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 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. 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 full nines are always open at six point two five four eighty four hundred. Now get your financial questions ready because the Haven Financial Group Radio Show starts now. Good morning, you're listening to the Haven Financial Group Radio
Show. I'm Larry Kolvig, founders, and thanks for listening this morning. Visit us our website at Havidfinancialgroup dot com or give us a call at six one two five zero four eight four zero zero. Can We got a lot to talk about today, retirement, retirement, and more retirement, which neither one of us seems to be close to its exactly. Kind of a crazy week for everybody, but you know what, that keeps us all on our toes. This is the first time you and I think have chatted since March
has rolled around. I'm ready for spring. Yeah, we've been spoiled by this winter, but spring is in the air. Although we need moisture, we need moisture and moisture and more moisture. But yeah, we've been We've had a really mild winter here. We'll take it, but got to have some rain. Sometimes I sort of feel like when it's mild, it makes me long for the warm weather even more. I'd be better off if we
just had snow, right, And you know I would agree. Well, the weather has sort of thrown us all off, and one of the things we want to talk about today is not being blown off your retirement plans and certainly the course of action that you have set forth during these sort of turbulent times. Larry. I mean, I sit back and I watch and it is amazing to me that we see first we saw the markets just crazy,
crazy, climb, climb, climb. Now we're starting to see lots of volatility, and yet I, and I've said this to you so many times, I still feel like inflation is a real issue every time I go to the grocery store or I chat with people. So these are sort of tumultuous times. So let's talk a little bit about in this show about how you
don't get blown off. Course, We're going to start with risks that might affect your retirement right now and what you need to be aware of, and then we'll talk about how inflation is still sticking around and just doesn't seem to want to leave us, and then an overview of the markets and what's happening right now, and finally the risks of early retirement. That's how we'll wind up our show today. Before we get started, let's get that telephone number
and the website out there, Evenfinancialgroup dot com. You can reach Larry and his team there, or you can call if that's easier for you. It's six one two five zero four eighty four hundred. So let's get started talking about the risks that might be out there right now, Larry, and what might be throwing you off of your course, there's something called sequence of return
risks. Explain to everybody what that is. Yeah, before I jump into that, Kim, you know, the retirement may seem really confusing and you may not have all the answers, and we can help in all these different areas and identifying different risk factors, and we can't predict the future. But you mentioned inflation. It just so happens. I filled up with gas this week and I'm like, am I done yet? Because gas prices? I actually noticed it at the pump. I'm like, you gotta be kidding me.
My tank isn't any bigger, but the bill was that much bigger. So you know what, all the retirement puzzle pieces they need to be put in place. The time is now your situations. Your situation. But you know, we deal a lot of with discussions about risk and a variety of
risk. Can you mention sequence of returns risk? The stock market risk having a good idea and a good balance between good liquidity and principal protected investments, and then the stock market risk because many people are unaware of what they're doing that it's their fault. But when you broach retirement, all these years of accumulation accumulation, put it in the four to one k and now you're to the preservation slash distribution years. There needs to be kind of a mindset change.
