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 Karagan your guides to weekly retirement confidence. If you're interested in protecting and growing what you have, let us be your financial safe haven. The phone nines are always open at six point two, five oh four eighty four hundred. Now get your financial questions ready because the Haven Financial Group Radio Show starts now. Good morning, and welcome to the Haven Financial
Group Radio Show. I'm Larry Kolvig, founders CEO of the Haven Financial Group. We're glad you're tuning in this morning. If you want to reach out to us at six one two five zero four eight four zero zero or visit our website at Havenfinancialgroup dot com. Great to be with you. We've got
a lot to talk about today, yes, we certainly do. We want to get started talking about a couple of different things, getting smart about taxes, inflation and income and how all of this of course relates to retirement planning. You know, Larry, it's interesting because it's not an easy thing to plan for retirement. But then you have these other things that seem to sneak
up on you. They are taxes, which a lot of people unfortunately think about when they are making an income, but maybe not when they're drawing an income. There is inflation which seems to happen to everyone all of the time. And then of course just trying to figure out how to draw an income
when you're in retirement. So let's get started just talking about tax strategies if we could, because I think a lot of people think that they've got a great plan and forget about that relative who seems to always come back for more, and that of course being Uncle Sam. Taxes are very relevant, and of course we're in the middle of tax season right now. Lance is our CPA. We do a lot, We focus a lot on tax planning because you know, when you retire, replacing that paycheck in retirement it's not an
easy task. You've never done it before because you've been working for a paycheck and now it's developing and executing your own paycheck, which stems from an income plan, you know, to really support those costs of living things. And if you have to move investments around, it could cost you to launch yourself
into a different tax bracket. And so forward thinking tax planning becomes that much more important because you know, all these years you've accumulated and now we're getting to the distribution, you know, distribution phase of life, so again uncharted territory and there's there's there should be some planning that goes with that. So you're not you're making mistakes that end up costing you a lot of money. So let's talk about some of the planning that you should start pre retirement,
because that's really where it does start, right. Yeah, you know, in pre retirement, you know you've wanted your money to grow, You've taken probably more risks, and then you get to retirement or the golden years as we like to call them, and now you need to you still want growth, but you need to turn that money into an income stream. It may require you to rebalance the holdings, might maybe liquidation of certain things. You
might have to sell some assets. And that's where we help execute these plans is because you start thinking, well, what accounts do you start drawing from in the most tax efficient way possible to minimize income tax to alleviate or avoid capital gains taxes. Many people don't know if you're not outside the twelve percent ordinary income tax bracket, there is no capital gains tax. So it's just
execution and understanding how to execute, and then really having a partner. And that's where we come in to help assist with those different decisions in retirement. Absolutely, and sometimes if you don't rebalance this, you may end up without enough income when you get into retirement because so much of it's being eaten up by taxes. Right yeah, I mean the risks that come with not rebalancing
or not transitioning the way you should with your investment strategy and retirement. You could be over exposed to risky your assets that if the market's down, you're having to liquidate. It's why we're really big into retirees having enough liquid monies to fall back on during those tougher times. And you know, I think of two thousand and eight clients that I ran across that had real estate investment type of real estate investments that were ill liquid and they needed the money and
they couldn't access the money. And that's unfortunate and probably shouldn't They shouldn't have been in that case. And if you don't execute properly, you might be turning your Social Security on too quick, which is a whole other discussion all in itself. Sure, absolutely again A and to have a partner in all of this, someone who does this on a regular basis, and that for you could be Haven Financial. Let's give everybody the number so they know how
to get hold of you, guys, Larry. It's six one two five zero four eighty four hundred. That's six one two five zero four eight four zero zero. Call and make an appointment with Larry or a member of his team to go in and to have your strategy looked at and see if in fact you are planning for Uncle Sam taking money once you get into retirement. Or you can go to Havenfinancialgroup dot com. There. I know that you guys have a lot of tax seminars education sessions, and people can sign up
there for one of those sessions that's cut upcoming here in the spring. Let's talk about when people are rebalancing, maybe pre retirement, and they have things like a four to oh one K, which is something that they really don't have any control over and they really can't rebalance in their early fifty you know, even late fifties before maybe they want to transfer that. What do you
