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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 Karrigan 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 fuone 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.
Welcome back and good morning listeners. My name is Larry Colbick, Founder and CEO of the Haven Financial Group.
Thanks for listening this morning.
We've got a lot on the agenda today, Kim, retirement, portfolio stability, all kinds of different topics, so it's good to be with you. And then of course Kyle Thomas, a certified financial planner on the Haven Investment Team, Good to be with you, Kim.
It is great to be with both of you. I am so happy that we could gather here and we are full of lots of great information for our listeners and we're glad that everybody can be with us today as well. Our topic today, Larry, is maintaining your retirement
portfolio stability. You get into retirement and it's important that people, you know, their investments stay stable, they're they're staying away from volatility, and that they're comfortable in their retirement and where they're invested, because the last thing you want when you're in retirement is to be worried about your investments and having to follow the stock market constantly and all those kinds of things.
Well, that's true.
I mean, they call it the golden years for you know, it may seem like a life of leisure, relaxation, you know, nothing to worry about, but retirees face a lot of you know, hurdles if you will, when it comes to their purchasing power, their money market volatility. Am I depleting my savings?
You know?
We're going to talk about the big questions we get on a weekly basis. Do I have enough money to retire? Or when do I run out? Is it seventy five, ninety five or never? So having a plan which you and I talk about weekly is just imperative that people do because we're all given a different deck of cards. Big assets, small assets, pensions are not. It's important to talk these things through and then identifying the expenses that can have a drastic effect on retirement, inflation, healthcare, all
of those things. And it may sound overwhelming today, we're going to do a good job of simplifying and making it as understandable as we possibly can make it.
Absolutely well, let's take a little look at what's coming up in this show. We're going to talk about why retirement shouldn't be full or of volatility, and why you shouldn't have to care about volatility. You've just hit on that, Larry, that is that's an uncomfortable place to be where you're constantly worrying about the volatility of the market. So we're going to talk about how you can avoid that. Don't
forget important perks of retirement accounts. I think that this is also one that a lot of people probably don't think about. But there are perks out there and you need to take advantage of all of those. So you need to take advantage of anything and everything that's out there for you in retirement you've worked for that, then understanding investment strategy that works for you. And finally we'll discuss keeping your emotions out of portfolio management. I can't
wait to hear how you tell people to do that. Now, that's a tough one.
I think it can be challenging. But again, everybody's situation is different. But if we talk through these things on a regular basis and give people confidence, you know, it starts making a little bit more sense. The problem is many people, many of the listeners, are not getting that attention or having these conversations. And you know what the old saying is, what you don't know can hurt you nobod.
It could hurt your pocketbook, It could hurt your legacy, if legacy is important, and then your investment funds could be depleted quicker. So yeah, a lot to talk about today.
Well, Kyle, let's start with you. When you sit down with some of your clients and they say, listen, we we love the market. You know, I love to play the market. It's been fun all of my life. I love the challenge of that, and I certainly don't want to miss those highs. Of course, I am sixty five years old. Talk to me about how you handle that?
Yeah, thanks for having me. That is a very common question that we get. You know that it's one of the biggest things when when people want to work with us. It's what risk profile should I have? How much should I have in stocks? How much should I have in bonds, that type of you know, those types of products, and when you're close to retirement or in retirement, it plays a very important role because you can't handle as much
volatility as you could twenty or thirty years previously. So we spend a lot of time on it, and it's kind of broken down into three different categories for us. We look at their need to take risk, we look at their willingness to take risk, and we look at their ability to take risk. And willingness is kind of the one that we focus on the most. Need and ability.
You know that varies by case to case, but willingness is kind of where people land emotionally, and we try to take emotion out of it, but it does play a role in it because if someone is too risky and the market goes down, well, there could be some major decisions that are made that could be detrimental to
a long term portfolio and vice versa. You know, if you're not risky enough and market's going up, well now, they may want to add risk to their portfolio, but the market's already had its upswing and that that could create problems as well. So we find a balance that works well for them what they're going to be comfortable with long term, and we don't want to be making changes based on other factors than what they need and what they see going forward for their futures to stay consistent.