You're in a different season of life. Those paychecks aren't coming in and you're not putting it away anymore. But now you're going to have to start drawing off of this and compared to this. You know, because I love watching football, and you know inside the twenty yard line is the red zone. It's important to punch it in. Well, you're in retirement, you're
in the red zone. Defense wins championships, not that you don't want to have offense, but you need to have a little bit different perspective as to what are you trying to accomplish. Avoiding the surprises. You know, surprises aren't fun at any age, let alone investment volatility. Oh my goodness,
I lost twenty five percent of my portfolio. So just being aware of what you're doing, why you're doing it, we call it stress testing your portfolio first of all, to avoid the stress that can come with the downturns and just getting in the right spot at this stage of life. It's so very very important, Kim, Absolutely, it is so let's talk about some of the ways that you can protect your retirement investment and yet not feel like you're
completely sitting on the sidelines. Yeah, and actually this hits home this past week. I had Jim and Nancy from Lakeville, a typical couple that comes in Larry, we're now retired. We want to, you know, we
want to take the foot off the gas pit a little bit. And he was at the coke refinery and she was retired secretary, and they had no idea how they were positioned until we really peaked under the hood, and they're like, we're taking way more risks that we're comfortable with making the adjustments. The bull market and the barrier market. You know they're going to happen. But when two different retirees retire and there's a bull compared to a bear market,
there's two completely different outcomes in our classes. I think of a slide that we threw up and yeah, a million dollar portfolio with the same rate of returns, same rate of inflation, but the opposite effect for thirty years of retirement. The first one retires in the first twenty seven years or twenty whatever it is, the markets are up, but then the last several years they're down. Well, if that's inverted to the other direction, you have
you run out of money. So it really really matters the sequence of return, risk and willingness for risk, the need for risk, and the ability to take risk. Really identifying how do you answer those you know, what's more important at this stage of life? Do you need to? Do you want to? And usually with couples, one's more of a high stakes gambler and the other one not so much so some times, just finding that happy medium that's what keeps couples together, you know. Yes, opposites attract,
right, you know. And then diversification. If I could just add a couple of diversification, you know, the right recipe, the right mix. We I mentioned principal protection type of investments. You know, annuities can be used in this area where there can be a guaranteed rate of return. You just we want people to weigh the good and the bad, the pros and the cons Sure. I always say, if it sounds too good to be
true, it's probably too good to be true. Ask more questions. They can be an effective part of a portfolio, but you don't want all eggs in one basket. You got to maintain that diversification piece. Sure, So you've talked about a few of the things that you might chat with some of your clients when they come in about diversification, talk to some other ways that
people can protect that money during these volatile times. Yeah, I mean even utilizing money market accounts and CDs which are paying five five and a half percent. And you know you mentioned inflation. I'll tell you that the Feds are kind of trying to stay taking a step back here in a little bit to see where inflation goes. They're kind of being proactive on rate cuts. We'll see where that goes. But look at all the options, Kim. You
know, we're very big at Haven Financial Group into education. We want people to look at all the options that are out there, not just some Sometimes people pedal only certain things because maybe it's in their best interest, not in your best interest, and look at all the options. Waigh all the options
and create a good diversified portfolio and maintain liquidity. I see so many people come in and they have hardly any liquid monies and everything at risk in the market, and somehow that's a good recipe for retirement and it's just not it's just not sure. And Larry, I know that all retirements are individualized, but at what point do you pretty much advise your clients let's really try to get out of that risk. Is there is there a timeline for that?
Or is that just the individual and how much they can stomach. It's really about it's individual number one. You said up very well, and how much they can stomach. I think of a I've mentioned it before. I think in the show a gentleman from Megan. Steve is just the sharpest dress guy ever. He's got MS. I tell you what, I love seeing him come in and he gets around. But I remember him saying to me several years ago, and he's got plenty of retirement moneies. He said, why
do I need to take risk? Clary? Why would I do that at my age in my mid seventies, He goes, I don't need to. I like to sleep good at night. Why should I? Well? Who am I to tell him you're making a mistake? So you know, if you're concerned with market volatility and running out of money, you know it's time to really put pen to paper and see where things are at and assess the risks that you're currently taking again awareness and understanding. You don't have to be
the expert. You don't have to be completely on the sidelines either, but make sure you're in a position where you can weather the storm through the in the downs. You know, the psychology of money, the fear of jumping off a cliff or getting out at the wrong time. I always say, we're not really worried about people sleeping at night, although we are. We're worried about them waking up in the morning and making a very very bad financial
decision when the markets are not doing so well. So again, right place, right time, absolutely all right. So, if you're someone who thinks that maybe you're taking too much risk orright question, you've got the stomach to maybe take on a little bit more, maybe you'd like to sit down and chat with Larry and his team at Haven Financial. If so, then let me tell you how you get hold of them. You can call six one two five zero four eighty four hundred. That's six one two five zero four
eighty four hundred, or you can reach out to them online. It's the Haven Financial Group dot com. Havenfinancialgroup dot com. As Larry mentioned, lots of education that you can find out educational classes on that website, Havenfinancialgroup dot Com. They are constantly putting up those different seminars that are going to be taking place in the future, and they fill up fast, so be sure you check it out all right. Inflation, why will it not go away?