do with that? Larry Well, Yeah, employer sponsored plans like four to oh one k's, four H three b's, deferred comp thrift savings plans, which are all the same type of plan. They just have a different tax code. You haven't paid taxes yet, and eventually you're going to have to. You might want to consider rolling for a one case at fifty nine and a half, or if you're no longer working into what we call traditional iras,
maybe have a wroth for a one K that requires a rollover. And you know, there's a reason why the federal government says at fifty nine and a half, you can pursue all investment options in what ninety nine percent of the plans, because you're getting closer to retirement. We do lots of rollovers. I had a jan in last week she had five different old four to
one k's. I mean a lot of simplification and consolidation. It really really helps things out, and there's no tax implications to do so, but just getting it in the right spot, creating the right recipe is extremely important. And Larry, talk to me about what you advise clients who come in and say, you know, we're about to hit retirement age and we want to
sell our home and we want to downsize. You know, obviously they're maybe going to make a profit off of that house that looks like it's great income. But boy, here comes uncle Sam. So how do you work with that kind of situation. Well, incidentally, Kim, we actually hear this actually quite often as people get older and those knees aren't quite as good and
the stairwelled going up those and down those stairs isn't really conducive anymore. You know, you're going to have to live somewhere, and you know, right now, with the mortgage rates, a lot of people are kind of stuck and there's really not a ton of inventory out there. But again, knowing the tax ramifications, if you lived in the house for over you know three out of five years. You know, capital gain sacks. When it comes
to a home is a little bit different. You can exclude up to two point fifty if you're a single and up to five hundred thousand if it's your main residence, So factor that in into the equation. You know, in our projections, when we build out plans, we assume people are going to have to live somewhere anyway, so we don't include that in the investable assets.
But if you do sell a house and there's extra proceeds, you'll want to invest that properly, or maybe there's an inheritance coming down the line. But it really comes down to having that right balance still. You know, your liquid assets, we like to have x amount of dollars for retirees, the principle protected investments where hey, if the market goes the wrong way, we don't want to lose money. And then having some risk in your portfolio
is just fine. So the problem is most people don't know necessarily what they're doing. So stress testing that portfolio and making sure all the puzzle pieces are going together. That will alleviate a lot of the stress and give you a lot more confidence going into those retirement years. Absolutely. Now, what if somebody comes to you, Larry, and we've talked about pre retirement and some of the things that you can do to stave off some of these tax issues.
But they come to you and they're sixty eight, sixty nine years old, they're already retired, they're drawing their Social Security now, they're selling the house. Now, they haven't prepared maybe the way they needed to for these kinds of tax ramifications. What do you do then, well, I see
we're first of all avoiding any enforced errors. We're looking at is there anything that they can do now or in the future, because you mentioned turning on Social Security another income stream, they're approaching maybe the seventy three age of required men distributions. Again, tax efficiency, having the right investments and the right types of accounts, and you know, we love to see as much money in roths as possible. Some people kick themselves, they go, why don't
I have more than roths? Well, if you made too much money, there's income limits rothforowin caves haven't been around for that long. But if you can get it in there and it makes tax sense, those are the conversations we're going to have because people miss opportunities because they're just not having conversations. Sure, absolutely, yeah, I think that's the big fear for a lot
of people, that they get there too late and they've missed opportunities. But I think what I'm hearing you say is, even if you haven't taken care of these issues, you're already in retirement, it's not too late. There are still things that can be done and opportunities can be taken advantage of. Yeah, And really, what I would say is, you know, people listening might think, well, this is this discussion is only for rich people
now. That couldn't be further from the truth. Whether you have a lot or a little, or anywhere in between, which is we see a lot of folks. This pertains to you. You can do the best you can with your situation. Just don't think it's only for those that are wealthy, because that isn't the case. So Larry would love to see you, or a member of his team would love to see you right there in the office. It's even financial. Let me tell you how you can set up an
appointment. It is six to one to two five zero four eighty four hundred. You call that number tell them that you've heard the radio show and that you'd like to set up an appointment and come in to see a member of the team six' one two five zero four eighty four hundred. That'll give members of the team an opportunity to talk to you about ways to diversify your