So Larry, give us some of the options that you might give some of these clients for maybe a manageable amount of risk and yet at the same time a comfortable place. What might be some options of investments.
Yeah, well, first of all, I caution listeners to you know, don't compare with the Joneses. You know, just this past week, you know, the market, the market has been very good. And I had Tom from Faribouh that came in and he's like my sister is up thirty two percent with her portfolio.
Well, that's your sister.
Her portfolio has extremely high risk and in our discussion originally based upon your situation, you wanted very moderate risks. So you being up nine percent and her being up thirty two percent makes sense because you're in two different types of risk models. So we want to look at all the options. You know, first of all, we retirees need good liquidity before we even talk about the market.
You know, what are some goals for liquidity and retirement, you know, money in the bank, and then yeah, how much risks should you have? Yeah, we're going to have that discussion. But do you want to gamble or risk with all your money? Yeah, we have a new administration coming in and i've since recently that you know, the expectations are for the market seem to be really good, and we certainly hope that is the case. But where are you in the timeline of life? You know, what's
the need for the time horizon? You know, immediately is it three years, is it five years? What is that time horizon? Because yeah, accumulation, it's great to hit home runs, but as we talk through with retirees in retirement income becomes even that much more important. Guaranteed income either from Social Security, is it from a pension, is it a self directed pension, which sometimes maybe somebody would use an annuity or an insurance product, not always certainly.
Don't have to.
But really focusing on income, you know that I say the timing, we call that sequence of returns risk. You know, some of the retires the market goes in the toilet, compared to somebody that retires and it's good for ten years and then goes down. We're talking completely different numbers
just by the timing. So we're not against risk. At Haven Financial Group, you could say we may be a little more conservative because we're dealing with retirees or those planning for retirement that their timeline for the need for this money is shorter, where if we're having this discussion with twenty thirty or forty year olds, that's a whole different discussion. It's really circumstances based upon where you're at in the timeline of life right now.
And Kyle, it seems like to me, beyond the fact that you sit down with your clients and you talk about you know, the three things that you talked about when it comes to risk, you also have to talk to me about the most efficient way for like we just said, income stream and maybe tax benefits. I mean, there's more to be discussed.
Absolutely, the types of accounts that you have play a major role in everything about your retirement, The types of investments that are held within those accounts that when money's withdrawn from those accounts, and the taxes as well, because taxes are they play a role in some of the accounts,
but not all of them. So it is really important to understand what types of investments you have in there and make sure that we can maximize the efficiency with that, decrease your taxes, and get the most amount of growth that we can in the right spots. Because there are accounts that are going to be tech free and well we want the most growth in that one, and the ones that are going to be taxable, we want that
to be the more conservative investments. So we're not just kind of putting a blanket portfolio on all of the accounts. We're strategic strategically putting specific assets in specific accounts because they're they're all treated differently, so it makes sense to treat them differently ourselves.
Absolutely, you know, it seems to me, Larry that you know, as a lay person and someone maybe who's listening, this might sound a bit overwhelming, but you guys do this every day.
We do five days a week, not on the weekends because that's reserved for family and a break of course. Yeah, it's important to have these discussions. And I'll even narrow it down even more, you know, getting into a budget. Yeah, nobody wants a budget, young or old, none of us
want it. But figuring out acrid expenses to be able to put acrid projections together, knowing that life happens and doesn't always cooperate with our calendars, so we know through life there's going to be changes to this retirement playan and adapting on the move when things do happen will
reduce a lot of emotional stress. And let's face it, and in our industry, in the you know, talking about finances, retirement money and taxes, Hey, it can generate a lot of stress and we want to reduce that because that doesn't do any good for anybody. And on the note about market risk, you know our Minnesota Vikings are eleven and two. Okay, they're having a great season, and I compare it to offense and defense.
You know, on the offense, in the early.
Years, accumulation years of life, twenty thirty and forty are building at least I hope you are, because the power of compounding is very, very amazing. But then on the defense, what is this saying. I forget who says that the defense wins championships?
