Your tune to the Haven Financial Group Radio Show with your hosts Larry Kolvig and Kim Carigan, 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 lines are always open at six one two five oh four eighty four hundred. Now get your financial questions ready because the Haven Financial Group Radio Show starts now. Good morning. I'm Larry Kolvig, founder and CEO of Haven Financial
Group, and you're listening to the Haven Financial Group Radio Show. Thanks for joining us this morning. You can reach us at Havenfinancialgroup dot com or our phone number is six one two five zero four eighty four hundred. Kim, good to be with you again for another session of this so look forward to the next hour. Well, thank you, it's good to be with you
as well. I know that today we're going to talk about writing the Retirement Ship, and you know, I started thinking about that title of our show today and I thought, wow, you know, I think there's a lot of people as twenty twenty four has gotten started, that's just what they're trying to do. They're sort of trying to compensate for what the economy threw at us in twenty twenty three. It was rough going for a while there. It was it was and it got people thinking about, well, is what
I'm doing the right thing? Or am I missing it? And you know, ironically the retirement ship you mentioned. You know, our name is Haven Financial Group, and when we came up with that name nine years ago. We're big boaters, We're big into the lake and we love water pretty much, all of us. And you know, our nautical theme is for a reason, number one, a safe haven. But then if you in retirement, if you get a degree or two off, you could end up in
the wrong spot in retirement. So the retirement ship and our nautical theme, I think it's appropriate. It fits really good with today's show. Absolutely. You know, let me ask you about what you're seeing when some of your clients come in in this new year after what we saw in the last two quarters of twenty twenty three. I mean, are people feeling uncomfortable? Are
they panic stricken? And maybe panic tricken is a very very dramatic way to put it, but they're feeling uneasy, and are you guys kind of talking them through, letting them know that this ship can be righted. We've always done that, but you are correct. I mean there is concern. I hate to use the word fear, but you know, the last few years, inflation has just gotten out of control. It's getting better. It depends about what they factor into that number, but people's pocketbooks have been affected,
their budgets have increased. Everything costs more, and there's concern from that perspective because as people are planning for retirement, maybe they're not. They haven't been able to save as much as they wanted to. So just a concernative do I have enough money to retire? If so when? Or Larry, am I going to run out of money prematurely? And those are the things we talked to give people the confidence to know, no, you're okay. You know. I think of a couple that I just had in from Lakeville and
they were good. They're a good example because they're very concern She retired two years ago and he still is a custodian and he goes, are we are you? Are you sure we're on track? Well, the numbers showed that they were, but you know what, it gave them the confidence to know we're still in the right direction. We've stayed on task, and ultimately that's what a plan is for, is to stick to it and be long term. You know, you can really understand why people feel that way though.
I mean, I still go to the grocery store and I look at it and say, wow, this is different than it was two and a half years ago. So you can understand people's fear, people's uncomfort with what's happened over the last again two quarters and now heading into twenty twenty four, trying to as our theme is right the ship. If you will, let me tell everybody a little bit about what's coming up in this broadcast. Important milestones.