Larry? That is going to be the subject of our next block that's coming up next on the Haven Financial Group Radio Show. Don't go too far. We're gathering more important insights and retirement ways, Devin. The Haven Financial Group Radio Show will be right back. Stick around. You've got questions, We've got answers. Your tune to the Haven Financial Group Radio Show with your host Larry Kolvig and Kim Karragan. Now back to the show. Welcome back
to the Haven Financial Group Radio Show. I'm Larry Koalvig, Founder and CEO of the Haven Financial Group, and give us a call at six one two five zero four eight four zero zero or Havenfinancialgroup dot Com. A newly revamped website, all kinds of good tools on there. You can see where classes, where we're going to be having classes, where we're going to be teaching, because education is so very important and certainly evident by a classes We've had
lately in Farmington and Bloomington and other surrounding communities. So come on out to even existing clients. You can always learn something. And what can we learn about inflation? Kim? Oh goodness, I think we all know one thing we'd like to learn. When's it going to end? You know, these
have been some very difficult times. We've had all kinds of issues that have resulted in inflation, not the least of which has been Federal Reserve trying to make decisions to try to get it back in tap Federal Reserve meeting again. I think it's the nineteenth of March. And you said it in our first segment, Larry, that you sort of anticipated that the Reserve is going to
maybe take a bit of a different approach. You know, we've been cutting, cutting, cutting, but maybe it's time to hold study for a bit. Yeah. These recent years, Kim, we've been through a lot. We certainly have the increased govern and spending the government spends. If we spent like that, we'd be in big trouble. Supply, it chained disruptions, geopolitical conflicts, and then yeah, the big I word, and it's not
about me, It's about inflation. It's people's wallets have been affected. And the CPI reported a three point one percent increase in prices from a year ago, slightly more than expected, and the cost of things and groceries, and they never seem to go back down to where they were before. So what gives? You know, a strong jobs market is keeping the economy going,
and maybe what's also keeping inflation around for that matter. And you know, I think when they meet here this month, I think we're going to take a step back and slow down. It's not where they want it to be. You know, they don't want to risk a recession. They even don't even like saying that word. It's why we talk about retirement, because there are recessions and ups and downs, and that's why you need to be prepared for it. And we talked last week, I think on rents and shelters.
See the largest increase right we're in Prior Lake and just individually just got notified another big homeowners association increase. It's like, really, what gives? I mean, people are feeling it. You know, it's inflation's stickier than what I think they thought. And you know, it affects our money. It affects our spending. You know how far the dollar goes, and the
government spending were pretty depressing. I happened to notice it that we're one point one two four trillion dollars in debt as of the end of last year. I always say, if you really want to lose your appetite, go to usdebtclock dot org. That'll do it. That'll pretty much do it. So watch a tick. You know it absolutely will. So there's a lot. There's a lot out there, a lot out there. I think one of the great challenges associated with trying to get on course and planning a retirement is
the fact that you don't know when these times are coming about. You know. I think about people who were planning to retire just before COVID hit, and then you know, COVID hit and people lost jobs, and the economy really took a dive, and then we had such fear of recession and now you know, such inflation. These are people who didn't see that coming. None of us saw that in March of twenty twenty. So talk to me about what you say to clients when they come in and they're putting together those
retirement plans. How do you address the issue of inflation or just those bumps in the road that we don't know are coming. Well, it's always Inflation's always been a discussion piece. I always get a kick out of folks where well, my guy, our gal doesn't factor an inflation. Well they're missing at them, because an inflation is truly a game changer. So when people come out, I'll walk you through our proprie process. You know, we sit down with folks, they say, Larry, well what can you do?
And everybody we take through the same process. We sit down and do a discovery meeting, ask a bunch of questions. They ask a bunch of questions. We take a bunch of notes questions probably nobody's ever asked them, as we truly really need to boil down their situation. From there, we come up with some sort of strategy and make some recommendations or not any rush.