portfolio to make sure that Uncle Sam is not taking advantage of you. All right, Larry, Inflation and social security, that's what we're going to talk about next. A lot of folks in the last few years certainly have felt that pinch in their social security right, Well, they definitely have, and Matt, I've heard more inflation discussions in recent weeks. You know, thanks are still tough out there, and we'll talk more about that and how it
affects people's pocketbooks. Absolutely, absolutely, you're listening to the Haven Financial Group Radio Show. Don't go too far. We're gathering more important insights and retirement ways government. The Haven Financial Group Radio Show will be right back. Stick around. You've got questions, We've got answers. Your tune to the Haven Financial Group Radio Show with your host Larry Kulvig and Kim Karrigan. Now back
to the show. Welcome back to the Haven Financial Group Radio show. You can reach us at six one two five zero four eight four zero zero, or check us out online at Havenfinancialgroup dot com where you can check out all all of our classes community education. Education is extremely important and we run classes almost on a weekly basis, So check out the website and kim SOCID security and inflation. It's ongoing and it's painful. Well, inflation seems to be
a buzzword right now, but there's a reason behind that. You know. Again, you and I have talked about that so many times here on the show, every time I go to the grocery store, and now you pointed it out last week, and now I have started to really notice when I pull the car up to gas it up, I'm starting to see, you know, all kinds of changes. So for those who are about to raw or are drawing Social Security, these inflation issues become a real problem for the
way they are planning their retirement. So let's begin by talking a little bit about Social Security payments as a whole and how they increase as a result of cost of living. Yeah, inflation's real, and we've seen that the last several years. I'ven't even seen some indicators here recently with some reports that it certainly could get actually very much worse. And I'm not a pessimist, but
I'm a realist, so you know, we'll see. And it's why, well, the last several years social Security has seen some big boosts because every October they come out with the Social Security Trustees Report announcing the cost of living adjustment for the upcoming year, and this year is three point two percent. It was eight point seven the previous year, and it was a significant the year before that. Because of inflation, cost of living adjustments are not guaranteed.
But the earliest to take social Security is sixty two. I want to point out that from sixty two to sixty six, social Security grows by six percent plus the cost of living adjustment. From sixty six to seventy it grows by eight percent plus the cost of living adjustment. So those delayed credits, you can see some major increases in your Social Security amount that you'll receive. Now, I'm not saying that because you know, we try to steer people
into waiting and waiting and waiting. That's not the right decision for everybody. But when only one to two percent wait till seventy. That tells me there's a lack of education. When there's seventy percent of Americans turning it out at sixty two, is that the right decision? And it is it having a negative impact on the amount that they may receive over their life expectancy. And
that's why we want people to put thought into it. If you're a married couple, I always joke, do you not want to leave your surviving spouse with as much income as possible? I hope the answer is yes, because otherwise you might be in the doghouse. So again, social security is a big decision. It's taken lightly by a lot of people, but when we do the math over normal life expectancies, it's oftentimes the biggest thing that people
have in their portfolio. Yet for some reason, they just treat it differently, like, well, my brother turned it on at sixty two, so I'm going to turn it on too. Sure that might not be the right decision, And I want to make sure that we're clear when you're saying I'm sure people listening understand this, but just making it clear when you're saying it increases if you go from sixty two to sixty four, you mean, if
you don't draw until sixty four, you'd see a six percent increase. Or if you draw, so each each step up, if you wait, you see that increase in your paychecks. For as long as you keep social Security in deferral, you will continue to grow at that rate. Yes, so
some substantial increases in the latter years. We see couples come in because people that come out to our class, they have the ability to come in and it's an educational process and we plug in their information and they leave with a Social Security report kind of a good, better best, which kind of really outlines what would make the most sense, and ultimately it's their decision. And I tell you what, we see a lot of couples with fifty to eighty
thousand dollars a month just in Social Security. And then we'll get into the discussion as to, you know, what their expectations for taxes are with Social Security, because Minnesota is still one of twelve states that taxes at the state level. However, they did pass the law last summer, so a lot of people listeners. If they're under a certain income threshold, they won't have to pay state income tax. So now we're back to the taxes again,
sure, which seems to drive everything. Yeah, it certainly does. Let me go back to the COLA increases, though, what are you said that they do that? They have a report it's based on inflation, But what really goes into that, Larry, to make the decision as to what that cost of living adjustment might be each year, Well, it's the CPI index. It's all what is inflation doing? You know, they factor in you know, GDP, you know, the cost of a variety of different things.