These are ages that you hit in your retirement that you really need to be aware of and what the repercussions of not taking action at those different ages might be. Income generation strategies. We're going to talk about ways that you can generate income while in your retirement plan and how to protect against volatility, just like what we've been talking about. Larry says, the couple came in and the wife had retired two years ago. I'm sure she was not anticipating
the kind of volatility that happened in twenty twenty three. So we'll talk more about that, and finally we're gonna wind things up today with the bucket strategy. What is the bucket strategy. Well, Larry's going to explain exactly what that is. Six' one two five zero four eighty four hundred. That is the Haven Financial Group telephone number or Havenfinancialgroup dot com you can get more information. We'll talk to you a little bit more about those two locations as
the broadcast continues. All right, so Larry, we've established the fact that maybe some people feel like the ship has tilted a bit after what had been some rocky economic times. So now it's time to get ourselves straightened out again. And when they come into Haven Financial one of the things I think you guys like to sit down and talk about are these milestones along the way when
it comes to retirement. These are the kinds of things that when you're concerned about saving and you're concerned about the economy, and you're thinking about so many things, maybe you're not fully aware of those birthdays that you need to be paying attention. So let's talk a little bit about those. Starting with age fifty, which might be a little bit earlier than some people are thinking about retirement. Planning. Yeah, there's certainly a handful of key birthdays that one
should be aware of as they're looking at their retirement timeline. Age fifty. A lot of people maybe think that is early to start thinking, but no time is too early. At age fifty you could start doing ketchup contributions to those iras wroth iras, and that can help a lot, especially maybe you've become an empty nester and again ketchup. Can you I'm going to have you explain, give me an example of a catch up a payment or a ketchup
savings. You can contribute an extra beyond fifty, an extra thousand dollars or actually went up again to your IRA contributions or your roth IRA contributions outside of a four h one K. And then in the course that increases within employer sponsored plans too, so you're limited prior to fifty, but then they increase it so you can start increasing your retirement savings after the age fifty. Great
terrific fifty nine and a half. That's an important birthday. This one we deal with a lot because at fifty nine and a half people are eligible for an in service fifty nine and a half rollover from those four to one k's four H three b's about ninety five percent of those plans. Because the federal government sees this, says, hey, you're getting closer to retirement, maybe
you want to look at all the investment options. Maybe you bounced around a little bit as a consultant, and you have like a couple that was just in there were it consultants. Each of them had four old four to one k's. That's just complicated and complex, and it doesn't have to be and we rolled them. Now one doesn't have to roll over. So I don't want to give the idea that you have to, but it may be in your best interests and you can start withdrawing from those iras at fifty nine and
a half penalty free. Now be careful with that because you certainly don't want to start withdrawing retirement funds to earn and then run short later on. So think that through. It's why we're big on the education piece. Does it make sense? Does it not make sense? What does that timeline look like in age sixty two? Now the social security discussion, when should we take it? That's the earliest you're going to take it. Almost in all cases
but should you take it? Are you still working? What does that benefit look like? The longer you wait, there's the higher payouts. It continues to grow. There's a good reason why our listeners can go to the Haven Financial Group website and see the social security and tax classes that we teach on an ongoing basis. They're will very well attended because there's lots of questions in the social security discussion. So that sixty two is another big age. Absolutely,
then we move on to sixty five. Between sixty five and sixty seven, and this too is a pretty important time for most people. That's when social Security reaches their full retirement age. That full retirement or FRA they call it, is based upon your birthday. Some might be sixty five, sixty six, sixty six and some odd months. I happen to be aged sixty seven. There could be changes that could happen in the near future with that
to be determined, but full retirement age. Prior to full retirement age, those social Security benefits grow by six percent plus the cost of living adjustment, and that's eight percent beyond your full retirement age. So again thinking that through is extremely important and one of the things that I think so interesting, Larry, is that the plan doesn't necessarily have to be for both you and your
spouse. You can approach us in different ways almost definitely, and that oftentimes is what you want to do. But sometimes people think retirement coincides with the date you turn on Social Security. That does not have to be the case. The latest you're going to take it at seventy of course, because it doesn't grow beyond that. That's when you really max it out. But if you're a married couple, if you're still working, that's a variable. There's
a lot of variables. Maybe you have good longevity in the family and they higher breadwinners should wait a little bit longer because that's going to exist for both of your lifetime. So really thinking that through and then one other birthday that it's worth mentioning, is you know at age seventy three and yes, as retirement advisors and a retirement company, we deal a lot with Required minimum Distributions SECURE two point zero, which went into effect a couple of years ago.
It raised the RMD age from seventy to a half last year to seventy two and this year seventy three, phasing over the next eight nine years to age seventy five when you have to start taking those funds out, it's a divisor it's a percentage of the total. Again, here's where people go. We make more money now, good problem, But now taxes become more relevant.