We'd like to spend quality time and going through this unless there's something that's truly on frere of course, and from the strategy, if they choose to have us help them, you know, we'll have an implementation process. It would be where we begin this process and implement this the plan. Maybe you've never had a plan maybe you have an old plan, maybe you need to
change the plan. You know, modification and adjusting is ongoing as we get older and life happens, and health happens, and family happens, and college and all the various things. Why do I say college because it's top of the mind, because I'll have foreign college and I'll be working a very long
time. It's a very good thing. I like what I do. So it's really not skipping any of the discussions, not missing something, because if you're missing something, that could have a drastic effect in retirement, and we're looking to avoid the negative surprises. Make sure your expenses are accurate. A lot of people are too afraid to ask ask questions. They're afraid for some
reason, Larry, I don't want to bother you with questions. Well, if you don't get your questions answered, those confessed and they can cause more questions, which causes, you know, a lack of confidence, anxiety, and quite frankly, you don't deserve that. Whoever you're working with should be spending the time whatever that means, because everybody's did weighed differently. You should be getting the attention because you're paying somebody for that advice and if you're not
getting it, perhaps you should look elsewhere. I think people sometimes worry that lots of questions would lead an advisor to think they don't know what they're talking about. And you know, I always say this. You know you're not the expert. This is not what you do all the time. You retire once, so's it certainly makes sense that you'd have lots of questions. Tell me some of the things that you guys suggest for clients who are already in
retirement but maybe are caught up in this inflation issue. What are things that people can do to protect themselves at this stage of the game. Well, you might have to monitor fi your plan. Your expenses probably have gone up significantly in the last couple of years, and we want an acurate depiction of that because oftentimes, just off the cuff, we'll ask people what are your
monthly expenses? Oh, there, four thousand a month, and when they really boil it down, they might be seven or eight thousand a month all in, and that that's a big difference. So we want to make sure that we're looking at all the different areas. We want to be realistic, you know, in our projections. O Monte Carlo projections where we factor you know, thirty thirty five plus years of retirement potentially. We want to be realistic. You know, we can puff up there. Any financial person can
puff up numbers ten, twelve to fifteen percent returns. But we want to be realistic and practical because averaging over all those years, it doesn't do any good to do any good to puff them up, and we want to be We want to plan for the worst and hope for the best. And you know, let's face it, today's retirees, they got a tough, tough combination of factors out there, you know, a volatile market, an electioneer.
I'm sure they'll solve all the problems this year. But low interest rates, hire inflation, healthcare costs, I mean, all of these things really add up. It can overwhelm people. And sure this is the areas where we try to give people peace of mind. There's no simple solution to all of these things. But it's really okay. How does it affect you develop
a comprehensive plan. You've worked hard for what you do have, and you just don't want it to go by the wayside just because you don't take the time and pay enough attention to actually what you're doing, and you know what retirement could be ten twenty thirty plus years. We want to plan for the We hope it does. Yeah, and I say that with quality of life. Quality of life, sure, because I do see somewhere it's unfortunate that they lose the quality of life and that just kind of takes the smile off
their face. And that's a whole different conversation in itself. So yeah, that also eats up a lot of money, unfortunately, it does in many cases. You know, what, is there any out there that you suggest for clients to invest in that is inflation proof? Is there any such thing? Well, when inflation was at its tips treasury inflected tip they're called tips,
treasury inflation protected securities, they kind of go with inflation. But you know, again, having a balance, diversified portfolio, that's the important piece because again, so many people have very little liquid and everything at risk in the market, and that's just a bad recipe. It's a bad recipe. You know. I think I just read a study and I've been saying it
for years. For a retired mid middle sixties couple, you know, we like to see folks have fifty to one hundred grand liquid money market check but savings and people say, well, that doesn't make any sense. Well, there's always things that come up, the grandkids stuff, or the furnace goes out, or if the market's down, you don't want to be selling then, so you want to maintain a good level of liquidity so you're not put
in a very precarious situation. And I you know, I see folks with five to ten thousand liquid ready to go into the golden years of retirement, and it's it's just not enough. It's not enough. So a good balance, So say it over and over again. Can you relate to any of this folks. If so, if you've got questions about your retirement plan, you're trying to make sure it doesn't blow off course, and most importantly, you want to make sure that you're protected from inflation or from risk on the
market. Then I've got a suggestion for you. Let's get hold of Larry and the team at Haven Financial. You can reach them by phone and set up an appointment to come in and see the team at six one two five zero four eighty four hundred. That's six one two five zero four eighty four hundred, or you can reach out on their website it's Hanfinancialgroup dot com. There you'll find out more about some of these seminars and educational experiences that Larry
and his team offer. Again it's Havenfinancialgroup dot Well. We've been talking about Larry, but let's get back to this whole issue of the market in our next segment and talk about what you see happening and what you how this first off you, how this is influencing so many people's retirement and what you suggest people do. That's coming up next on 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 Kolvig is back and ready to help you find your financial safe haven. 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 at six one two five zero four eight four zero zero or visit
us online at Havenfinancialgroup dot com. Kim more retirement topics, inflation, all these blifting things. Let's let's try to keep it as positive as we can. How about that? Huh, Well, let's talk a little bit more about the stock market, because so many people have their money invested in the stock market, whether it's through just investments that they have a lot of four oh one k's, some of that money is in the market. And we've
watched a really interesting market over the last couple of years. Really, I mean, we've sort of watched it tick up, up, up by no we closed out last week the S and P five hundred was at another high, and this was maybe seventeen weeks of being up again, and that's about as good as it's done since the nineteen seventies. But at the same time we've seen some volatility, So it again has been a very interesting market.
