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make your nest egg last. Your tune to the Haven Financial Group Radio Show with your host Larry Kolvig and Kim Karragan your guides to weekly retirement confidence. If you're interested in protecting and growing what you have, let us be your financial safe haven. The phone nines are always open at six point two five oh four eighty four hundred. Now get your financial questions ready because the Haven Financial Group Radio Show starts now.
Good morning and welcome to the Haven Financial Group Radio Show.
Thanks for listening.
Please give us a call at six one two five zero four eight four zero zero or visit us online at Havenfinancialgroup dot com. Kim great to be with you again, wherevery week we're talking about retirement inflation, all these uplifting things, maybe some not so uplifting, but again, great to be with you.
It's great to be with you as well. And here we are approaching the Thanksgiving week and much to be thankful for. On my end, I'm sure you feel the exact same way.
Yeah, it's I love the holidays. The girls will all be home for Thanksgiving. You know, we get to see family we don't get to see very often, and that is so important, especially with everything going on, you know, in this world today.
Yeah, absolutely, So we hope that everybody who's listening is getting ready for our wonderful Thanksgiving week, a time when they can be with family and friends. That's for sure. I understand. Today we're going to talk a little bit about the legacy of inflation and how that affects your finances. Inflation, boy, there's a word that we've used for the last two and a half, three and a half years, just NonStop, right.
Can't get away from it.
It's here, it's still here, and I don't who knows how long it's going to be here. But you know, it really affects people, especially that we sit down with that are planning for retirement. In retirement on a fixed income. So, yeah, it's here we need to discuss it. People's pocketbooks are still hurting, and you know, money only goes so far.
Well, let's preview for everyone exactly what we're going to talk about. We're going to begin with the impact of inflation on prices. Now, this has been from about twenty twenty now through almost all the way through hard to Believe twenty twenty four. So, as I said, for the last you know, three and a half years, we've definitely been talking about inflation. Then in the second segment, we're going to talk about the Federal Reserve on inflation and
the road to economic stability. Exactly what the Federal Reserve can do about inflation and some of the steps that have been taken. Then we're going to talk about some strategies that you could use to fight inflation. That's important for everyone. It's especially important for those who are in retirement. They have a plan in place, and you know, this bump in the road has hit and then finally mistakes
to avoid when adjusting your portfolio for inflation. So we've got you covered this morning when it comes to talking about inflation. I understand we're also going to have a guest, Larry.
Yeah, we're going to have Kyle, our certified financial planner, one of who's on the investment team here at Haven Financial Group, and we'll have him for the other segments. He can add some value to what's going on. What can we do those types of things as it relates to your money, investments and retirement.
Sure, before we get started talking about our agenda here, let me just ask you what's your experience has been over the last three or four years when it comes to folks who are coming in and you know, obviously there have been major inflationary issues. What are their fears or what are their concerns?
The biggest fear continues to be and it has been for years, Larry, do I have enough money to retire? Or when am I going to run out of money? Is it going to be ninety five or seventy five? And you know, and just looking at the increases since twenty twenty.
You know, it's hard.
We're hard pressed to not feel the pain of money. Because I looked at back in twenty nineteen, a dozen eggs to now or up one hundred and sixty three percent, sugar up seventy percent, bread, you know, the essentials fifty nine percent. You know, we all need a good steak once in a while to have forty one percent. Even cookies up almost forty percent. This is just a few of the some of the essential items. And how can
our pocket books not be hurting? And let's face it, a lot of retirees are on a fixed income and their income has really really been strained because that money is not lasting as much and perhaps they've had to you know, dip into their savings account or some of their liquid funds. You know, they have less disposable income, maybe not as much extra to could go through the
things that they want. So what we've always done is we've always you know, buffered in we buffered in increased expenses just because we know inflation has been here, but this isn't the first time it's been here. Over time, you know, inflation goes up and it goes down, just
like everything does. But it's now more than ever so important for people have good tabs on what's their budget their expenses, and you know, oftentimes we talk to the younger generation about this, but it's just as applicable or even more for those that are in retirement. To have a good grasp where are you spending the money where? Because a lot of times you just get used to doing it a certain way, and then if you really put pen to paper, you can find out, wow, we
have a lot extra going here or here. Maybe this could be cut out, maybe we could do things a little differently. And you know, it's not fun to, you know, dig deep into spending of money, but it's important if we want any money there to be there to spend in retirement.