Financial planning for retirement has so many moving parts and the strategy behind when you take your social security there's a lot to that, and folks, the best bet is to get some education about it. I mean, most of us don't know the benefits or the downfalls of when to draw your social security because we've never done it before. Haven Financial Group has some education classes about just that subject, and you can find out more about those classes at Havenfinancialgroup dot
com. That's Haven Financialgroup dot com, or you can give Haven Financial Group a call. It's six one two five zero four eighty four hundred. Six one two five zero four eighty four hundred. Really suggest that you be sure to check out those classes. They are well attended, as Larry said, and you'll want to get in one just as quickly as you possibly can. All right, Larry. Coming up next, we're going to discuss income generation
strategies that can help you write your retirement ship. That's the theme of our show today and you can do it this year. You're listening to that Hapen Financial Group ringo. Don't stray too far searching for more financial nuggets and wisdom. The Haven Financial Group Radio Show will be right back. Stick around please. You're listening to the new and improved Haven Financial Group Radio Show, where we bring you comprehensive weekly financial wisdom from the professionals. It's all about helping
you solve retirement problems so you can make your nest egg last. Welcome back to the Haven Financial Group Radio Show. I'm Larry Kolvig, founder and CEO of the Haven Financial Group. Give us a call ask questions. You can reach us at six one two five zero four eight four zero zero, or check out our newly revamped website at Havenfinancialgroup dot com. Great tools, many things to look at on there. I encourage you to come to the site.
So continuing on Kim with our discussions today, Yeah, you know I love a theme. First, Can I just back up for a second. At the top of the show, you were telling everybody our theme today is writing your retirement ship. This after you know, what was a pretty rocky year in twenty twenty three, but I just love the idea that you guys have the nautical theme in the in the title of the company. Just tell everybody that again. Yes, nine years ago I came from a captive company
in the industry and started Haven Financial Group. I'm not a creative mine that much, and my wife is, and she came up for in one of the other advisors yell USA with the name Haven Financial Group Nautical because we're very much into water and boating and so on and so forth. But right up a front desk we have a big ships wheel that gains a lot of attention.
People see it right away. And the nautical theme is as it relates to retirement with this, which is really our specialty and all the retirement puzzle pieces, we want to stay on track and nautical. If you get off a couple degrees in retirement, as I mentioned, retirement might not be what you want it to be. So we want to stay on track. We want to hit our destination and we don't want to mess that up because most people only are going to retire one time. We want to get it right.
Absolutely. I love the idea to a safe haven. I think when people are looking to talk to someone about their retirement. The first thing they want to know is they feel comfortable and they feel safe with the individuals they're getting the advice from. So I just love that whole tie in it. It's really neat, Larry, And that was Kim. Our goal from the beginning is people work all these years to get to where they're going to make
the decision to retire. A lot of people get uncomfortable talking about money or legacy, or estate planning or their kids. And we want a comfortable environment and not a stuffy environment where people feel at home right away, and we're going to take the We're never in a rush. We're going to take the time to go through the same process no matter what individual circumstances are. Ask a lot of questions, take a lot of notes to develop that relationship.
And I'm always amazed at you know, retirement people get together with whoever they work with maybe once a year, twice a year. I think Kim, retirement requires much more attention, or you should be getting the attention. If you're now getting the attention, you may want to get a second opinion, and we encourage that because at the end of the day, peace of mind and confidence to know that you're being taken care of and you're in the right
spot. It's so important. It's so important in anything financial related, but certainly in retirement. People have worked their entire lives to get to this point and they're hoping they get the kind of advice that's going to you know, say, they're going to sail if you will, right into the life that they have anticipated and worked so hard for. Let me give everybody the number. It's six one two, five, zero four eighty four hundred, or
you can reach out by the web and it's evenfinancialgroup dot com. Now we want to talk a little bit more about one of the really important questions to consider when you're involved in your retirement planning, and that's income planning. So let's talk about some of the main components out there. Larry for retirement income planning, and why don't we start with Social Security because that really is a real factor for most people. Yeah, the biggest question I've asked over the