And I think those of us who follow it know that up, up, up only means it eventually it is going to come down, and that means that retirees or soon to be retirees really need to be thinking about where their investments are. Almost definitely, I think of nineteen ninety nine, nine to two thousand and one, we had a market correction. In two thousand and seven to two thousand and nine we had another market correction. That's why it's
called what was called the Lost Decade. And for almost fourteen years, you could say as investors we got pretty much spoiled because the market pretty much went up, up, up, up up, and new people got into business and they thought, well, this is easy. It only goes up, up up. And then in twenty twenty two, Larry, can you believe how much the market's gone down? I couldn't believe the market stayed up as long as it did. So relying on the whims of the market and hoping
to avoid a recession are not retirement strategies. Those nearing retirement or in retirement will benefit from having a retirement plan that's built to last through the ups and the downs and the goods and the good and the bad. And it's very important, you know. I think we called this steering their retirement ship. Well, how appropriate considering Haven has a nautical name, Haven Financial Group.
It's nautical, so you get off a degree at two degrees, three degrees, and in retirement you end up in the wrong spot, probably not what you want to do, you know. So the power of the dollar, how far it goes market exposed accounts income, where's it going to come from? In a down market, you're going to start drawing off a depreciating asset. Volatility can turn that income into a big, big question mark. And
guaranteed income retirement is so important. Guaranteed income for the things you need first, and then guaranteed income for the things you want to do the country club or fish and hunt and all the fun things that we hear. Folks that we sit down with, you know they're so important, and you know you want to mitigate risk the best of your ability and have a good balance. I come back to the same thing again, a good balanced approach, making
sure you have an awareness of what you're doing. And again I'm not saying people don't know what they're doing, but I had a couple in last week they go, Larry. If they did say, Larry, we have no clue what we're doing, would you please help us get on try now? I like that candor. Some people are too proud and they think they know what they're doing. And we're not against people doing it themselves. If somebody wants to do it themselves and they don't need our investment team, that's okay.
But if you're married, and you do it yourself. Make sure you're leaving your spouse in a good position. I can't tell you how many times and spouses they lose a loved one and all of a sudden they're putting a precarious situation to make financial decisions and emotions are running high. So whenever I see couples that openly say, I just want my spouse to be here because if something happens to me, there's a relationship and she's going to be well
taken care of. You know, trust is earned. She doesn't happen overnight. It doesn't I don't expect it happen overnight. So all these are just extremely important things. And you know, a failure to plan as a plan to fail, and none of us want to, but you want to put yourself in the best position to be successful. And again that's that starts with the process. It starts with a plan and not just throwing it in the closet, but always continuing to update it. Yeah, and for many people
it starts with diversification when it comes to their investments. Let me go back to this for a second. I have known people and my husband might be one of them. Let me tell you who has spent much of their life playing this talk market, and you know that's where money is. And it's very, very difficult in these times. Like you said, people who come in and say, wow, this is easy. You know, we're just
making money because it goes up, up up. So it's hard for people like that to pull their money out completely and to stand on the sidelines. You know, they just feel like they can't do it. You know, this is a difficult thing. So I know you've had these kinds of clients who have come in and said, you know, Larry, I can't pull my money Outlook, what's that do you? How do you work with them?