Absolutely, let's give folks a stat that might not be surprising to a lot of people, but I think opens your eyes. Since twenty twenty, total inflation has been reported to be around twenty one percent. Now, inflation is down, there's no two ways about it, since we were at the peak and it continues to drop. But it seems like Larry prices are not coming down. The two are not necessarily hand in glove.
No they're not.
You know, inflation everything's gone up and they say inflation has come back down, and actually it just went up a little bit again. But inflation can come down, but that doesn't mean those prices that the store come down. In fact, in many areas, I don't see them have come down at all. So you know, there's discussion about you know, price fixing or some of those things.
I don't know, they're definitely not the answer either.
But what we can do individually is be accountable for what we're doing, what we're spending now more than have an accurate budget, you might have to revise some of these budgets, maybe consider some different inflation type of investments, which I think we're going to get in because the purchasing power of that dollar.
Has just been deflated.
And if we look at the real estate market, you know, higher interest rates have kind of created an some folks to be house locked, you know, where the prices of the homes are so astronomical, but you can't get an interest rate or mortgage rate for less than seven percent.
So you know, we have a lot of we have clients and I have these conversations that you know, want to get into one level living, but it doesn't make sense financially because these the houses are so expensive, there's not much available and for a lot of people to have, they don't have a mortgage, which I'm a big, big
believer in going into retirement without a mortgage. So it's really creating some difficult decisions for those that are maybe looking to downsize or look at alternative type of homes.
Absolutely, all right, so let's talk about this a little bit Larry, with you know, this lasting impact of inflation on prices. What are some of the concepts and the strategies that you guys sit down with your clients and talk about. What are some options that they might have.
Well, I think it's always important to come back to the fundamentals. We're very big on the fundamentals. Making sure you keep an adequate amount of savings, liquid moneies.
I've said it before.
You know, for married couples or individuals to have fifty to one hundred grand and retirement readily available. That might sound like a lot, but there's always things that come up. You know, just this last week, you know, our furnace had issues. Well, you want to have the money available to take care of those things rather than having to sell sell investments which maybe up like they are now or maybe down in down times, and you don't want
to be selling off those assets then. And you know, in recent years, you know, when inflation was high, you.
Know, I bonds were very attractive.
You know, I don't sense that they're going to go back to nine percent, which they were for a period of time. But you know, really looking at all the investment options, making sure you have the right recipes for the right type of tax, classified classification, types of investments.
Really fundamentals, you know, put that sharpened, that pencil, figure out where your money is going, where it can be cut out, and you know it's really impact the long term savings, It really really has, so making sure that you're not depleting it too much. And then maybe waiting on social Security. You know, we teach lots of Social Security classes. There is cost of living adjustments every year,
not guarantee, but we've had some nice increases. So really scrutinize and analyze your income streams now and maybe perhaps they're going to increase. Maybe you haven't turned on a pension yet. But really getting back to it again, the fundamentals budgeting, saving, maybe that means delayed gratification and again having a plan. And first of all, you got to have a plan. A lot of people don't. They wing it right, and that's that's not a good way to
go into retirement. Some sort of plan is better than no plan.
While we have said that.
You know, over the last three and a half years, we've seen this huge inflation. We have seen it certainly come down from its peak. What are you telling people? And I know you've just walked through some of those kinds of strategies, But this is not the this is not the last time that a lot of people will see inflation. I mean, it is cyclical. It does happen, and it can certainly happen again.
Oh and it will happen again. You know, we look at the historical inflationary rates. You know, they were real high. They come they were low for a very long time. Now they've been high. We've always buffeted into into our projections, our Monty Carlo analysis, We've always factored in higher than normal or average inflation, because inflation is a complete game changer. If it's two percent relative to three and a half,
could change the whole outcome of retirement. So that's why, you know, this really adds up to a situation where you may not spend the same way as your parents did or or the way your kids might. And remember, retirement is a long term well at least we hope it's a long term process or a plan ten twenty
thirty years is very feasible. So that's why it's you know, it's the important time is now to construct a plan, a financial plan, a plan that doesn't have to be complicated, but talk through and walk through, have a partner that can hold your hands and strategize over what can be done or not get done. Right now, we're doing a fourth quarter tax planning strategies and really getting into the details. And that's where a lot of people are not getting
the attention they deserve. And that's why I start by giving us a call, getting on our calendar.
There's no cost.