The key months are coming up, you know, the May, June, and July, August seven months depending upon what inflation is, that will determine what the outcome is come October when they announce it. And we'll have to see because at the end of the day, if inflation gets worse, they're already taking the foot of the fens, are already taking the foot off the gas put a little bit on cutting rates and have kind of delayed that.
And you know, the market still is doing good, and it's like people are just closing their eyes and thinking it's going to be rosy and again over time the market always comes back. But what I can tell you is, you know, our average median age of our clientele at Haven Financial Group is sixty five. The element of time becomes that much more important. So, you know, the comfort level with risk for those that we sit down
with starts getting a little bit less. But if they're unaware and don't understand how much risk they are taking, then the only way they really find out if something bad happens, and we want to avoid that before it happens and be proactive and not be active. Yeah, absolutely, Well, I think that a lot of people maybe are not fully aware of the benefits that might
be there for them should they hold off to draw social security. Going back to that issue, and I know that you have educational classes that you offer about social security, which I know that we say we go back to taxes, but it feels like to me, education about social security is very important for those who are approaching retirement age. Yeah, and I'd agree. I think there's a reason. You know, this past week we had a full class in Shockopye and we actually had a full class in Eden Prairie at the
community centers and they were very well attended. So people are eager to learn because a lot of what you don't know that the old saying is what you know can't hurt you, but it can hurt you decision making and the outcome of retirement. And you know, let's face it, these inflation and other things pose a risk to your retirement, you know, the fear of outliving your money, longevity risk. I had a couple in this past week,
like everybody in their family lives still triple digits. So the important thing is you have a comprehensive plan. It doesn't have to be complicated, but just do. It needs to be flexible, it needs to be tailored to your situation. You know, it's not cookie cutter, and we're going to spend the time and sit with you and help you navigate. You know, I think of John and Sharon from Farbow that we're in this week, and he's like, you have all these different personalities in house to help us with all
these retirement, important retirement decisions. He goes, it just seems too good to be true. Well, I always say, if it sounds too good to be true, it maybe. But we are here and we're going to spend the time retirement. You've heard me say it is more than a meeting once or twice a year for forty five minutes to an hour more needs to go into and by the way, you should, you should expect it. You should set the expectations, and most people are they're not getting the deliverance
of those expectations, absolutely, you know, Larry, it's interesting. Inflation too, I think has scared a lot of people into working longer or trying to make a decision as to whether they are going to work longer. So again that education about social security might make that decision for them. If you realize that instead of leaving your job at sixty two, if you stay for another two years and you have that option, it may be really worth your
while and advantageous. You can give people a clear outlook as to can we confidently go into retirement, do we need to work a little bit longer and put away or some people just need reinforcement that hey, things are looking good and you're in a much better position than you think you are. And then there's the other ones that are, I'm not so sure you should be retired because you're going to run out of money by seventy five. So again,
giving people the confidence in what their plan is. But if you don't have a plan, you got to start from somewhere to get to somewhere. All right, So I have a great idea for those who need a plan. How about we call Larry and the team at Haven Financial that number six one
two five zero four eight four zero zero. You call, set up an appointment, tell them that you heard it right here on the radio show, and go in and sit down and talk with members of the team about what you are planning when it comes to retirement and just how soon you'd like to retire and if it's the right move for you, and if you'd like you can also attend one of those great seminars that we heard Larry just talking about.