You get on the.
Offense, you could accumulate, you put that retirement, those investments money together, but then play a little defense because they call that inside the twenty the red zone. Retirement is the red zone, and that's the season that a lot of folks we're sitting down with are entering into that season. So offense we want to win, but a defense wins championship. And I compare that for retirees and making that decision to retire.
If you'd like to talk to Larry or members of the team about being in the red zone, they're number six one two five zero four eight four zero zero. Call make an appointment, go in and sit down and chat with the members of the Haven Financial team. These things can be very overwhelming and you need a partner in them, and we're suggesting a really great partner that being Haven Financial Group. Gentlemen, when we come back, don't
forget those important perks of retirement accounts. That's what we're going to talk about. You're listening to the Haven Financial Group Radio Show.
Don't go too far. We're gathering more important insights and retirement plays government 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 Karragan. Now back to the show.
Welcome back, listeners, Thanks for listening. My name is Larry Kolvig, Founder and CEO of the Haven Financial Group. Feel free to give us a call at six ' one two five zero four eight four zero zero or online Havenfinancialgroup dot com. All kinds of great retirement tools are our upcoming events, our educational events as we end this year, and then we already planned out for the first quarter of next year. So I encourage folks to go to the site, come on out, and education is the potential
for powers. So again, Kim, retirement getting there, staying there, but it's staying retired. It's one thing to get to retirement but then not having to come out of retirement. That's not good that that is not usually a good story.
No, it certainly doesn't seem that it would be, and it seems it would throw a lot of things off that were in motion and then you'd have to backpedal. Kyle Thomas is with us. He's a certified financial planner on the investment team there and Haven financial guys. We want to talk about some of these retirement accounts and what some of the perks are because I think retireees
sometimes don't know all the perks. Why would you You don't retire numerous times, or at least you hope not, as we just mentioned, So it's important that you know what some of those perks are and you take advantage of them. So, Kle, let's start with you social Security. Certainly, a lot of people rely on social Security, but shouldn't rely on it solely, but there are some ways to maximize it.
There are definitely ways to maximize social security. And you're right that we shouldn't rely on social Security for our only income source. That should be a benefit to us from our own savings that we've contributed to throughout the working years and well for Social Security though, so you can maximize this by waiting each year. Simply right, you can get about eight percent increase in your benefit plus the cost of living adjustments that happen annually by waiting
each year. So from sixty two to age seventy, you know it could be eight percent dannelized each year that you get. Now, the drawbacks are you have to wait those eight years, and there are break even points in the future where if you live to this age then it makes sense for you to take it early, but if you live beyond that age, then it makes sense for you to wait. So each situation is completely different.
We don't know the future for most people. Right, there are some situations where it makes sense for us to look at it and make a decision to take early, But for a lot of situations it can make sense to wait because you do get that higher benefit, and if you're married and one of the married people pass away, the spouse that surviving gets the higher benefit as well. So typically we have the higher earning spouse wait until seventy when we do have that as an option for us.
But it is important to talk to someone who understands all the options for your benefits and they can provide you with all the data and points about that.
Yeah, I feel like social security is one of those things that people just don't really understand. They just think that the minute I retire or I'm just going to start to draw and that's that. And there can certainly be some perks associated with understanding how to draw your social security. Also a lot of perks leary when it comes to just getting involved in retirement accounts. You got to do that before you're fifty years old.
Time is of the essence. It's certainly a start early, Start early.
Even if it's a little bit increase at a percent or two, and you won't even notice it, and over time you're going to go, Wow, that really made sense, you know, he'd mentioned Kyle mentioned social security. You know, be careful listeners about what a lot of the chatter that's out there. Social security has been highly politicized on both sides of the aisle for years. Kim Ike, I think it's weekly when I hear I heard social Security is going to be gone by next month or next year,
completely gone. You know, you have to be careful what you're listening to, listen to anything you want to you're listening to us, and thank you for listening.
But guess what, it's still here.