Listeners have nothing to lose, only to gain, and that we can be reached at six one two five oh four eight four zero zero or online. Give him a lot of great classes even now through the holidays at Havenfinancial Group dot com and encourage listeners to go there.
Absolutely. Let me give you the number one more time at six one two five zero four eight four zero zero. You can also go to Havenfinancialgroup dot com. Be sure you give them a call, tell them you heard us here on the radio and you'd like to set up one of those free appointments to talk about putting together a fabulous plan that can be inflation proof or at least certainly can get you through some of these difficult times when it comes to retirement. All right, when we
come back, we'll continue this conversation about inflation. We're gonna talk about the Federal Reserve and its impact on inflation and economic stability. You're listening to the Haven Financial Group Radio Show.
Don't go too far. We're gathering more important insights and retirement ways. Devinent 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 Karrigan. Now back to the show.
Welcome back to the Haven Financial Group Radio Show. Give us a call at six one two five.
Zero four eight four zero zero.
Or visit us online Havenfinancialgroup dot com. Lots of great retirement tools. On their upcoming events. We have a holiday event coming up client Appreciation that you'll want to attend and if you are not getting that, we like to do events for existing clients and even new clients again, Holidays in the Air, Kim and we want to have as much fun with retirement as possible, even though sometimes it can get a little bit stressful.
Ah that it certainly can. It's been stressful for people for quite some time. I think, Larry, when you and I first started doing the radio show together, one of the very first days we talked about the fact that we could really feel inflation every time we went to the grocery store. And that does seem to be the place where I feel like I'm seeing it the most. I don't know about you, but it continues to be.
You know, at the end of the checkout, I go, wow, I have fewer bags than I used to have in a much bigger bill.
That is for sure.
The bags are smaller and you can't get as much in and the bill's higher. That just doesn't seem right, does it.
It certainly does not. On this week of Thanksgiving, nobody wants to think about that, because we'll all be at the grocery store at some point. The Federal Reserve certainly plays a big part in inflation and the road to economic stability. Recently, J. Powell, the Chair of the FED, issued some statements on the state of inflation and what
he sees as the road to economic stability. Here in the country, while a recession would be you know what would occur and would certainly bring prices back to where they were in twenty nineteen or so. I don't think that's anything that anybody wants to see. So he is hoping that the answer here lies in incentivizing wage increases.
Kyle is with us this morning, and it's good to have Kyle with us.
He's a certified financial planner on the investment team there at Haven Financial. Good to have you with us, Kyle this morning. You're feeling about j Powell's statements and what you think the Fed can do to bring inflation and most importantly bring prices back down.
Yeah, thanks for having me, and it's good to be here this morning. There's been a whole uh, well, the last couple of years have been sir, you know, comprised of Jerome Powell and the Fed and all the decisions that they're making for interest rates and all we've been we've been hearing about for the last year or so has been rates coming down, and you know, they have come down a little bit. There's been you know, two
cuts this year. The first one was a half a point and then the most recent one was a quarter point and the expectation is that you know, December would be another quarter point one as well, So that's what's kind of priced into everything. And you know, there's expected to be cuts going on in twenty twenty five and then twenty twenty.
Six as well.
But the most recent thing was Jerome Powell announcing a shift to prioritize reducing unemployment over necessarily controlling the inflation aspect of it, because you know, they do have a dual mandate, so they do try to uh, you know, be in control of both of those two pieces there. But he is trying to oritize the unemployment right now, and the unemployment actually isn't necessarily you know, out of control.
It's a little tad bit higher than what they want it to be yet, but there hasn't really been signs of them needing to necessarily make quick action. And he actually said just a couple of weeks ago, you know, there's no pressure to lower rates right now. So the percentage chances of rates coming down even in December, they've gotten down from eighty some percent to you know, low sixty percent, So there is a chance of that happening again in December, but the odds of that are coming down.
And then also, you know, we thought this year there's going to be about seven cuts and we've only had two so far, So the expectations and reality have been quite different.
But would you.
Say, Kyle, that the economic situation has stabilized some as compared to maybe in twenty two.
Yeah, the economics have.