Now, social security is not the only thing that these educational seminars are about. And Larry, I know you have them about taxes, you have them about healthcare and also about long term healthcare. Correct. Yeah, we do a Medicare made Simple class. And Medicare is not simple, just by the way, but it's simple when you have somebody holding your hand navigating with
you. So Medicare. We also teach investment classes. We do a couple of retirement dinners where we not very many anymore, but we do have a couple coming up. Check out our website where we actually we speak on all of the retirement topics. We sprinkle in multiple personalities, carry our estate planning attorney, Lance, our CPA, glennar Medicare. It's really a wide brush of all the retirement topics and it really is helpful just to kind of get
people thinking about what they should be thinking about. Sure, absolutely so to find out when those dinners are. To find out when the next seminars educational seminars are, you go to Havenfinancialgroup dot com and you'll see them listed. There is very clear that they fill very quickly, so be sure that you check that out. All right, still coming your way, Let's talk in depth about how inflation could also affect your text burden. 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. 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 online at Havenfinancialgroup dot com. Kim, let's talk more about retirement inflation and other things that people can do as inflation affects their lives. Our favorite buzzword inflation. It's not really our favorite, it just seems to be. It just seems to be on everyone's mind all the time. You've talked so far in this show about tax burden and taxes in
retirement. We've talked a bit about Social Security and how inflation can affect that. Let's talk about how inflation affects your tax burden when you're in retirement. So let's get started talking about maybe some tips. Let's start with some of the things that you you should consider in your strategy when you're fighting inflation. You know, the solution to the negative impact of inflation is it really affects your budgets, and it's why in recent years people have had to modify or
adjust their budgets. Whether you're young or older. In retirement, you should have a budget of some sort that you kind of can keep you on track. And you know, now, what do you do well? Increase your income. Well, if you increase your income to meet the monthly expenses, now you may have more tax obligations. So it's kind of just kind of a snowball effect as you go right down the line. So other things to consider when it comes to types of investments people would look at, you know,
treasur reinflated protected securities. They're called tips, their investment vehicles, their treasur rebonds. They come in different time frames, they can adjust with the inflationary times during that time. You can buy them through exchange traded funds or directly through a broker. You know, in the last couple of years, I bonds became very popular. They peaked out a little over nine percent. That sounds really attractive, and we actually we actually encourage folks when they asked
us, we don't do them. You have to go to Treasurydirect dot gov to get them. Now. The key is you can only do ten thousand dollars worth a year, and there's some restrictions as far as accessibility when you can withdraw them. But at ten thousand dollars a year at nine percent, you know, we said, go for it. If you got some extra why wouldn't you sure absolutely, and then you've got other things that actually people are maybe not real familiar with. We are because it's we like to have
a discussion about everything, not that everything is for everyone. People utilize annuities that have what's called cost of living adjustment, or they're also more importantly called increasing income annuities. Annuities that produce income but have the ability to have a cost of living increase if the markets are good. They're called increasing in can you start at a certain rate if the markets are good, that monthly income cuning increase. So you know, with annuities, here's what I'm going to
say is understand them. Get educated. There's four types of annuities. You don't have to have any annuities. There's lots of financial marketing out there. You have to be aware of. The problem is lots of people have them. They don't understand what they have. And annuities can be complicated. They can have writers, they can have higher costs. Just understand the risks.
There's always pros and cons to different things. As long as they're explained and they fit what you're trying to accomplish and do, they can be very very effective in somebody's portfolios. The problem is, you know, not understanding and I'll just tell you this. There's variable annuities, there's immediate annuities, there's fixed annuities, and there's fixed indexed annuities. There's four types. Two of them are very different than the others. They can be part of a portfolio.
The problem is if you have one and don't understand it, bring it on in. There's no cost for us to look at it and say, hey, are you aware of this? This or this. I just had a gentleman in and he had all of his money in annuities and that was completely the wrong move. And he admitted, he goes, he just really didn't pay attention. But you want a good balance, diversification, efficiency,
and again it starts with the education piece. Tell me the good and the bad and the ugly, and let's see if it fits into the equation. Yeah. Absolutely, all right. So we've talked about these four different strategies that could increase income during inflation. Are there other strategies out there that maybe are not affected by income? I'm sorry, by inflation. Well, you
hear about these things when inflation's high. Why is there more gold advertisements on TV than ever, well, they always say they're a hedge against inflation, gold and precires metals, and I want to disagree with that. It's how liquid are they? Do you really want to hold physical do you have the ability to store it? So? Do you actually do you actually have gold larry or are you just investing in gold? You have both options. You can invest in physical gold, gold coins, bullion, or eat gold ETFs
or something like that. Nature. You know, some people would say, well, some utility stocks or oil stocks because people always need oil. There's certain you know, artwork, you know, commodities, you know, these are all you know, things that people turn to, especially in high inflation, or you know, certain things that people are always going to need, you know, healthcare, those types of types of things. But again, evaluate based upon where you're at in life at this stage of the game.
