Still got two point five this year, and you know what, it's not a guarantee. There's been There's been a few years in history where
there wasn't any increases, so it could be worse. I'm a glass half full type of guy, So I mean like you, because you can talk about this until the cows come home and drive yourself crazy, or you can live to the bright side.
Absolutely, listen when you look at these changes for social security this year. If you're somebody who is drawing social Security, are there some of these changes that will directly affect you? And what are the important ones? That they need to know.
Well, here's what I would say.
A lot of times people say I'm going to sock it to the government, I'm going to turn around early, and I'm just going to stick it to them, which is not a good rationale for making decisions now, because our job isn't to convince people, it's to talk through and ask questions that the answers to these questions will
truly determine what the right decision is. If you're still working, probably doesn't make any sense to be turning on social security, or if your spouse is still working, you know, income taxes, all these different variables. So just making split decisions. A lot of times people leave going well, I thought I should turn it on early, but based on this conversation, that makes no sense. And guess what, it's eye opening. And that's what we want from these conversations is educated decisions.
Because over time, social security for a couple can be well over a millions of dollars based on life expectancy. That's not a decision that should be taken lightly. And I think that's a true reason why as we start the new year. This past week, our classes were full, and that tells me there's a that people want to learn, and that's good because I heard somebody say once that education is the potential for power.
It's what we do with it that really matters absolutely.
You know, going back to that idea of I want to stick it to the government. You know, the house always wins, and in the end you may be staking it to them for and it feels good for a couple of minutes, but then that comes to a real quick end when you realize what you've left on the table. So we hope that people won't take that attitude. Maybe some people understand why you'd feel that way. But having said that, I hope people don't take that attitude. Let
me real quickly. I had promised we would do this. If people go to Havenfinancialgroup dot com, they can learn a little bit more about some of these educational seminars that are coming up in twenty twenty five. Talk to us a little bit about what's coming up in the near future.
Yeah, we just updated all our educational workbooks or in the process of doing. As I mentioned, social security and tax classes throughout the year at various community centers, educational centers, senior centers Dakota County Tech potentially some other colleges, some other classes and that you'll find on our site. We're doing our estate planning attorneys Carrie and Anna and Keith here.
In a couple of weeks, we'll be doing a Wills and Trust, a state planning retirement seminar here in Burnsville again on the estate planning topic, the Truth about Annuities here first quarter. I think I'll be teaching one of those classes, very enlightening. I don't know anybody else that teaches that class, The Truth about Annuities class, an R and D tax class where we touch with a wide
brush on all retirement topics. All of these educational classes, we provide materials, there are no costs, and anybody that attends or is listening, everyone has the opportunity to come on in have a no cost consultation, talk about any or all of the retirement topics that might affect you.
Or if you have questions or worries, concerns, or maybe you just feel like you're not getting the attention, or maybe you're listening and you have no idea what you're paying these people that are helping you, and maybe you feel like you're not getting adequate attention. It is the start of the new year. Why not give it to yourself the opportunity to find out are you doing things right?
What's better than confirmation and affirmation? Hey, great job, or guess what we're missing what we really should be doing?
Absolutely Havidfinancialgroup dot com. That's how you learn more about some of these educational seminars that you've just heard Larry mentioning. They are free and they are Larry open to people who are not clients, right, it's just anybody who would like to attend.
Anybody that would like to attend, and our existing clients know they're always invited at both classes.
This week I.
Had several different clients that have been with us for several years because we want to open it up to anybody. Existing clients, are not clients, or maybe those who are just kicking the tires saying I want to learn more, no matter what the circumstances, no matter small, medium or large, if you have if you're young, or have lots of lots of stuff for little of the stuff. Again, this relates to everybody, all listeners, and we encourage you to come out.
Lots of changes in twenty twenty five, they will affect everyone who's thinking about getting close to or in retirement, and if you have questions about some of the changes that we've heard today, or if you're ready to sit down and to put together a great portfolio that is going to make your golden years just that golden, be sure that you call the folks that Haveen Financial Group at six one two five zero four eight four zero zero. Been great to be with you and with Glennon Lance on this Sunday.
Good to be with you, Kim.
We look forward to next week and I hope everybody's twenty twenty five is very blessed.
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