years to those that retire is what's been the most difficult thing? And usually it's, Larry, I don't get a paycheck anymore, so now it's about generating your own paycheck. How do you do that from what accounts. Social Security is a major It's one of the biggest income streams for retired Americans. That's why we think it's a very big decision. And seventy percent of Americans take it right at sixty two, and that's not necessarily the right decision,
and only one to two percent wait till seventy. We see social security as over a lifetime is a big chunk, oftentimes bigger than individual's portfolio. So making the right decision when you should take it. We're not trying to convince you to delay, but just to make the right decision. I just had
Al from Lakeville. In his mind was set that he was going to turn it on right away, and after a long conversation and talking through his situation him and his wife, he left going, you know what, I would have made the wrong decision had I not had this conversation, because it didn't make sense for him. So security is a big one. And then you know what accounts do you start drawing from? Right? Okay, do you
take from wrath ira, which is after tax contributions. I'll say that most often wroth ira is the last thing you touch, not that you can't or do I take from pre tax money where you've seen the tax advantage savings, but eventually you're going to have to take it out. Do I take from there? Much of this is driven by taxation, and it's why we're big into forward thinking tax planning. Income's got to come from somewhere, but is it taxable? We want to fill that twelve percent bracket up. Do you
have guaranteed income versus variable income? You want to take care of the needs first and then income for the wants. And if it's part of a variable investment, maybe timing doesn't work out in your favor. So again having this discussion, we call it income distribution tax discussion, and we want to do that in the right way. And it's you know, as retirees, we send out millions of dollars every first and fifteenth from people's retirement accounts. You
want to make sure you're taking it from the right spot. And some folks we sit down with they do have pensions, and they're very fortunate to have pensions, because not many people do anymore. So if you have those pensions, that's also guaranteed income. So you have experts in your office too who sit down to talk about those tax issues. Correct. Yeah, Lance is our CPA in house. Oftentimes we'll bring him into our conversations and there's no
added costs for that. That's added value because in retirement planning there needs to be a tax discussion. People miss opportunities and they have in recent years because we've had historically low tax rates. Roth conversions have been more popular than ever and you know, in a couple of years twenty twenty six, those tax laws change. So at the end of the day, making an educated decision.
Now I mentioned pensions. I just had Sharon and Mike in from Inver Growth Heights and he has a pension, but he didn't know that he had a lump sum option. So in conversation he's like, while we have kids, I'd like to see them potentially get any leftovers. Well, oftentimes if you take payments rather than the lump sum, those beneficiaries might not get anything. So the right decision based upon individual circumstances, not what the Joneses or
the neighbors did, but what fits you the best. That's the most important. We're talking about the main components of retirement income planning. We've talked about Social Security on some of the traditional iras, the roth iras. Obviously you just heard us talking about pensions. For one case, that is something that a lot of people in this day and age have their employer sponsored retirement plans.
Talk about what the benefits are there, Larry, and what's your best approach when it comes to a four to one k. Well, yeah, eployer sponsored plans most often referred to four to one k's, but there's four H three b's deferred comp four fifty sevens. They're all pre tax different there's different tax codes, but they're all they're virtually the same. So when you retire, because laws have changed many you're going to want to roll those in
almost all situations into a IRA for a variety of reasons. How it passes to your kids or loved ones and kids, there's different rules that go with that with four ones to iras oftentimes depending upon the circumstance, And this comes out in conversation is in retirement, we want a balanced approach where most people should have a balanced approach, good solid liquidity, money in the bank, protected principle type of investments, and then the risk investments, and that can
be different for different people. And sometimes as we talk income. Purchasing an annuity maybe the right thing to do, or it might not be the right thing to do. So security and pensions are annuity payments. Well, what if you could put that into an income producing annuity. Make sure you understand it first, because it's not right for everybody where it'll guarantee an income for
the rest of your life. Any leftovers would go to the kids. Then I'm cautious to say that because lots of retirees have been talked into something. They didn't understand it. They didn't ask the right questions. And there's keywords and terms in that they can be complicated, and that you want to understand these words, does it annuitize? Do I give up control? Again?