How do you make them sleep at night? Because they know they're not just standing on the sidelines, you know, and timing the market is virtually impossible, But timing to get out is one thing. Timing to get back in is almost even more impossible. You can think of a handful of people that almost every downturn there's somebody that gets out at the very absolute wrong time
and they miss all the opportunities for it to come back. You know it really it's why it takes a good balanced approach, you know, I think of people that are a couple that was in Brooklyn Center. This is several years ago now, and I was right after seven oh nine, and I was sitting at their kitchen table. I was with a different company, and I remember, I mean, he was so intelligent, him and his wife,
and I could tell there was a sense of bitterness still. And we're going through the process and I was asking questions and I know we made good money, but I didn't when we talked about it as an investable assets, there wasn't any. And finally we got to a point where like I go, am I missing something because I don't see any real retirement dollars? And I'll never forget it. His wife was so bitter. She goes, he lost it all in seven h nine. And he was a high risk taker
and derivatives and all high really high risk stuff. He lost it all. And I still hold him accountable to this day. And again, not everybody needs to be in that spot, but you know, making sure you're in an avoid those pitfalls, just to flat out avoid the pitfalls, and you
know, what are you trying to accomplish? You know, most of our clients are looking to, you know, baseball analogy hit a you know, single or maybe a double once in a while and not swinging for the fences, trying to hit home around every single time and striking out seventy five percent of the time. Because at this stage of life, what are you looking for? You know, I, like a lot of my our clients are we want the highest return. Of course we do. I don't want to
pay anybody mean neither. And you know we all want the perfect investment and it doesn't exist. So again you have to pick your poison and what makes sense what doesn't make sense? And again I have folks that aren't taking any any risk and they're perfectly happy. And I have those that are taking all kinds of risk and they don't sleep at night and their day hinges. If the market's up, they're happy. If it's down, they're not very nice
to be around. Yeah, that's that's a that's a tough life to live. So would you say, regardless of what the age is, whether you're planning to retire at seventy or if you're planning to retire at sixty two, how far out prior to that, would you suggest that people start to diversify. Well, when you're young young, you just let it ride. Obviously, if you're super young, they take the risk. Over the overtime,
the market performs better than anything. And you know there's those there's a fearmongers out there, and you know the US economy, the US you got to have faith in something or otherwise you don't have faith in anything. And the market's always come back. And if it doesn't con come back and Putin gets goofy, we got bigger fish to fry. Anyways, will it really really matter? But if you're five years, five years or less that from the inach line, and as I mentioned earlier, you're in the red zone,
you're inside the twenty yard line. Now is the time you better start thinking about the element of time comes into to be a factor more than it ever has, because you know, there's the market is a cycle when it goes up and it goes down. But your cycle is getting a lot shorter, and you know what, do you have the time to get it back? Are you drawing on it at seventy three required minimum distributions? You got to start taking your IRA money out right, Well, maybe that isn't right place
right time. So five years or less, I think would be a good rule of thumb. Okay, all right, Well that leads us right into our next subject, which is what happens when you retire early, And that's what we're going to talk about next. But first I want to give everybody the telephone number you can set up a consultation with Larry and his team at six one two five zero four eighty four hundred, or you can take a look at some of the seminars that are coming up. They are great educational
opportunities and you can do that at Havenfinancialgroup dot com. Again, when we come back, let's talk about should you retire earlier? And if you do, what are some of the pitfalls or what are some of the benefits to retiring early. You're listening to the Haven Financial Group Radio Show. Don't go too far. We're gathering more important insights and retirement pays. Devinent 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 Kolvig and Kim Karagan. Now back to the show. Thanks for joining us this morning. I'm Larry Kolvig, Founder and CEO of the Haven Financial Group, and you're listening to the Haven Financial Group radio show. Kim another segment A lot to talk about retire, retiring early, good or bad? There you go retire. That is the question. Retiring early, good or bad? I said to to Larry before where we got back on
the air. I think for some people that's not good because that ends up impossible problems at home. Suddenly the wife is saying, what are you doing here? Why are you here? Right? So, but let's talk about it. You know, I'm sure that you see a lot of people who are counting the days and when they hit sixty two, they're finished. So is that a good thing or a bad thing? Well, retiring early, we actually see it more often than you think, and oftentimes it's not by
design. More often than not, as we age, sometimes people get replaced by younger Now they say that could be illegal, but the reality is I hear about it. Actually more often than you think, they replace somebody with a younger person for less cost. People retire earlier. It's very normal. I'm not always a good thing. Sometimes it's why health takes over and we have to retire for the sake of ourselves and our bodies and so forth.