How much risk do you really want to take or need to take? You know, the willingness for risk, need for risk, and ability to take risk. You know. I had another couple, Frank and Diane from also from Northfield this week. They didn't know how good they actually were positioned, and in our conversations they were sitting very very good. He worries and worries, and she the more he worries, the more she worries. But in their situation, they go, why are we taking as much risk as we
are? Because I guess we really don't need to. And I'm like, you said it, not me. So we made some adjustments to their portfolio. So it's again stress tests, avoid the mistakes. Again. The element of time becomes that much more important as we get older. For sure, if I go back to some of these options that you've told us about that you can put your money in during inflationary times, they may not increase your income, but your money seems to be pretty safe. They all sound like
things that are for people with a lot of money. Again, you know, gold and real estate and art and oil and bonds. That all sounds like that goes to people who have money. What if you're just the average Joe and you're just trying to protect your money during these inflationary times, and you know what, that's the average Joe is who we work a lot with.
Yes, we have high networth clients, but the average show is the middle class who we work with a lot with that you know, has a little doesn't necessarily have a lot it needs to make them it last a long time. Again, looking at all the options. You know, if income is important, we're going to gear you know, guaranteed income to supplement any social security or pensions. We'll look at something that can actually help with that.
If you have plenty of income, which some people are blessed to have big pensions and a lot of social security, and you know what, they're not even going to really touch their investments, borring any left changing moment of course, like nursing home, but that's a whole different topic in itself. We'll look at just moderate conservative type investments where you know the pendulum doesn't swing too far this way or that way, whether they don't have to panic emotions
can come in, and psychological emotions can come in. With money, we need to weather the storm because we know there's a storm coming eventually. However, in the south metro of Minnesota here, I don't remember the last time we actually had storm, and we need rain really bad. But again, preparing your I always say prepare for the worst and pray for the best. By doing that, I think you put yourself in a really good position.
All right, If you'd like to chat with Larry and his team. You can reach them at six one two five zero four eighty four hundred six one two five zero four eight four zero zero or even financialgroup dot com. I certainly don't mean there to be any kind of negative connotation when I say average Joe. Most everyone is going into retirement not necessarily being blessed with those big,
huge dollar amounts. I mean, when we talk about these individuals, we're talking about just about all of us who just want to go into retirement and be comfortable and do the things that we had planned for for a long time. Right yeah. I mean again, you don't have to have a ton. Whatever you have is yours. Sometimes feel people that people feel like, my goodness, I just haven't done a good job. They're embarrassed.
There's nothing to be embarrassed about other than hey, life happens. Life's calendar doesn't always cooperate with yours. You know, some of us are dealta a little bit different hand than others. Whatever you have is yours, and you don't have to do it alone. You know, there's tons of reasons why partnering or have somebody partner with you and meeting with the financial professional that can hold your hand, answer your questions, educate you, and spend the time.
You're worth the time, whether you have a little or you have a lot. Absolutely, and these are very intricate issues, you know, these tax issues, inflation, cost of living, these are all things that you know, people like you, Larry, this is what you do for a living. But everybody else while you're busy outliving, you know you maybe aren't keeping up with the very latest. So again another reason to partner with someone or a group like Haven Financial All right, still coming your way. We're
to talk about the required minimum distribution age of seventy three. That age just changed too, didn't it, Larry, it did. It's changed a couple of times in the last two years. So yeah, seventy and a half to seventy two to seventy three and in eight years seventy five. All right, you're listening to the Haven Financial Group Radio Show. Don't go too far. We're gathering more important insights and retirement. Please Devin the Haven Financial Group
Radio Show. We'll be right back. Stick around. You've got questions, We've got answers. Your tune to the Haven Financial Group Radio Show with your host Larry Kulvig. And Kim Karrigan. Now back to the show. Welcome back to the Haven Financial Group Radio Show. I'm Larry Kolvig, founder and CEO of Haven Financial Group. Thanks for tuning in this morning where we're talking
more about all the retirement topics that you maybe have questions on. We're here to answer those questions, So again, give us a call at six one, two, five eight four zero zero. You know, it's hard to believe that at seventy three you actually could face a tax burden that's even greater than one that you've been facing maybe for the last five eight years. And that's of course because you have a minimum distribution that comes up at that time