All the right questions. You should always understand what you have. Yeah, annuities can be tricky and sometimes they don't necessarily work to maximize your situation right exactly, Yeah, exactly. And you don't have to use annuities for income. You don't have to use annuities at all, but in a portfolio it can complement the other pieces to your polio if used appropriately. The problem is people get surprised all annuities are through insurance companies that's just a fact. But
they're not all created the same. And I do teach a class. I'll be making a decision pretty soon on when the dates are. The truth about annuities and just discussing all the different types just so people have a good idea. We don't want any surprises or unfortunate surprises along the way. I think annuities at times can have sort of a negative connotation, but Larry, maybe that's just because not all annuities are for everyone one hundred percent. Not all
annuities are not for everyone. They're oftentimes pedaled to seniors, and again they can be appropriate, but just understand your individual situation to find out does it make sense or does it not make sense? Then pros and cons to everything? What are you giving up? Do you understand it? Ask more questions. I always say, if it's something sounds too good to be true,
it's probably too good to be true. Yeah, Havenfinancialgroup dot com. Folks, you heard Larry say that he's planning to teach a class on annuities, and eventually the dates will be up there. But there are other classes that are available. They do fill up quickly, some of them about taxes, some of them about retirement planning. Havenfinancialgroup dot com is where you can go and get more information about some of those courses that are going to be available
in your area. And you can also go to six one two five zero four eighty four hundred to contact Haven Financial Group, set up a consultation with Larry and his team and talk about writing your retirement ship. All right. Coming up next, we'll discuss what it takes to navigate volable market conditions. Very much like what we saw in twenty twenty three. You're listening to the Haven Financial Group Radio Show, ready to find your financial safe haven. Your
dream retirement is in reach. Don't go away, The Haven Financial Group Radio Show will be right back. You've worked hard for your money, but do you know how to make it work hard for you? You need a team with experience, vigilance and a strategy to help you live the retirement you deserve. Find your financial safe haven with Haven Financial Group Today. Welcome back to the show. I'm Larry Kolvig, founder and CEO of the Haven Financial Group,
and you're listening to the Haven Financial Group Radio Show. Our number is six one two five zero four eight four zero zero or feel free to visit us at Havenfinancialgroup dot com. Larry, markets were volatile last year, caused, as we say in our theme here, stormy waters if you will,
And we talked about this off at the top of the broadcast. But you say that clients are coming in and they're concerned about some of the issues that they saw last year and moving forward and maybe it's it's sort of knocked them off of their plan just a bit. We want to talk a little bit
about what to do when markets are volatile. And you know, for as high as we've watched the markets continue to climb, I think we all know history tells us that they are going to come down some Now they may not drop, you know, dramatically, but we are going to see them fluctuate. So let's talk about how would you retirement plan around that volatility. Let's
start a little bit about the effects of compounding returns, for example. Yeah, compounding interest is a concept that shows how steady returns compound, how it compounds the principle over time. I'm cautious with this though, because oftentimes stock market indexes, we've hit some all time highs just recently, you have. The response for some investers is will the market's at all time high't why don't I have my money back? Well, people's portfolios don't necessarily match the actual
index. You don't follow it one hundred percent, So you got to be careful there. And in retirement specifically, you know, we see things through the lens of retirement and when you retire. And now we talked earlier about drawing money. Potentially volatility tends to take its biggest toll when you start withdrawing, withdrawing this money and if the market's down, we get into the sequence of returns risk and it's real because as you're withdrawing money. It's why we
want to have a good balance. One needs to have a good balance because if you're withdrawing large percentages and the market's going down, that is an ugly thing because a fifty percent decline begs one hundred percent increase to return what you have. Sure, well, if you're withdrawing two thousand bucks a month, and I mean that number can go down extremely quickly, So having an awareness