I don't think personally my opinion they're going to ever do away with Is there going to have to be some changes? Sure, but factor that into your overall planning because Social Security is a major income stream for retired Americans and over time it can be a very big number. I want to mention on the you know, we talked about the investment side, reducing risk, you know, oftentimes take
the foot off the gas pedal. We see that as people get a little older, and we see this often that people are investing the same way they did when they were a twty, yet now they're in their mid sixties to seventy.
Well, let me ask you, if you didn't.
Like the results in two thousand and seven to two thousand and nine or twenty twenty two, and you're doing exactly the same thing do you want when the market was way down?
Did you like those results?
If not, that probably should require some modification or changes to avoid that pitfall. And let's face it, as humans, habits are hard to break, you know, and at this point you're at a different stage of life again than where you should be and on the investments. It all comes usually back to tax efficiency distribution. Just this past week we had a couple they're both retiring at the end of this year, so literally weeks away this year,
their income looks fantastic. They worked all year. This couple was from rose Mount, Carolyn and Jim, and next year is a completely different outlook. Lancear's in house CPA who we do lots of tax planning, and Kyle included. We sat down, we looked at this year and by the way, they were spot on for taxes because we planned it out through the course of the year. And next year we set up the distribution, income and tax plan with
holding properly all that good stuff because they're worrying. A lot of people's worry is okay, now I retire, where am I going to draw from? We don't know how to do this? While we mapped it out and they go, wow, we feel really good about how we've set this up in the most taxi fishing way possible. And so often people just draw off of this account or that account because they don't know and yeah, uncle Sam, you're not your favorite uncle may like that, but it's not about
how much you make. It's how much you keep in your pocket.
We're talking about perks of retirement accounts and ways to maximize those perks. Kyle, I would say one thing, especially as we draw to the end of the year and the new year is just in front of us here, you want to be aware of the contribution limits. Make sure that you maximize, but that you don't go over, because then you're penalized. This is a good time of the year to talk to someone about what they will be next year.
For sure.
Yeah, it's it's a great time to be talking about where you're at for the current year and then doing some planning for next year as well. And keep in mind you can make IRA and roth IRA contributions for the twenty twenty four calendar year or tax year. I should say up until tax day of twenty twenty five, so April fifteenth April fifteenth of twenty twenty five roughly, so you can make priori contributions up until then. So look at where you are for the year for your taxes.
If we want to maybe make a tax deductible IRA contribution,
now's a good time to be doing that. If you made too much money to be doing that there's potential to do some backdoor roth IRA contributions, or if we haven't quite hit those maximums that we can do for the four to one ks or any employer sponsored plans, and we're we have cash flow available, let's try to make a big contribution to that at the end of the year here too, especially you know some people get bonuses at the end of the year, so it could
be a good time to be doing that. Let's just we want to make sure that we're taking advantage of all the options available to you, especially those catchup contributions, because not everyone knows about those exactly too. So if you're over fifty, you get an extra seventy five hundred that you can do or seven thousand, I should say for this year, seventy five hundred next year, but then also starting in twenty twenty five. Not all companies are
going to adopt this, but they certainly can. People age sixty through sixty three can do a catchup of eleven two hundred and fifty, not seventy five hundred. They can do an extra four thousand, roughly. So that's important to keep note of two and ask your employers if you're in that demographic to adopt that into the plan, because these are all benefits to you that you get tax deferred growth on and potentially you know, wroth money that
it's growing tax free too. So just know all your options and talk to someone and see if there's something else that you're missing, because we can take advantage of those.
Larry, what's the biggest mistake people make when it comes to their retirement accounts?