you have to start to pull money. So let's talk a little bit Larry about some of the strategies and some of the suggestions that you give your clients when they start to approach that age of seventy three. Well, it's why we're big into I've said it many times, forward thinking tax planning, not just preparation. Again, we're in the middle of tax season. Yes,
get your taxes prepared, but you should really avoid surprises. There really shouldn't be surprises, and I can't tell you how often I hear every year we owe, every year we owe. Well, why don't you fix the problem and avoid having to do what you don't like to do, and that's write a check to the eye on tax days. So by planning you can avoid
that. Now, as it relates to retirement, you know, if you're listening and maybe you're in your early sixties or whatever it might be, and this could pertain to anybody really, and maybe you retire and those early years of retirement, your income is a little bit lean. Maybe you've you're living off savings, you're delaying on Social Security for good reason, and income is
just really lean. Well, that's an opportunity that people have had in recent years because historically low tax brackets that are going to sunset at the end of twenty twenty five and go up in twenty six. That's where roth conversions have
been more popular than ever. It did not affect everybody the same, but so often we have conversations and go through our process and find out what they did last year, only to find out they missed an opportunity because nobody told them that they had thirty thousand dollars of conversion room and they missed it. We don't want to miss those opportunities. So it's why fourth quarter we talk
with everybody about tax planning. Now the R and DS. Yeah, eventually, god willing, we're going to get to seventy three and eight years to seventy five where if you've put money away in pre tax money, is that being for one case, traditional iras, you've never been taxed on it, but they're going to force you to take it out at that age. If you're a married couple, then you've about the same age. Here's what we hear, Larry. We make more money now than we did when we were
working. That's wonderful, but what are the ramifications pay more in taxes. So if we can do things on the on the front end to minimize on
the back end, hey we're ahead. So again taxes are relevant. Yes, they're not going to go away, but again, planning for those we got to take And that's why you're going to want to roll back to our earlier conversation for one case to tradition traditional irays, because those are handled differently if something happens to you as far as beneficiaries having to drain four O ones
in five years compared to iras and ten. So we're gonna have a lot of discussion with these required amend of distributions, just so you can be prepared for what's coming your way. And you know, I think of Dan and Marlis from Lake Lakeville. They had an opportunity last year and they said, well, our tax prepared told us after the fact that we missed an opportunity. We don't again want to miss those opportunities because they might not be around
come much longer if taxes go significantly up. Sure. So so let's walk through some of the odd suggestions that you give to people who maybe did have a four oh one K and they have left it, it has sat and now it's time and they have to start to draw that out. Where where do we go with that money? Or how soon after they've retired should they have started to move that money around? Well, usually wait till the last the last paycheck goes in and all the dust is settled, personal time,
whatever it may be. But there's there's no there's no rush. But then there's no really reason to wait either. Because employer sponsored plans they fulfill their purpose of kind of force saving in your working years, but they have limited investment options. You don't have everything on the menu that you have on the open market. You know our platform that our investment team uses, Charles Schwab, Fideliti's good, Vanguard's good, there's others that are good, But we
have the whole menu and those plans. You don't so rolling those into an iray or your wrath for one K. You should also roll into a roth ira and then investing them in the way that best fits you and talking through all the different avenues that are out there. But there should be no reason to wait. And you know, consolidation and simplification is extremely important most of our clients. Hey, the simpler you can make it the better. Yet
you still can maintain diversification. You know, sometimes people think, well, I got a yellow statement, a green statement, and a blue statement, I'm diversified. Yet their portfolio is almost exactly the same and all three of them. That's not diversification. So you don't have to make it complicated, but you can make it much more efficient by creating the right recipe. Okay, so let's wrap You know, we've talked about this throughout the entire show
today, but let's just wrap it around one more time. Some of the ways and strategies that you can mitigate an increase tax burden once you start to you get to that, you know, minimum drawing age. Yeah. In fact, you know, in our conversations with everybody, which we ask a lot of questions, we have our process is, you know, if listeners are if they're charitable. Now you don't give charitably for tax reasons, but
it can free up a lot of different tax opportunities in retirement. You know, we have clients that are charitable, they don't need their required minimum distributions, so they set up a qualified charitable distribution to their favorite charities, their church or whatever it might be, and there's tax benefits for both sides.
