Haven Financial Group Radio - 2/16/25

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.

things out. You know. Now you have more time to if you're married, be with your spouse or do whatever you want to do. And you got to got to find your niche. You know, what's the next season of life? What is it going to look like? Well, it takes money to get there and then also to embrace some of the other things people want to do in life. So I think that's kind of the gist of a lot of our discussion today.

after retirement are so vulnerable. So these are our subjects this morning, and we're so glad that our listeners could be with us if we hit accord. And you'd like to talk to someone at Haven Financial Group, the number is six one two five zero four eight four zero zero six one two five zero four eight four zero zero. Be sure that you give them a call. All right, Larry, let's get started talking about defining financial security again. Would you say that it's different for all different people?

It's are you worrying about the bills or is it focus focusing on the things you want to do? Do you have your basis covered when it comes to the needs first, so you can have the wants later. It's that's really what financial security is about doing the things you're you want to do that you live to that you've been living for and want to do in retirement. And that's it's really all encompassing.

church or whatever that looks like. Maybe it's supporting loved ones. Man. This year, I've seemed to have worked with a lot of folks already this year. They're taking care of their aging parents, which is a blessing for many of them to be able to do. However, it does encompass a lot of their time. But you know, rather than hiring in home nurses. And you know, there's some comfort with that. I just lost one of my eldest clients here the

first week of the year. But you know, the two kids who are now in their mid sixties, you know, they really took care of dad, who passed just before he was one hundred and four years old, and mom died at ninety nine, and they really were able to take care of their parents up until now. And you know, as much as the loss here when we lost the dad was difficult, I tell you what. Now they're able to live their retirement, but it gave them a lot of fulfillment. It really really did.

which makes four. So any support that any family can give, which is great. And maybe you know, investing in the family is important to you, so look at different investment vehicles might be able to do that. Or maybe maybe you want to pursue some education that all these years you had given up even though you had a lot of passion about it and wanted to do it. Why not do it in the retirement years. You know, education can maybe keep you sharp through those through those golden

years and something you always wanted to learn. And you know, maybe it's the church or you know, philanthropic type of organizations I look forward to. We're at Haven. We're big supporters of the Cando Canines, which supports training dogs for autism, special needs and a variety of things. We have the big Gala coming up here a week from Saturday, which I always look I look so forward to, and you know, you know, financial security can give us the ability to

pursue these goals and objectives. Without it, that we might have to give up. So I can't stress enough the importance of having a plan. And you and I talk about every single week. Whether you have very little or a lot or anything in between, it's just that important.

and even financial group. These are all the things that we do. And I call it all the retirement puzzle pieces. You know, these are the things we do with Haban and these are where we help lots of people in these areas. Or you know, I'm just going to wait till I get a little older before I do some financial planning. You're giving up some really good years and compound of interest. Delaying it isn't going to make it better,

It's only going to make it worse. Start with a little, develop it from there and you'll be surprised at the outcome. Or some say, well, financial planning may sacrifice your quality of life. I certainly beg to differ. It actually can improve your quality of life, just by the things we talked about this segment or you know, not last, but one that does come to mind is you don't need financial professional help. You can do it on your own. And maybe some out there that are listening they can

do it on their own. But in all my years of experience, many are not able to. They're not disciplined enough. That's not their background. They may not even enjoy even thinking or talking about this stuff. And it does take a discipline in order to get where you want to go, managing the investments or managing the expenses, or you know, just coming up with a plan. You know, I always say pick your lane. I get on the I get on a plane and I let the pilot do the

fly in because I have my lane. The pilot has their lane. What's your lane. There's certain things that I'm not good at. A lot of things I'm not good at, but there's certain things that is our specialty and that truly at Haven is retirement.

You can call the folks here at Even Financial Group six one two five zero four eight four zero zero. Sign up an appointment, go in and sit down and chat with these experts. All right, Larry, still coming your way. The value of consistent in that's what we'll talk about next right here on the Haven Financial Group Radio show.

a great avenue to come out. There's no cat and sign up ahead of time. So maybe you can plan for some financial security or just come up with a plan or you know, have nothing else. I always say our job description is to answer questions. Again, feel free to give us a call six ' one two five oh four eight four zero zero.

that's going to be your income. And that's going to turn out to be a very uncomfortable situation eventually, right it is.

that is. It was to generate a regular income stream from that for the rest of your life to support the things you want to do, the things you need to do, and all the goals and things that will give you that financial security that we've been talking about.