A lot of people don't have a partner that they can lean on, and they make decisions, maybe split decisions that they have no information or education. And first of all, avoiding penalties. You know, don't pay penalties, okay, just because maybe you don't know, maybe you're not fifty nine and a half, maybe you took money out early. Maybe you forgot to take your r and ds, which we remind throughout the year, especially this fourth quarter. Hey you haven't
taken it out, We got to do it. You don't want to pay unnecessary penalties, just like you wouldn't want to pay on this necessary interest on credit cards. I know it's a completely different deal, but you know, interest rates are still high on these cards. And I had a couple in last week from Burnsville and they had some life challenges they had to bail out. They didn't have to, but they bailed out their kids and enabled them to pay off debts and it went on their
credit card at twenty three percent. That's a big hole to get out of. Now, they had options, we talked through them. Don't get into that hole. And why we're talking about penalties and interests and fees that can all negate any potential growth. Make sure you know what you're paying for whoever you know, for whoever you're working with that maybe is managing your money. Wealth Advisor. Nothing's free,
and it shouldn't be expected to be free. But eighty percent of the time when I ask people what they're paying, the answer is, Larry, that's a really good question, and we have no idea. It's twenty twenty four, almost twenty twenty five. There should be no surprises. You should be able to say exactly what you're paying, and we know higher cost does not mean higher returns. Transparency with whomever you're working with should be expected and should be very important to your decision making if.
You're looking for a partner and making these kinds of decisions, or you just need more knowledge about the best ways to take advantage of your retirement accounts. Call the Heven Financial Group at six one two five zero four eight four zero zero, or you can visit their website at Henfinancialgroup dot com. Six one two five zero four eight four zero zero. That's how you make an appointment with
the folks at Haven Financial Group. All Right, Kyle and Larry when we come back, understanding investment strategy that works for you. 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 Colvig is back and ready to help you find your financial safe haven.
Welcome back to the Haven Financial Group Radio Show. I'm Larry Kulvig, Thunder and CEO of the Haven Financial Group, on with Kyle Thomas, our certified financial planner here on the Haven Investment Team and Kim of course. And I guess it would be appropriate that to say to all the listeners out there, you know, Merry Christmas and happy holidays. Enjoy the family. You know, we're in the middle of December now and Christmas is around the corner, And how
fast did that come? Yes, these topics of retirement every week are so important, but don't forget to enjoy the season. Now, let's get back to investment strategies, Kim. The importance of and having some understanding, not that anybody has to be the expert, or you should work with an expert or at least kind of, but you should have an awareness of understanding of why you're doing what you're doing, even if you're a layman and just the common investor.
Mm hmm. All right, so let's let's let's start from the very beginning when someone walks into the office and Uh, Kyle, why don't you take us through You're you're you're trying to put together a strategy. Talk to us about what you you know, what you ask potential clients, and how you make decisions or help to make decisions to present to them.
Yeah.
Well, first off, we take a look at what they currently have, so we'll typically ask for statements on on their current investment accounts, and for one k is all of that and we'll put it into our system here, our retirement analyzer, and we'll see what asset classes they have, what diversification they have, what their risk profile is, and then when we're meeting with them, we'll show that to them.
We'll see what what they think of it, where they would want to be, if they'd want to be someplace different than that, and then show what our portfolio would look like compared to the one that they're currently in. Typically it's the same risk profile portfolio that we compare it to, just to make it in apples to apples comparison. And the biggest thing that stands out to me when we do that is the lack of efficiency within the
portfolios that people are currently in. And what lack of efficiency comes from is lack of diversification, and diversification you get by investing into just many different asset classes. You know, there's the large caps, there's the large cap of values, there's the small caps, small cap value, international emerging markets, bonds in different types of bonds as well too, and most of the time we just see that people aren't
properly diversified. And when you're not properly diversified, you're not as well equipped to handle volatility in the market. And so that's what we spend a lot of our time on when we're looking at our portfolios and proposing that to potential clients and just showing them what we can do and showing fact sheets even on historical performances. And there are times where it has really looked well to do that, you know, especially strategic positions that we've made
in previous years. So that's where we spend a lot of our time when we're talking about the investments, just looking at it, what they're currently at, and then what we would do and talking about that risk profile, the need, willingness, and ability, like we talked about earlier today, Larry.
What do you say to people who maybe are listening and they already have a portfolio, they don't think it's really as efficient as they'd like it to be, but they're a little bit concerned about coming in and changing their investment strategy at this stage of the game.