and understanding and that's where it starts. Okay, so let's back up just a second and explain to everyone you've used a term sequence of returns explain exactly what that means. Sequence of returns is is the risk of withdrawing money faster than you're actually gaining money in the investment. A lot of times people talk about the four percent rule. You know, you're taking four percent out,
but you lost fifteen percent last year. Well, we have some slides in our classes that we show two individuals, same amount of money thirty years of retirement. One retires, the market is up for three years, and then it was down for twenty seven years. We also flip it the other way around, and the market's down right at the beginning of retirement and then up
the latter years. Well, it makes a substantial difference, you know, on a million bucks, this this actually example, one after thirty years still has about seven eight hundred thousand dollars. We use the same numbers. The other one runs out of money in twenty one years. So again, what we see out there is a people they're unaware of what they're doing. Okay, maybe that's fine if you're younger, but again, stress test your portfolio
in our process. You know, we want people to identify how much risks they're really taking rather than oh my goodness, the market went down I lost twenty five percent. You know, I think of a couple that was just in on this past Monday. He's a major risk. You know what, It suits him just fine because number one that him and his wife have done a good job of planning. Number Two, he's not really going to need the money. It's more for legacy, which in his case might be twenty
five thirty years out. So again, understand what you're doing, or look at all the other options that maybe match up to you better. And again we can talk about some of those as well. Yeah, let's do do that. Let's talk about some of those strategies out there that might protect you a bit against volatility. For example of CDs. Yeah, limiting some of that market exposure. CDs have been finally, after fifteen fifteen years, have
been pretty impressive in the last year or so. Five plus percent savings accounts money market accounts getting five five and a half percent bonds are typically on the safe fur side, but of course in two thousand and twenty two they were at fifty year lows, so they're not always safe. Can you always gotta be word careful with the words safe, You know, the opportunity for loss while people in twenty twenty two loss. Well, bonds are down about thirteen
percent. Fixed accounts fixed annuities are like CDs fixed index annuities. They can limit the downside risk. What's the catch? You won't get as much growth on the high end. Sure, but maybe that's okay because you know, I think of individual that actually Chad that was in from Savage. He's like, has enough assets, he's he goes, I'm not greedy, which is human nature is greed. He's like, I don't need to make I don't
need to make huge returns and be very careful a lot of times. So you know, financial people they do projections and they fluff up the numbers. Oh we can get twelve percent or fifteen be realistic, especially for retirement. Sure, and we want to be We want to be real Okay. We don't want you to be disappointed. Yes, we want to max somebody those returns, of course, but you need to be realistic because over time you're
not going to average out what some people are projecting. So realistic maybe it's you know, reassessing your risk tolerance. And if you don't know how much risk you're taking, you should know. Because we had a couple that was just in and she thought they were being very conservative. He was doing the investing and they were doing the polar opposite of what she thought. Well, they since fix that problem. But diversification, low volatility, maybe dividend producing.
Just have a good understanding and awareness of what you're doing and a good balance, especially as you get closer to retirement. Now, Larry, believe it or not. Though, as we've talked about these strategies to protect against volatility, sometimes you can make mistakes when you're doing such like maybe you could be too conservative, right, yes, because you still need to make your
money work for you. But it comes down to circumstances. If you have if you've done a good job saving for retirement, well then maybe getting huge returns isn't necessary. And what I find is for the folks that we sit down with, for the most part, now there's always well you know, there's not all of us are created the same. Most of our clients and those that we sit with say, yeah, we want to make money, but we want calm waters. We're talking about writing the ship today. We
don't want white caps, we want calmer waters. And that is the case for most that we visit with Yes, we want to maybe hit some singles, maybe a double, but they're not swinging for the fences, striking out seventy percent of the time. So it's really about a perspective. We encourage people to look at all the options. How do you protect your principle in some of these investments? What are you giving up? Pluses? Minuses?