They have state abilized, you know, to some degree when you look at the inflation numbers. You know, our inflation numbers are getting closer to that two percent long term mark that we want. You know, if you look at it a month over a month basis or quarter over quarter basis, year over year, however you want to look at it. That's how they're gauging the inflation numbers, and it has come down quite a bit. So we're not looking at inflation statistics like we were a couple of
years ago, which is what they want to see. And again, I mean you mentioned this, but we don't really want, you know, prices to go down to what they wear a couple of years ago, even though things are fairly expensive right now compared to that time, because that could mean some problems for the economy in itself.
So what does all of this mean these rate cuts by the Fed and this kind of discussion about you know, unemployment and so on and so forth. What does this mean to someone who's in retirement.
I would say they people need to stay the course, have a good understanding of what they're doing. You know, inflation, we always have had inflation, as we've talked about. Then you sprinkle in the fear factor of the people talking about tariffs with the new administration coming in. You know, what will that do to the supply chain? What will
that do to prices? Will we go into recession? You know, sometimes I think we just have to take a step back and breathe because we don't know what that's going to look like. We don't know what President elect Trump is going to do with the tariffs. It's going to be more of a negotiating tool.
You know.
What will the net result be from this to be determined. And that's what makes the Fed's job such a balancing act as virtually impossible to do. You know, Inflation recessions they come and they go, then we forget about them, and then they're here again. And what you need to do is have a plan, make sure it's balanced, has a balanced approach that's customized for you.
As you get close to.
Retirement, and in retirement, your goals and objectives now are different within what they were when you're twenty thirty and forty. Therefore, what you should be doing should be appropriate at this stage of life. And you know, let's face it, we have lots of discussions about retirement risk and that can mean a variety of things. Inflationary risks, which we're talking about,
investment risks, tax rate risk, health care cost risk. You know, gauging this risk levels in these various areas, nursing home risks, income risk. Sounds like a scary, scary world.
Does it against us?
All you can do is if you have these conversations, you develop more confidence as to Okay, now I know why we're doing what we're doing. Avoid these knee jerk creation I shouldn't saying we're going to jump off the cliff as soon as something somebody says something bad is going to happen. American, the US economy is still really, really, really strong.
The markets have been very very strong.
I do expect volatility, which obviously retiree should be more aware of. You shouldn't be afraid of talking about these risks, but really hit it straight on to make make sure you avoid unnecessary surprises that many of them can be avoid you can avoid if you're just proactive, not reactive.
Kyle, any particular portfolio adjustments that you are suggesting to some of the clients during these times.
Well, first of all, I tell our clients, let's not make any reactionary decisions based on you know, what the election results were, or what you anticipate inflation to be, or taxes and all of that, you know, outside noise stuff. We don't want to be making reactionary decisions to that
because that can end up being irrational decisions. We just want to make decisions that are consistent that we can you know, conceptualize and have a balanced portfolio where we can rebalance it and just have a long term perspective
on it. Now, the investments inside of those you know, structured portfolios can sometimes change based on outside factors, and you can have some treasury inflation detected securities or fixed accounts, you know, something that can get you some higher rates of return that are safe investments because then you can kind of combat any potential negatives that would happen, you know, inflation and whatnot.
So there are other pieces.
But also you don't to necessarily just take a step back in your risk profiles just because of something happening, because you know, people have been predicting recessions for the last few years and we haven't really had one yet, So there's a lot of a lot of gains that people missed out on if they did try to predict that a few years ago.
Larry the Fed had always hoped that this would be a soft landing, and a lot of people think that it is. Well, we've come in for a landing and it's been softer than what some had anticipated. Where do you stand on that?
I think it has been a fairly soft landing.
I mean, there's no perfect world out there, but you know, somebody's interpretation of a soft landing compared to a crash landing might be significantly different.
Isn't to change the fact that.
People's pocketbooks are still hurting, Their retirement savings for many is hurting, and prices are still really high, and for the foreseeable future, we really don't know when they're really going to come down to what many would consider normal times. So all you can do is have a plan, stick to the plan, modify the plan, don't put it on the shelf and not see it or touch it for years. Because life happens, it happens quickly, and we just got
to be as prepared as we possibly can. And that begins with conversations with whoever you're partnering, is working for you, having those conversations, and that's where I see people not getting the attention they deserve or having the conversations that they should be having.
So, folks listening, do you have a partner in this and do you need some advice on making sure that your portfolio is inflation proof you're prepared for the future. Well, if your answer to that is no, then we've got a suggestion for you. Give the folks at Haven Financial Group a call, go in and sit down, talk to them about what it is you're trying to accomplish. Maybe you have a portfolio and you need someone to look it over. Maybe you haven't even started putting one together.