My suggestion was would be, no, there's nothing wrong with getting a second opinion number one. In fact, it could be very helpful and enlightening in a lot of cases. When Kyle was talking about that whole investment financial conversation, that's part of our proprietary process. If I could backtrack a little bit, whether it's a family member, whether it's somebody I just met at one of my educational classes,
whether it's somebody that was a referral. We start our process the same with everybody, whether you.
Have a little or a lot.
It'll eventually potentially get to the money discussion, but we're going to first get to know who you are, your family, kids, loved ones, aspirations, goals, needs, wants. I love when people say, wow, you asked us more questions, specific questions than anybody's ever asked us. Well, that's part of how you get to know us, and we get to know you, because what motivates you or what's important to you might be very
different than the next person. Want to listen and we want to take notes, and that's really where it starts. We're going to start, you know, social Security, do you have an estate plan, taxes, who's helping you, Medicare, healthcare. We're going to cover everything with a wide brush, just
as a kind of FactFinder retirement analysis. From there, if one chooses, then we can get into strategy planning, building out some sort of plan in any of these retirement areas, that is, and then proposing something for a long term plan that we maybe think there's something missing that we could could be improved. Maybe you haven't really looked at this or that for a long time in any of these retirement areas. And Kyle alluded to the financial discussion,
which is extremely important, but so are the others. And then if one chooses and it makes sense, we'll eventually get to the implementation process where we now execute the plan because maybe you're not as diversified, maybe you're missing this asset class, whatever that might be. That's the implementation and that takes time. What we're not going to do is cause any major tax implications, you know, sell off things that incur big costs or taxes, or you know
that is not going to happen. That can happen. You don't want it to happen. And I just had somebody in recently that whoever they worked with, sold off through almost their whole brokerage account, whether it was intentional or not intentional, and they got a huge tax bill. Let's just say they're not with that person anymore, understandably. So sure, and then once we implement, now it's not a put it on the shelf, and hey, we haven't seen Larry
and Haven for five years. Okay, that's not appropriate. And we don't want to be the stigma in the industry that says, hey, we every three years we get together. Retirement is an ongoing process. It's monitoring, it's adjusting life's challenges. Life happens the calend life's calendar chain, so should your retirement plan and modest changes. Unfortunately, sometimes in big changes, the economy changes.
This is an ongoing.
Relationship, a partnership that people have the availability to lean on us at any time. I always say there's no quotas to how many times people can come in and visit in any retirement areas, and that leads very thankful for this for the complement of Wow, it's sure nice to know that whoever we're working with in these areas communicates, talks to each other, and there's the coordination of these retirement topics, which leads to a coordinated retirement plan.
That is really really the key.
Absolutely, Kyle, let me ask you this, how difficult is it to balance someone's strategy so that they have income but at the same time they have investments.
The easiest way for us to do that is to listen to the client, understand their cash flow situation, what they have coming in, what they're going to be spending, and figuring out that difference. So typically what they have coming in social security, you know, sometimes pensions, and then looking at their expenses, how much do they spend on
a monthly basis or quarterly basis. However, people like to break it down and then we find that difference between what they have coming in and what they need from us, and then we'll just make that happen on our side of it. We'll sell what needs to be sold, and we'll get the money sent out to their bank account. I know a lot of people like to have it set up so there's a stream of income, you know,
from a bond interest or maturing something like that. But we like to we like to take control of the investments in a way that we don't want the investments telling us what the tax treatment is going to be. We want to be in control and say, all right, we're going to make some tax right here, and we
need to do that because they need money. And that's that just creates a better situation for the clients because we know what the tax situation is going to be going into it a lot of times at the end of the year, people can be surprised because they weren't aware of capital gain distributions that a lot of funds put out there. They weren't aware of the interest and dividends and even even money market funds. Right, people have been investing in a lot of those over the last
couple of years. Well, that's all taxable income. So just being aware of all the all the taxes that are applied to these income sources and being aware of what the tax implications for the specific accounts are, it just makes more sense for us to be in control of that situation completely and have it known to the client as well.