That's why it's important to make sure that you know what you're putting it away. Now, maybe it's a loved one or a parent, or somebody that needs some care, a family member. Oftentimes we see that and you just you do it for the sake of the family, and you retire early for that reason. And don't forget about healthcare coverage. You retire early, how
are you going to bridge the gap for healthcare? Glen handles and Isabella in our office, we help people bridge the gap figuring that out and it's not cheap, and then of course Medicare comes around and we can help a lot of folks in that area as well. A part time job, maybe that's an option, going part time before retiring. Sometimes it's easing into retirement, you know, rather than just going cold turkey into retirement. And I see this quite often. You retire. I think a mic from Eden, Prairie
businessman has been for years and him and his wife he retired. Next thing I know, Mike goes, I'm going back to work. They offered some me a consulting position with some pretty hefty cash. So he goes, why not He goes. I always liked it, so whine consulting is something I
hear quite often. And then it comes down to social security. You retire early, then people get tempted to turn the social Security on early only taking I'm making the wrong decision and giving up a lot of future income from Social Security that could not only affect you, but if you're married, your spouse as well. So as you know. It's why we teach a lot of social security and tax classes to make educated decisions, help people make educated decisions
on why it makes sense, why it doesn't make sense. Not everybody's going to have a pension. Once in a while, people we use annuities to guarantee a certain amount of money, a certain amount of income for retirement. So all of this stuff matters. Things happen, Life happens. Life's calendar doesn't always cooperate with our calendar. Just be prepared for it. And if you're ill prepared and something happens, it could really put you in a tough, tough spot. And if, as you mentioned, not just you,
maybe your spouse, your family, whoever, it might be. So again, planning in advance, that's why it's so important. So Larry let's let's walk through a checklist if you will. What do you when people come to see you and they're fifty five years old and they say, we're really thinking about retiring at sixty two. What do you walk through with them to make sure that they may be thinking about it, but are they prepared to do it? Well? Through that process, we're gonna financially are they able?
And we'll run numbers based upon accurate numbers, accurate expenses. We're going to buffer in healthcare expenses. We don't want to miss anything because we want to find out financially are they able to do it? And that's just one aspect. Then we'll look at Social Security, does it make sense to draw off IRA moneies? Tax discussions are going to come into that on where you start
drawing from. And then the health The healthcare aspect is we're going to talk about all the different things that you're going to need in retirement and it'll lead to estate planning. Do you have a will, trust, powers of attorney? If something happened to you, got an accident, who could pick up the decision making of your affairs? There's no automatic. Sometimes people think, well, my spouse is automatically will be able to do it. That's not
true. So again, money is one aspect, but it's then all the other aspects that go with it. And you know, some of the cons about retiring early might be you haven't qualified for medicare and you don't can't afford healthcare because it's really expensive by the way, So again, the fear of running out of money is real, and that's where we want to use accurate numbers and really plug it in. And again, for a husband and wife,
you know, maybe staggering those retirement dates make sense. I've seen it actually successful where maybe if a husband will go or a spouse will go thirty days earlier than the other one just to kind of transition in because for all those years you both went to your other directions and now you're seeing more and more of each other than you ever have in a long time. And maybe that takes a little getting used to it. And absolutely, what are you
going to do in retirement? You got to have purpose, You got to do something. We know. That's why I always joke my parents start seventy eight and seventy six, and Mom and dad forgive me if I got those ages wrong. But they still crop form and can you Hi Minnesota? Not because they have to, because well I got to do my dad says, I got to do something. Absolutely every year goes right back in the ground. I would think that a big part of your job is to sort of
counsel people on that whole idea right there, what are you Okay? Maybe you can financially do it, but what are you going to do with your life? You need to make sure that you're prepared for that part of it. What are you finding, Larry, is is the typical age now for most of the people who walk through the door, when do they retire? Well, probably the sixty two to sixty five range. But then we have
some I see it quite often. We see it quite often where if you're healthy, you really enjoy your job, it's fulfilling and why quit something you really like to do? Because then there's the social aspect. All of a sudden, you're gone to this work and you got your friends are there, and what are you going to do now? Do you have a plan?