Treasury bills were very attractive. We even encourage folks when eyebonds here a couple of year and a half, two years ago, we're approaching nine plus percent. Well, hey, why wouldn't you do that? There's limitations to it, but if that fits your budget and the timeline of retirement in life, why not do it? And again, maybe you know gold popular than ever right now because of inflation. Well maybe that is a good idea, but don't put your eggs all your eggs in one basket. It's probably not a
good thing to do. So, as you're looking at the market for twenty twenty four, what are you suggesting to your clients. Well, first of all, timing the market's virtually impossible. We do have an election year. Wars are still going on, they're still tinkering with the interest rates, trying to get inflation down to two very difficult things to do. Oftentimes people think election year and things are crazy. That isn't historically necessarily the case. But
again, the market goes up and it goes down. For thirteen years, we pretty much got spoiled because it pretty much only went up. Just remember and what the market giveth, it can take it away, and you don't want that to happen if you're within a couple of years or retirement, because the element of time becomes that much more important. Do you have time to get it back or are you withdrawing? And the sequence of returns risk becomes
that much more relevant. Havenfinancialgroup dot com. That is where you can reach out find out about some of these seminars that Harry Harry Larry and his team him. I'm just calling you whatever here sure why not? Or you can reach out my phone. It's six one two five zero four eighty four hundred, all right, Larry. When we come back. A strategy to protect your wealth and income stream while tracking your risk tolerance for your age that is
coming up here on the Haven Financial Radio Show. Don't stray too far searching for more financial nuggets of wisdom the Haven Financial Group Radio Show will be right back. Stick around. You've got questions, We've got answers. You're tuned to the Haven Financial Group Radio Show with your host Larry Kulvig and Kinkrigan. Now back to the show. Hi, I'm Larry Kulvig with Haven Financial Group and you're listening to the Haven Financial Group Radio Show. Thanks for listening.
Give us a call six' one to two five zero four eight four zero zero, or feel free to visit us at Havenfinancialgroup dot com. The bucket strategy, Kim, have you heard of it? Well, I haven't, and I'm very anxious to learn more about this. There's different things that people call it. You can call it a bucket list, but it's more of a balanced approach in retirement, we call it the ABC's let's call it bucket. The first bucket would be the risk bucket. This is for growth,
This is for maybe longer term. It's a design to accumulate in value. Yes, you're taking a little more risk a higher reward again. And then there's the principal protected bucket, where hey, I don't want to lose my money, I want to get more conservative growth. But it's there and then you have the I would call the liquid bucket the liquid checking savings money market. And I just agree with the study. I think it was US Bank.
I believe that I just read that retirees should have better liquidity. And we've been saying that for a long time because often we see people come in they're close to retirement or in retirement, and they have very little liquid moneies. There's benchmarks that we'd like to see, you know, we like to see in most cases, not all cases, of course, you know,
a fifty to hundred thousand of liquid money, meaning easy access. And people ask the question, well, why Larry, because there's always something right, you know, the grandkids or the air conditioner goes out, and you know you got to put there's always something, and you need liquid moneies and we should maintain that. Then people come in and they have all of the first of all, they don't have enough there and they have all of their retirement
money at risk in the stock market. And somehow people think that that's a good recipe for retirement. Now most people don't know that is how they're set up. Well, what do you have in the middle column, which we could call the middle bucket? That says I am not I can't lose my principle. It's protected. I'm going to get some growth. I'm giving up some liquidity, not all liquidity. I'm not going to hit home run, but I'm gonna hit I'm gonna get some decent returns. And what's an example
of that middle bucket, larry something that's fixed. A lot of times bonds get put in their corporate bonds, high grade bonds, Fixed annuities can be put in there, fixed indextenuities, because with annuities you don't have the liquidity you would have with the savings or a money market type of account, and you want to maintain that. So always understand what's the terms with some of these? How much can I access? There's restrictions on some of them.
So again, a good balance between if I could liquid easy access protected investments looking at those options, and then stocks, bonds, equities, securities the risk bucket. Having all three is important. Problem is most retirees don't have enough liquid and the rest is all at risk in the market, and then something bad happens and oh my goodness, and I think of this, and I've done this a long time. I've been in the industry. But in
two thousand and eight, and I hope this never happens again. The front of the Minneapolis Star tribuwing that said this, three out of five seniors have to go back to work or stay in the workforce longer. I remember where I was when the market was crashing, and those of us that are talking and listening today, we created wealth because of the timing art of how old we were at that time. But think of the retirees that had to go back to work or stay in the workforce longer. Why was that because they
weren't set up the way they should have been for retirement. Sure, these three buckets, if you will, they sort of leak in to one another eventually explain exactly how that process goes. Well, they do, and not to get into too much depth, but well, first of all, you have these different types of accounts, and again that's why we think of state
planning is important. But eventually you have your IRA type of accounts and whatever investments, Eventually you're gonna have to take money out of those you have off iras. Eventually you have rm ds from those pre tax amounts of moneyes.