Six one two five zero four eight four zero zero. That is the number you call, Tell them you heard of here on the radio and that you'd like to set up a free consultation. It's six one two five zero four eighty four hundred, or you can go to Havenfinancialgroup dot com and learn more about some upcoming educational seminars. They're free and you don't have a client to attend, You.
Just need to sign up.
All right, when we come back, strategies you could use to fight inflation. This is 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. Are you worried that your financial strategy might be missing something, Well, you're in the right place. Larry Kulvig is back and ready to help you find your financial safe haven.
Welcome back listeners.
My name is Larry Kolvig, founder and CEO of the
Haven Financial Group. And if you're just tuning in, you're listening to the Haven Financial Group Radio Show where every week we discuss retirement and financial topics that really can make the difference between surviving retirement and thriving through those golden years, which, of course most of us want to thrive and not strive to succeed, which is why it's so important to make sure you have a plan and that it's current, it's up to date and it's applicable to you at this stage of life.
All Right, Larry, we've got a guest today.
Kyle is with us.
He's a certified financial planner with the investment team there at Haven Financial. We've been talking about inflation and certainly you know what kind of impact that can have on retirees on their portfolios. We want to talk about some strategies that folks can use to fight inflation. You know,
we've seen inflation come down. It's certainly from its peak maybe in twenty two early twenty three, but it certainly is a little higher than everybody would like for it to be, and we are definitely still feeling the effects at the grocery store.
A lot of people would say, you feel it.
It's gas pump prices are just higher. So let's talk about some strategies, Larry and Kyle that could help people fight inflation, whether it's at one percent or ten percent. These are like long term strategies that you would have in your portfolio so you'd be prepared for whatever the economy might bring.
Yeah, the first strategy for me is just work with someone who can help you put a plan together. We live in a world of technology and data and there's so many things available to us that we can use that to help ourselves and put a plan together and working with a planner, I mean, they can do it for you and they can give you examples, and you know, we have the software that we run through for people and we can have different inflation numbers and we can
plan for that type of stuff. So that's the number one thing I think that people should do. They could get a better understanding of what the impacts are for them. But there are you know, the strategies that you can use with specific investments. You know, money market funds are they had been at five percent for a while. Now they're closer to you know, four and a quarter or so.
But then you know there's other bonds, short term bonds, intermediate bonds, and then there's fixed accounts where you can get fixed interest rates where they're you know, elevated for a couple of years and then you know they go down after that. But there are plenty of different investment vehicles out there that you can take advantage of high inflation years to combat that, so you're not losing your purchasing power on your investments.
Sure, what about social security. How can you play with that to help you well?
Depending on your situation, Kim, individually, you may want to delay social security. You know, we teach lots of classes on social security. Our job isn't to steer people to wait, to make an educated decision on when it makes sense. Listeners can go to our site Hevenfinancialgroup dot com and
see our classes. For all those that participate who come in, we walk through a social security maximization report that anybody listening could come in and get that done individually or as a couple, and it's kind of a good better best what makes sense over the normal life expectancy? Does it make sense to delay and let it continue to grow? Oftentimes for a married couple, we'd say it should be a wee decision. Maybe the higher breadwinner delays, the lower
breadwinner turns it out earlier. But all that depends upon are you going to continue to work, not work, just making good decision. So if that social security report sounds interesting, it can be very helpful and people actually take it to the Social Security Administration when it's time to make that decision. Again, Only one to two percent wait till seventy and almost seventy percent turning on right away at sixty two. That tells me there's a lack of education,
which can be very much problematic. And another way to in this inflation thing, what I see for retirees is not really addressing the health care side of it. People they retire and all of a sudden, Oh my goodness, I didn't know healthcare was going to be this expensive. You know, as we talk about inflation and normal on normal consumer goods and services, in the last twenty four years,
normal inflation is up about eighty six percent. Medical and health care inflationary percentages are up over one hundred and twenty one percent. So inflation as it relates to healthcare and medicare and medical stuff equipment, drugs, prescriptions, et cetera, it goes up.
It goes up a lot higher than regular goods.
So factoring that into your budget, uh, maybe maybe you consider part time employment, not because you necessarily want to, but maybe that extra a few hours or a little bit of income can really maybe pad your retirement a little bit better cover some of those expenses. And let's face it, some people when they retire, they need a purpose.