So that's certainly an option. The Roth conversion I tell talked about has been an opportunity if you have some old stock that is a cost basis of really low and it's actually a lot higher now and man capital gains taxes zero if your income is low. So again it's why tax planning we come back to tax planning lance is our CPA. People can't believe quite frankly, because whoever
they're working with in taxes, it really isn't talking about investments. There should be the coordination of all these retirement puzzle pieces and they really should work together. Lance will come in with me in our meetings. Still have his computer. You know, he's a CPA. He gets giddy about taxes. He likes to explain things. He has a whiteboard. There's someone out there, huh, there is, and he will sit in and will crunch numbers.
And nothing is better than when I hear nobody has ever spent the time to explain it, walk us through it, and we find that is to be the biggest key in retirement planning is you know, listening and caring. And I'll walk through you know. Our process is this no matter if you come to a workshop, you're listening. You come on in small, medium, are large. You know we're gonna sit down with you and we call it the discovery process. You get to know us, We get to know you.
We're not perfect for everybody, but I'll tell you what you know. We've seen a lot. We have many, many years of experience on our staff, and we'll come up with some strategies and implementations. All we ask is people have an open mind. And you know, once people visit with you for several times they're like, you know what, this is actually working and we'll help with it. We do the work, we work for you. And then I always say, there's no quota is how many times we
can get together. You know, if you need more attention, we're going to spend the time. If you don't need as much. But we're here, we're available, and we're not stuffy. We have our new space is open, we have some wiggle room, we're not on top of each other, and it looks great and at the end of the day, we want to the joy we get. My wife Richelle says that the best is helping people and it sounds cheesy, but you know what, that's the fulfillment in
helping people, no matter what it is. Right in retirement, it's fun to help people's that's so great. It's so great. The number is six one, two, five zero four eighty four hundred, or you can go to Havenfinancialgroup dot com. One final question from me. If you have someone listening who's had a tax accountant for years and years and they've had a long time relationship with them, and so they have a plan, but they're wondering
if that plan will adapt to retirement. Can they bring that in and show it to you guys, and you can walk them through whether it's a good plan or not. Absolutely, there is no cost for that, you know. I always say there's nothing wrong with do it yourself if you're capable and you understand the complex tax code. If you don't know if you're getting things done right, if you're a tax person, maybe is close to retire, ironment or what have you. You know, we have newer clients from actually
Savage, who he's done his own taxes. His wife says, I don't think I really want him to do taxes anymore. But this is the last year. He called me and said, would you have Lance just take a look to make sure I didn't make any mistakes. Lance did it. He did it himself. Next year he'll do them, but we'll look anything over again. There's no cost, there's no surprises, and you know what, I think that's a good thing to do. You know, if people say, well I have a guy or have a gal and I have this,
that's fantastic, but there should be some accountability. I see a lot of people paying too much. Nothing's free, but what are you paying for what you're getting? Sure, and a lot of people don't know. And in this industry, in this day and age, I don't think there should be any shyness about asking and knowing what you're paying for, what services you're getting,
well is what you well know. What happens, I think to a lot of times is that you build a relationship someone and you don't want to offend them, but you do question whether you're getting the kind of service that you need at this stage in your life. So again we want to really
encourage you. If you're someone out there who is looking over your taxes right now wondering if in fact you're on the right road, if this is the plan you need as you head toward retirement, give even Financial a call six one two five zero four eighty four hundred six one two five zero four eight four zero zero, tell them you heard us here on the radio and set up an appointment, or you can go to the website. It's even financialgroup
dot com. Another really informative show today, Larry Yeah, with great to be with you. You don't have to navigate these rocky waters on your own. It starts with a conversation. Again. Sometimes people you know they're afraid to come in because they're going to get the fear that they're going to get
sold something. Not the case. Not the case, you know, sign up for a retirement readiness review to visit with you, no strings attached, get to know us and uh you know you should ever feel guilty about getting a second opinion. Have a great week, Larry you as well. Good to be with you, Kim. Thanks for listening to the Haven Financial Group radio show. Tune in next week or visit. Can give us a call at six one two five zero four eighty four hundred or Havenfinancialgroup dot com.
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