So oftentimes we see folks if they have a revocable trust, then the monies will flow from iras and rm ds and distributions into the trust if you have one, not to say you have to, and then into that that can be tied to your bank accounts so you can draw income off of that. Again, it comes also down to the income distribution and tax planning. They
should be coordinated. And I can't tell you how often we see no tax discussions and people just draw off of certain accounts and then end up paying more taxes than they really would have had to had they had a tax, income and distribution plan. That is a big part of retirement, and if we can minimize taxes later on in life and keep more, it's not about how
much we make, it's how much we keep. I'm all about paying the taxes, but don't leave the tip on the table for Uncle Sam unless you really want to, so Larry. This strategy of the three buckets seems like it would really start when someone is young, and it would be weighted completely differently, but it would If you started this strategy when you're young, then that that beginning to trickle down and moving through the buckets once you're retired.
Would be more effective completely agree, it's never too early to start again. A lot of times people well, inflation's been high in people's pocketbism and have been affected. But if you can start contributing now and again, your timeline of life is long longer. The power of compounding is powerful. You'd be surprised at the outcomes. So my encouragement would be start a discipline, now, start putting it away in those pre tax types four one k's and if
you have a match, you've got to do it. I mean, it's free money. Why wun't you do it? And you're right over Over time that's going to change a little bit. But the emergency, the bucket can list. The bucket concept can work when you're younger as well as when you're older, and any and everything in between. It's just a matter of the percentages are going to look a little different when you're younger compared to when you're older. So again, I can't stir. The time is now, there's
never it's never too early to start. And if you don't know if you're on track, why wouldn't you get a second opinion? There's no cost to if you're not getting the attention Why aren't you getting the attention if you're not talking about all these retirement puzzle pieces? Do they even go to the same
puzzle or are you missing pieces? And at the end of the day, isn't it your life, your why in your family, your kids, your legacy and small medium in large because there's a misconception of well this is only for rich people. That's just not true. I don't have enough, and then get people get embarrassed. Why your situations? Your situation? So again, we think everybody should have the same opportunity to get the same information. And at the end of the day, those that you're working with, you're
paying them, So what are you paying them? Right? Don't be the one that says, man, I have no idea, because it's twenty twenty four and really everybody should know what they're paying and they're working for you think it's important not to forget that six one two, five zero four eighty four hundred. That's how you get hold of Haven Financial Group to set up a free consultation and take advantage of what you've just heard Larry talk about. Or
you can go to Havenfinancialgroup dot com. That's Havenfinancialgroup dot com. Our theme today has been writing the retirement Ship. It was a bumpy twenty twenty three, and we're now in twenty four. We're seeing some breaks in the economy. Things are starting to move in a positive direction. A lot of people are trying to write what they think has maybe gotten off track in the last
year or so. So Larry, as we wrap things up today, give us three piece of advice for writing the ship right now that people need to take if in fact they're fearful about what happened to them in the last year. Well, first of all, get on tracks. If you don't have a plan, start a plan. You got to start from somewhere to get to somewhere. If you have a plan and you haven't revisited it in days, months, years, especially years, now's the time to revisit it to
make sure you're on track. And if you think you're well positioned and you're confident, why not get a second opinion and get confirmation and affirmation at hey, you're doing a great job. Because our job isn't to create a problem. It's to help people fix a potential problem. Because problems aren't fun at any age, let alone own. In the golden years of retirement. So again the important part is just deal with you. It's not the same for
everybody, and we really appreciate you listening. It's been a great show and Kim, thank you very much. Thank you very much six' one two five zero four eighty four hundred or Havenfinancialgroup dot com. Laria I hope you have a great week. You as well have a blessed week. Investment advisory service is offered through Guardian Well Strategies LLC. Haven Financial Group and Guardian Well Strategies LLC are not affiliated companies, and investments involve risk, and, unless
otherwise stated, are not guaranteed. Please consult with the qualified financial advisor and or tax professional before implementing any strategy discussed herein and comments regarding it safe and secure. Investments and guaranteed income streams only refer to fixed insurance products. They do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company.