I can't tell you how many times I've I've had clients retire and then go get a part time job or give back and they maybe they you know, focus their time on volunteering or working as a ranger at the golf course something just to maybe get them free green fees in the summer, whatever it might be. So you don't want to rule that out. You know, it's a transition from retirement into retirement from all those years that we're working. So I always tell people that are
getting close, you know, give yourself some slack. It takes time to ease into it. You're not to figure retirement out overnight. But what we can do proactively before we get there is execute a retirement plan that's going to change as we get older. And again, having a partner that you can lean on ask for help. You shouldn't feel bad about asking for help. Nothing's free. That's why I always say you should know exactly what you're paying
whoever you're working with. And I always say retirement is more than a meeting once or twice a year for forty five minutes two an hour. It's maybe talking on the phone if you're worried, to talk you down, talk through things. That's what a relation of retirement relationship partner is and that's where what we really enjoy is. I love when folks say I always feel good about coming in.
I never feel like I'm rushed. You all spend the time, meaning whether it's Medicare, healthcare, taxes, long term care, any of the retirement puzzle pieces that we do at Hand Financial, and we do have all of them under the same roof. We want people to feel like they're getting the attention they deserve. And you know what it really shows that it does.
Let me give everybody the telephone number. H'its six one two five zero four eight four zero zero. That is the number that you call if you'd like to come in and sit down and have that first a consultation with the folks that Haven Financial Group. Let me ask you this. Let me go back to that idea of a part time job that you know, I think that sounds like a good thing for a lot of people.
I have met a lot of people who have gone into retirement and then have decided they had to go back as well for the exact reasons that you just said. But there's also some stipulations associated with a part time job. How much money you make and maybe a plan that you have in place. This could have tax implications, it could have social security implications, So you have to be sort of careful and you do need some advice. Would you say before you jump right back into a part time.
Job, Kim here one hundred percent accurate if you're not to full retirement age yet. As it relates to social security, there's some income thresholds that you want to be aware of prior to full retirement age, which go up significantly after full retirement age. Taxes are always going to be part of the conversation. What I do see a lot of it, and I think Kyle can attest to this even more than I is a lot of times people have the wrong types of investments in the wrong types
of tax codes. They have the wrong investments in a wrath, they have any fish tax, they have taxed efficiencies, they have the wrong types of event in the non qualified brokerage accounts. There's a method to the madness between certain types of accounts in certain tax classifications, and we see with the wrong ones in the wrong place at the
wrong time, which proves to be inefficiencies. We want to minimize the inefficiencies wherever we can whether it be it's the investment inefficiency, the tax inefficiencies, performance inefficiencies, if you're doing your own investments, are you rebalancing appropriately at the right time. That's all the different things that Kyle and the rest of the team here at Haven Financial Group do wealth management management to make sure that you're not just doing the same thing as you did thirty years
ago when we're now thirty years older. Of course, not you and I are thirty years older. It's everybody else out there, right, Kim.
That's correct.
Thank you for clarifying that. You know, Kyle, people shouldn't feel bad about, you know what Larry has just said though, having things maybe in the wrong tax funds and not having things appropriately put into different investments, because if you don't have a partner in this, you don't necessarily know how to do all of this correct or you just don't know all the information.
Yeah, you absolutely don't.
There's so many different interses that go into the investments that you actually own in your accounts and the type of accounts that they are. Because we have tax deferred, we have tax exempt, and then tax a bowl and the Taxi bowl accounts, which are accounts that a lot of people have their non retirement accounts. Your investments that you have in there can get taxed in several different ways. There's capital gains that you could realize, there's interest, there's dividends.
There's another thing called capital gain distributions, and that's tax bowl. They usually come in at the end of the year. And then on top of that, a lot of people are paying expenses on these funds that they have and that they don't need to be quite frankly, so there's a lot of things that people can make more efficiency with inside of their accounts.
Are your investment folks, are your investments efficient? And if your answer is I don't know, that's okay, but we need to find out. You need a partner in this process. Everybody does this probably isn't what you did all of your life, and so you need someone who can walk you through the best retirement plan possible. Six one two five zero four eight four zero zero that's the number
to reach Haven Financial Group. Larry and his team can sit down with you and talk you through a wonderful plan that, as Larry likes to say, means that in your retirement you are thriving, not just surviving. Six one two five zero four eight four zero zero. Kyle is with us this morning. He's a certified financial planner on the investment team there at Haven Financial Group, someone you could certainly make contact with if you make that phone call.