It's not a number, because we I can tell you that we have those that have a big number, a big portfolio that risk running out of money, and those that have very little that have guaranteed income, which is really the name of the game, every single month for the rest of their life, they have nothing to worry about. Sure,

it really really depends. So when we sit down with folks, we're going to look at you know, what does social security look like in the grand scheme of things for you and your spouse if you're both married, What does that look like? Does delaying make sense? Taking whatever that timing is, because timing is very important, maximizing that timing you have. Are you blessed to have a pension or

to in your family? If so, that is going to help out a lot, or if you have a deficiency every month when it comes to those how do you supplement that income? Where does it come from in the most tax efficient way possible? Back to taxes. It always comes back to that. To cover that lifestock, to cover those expenses, to cover the country club, to cover the healthcare, to cover the inflation that just never ceases to stop,

does it, Kim? I'm a goodness say these are all the things and other things that income really provides for.

five or where in between them? I going to run out of money? Well, if we have guaranteed income streams, you might run out of cash, but that income might come forever. Because one of the risks among many in retirement is longevity risk, fear about living your money it's real, The ability to take care of your debt and paying down that debt or any future payments, the ability to give to charities that you're so passionate about. Money also goes right into the psychology of money and you know,

protecting your well being. Do you sleep good at night? Do you have peace of mind? All these comes with all these things come with being financial in dependent. But I can't stress enough that income plays and not a lot of people, including myself and my wife, will have pensions. Okay, So the three legged stool of social security, pensions and retirement nest egg is now down to two for us.

So at HABN we help people put together how do you put together a self directed pensions from what we have to work with and factor that around taxes and it's tax time lance. Our CPA in house is full on tax preparation, so hopefully your tax planning over the course of the last year will lead to no surprises or only good surprises and not a huge tax bill. You and I talk about that almost weekly.

do you have liquid? Meaning readily available if something comes up, and there's always something, grandkids' birthdays, the furnace goes out, the windows need, something needs to be done, Well, where are you going to draw it from? We like to see fifty to one hundred grand liquid as kind of a retirement bedsmark in that type of position, and I can tell you most don't have near that amount. Listeners might be going why so much for the very reason

I just gave you. So it's maybe something to work towards as you get as you get closer to retirement, And then you can look at how much money or investments do I have at risk? If so, how much much? And then how much of my investments, if any, do I have principal protection where I can still get good growth, realistic growth, maybe not pay all the fees but it

starts with that emergency fund. And mostly I just read an article, a business article, I forget which magazine that's said exactly what I've said for years, that retirees are retiring with not enough liquid monies. And I see it on a weekly basis, and that is a recipe for a retirement problem.

insurance peak premiums, medications. And then that has nothing to do with long term care potential needs, which fifty percent of the American population is going to need nursing home care. Seventy percent of us are going to need some sort of care, and that care comes with an extreme cost.

You know, in America, you know, it's very costly. I alway find it really interesting for others from other countries, they do a really good job of taking care of their parents or grandparents when they become elderly, they live with them. But America is just different. And when you're talking twelve to fifteen thousand dollars a month, and I've seen invoices plenty of them already this year for nursing home care, it does not take long to deplete or

decimate what you worked all those years for. So if that is concerning to you, and it's not a good fun conversation, but how are you going to cover it? There are better avenues than ever out there that we have glenned specifically in our office when it comes to asset based long term care, long term care hybrids different

options than the traditional long term care. And I would say, if you're listening and it's ringing a bell, give us a call, Come have that discussion in any of these areas, because this industry has changed a lot.

are going to be part of retirement. So just forgetting about or omitting them isn't going to prepare you for what you need financially in retirement. So if this is all overwhelming, don't let it be overwhelming. Give us all. Come on and let's just talk about it. Because through conversations, consistent conversations, you can develop some confidence to know, you know what, we've actually talked about this, we've addressed it, and we brought it to the forefront, and perhaps you've

planned accordingly. If not, make some adjustments. This is not something you just set it in stone and let the next thirty years bake and then we'll see what happens. This is life, and we know life's calendar makes adjustments along the way, and they don't. Life doesn't always ask us first.

We want to have some fun with it. And at Haven we do have fun, even though we take it very seriously because before you know it, these retirement years. Every week I hear I can't believe we're this close to retirement. How did we get here? And you know, I'm starting to say the same thing myself.