It's a holistic approach, isn't it, Larry? I mean, and that's I think. I just can't imagine there being anything better than going in and knowing that the people who are strategizing for you are also looking out for you. They're working with you, as you've said, they're meeting with you, they're keeping you informed. It's it's it's one stop shopping. I say it frequently.
Yeah, you said it right, holistic approach, or, as Linda, one of our clients says, we're mayo clinic for retirement, looking at all these different retirement areas, analyzing maybe doing some surgery if we had to do some surgery, or hopefully not.
But again it's not one gluff.
It's all well, everybody puts it in a you know, a target fund. Well, I'll be careful, understand what you're doing. They're not all created equal fees and costs can be higher. So it really is the holistic approach for retirement planning, just implementing these general principles which you maybe listening and say, well they don't sound very general.
We can make it.
Our job isn't to make things complicated, it is to simplify things. And let's have a little funnel on the way too.
If you're looking for a holistic approach when it comes to your retirement, call the folks here at Haven Financial Group at six one two five zero four eight four zero zero six one two five zero four eight four zero zero or go to Havenfinancialgroup dot com. Keeping your emotions out of your portfolio. I really think this is a tough thing to ask anyone to do. After you've worked all your life, and you've saved all your life,
and you've been in anticipation of a fabulous retirement. It's hard to keep your emotions out, but we're going to talk about some ways that Haven Financial Group works with their clients to try to help ease the emotional side of all of this. You are listening to 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 Karrigan. No back to the show.
The Money Movement, Retirement, Emotions, stock Market.
Let's be real.
Fear and anxiety is not good for making decisions, so be careful. And that's where it's important to have a shoulder to lean on when things maybe are a little rockier than you want them.
You know, Larry, my husband and I have been married for thirty some odd years, and Randy approaches everything on a very stable, easy going listening kind of approach, and I absolutely have a knee jerk reaction to everything, and so you've absolutely the reason we've been married so long is because we're this great stabilizing force for one another. And I think that's sort of what Haven Financial Group would have to do for people who come in to
put these plans together, because that think. You know, when it's your money and it's your situation, sometimes you can have a knee jerk reaction.
Well, Kim, let's just say what you just described with you and your husband is something we see on a regular basis. One is more of the high stakes gambler and the one wants stability, and they both have their reasons for why they want what they want and they balance each other out. You know, my wife, Chelle is a adventure person and I like two feet on the ground at all times.
It just works.
But keeping those emotions out with all the volatility, you know. I'll just tell you an observation I've seen in recent years, and I get it because of the pandemic, inflation and all the negativity that's been out there, but more so in recent years. I call them the doom and gloomers. And whether you're on the far left or far right, what I see is all Larry, I get this call.
Believe it or not. Listeners probably won't believe me. Maybe four or five times a year, Larry, we need to get out of the market right now because by Wednesday all the banks are going to be shut down. The US currency is going to be null and void, and I need it all out. I have the last five years more than ever now. I understand the circumstances. But let's just take a step back, and you know, I think of one individual. They haven't had any money in
the market because of this for five years. What a waste of time. Unfortunately, now they can choose to do what they want to, but the emotions caught up with them. And again I take it seriously. Everybody should take their money seriously, and their retirement seriously, and in their investment seriously. But when I get these calls, I say, really, what have you been paying attention to? Because I must be missing the news. We have to have faith in America.
The US economy is still strong. Do we have problems, Oh yeah, we got problems, But be careful for the doom and gloomers. Don't let that override your investment and your money decisions. Please, at the end of the day that doesn't bode well. Are good end results?
Kyle, talk to us about how you handle you know some of your client's emotions and maybe you could share a story or two with us about some of the experiences you've had.
Ye will I try to take the emotion away from the clients as much as possible, and that's ultimately kind of what advisors do, and that's what we're there to help. Because if you think about investing as a concept, you're wanting to buy low and sell high, right, So how can we do that for clients and keep them satisfied and comfortable with what we're doing. Well, the biggest thing that we do is rebalancing. So we already talked about previously.