When we come back, we're going to talk about mistakes to avoid when adjusting your portfolio for inflation. This is the Haven Financial Group Radio Show.
Don't go too far. We're gathering more important insights and retirement ways. 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.
Thanks for listening.
Feel free to give us a call six one two five zero four eight four zero zero or Havenfinancialgroup dot com. Visit us online all kinds of retirement tools. And you know, after that last segment, Kim, you know, I think it's important to point out that with retirement planning, financial planning, call whatever you want, there is no one size fits all strategy and the same may not be true for your brother, your sister, your neighbor, whomever it is we're
speaking to. There's differences, some strategies that may make sense to you, others that may not make sense for others. So again that's where it's important to give us a call. There is no cost, no obligation. Sit down over a nice cup of coffee and cookies or healthy snacks too, and guess what you may learn something you never learned before. You might there might be some things pointed out that you go, wow, I've been doing it this way and maybe I should have been doing it this way much
better than some insight or a second opinion. I know some of the listeners feel loyal and that's great. I come from small town Candy High, Minnesota. My wife says, I'm loyal to a fault. But if you're not getting the attention, you should be getting the attention. And again that's where we're able to help lots of people. And what we enjoy so much five days a week at the office.
Who wants healthy snacks.
Well we just say that not too many people, but we're trying to push that with the cookies.
That's very high. Give you.
That's very good.
Kyle is with us this morning. He is a certified financial advisor financial planner rather on the investment team there at Haven. Let's talk about some of the mistakes Kyle. When you think about this and people start to adjust their portfolios because they get panicked because we've had this inflation that has you know, really really meant prices going up. What are some of the mistakes that people you have seen them maybe knee jerk reaction make, and how can we avoid those.
A couple of the biggest mistakes that I've seen is, well, one people wanting to buy gold and silver precious metal type things. The other one is going to cash or just buying you know, CDs, liquidating all their investments and just going into those types of products. And yeah, you know, gold has been sought out to be an inflation hedger, and you know there's a lot of ads out there now too, and they're trying to ignite emotion inside of you to buy gold or silver or whatever it is
and put that in your portfolio. But you know, I actually did some research before this, and over the last hundred years, gold has only performed better than cash in terms of the asset classes that are inside of our portfolios. It's behind small caps, large caps, international emerging markets, and then even bonds that we hold. It's over one hundred years. If you would have put you know, money into all of those, gold would have been the second worst one.
So yes, it's had a great year, but it's also historically not the best place that you could park your money. And we don't necessarily want to buy things when they're high, and it's high right now.
We want to buy low and sell high.
So those are just some things that you know, I observe looking at portfolios and things that people want to do that I try to just steer them away from. So we can, you know, kind of look at what would be the best allocation of our assets.
But I could add to.
Take nothing from this conversation that we are against gold, silver, precious metals, anything of that whatsoever, because that's not true. Now, why is it that there's more ads on TV when inflation's high? Doesn't that seem a little bit interesting that there be all these gold ads? Well, they're trying to sell you on something connected collected commission, not saying that
anything's free. But if you have some extra money on the sidelines again buying some gold, some coins, whatever, you're gonna do, that's fine, But long term retirement plan, you know,
over over long periods of time, not so good. And sometimes people get so you know, extreme one way or the other, and they kind of avoid, you know, letting some of their other goals get ignored, you know, like that emergency savings account depleting that letting debt creep up in the credit card interest eating you alive, and they forget some of the other things that are going to create foundational retirement security just because you know, they're all
hyped up about this or they're that, and they sometimes they make knee your investment choices sell off at the wrong time. You know, everybody's goal is to buy low, sell high. Then why is that the average investor does the opposite because.
They don't know any different.
The emotions get overtake them and then they make irrational decisions and some of the simplest things that probably on our weekly show, people should know what they're paying. Kyleon alluded to this here a little bit ago, paying weight too much for funds. We know higher cost is not being better returns. So what are you paying inside the funds? What are you paying your guy or gal for a
management fee. And again, if you're saying you're not paying, if you're saying you pay nothing, that's simply not true.
I hate to put it.
I would say that's ignorance because they're getting paid some way, and they should. But eighty percent of the time to ask folks what they're paying, this is the response I get, Larry, that's a really good question.
We have no idea.