in IRA money, are they in roth IRA money. We're going to are they in the savings account or checking account, money market CD, whatever that might be, because there's differences with allocations, and maybe you have to start reallocating some of that, shifting it around a little bit, maybe shifting your investment strategy, considering this to replenish that emergency fund because maybe the car broke down, you had to get a new vehicle. I had that last week I think

twice or one of our staff. The furnace did go out, and that's not a good thing in Minnesota in the middle of winter when it's ten blow zero. So those are big line item. Zach and just well, we had fifty grand in the savings and now it's ten. So where do you start? Where does the funds come from? Again, might be reallocation. You know, it's tax time. If you're one of those that gets a tax refund, and we could get in a conversation is that a smart move

or not a smart move? But if you are getting a refund or a bonus, or an inheritance or some unexpected windfalls of money, maybe directing that towards the savings account, maybe that makes sense. So analyze the budgets. Are there certain things you could cut out? It can be eye opening, It might not be something that you want to look at. Oh my goodness, we did spend five hundred dollars at Starbucks last month? Was that really necessary? Well, of course it was if you're asking my kids, But I beg

to differ a little bit. So analyzing that budget, yes, the word budget. We don't like to talk about budget, but that's where we might you know, see some things the old saying small leagues sink big chips it. It can actually sink it really really fast. These are always

to replenish that savings account. But first you have to establish that I really do need that, and it really does make sense because especially with the volatility of the markets which we've seen over the years, the last thing you want to do is the markets are down and now you're selling off holdings that are in a negative position or in a down position. So there's a whole variety of reasons why you want to maintain a high level of liquidity, maintain a certain level of risk depending

upon how that fits you. And then also principle protected investments. So at Haven Financial, we're going to group we're going to look at all the options, all the options to make sure you're in a balanced, diversified, efficient position. One other way that I just, you know, I sometimes don't think about because I don't know why I was thinking about. Actually they're talking about doing away with the penny because it's costing us more than it's worth. Maybe it's selling

off some unnecessary assets. Maybe that is a coin collection, maybe some collectibles of some sort that have been collecting dust for several years, or you know, I hear this one a lot. You know, people retire and they go, you know what about a part time job, maybe because you don't want to, but maybe that's going to free up a little bit of extra spending money. You know. I see people you know, become work at the golf course so they get free green fees or just spending extra spending money.

a negative, and you want to avoid that. You know, I'm amazed at how many people do like Facebook, Facebook Marketplace or I don't know if Craigslist or maybe I'm dating myself here a little bit, but you know, just putting things on and people buy this stuff. I'm like, I mean, we just sold so and so, would you sell it Facebook Marketplace? Really, I'm not one that's on the internet that doing that stuff, but there's a lot

of people that are that can generate some cash. And you know, as we we're in tax season, you know that we always talk about forward thinking ta planning for retirement. You know, in a lot of times the fourth quarter when we look at roth conversions, does it make sense based upon our income in that given year and to fill up that twelve percent bracket, And we'll do either an irate a wroth conversion to fill it up, or we'll look at what is your savings plan. What does

that look like? Is it a little lax, is it a little bit low? We'll do an IRA distribution and deposit that into your savings to replenish it that way. So these are the little not little, really, these are the touches that are so important that we give to our clients, to those that we sit down with because life we get busy and all of a sudden, then we forget and then it's like I said, middle of

February and then it's fourth quarter. By us having contact and having conversations throughout the year, not for thirty minutes, not for once a year, not for twice a year. We don't miss these opportunities, and it's not on the client to have to watch the calendar. We're doing it for them so they don't miss these opportunities, which I call unforced airs that shouldn't happen and don't happen if somebody, if a good partner, is looking out for your best interest.

some of those educational seminars. Some of these you know Larry or first off, you don't have to be a client, but they're free. But some of these are about, you know, topics that people just have questions about. They don't maybe even have to have full on help, they just need to ask some questions.

these educational venues. That is no secret. Haven Financial Group and Independent Advisory Retirement Firm here in the Twin Cities. Yes, we also get to we're referred a lot by clients that have had a great experience and continue to have a good experience. So there is no secret. But you don't owe us anything. We owe you the education and I believe in the industry we do owe you the education so you can make the decision educated decisions on what you want to do. If nothing, because nothing is

always an option. I don't think it's a very good option, but we'll take you through our proprietary process. And again, no matter what, if you have a little bit or a lot, you're going to get the attention and I'm you're going to get the feeling that you know what, we actually are listening because we are. We're not too good. We're not too good that we're not a stuffy environment. We never will be. But check us out six one, two, five, four, eighty four hundred and.

different topics, so be sure you check it out. All right, when we come back, why the years right after retirement are sole, We're going to walk through that and much more right here on the Haven Financial Group Radio Show.

puzzle and it can be very overwhelming. And our job at Haven is to simplify things, keep it as simple as possible. Not because the listeners, you listeners are simple. It's because we want to make it understandable. Uh, and we want we want to be relatable. And again, feel free to give us a call.

