You 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 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.
Thanks for listening.
Feel free to give us a call at six one two five zero four eighty four hundred, or visit us online at Hanfinancialgroup dot com. All kinds of great retirement tools on the site, even down to recipes and things that others have shared with others, and again our classes, we teach them almost weekly. Kim, and by the way, great to be with you, So feel free to come on out there educational.
There's no cost.
We provide all the materials and we even have a little fun with topics that might be a little bit dry.
I love that. Yeah, that's terrific. And we'll tell folks more about some of those educational seminars that are coming up in the area as the program progresses. Each week we like to take a look at different aspects of retirement, and today we want to talk a little bit about some of the questions that guide a good retirement. I'll bet you those of you listening have lots of questions.
Maybe you're in your you know, early to late fifties, and you're trying to determine when you should retire and if you're ready, and the big question everybody as is do I have enough money to retire? So these are some of the things that we're going to try to address as we progress through this show. Today. First off, we're going to talk about the age that's best to retire, and then understanding retirement savings at the age of fifty.
So in other words, we're going to be talking to some of our younger listeners, and then estate planning, a family conversation, and finally we'll round things out with retirement accounts and your taxes. We can't talk enough about taxes and tax planning in retirement and before retirement, just how important that is. So Larry, as we get started today, we're going to talk about what age you should retire.
And I feel like the answer to that question is one that I've heard from you numerous times, and that's it's such an individual thing.
Well it is, I'm circumstances. Do I want to work? Do I hate work? Do I am I sick of it? Or do I love my work? And there's a variety of things that go into that. It's the biggest question do we get when should I retire? When should I start thinking about retirement? And by the way, it's never too early to start thinking. And hopefully but that first time you ever saved money in your four oh one k now you already started thinking, So it's never too early.
In fact, they're earlier the better. The power of compounding and everything that goes into saving money. As you get closer though. We're going to take you know, social security is a big discussion piece. You know, do I take it early?
Do I not?
You know, do I earliest to sixty two? What's my full retirement age? It's going to be somewhere between sixty fives and sixty seven. The latest you're going to take it is seventy. That's going to be a discussion. And then we're going to look at what all your what are all your income streams? Do you are you fortunate enough to have a pension? You know, what type of investment accounts do you have? What are the sources And we're going to roundtable that and have that so thought should go into it.
It's never too early.
And by the way, if people have questions, there's all questions are good questions because it's your question. Our job description and what we love to do is answer those questions. It kind of bothers me when I hear this over the years, that and I've had a question for twenty years, Well, I wish you would have asked it or I would have known you, because we want to get answers to those questions. If we don't know, we're going to find out the answers because those answers are extremely important.
Absolutely. Well, when we discussed this issue of when should you retire, let's just start with the fact that Uncle Sam has made some decisions about what is the retirement age. So if you want to full benefits of people can draw their Social Security at sixty two. But now retirement age for anyone born after the nineteen sixty correct is now sixty seven years old versus sixty five.
Yeah.
Correct, There's been changes. There's going to have to be other changes. The solvency of Social Security isn't where it needs to be. But be careful, you know, everything is political these days. Everything is political. The Republicans, you know, don't have to out at raising the retirement age. Yeah, kind of Democrats want to keep it the same Congress. You know, they got a tough you know, they're in
a tough position. We're not going to get into, you know, are they you know, robbing the cookie jar to pay some other stuff which also has been a Social Security has been highly politicized for years.
Do I think it's going to be here?
Absolutely, And that's just one of the you know, retirement income streams that you should be looking at. Have I said it numerous times on my show. Do I think many Americans have become too reliant on it?
Yes?
It was never designed to be your whole, comfortable lifetime income. Now with that said, I understand circumstances and life happen, and sometimes it's not fair. But there's going to have to be some changes in Kim.
We're not going to like these changes right right.
Well, besides the idea of changing the age, I know there's been talk about maybe even doing what they do in Australia, which is a flat benefit.
Yeah, that proposed reform that have to have a transition period, of course. It's a flat social security benefit that's really equal to the individual over the sixty five poverty threshold and available to all retirees regardless of work history. Now that would be a that would be a drastic change. Is it possible, Well, anything's possible.