In a competitive industry that we're in, that should never happen. You should know exactly what you're paying and what you're getting. There should be no surprises. And if you ask the question and they tiptoe around the answer, you might want to ask more questions. It's very simple today.
Well what do you say to people who say, in these inflationary times, I just want to hang on to my cash. I'm just going to stay in cash. Cash is cash.
Yeah. I know that that is a very comfortable thing for people to have, is just be in cash, because now they're not going to lose anything. You know, they don't have the potential to go down twenty or thirty percent if the market does that. But I also give them the argument that you actually are losing something because inflation is you know, it's always there and you know, over time, we hope it's about two percent. But if someone who's in CA these last couple of years, they
lost money. I mean, even if you're in a money market, you're just kind of treading water in a way with that type of investment because inflation has been that or more over the last couple of years. So it's just important to look at it from all perspectives because yes, you're not losing the dollar value that you had, but the value of that dollar is less sure if you're just staying in cash.
And what about people who say, you know what, I'm going to buy real estate and you know, manage rental properties.
Well, real estate is actually a type of investment that we have inside of our portfolios.
You're not.
You're investing in real estate fund that we have in our portfolio. So that is an allocation that we like and we like to have a piece in there. You know, it's a part of I think of what we're making some kind of dinner here, right, and there's a bunch of different ingredients that go into the recipe.
That's that's a little piece of the recipe that we have in there.
Because we like the flavor of it, and we want to grab some of that performance that it has because it does have potential for you know, long term good performance.
Yeah, Cam, if let me add you know when it comes to cash. You know, I've been doing this a long time, and those that are maybe more seasoned in retirement, that meaning a little bit older in retirement with respect, so many of them maybe grew up in the depression or their parents. So numerous times over the years when I've seen a large amount, I think of a couple actually in rural northern Minnesota that I visited some time ago, and I said, no, why are you guys sitting on
one hundred and fifty thousand in cash? And the husband goes because that's what my wife wants. And it proceeded to have a conversation that we grew up in the depression. That hundred and fifty thousand in cash is my wife's security blanket. That's where it's going to be kept. I'm like, I get you, loud and clear. So for them, it's a security blanket.
I get it.
Although I see most folks not having enough liquidity, and that's not a good recipe to go into retirement either. So it's the right balance on your on what you have. You know, I think of a one of my clients ed from Egan. You know, he doesn't have anything in the stock market. He's got plenty of money, he goes, Why do I need to take risk in the market. He goes, I got plenty of money and I can live off four or five percent interest. Well, it's not for us to tell him he should have it in
the market. And now somebody else might say, well, that's really silly. So again it comes back to everybody's situations different, maybe similar, but it's not one glove fits all. We Haven Financial Group tend to be a little more conservative because our average client is in their mid sixties and we're not limited in age, but the element of time becomes that much more important relevant to where they're working years compared to their retirement years.
Absolutely, well, we've brought it right right back to where we started in this segment. And again, one size does not fit all, and for that reason, it's probably best that you don't ask your next door neighbor what he's doing for his retirement or your brother in law, but instead you partner with a group like Haven Financial Group to find out what's best for you so that you thrive in your retirement. Six one two, five zero four
eight four zero zero. That is the number you can reach the Haven Financial Group folks, you can set up a free consultation. Go in, sit down and talk about your goals in retirement and how you can meet those goals. Six one two, five zero four eighty four zero zero Orvenfinancialgroup dot com. Gentlemen, this has been great fun, lots of great information. We took a subject like inflation and it's not a fun subject, but we made it interesting and I think informative.
Yeah, I think so too, Kim.
A few timelines to be pointed out here at the end of the show. We are in the fourth quarter. End of the year is getting close. Are you tax planning? Did you take advantage of any roth conversions here?
Fourth quarter? The deadline's the end of the year.
They really need to be done by it, no later than the middle of December at the latest. Have you taken distributions? Do you need to take distributions? Are there any last second withdrawals that need to be done? Annual enrollment for Medicare is right now. Lots of people need help in this area. Because medicare has got a lot of different changes. Of course, Glennon Isabelle at the office are able to help lots of folks. So all these retirement puzzle pieces do you have all the pieces? Do
they go to the same puzzle. We'd love the opportunity to visit more with you. Give us a call at six one two five zero four to eighty four hundred or Havenfinancial Group dot com. Great to be with you again, Kim and I look forward to next week.
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