I retire? You know, financial and security in retirement or do I have security? And you know, we see, we see both. Just this last week, I had a couple came in from Savage and they really were worried about retirement. They hadn't done a lot of planning. They had a little bit, but they go, they really worried about it. And after we've dug in deep and we walked through things on a several different meetings, they were in a much better position than they thought they were. And you

know what, that's great. But on the flip side of that, we can have an opposite type of meeting where some people think they're in a better position and they're not. And it isn't for us to point out the good, the bad, or the ugly it's the facts, sure, based upon your situation, and we project this out many many years. Here's what we see. Is that a problem? What is the problem? How do we fix the problem? You know? What elements could be finely tuned or maybe factored into

the equation that could change things. You know. So there's a lot that goes into those early years of retirement, and there's lots of misconceptions on things that could be talked about that people should be doing that they avoid and that's not good. Right.

after the fact. You snooze, you lose if you need it and can't don't have it, it's too late. So that doesn't do any good avoiding the stock and market neglecting it because you're just so scared because of all the volatility. Now, that could be different for different people, because there are folks that don't have to be in the stock market depending upon their circumstances, and there's others that should be and they're sitting in a bank account.

Nothing that's a problem as well. Sure, you know other things that I seek him is you know, I'm gonna I don't need to worry about as much because I'm gonna work well past my retirement years because that's just the way it is. Well, good luck. I hope that works out for you. But why is it that most a lot of people lose their job or quit their

job prematurely? I thought its interesting. I read that the average worker changes jobs about a dozen times during their career, and many end up retiring or losing their job earlier than expected, not working past their retirement age, so that those statistics just don't hold up.

Or investing unwisely? You know. I always say explore all options, but if something sounds too good to be true, ask more questions. Those get rich philosophies or get rich quick be careful. They can take it and never give it back and that will not bode well. Poor tax planning. Yeah, I know it's tax season, but poor tax planning or no tax planning every year, I've already heard it several times because again Lance is Sun up to sun own doing tax preparation and new clients that you know have

owed money every single year. Just a couple last week from actually Lakeville I said, how to go. It was your first year with Lance and you got together with them through out the course of the year, didn't you. Yep, And they go, it's the first year we didn't have a five thousand dollars federal tax bill. And I'll tell you what, they were happy. That wasn't rocket side. That just didn't happen. It was because they took the time and we took the time to get to the root

of the problem and stomp stomp out the problem. So this year it was not the problem that they were used to.

going to be sold anything. We're not going to sell you anything. I always say, salespeople sell you something you maybe don't need. If you don't need any the services that we offer, what are we going to sell you? Now?

We're in the people business. Don't get me wrong. But some single lady got talked into about a year and a half ago cashing out her at four oh one k Now, I don't know what was said in that conversation, but she cashed it in, had no tax withholdings now no retirement, and got hit with a big tax bill. I mean, she was really led down the wrong rabbit hole. And unfortunately I hear about those things far too often. So know who you're working with, do your due diligence.

I don't care what you're looking at, it is twenty twenty five. If you have to look out for your best interest, make sure who you're working with is acting in your best interest. Obviously, I think that's important, But again probably in One of the biggest ones is not having any plan. What's the old saying saying A failure to plan is a plan to fail. Now, we don't want anybody to fail. You don't want to fail, but a failure to plan is a plan to fail, and hope is not a plan. I hope things go okay.

Well I hope they do too, But if I don't do anything about it, how can I be as certain that things are going to be okay. So again, coming right back to it, have some sort of a have a partner in any of these areas. Put these retirement puzzle pieces together, the whole puzzle, not just a few of the pieces. Sure, you know that's part of our haven process.

And you know, I think of a couple from inver Grove Heights. I started helping them quite a few years back, and we lost track a little bit, and then they came back and they pretty much their kids and grandkids had wiped out pretty much everything they had and they were in a trailer, which was so sad to see.

Or I just had one of our clients who, unfortunately, six months after he retired from the airlines, he lost his wife and him and his wife would put together an ample amount They had saved a decent amount of money, and you know, our retirement projections looked really, really good. And you know, obviously when you lose a loved one, especially a spouse of fifty some years, it's never easy.

It's never going to be easy. But we noticed his spending habits were changing drastically, and just this first in January, we had to have a meeting with him on a variety of things. And he's doing better, but you know, we had to have the meeting that says, you know, at this rate, your retirement is not lasting things. And we found out it was the enabling of the kids, the adult kids that were just draining that jad dry.

Those are tough conversations, but much needed conversations. So as much as we love our kids and grandkids and life is different, but it takes work, you know, the work ethic is not the same, and a lot of them just think everything is a free lunch. And I grew up on a dairy farm and canu High Minnesota. There's no free lunch out there, and unfortunately a lot of people think there is. And again, that doesn't bode well for them, and it doesn't bode well for retirement.

has been really interesting and enlightening financial security. It's a little bit different for every single client. I'm sure when they walk through the door it is.

visit more Kim every week. It's good to be with you and I look forward to next week.