Have you sat down? Are you gonna you know? I have a lot of clients that are volunteers and they give back to the community, which I love to see and you know, work at the church or do whatever it is. But if you haven't kind of thought about it and all of a sudden you now cold turkey retired, what do you plan on doing with yourself? The recliner every day all days probably not a good option. You know, what are you going to do health wise in a health club? Or
you're going to travel, golf, do all these things. But then it comes down to these things cost money. So again, having a good, detailed, thorough plan and modifying it and making adjustments as life happens, I think that's the best plan. Sure. My husband always says, a person in motion stays in motion, and a person at rest stays at rest, And you get that recliner too long and suddenly you're not moving too much.
Let me ask you what happens when someone retires at sixty two and they begin to draw their Social Security and then they decide at sixty four they need to go back to work. What happens to social security? Well, you have twelve months if you take it early, you have twelve months to pay it back when most people need the money. So obviously they took it for a reason. They probably don't have it, we got to pay it back in
the first twelve months. And then of course if you go back to work, then you have the income limits when it really because you're not at full retirement age yet, right, and those income limits are actually very very low. You know, in twenty twenty four, if you're under full retirement age, you know that the most you can make before they start withholding is twenty three, three and twenty dollars a year. Well, these haven't been adjusted
in years, so that's a very low threshold. So okay, now you're taking Social Security and all of a sudden, your work go back to work. Now your Social Security benefits they're going to be withheld, and that's a dollar for every two dollars of earnings over the limit, So that could be problematic. So again, the longer you can work, the better. If you're financially able and you feel confident, go for it. But again, sometimes people get over confident. You know, we see some folks that it's
like, what are you doing retired? You know, we don't exactly say it that way, of course, but what are you doing retired? Because we do the projections and at seventy eight you're running out of money, and then we get the opposite. We get I think, have a couple, just a wonderful couple. They got a place in Arizona and they have a place here in Egan and you know they're not married, but they have He's got tons of money, investable assets, big pension, and she also has
been a great savior. And it's why it's so important to listen because for the first several meetings we had, she just fretted about and worried about money. And I didn't take it at first. I'm like, she really worried about money, and by I don't know, several meetings in Gary's like Larry, she worries about money every day. Well, sometimes people have the fear and it's not valid. Others are overconfident and they're not in a good situation.
So again it's all individual. It is individual. But just put a backbone too, why you're confident or not confident, and work with somebody that just know the numbers, because if you don't know the numbers and you're just winging it, probably not a good idea. Yeah, right, just because it worked for your brother in law doesn't mean it necessarily is going to work for you. That's what I hear you saying. That sounds like wisdom,
Kim, that's wisdom. If you'd like to reach out to Larry and his team so that you're not just waing it, let me give you the phone number. It's six one two five zero four eighty four hundred. Six one two five zero four eighty four hundred. Reach out to a Haven Financial Group today and set up a consultation. Go in and see Larry, see somebody else on the team, and talk to them about what you're thinking and what you've been strategizing before you make some big, big decisions. You can also
reach out to their website it's Havenfinancialgroup dot com. You have some good seminars coming up. Yeah, we do it. We have some great classes coming out. And if I could just comment Kim when you sign up, when you've come on in. You know, sometimes people get worried that somebody's going to try to sell you something. We're not there to sell you anything,
Okay, We're there to talk about your retirement. All the retirement puzzle pieces, from investments to a state planning, to insurance, to medicare to taxes. It's tax season, by the way, Lances, our CPA does a great job, you know, carry our state planning attorney. We're there to listen to you and talk about what's going on. Sometimes people get fearful about the sales, the sales approach. We're not a timeshare sales company. Okay,
nothing against timeshare, it's just we're there to talk retirement. All the pieces do you have all the pieces to the puzzle. And by the way, our new construction is about done. We've added on to the office third time in nine years, So come on in and see the new office area and our newly revamped website with all the tools on it, or anybody certainly visit our classes because we're at education first company. We're big into the education
piece because education is the potential for power. It's what we do with it that matters. So great to be with you again, Kim. Great to be with you as well. Have a terrific week you as well. Thanks Kim. You can visit us at Havenfinancial Group dot com or at six one
two five zero four eighty four hundred have a blessed week. Investment advisory service is offered through Guardian Wealth Strategies LLC 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 as safe and secure investments
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