You know, the portfolio and being diversified and making it efficient. Well, once you have that, you want to make sure that you have a strategic rebalancing plan because if you rebalance when appropriate for the accounts, all you can do is buy low and sell high. Because if you think about it, when we rebalance, we're going to be selling what is overweight from our targets and we're going to be buying
what's underweight from our targets. So if we consistently do that, that's what we're gonna be doing, is buying low and selling high. And if you just keep repeating that over and over, that just creates a consistent approach to investing that in the long run should help you and create alpha, which is what we call in the industry as excess return and good results ultimately for the portfolios.
And yeah, like.
Larry said, you know, I have also received some calls this year about going to cash. There was one one gentleman who actually bought a Treasury bond for to hold over through the election, and we just weren't sure was what was gonna go on with that, and he was very skeptical of what the market could do during that time. And you know, it didn't work in his favor. Obviously we all know that. But that's the big question of Okay, well,
now when do you go back into the market. And that's why it's so hard to try and time the market because we don't know what's going to happen.
People have thought it's going to go down for five years.
And the people like Larry said, who's in cash, Well, that's that's been a big loss of potential return there. So we just try to hammer in there. Having a consistent approach is just the most important thing because time in the market is more important than timing the market.
But Larry, you have to take people's emotions seriously because they feel serious about it.
Oh, they'd feel very serious about it. And I get it. You worked hard for all these dollars.
But that's why understanding the plan to endure these times, because you know the market, it's all a cycle. It's not like we haven't seen this type of stuff before. We just don't remember it. And we were that much younger back then, so it applies differently. And you know, through the years, I always say, you know, be in the know, but also consider your sources. Call me an old school, but you know the social media, you know
the internet. You can find anything. You can find any answer you want on the internet, whether it's the right answer or the wrong answer. Just consider the sources because again, we try to get factual, We try to boil it down. Balanced approach will work, and knee jerk reactions that doesn't work.
Kyle said it right.
Timing the market to get out is one thing, but timing back, timing the market to get back in is a whole other thing.
That's why having a good balance.
Between good liquidity, cash in the bank investments that have principal protection and then stock market risk portfolio or investments.
If you have a good balance, well.
Then in the markets are down, you're not selling off to create income. You can rely on maybe the liquid monies or some of the principal protected investments. So without a good balance, and this is not a good balance. And I've said it many times on the show. I see it all the time. People come in, they're getting close to retirement, they have very little in the bank and everything at risk in the stock market.
We love the market.
Our team manages a lot of wealth in the market, but that is not a good recipe for retirement. And in fact, that's a recipe that is going to really go upside down. And that's not what you want to happen this close or in retirement.
Yeah.
Absolutely, So it sounds like to me what both of you are saying is that you must have a strategy that you have confidence in and you stay with that and you work around that plan at those times when you get a little bit panicked.
Yeah, and then boil it down even further for what you're getting, the services you're getting for those that are working for you, which what is what we do for our clients in all these areas, What is it costing you? Nothing's free? But what am I getting the costs the fees? Are they giving you the time that you deserve more than a meeting once or twice a year and all these retirement topics. That's not enough attention. If you're not
getting the attention you should be. I had somebody just recently go well, I went into some office and it was really stuffy. Well, at Haven Financial Group, we do not want to be stuffy. I always says that it doesn't feel right. It's not right. Okay, if it feels right.
I love when.
People say, wow, it just feels so good. It's like family here. Well, we do have some family here, but we're not all family, but hopefully we're all one big happy family.
Yeah.
Absolutely, six one two five zero four eight four zero zero. That is how you get hold of the folks at Haven Financial Group. Let me hurt us here on the radio, and that you're interested in coming in sitting down and chatting with the professionals there at Heaven about your ideals and your portfolio and what you'd like in retirement. Gentlemen, this has been very informative. Kyle, Thank you so much for being a part of the show. I always enjoy when you're here.
It was great to be here, so thanks for having me Kim.
Great to be with you Mary Christmas and happy holidays throughout the season, and we'd look forward to being with you next week.
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