You know.
Other of the types of things that they're talking about. The reforms they've talked about that I said won't make us happy because you know, listeners and myself and you we've been paying into the system for years. Of course we want some of our money back. And these reforms they're talking about, like lowering them ount that they're going to send you, Well, that doesn't make.
Me very happy. Or if you've done if you you know, means testing program.
You know, if you've done such a good job working, working, and yours is well, then we're not going to give you so security you're not going to get it means testing, delaying the retirement h you know, I've heard recent discussions that's seventy they're talking about raising it to seventy possibly, you know, I know a couple of summers ago in France they raised it from sixty two to sixty four and there was.
Rioting in the streets.
Yes, I hope that ever comes to America. You know, raising the income age, that maybe they could tax all of your income. It's possible. Sure, it would make it people happy. And you know the one that they also was discussed is social security is a formula. It is a formula. Now we're not going to get into the weeds of the formula. But what if they change the formula and I cut and I say, I'm.
Sure they would discuss that. They'd discuss that.
With us first, right, Kim, Oh, sure they would. I'm sure they won So yeah, exactly they'll change it and then let us know and then we'll read it afterwards.
Right, Okay, we won't go there.
Today, but at the end of the day, these are all the things regarding social security.
So here's the deal. Evaluate what you have.
This is in our process that we use at Haven Financial Group. You know, what are your goals, what are your objectives, what do you have to deal with? And let's face it, sometimes people bury their head in their sand and they're embarrassed. Or whether you have a little bit, you're listening and have a little bit or a lot or everything in between, whether you're twenty or a hundred and you're listening. Whatever your situation is, your situation, don't
feel bad, don't feel that. You know, come on in. There's nothing to lose, there's no cost. We're not there to sell anything whatsoever. We're there to help our clients navigate through retirement, through the good, the bad, and everything in between, and answer questions. And you know, when you have more conversations and you develop the confidence, and you only get that by having a partner that really cares. Okay, and we need to care and we do care, and
that's that's what our clients feel. And you know, retirement is it's a feel You know, you got to feel good because otherwise you're not going to sleep at night, and that doesn't do anybody any good.
No, absolutely not. And you've worked too hard all of your life to get to those golden years and be miserable because you didn't ask the kind of questions that you needed to ask and make the kind of decisions early enough about what would make you comfortable. Six one two five zero four A four zero zero. That is
the number you can call. That'saven Financial Group. Tell them you heard us here on the radio and that you'd like to come in and you have some questions that you'd like answered, and you'd like to talk with the experts there to learn a little bit more about the services and to talk to them about some of the things that you'd like to accomplish in your golden retirement year. Six one two five zero four A four zero zero.
You can also go.
To Havenfinancialgroup dot com. I really really want to I want to stress to the folks who are listening that this is a great website. Take a look at it. As Larry said earlier, there's all kinds of fun things there on the website, but there's also information about educational seminars that Haven offers. We talk about these every week and can't tell you enough about how great they are.
They're free to anyone. You don't have to be a client, but they do like a headcount and they do fill very quickly and you will find there when you go to Havenfinancialgroup dot com all of the different topics that are being taught. Education is the key, isn't it When it comes to.
Education is the potential for power. Yeah, education is the potential for power. It's what you do with that that matters. Look, sometimes the financial landscape changes. Tax rates can change, Medicare changes, contribution limits, interest rate, environment change, or something else.
You know, these are the things.
That we address on an ongoing basis to our existing clientele and to those that come out to the classes, and anybody that knew that comes in and visits. These are the things that we're going to keep you abreast of to make sure that you're not missing out in something I call it unforced airrors. We're trying to avoid the unforced areas or the mistakes that other people make.
Let's try to avoid.
Them absolutely, all right, Larry, When we come back. Let's talk a little bit about understanding retirement savings while you're in your fifties. Fifties, you know, that's when when you start to talk a little bit more about maybe what some of your goals are and you start to wonder, am I on the right track. So we're going to talk a little bit more about that right here on the Haven Financial Group Radio Show.
Don't go too far. We're gathering more important insights and retirement ways DEVI the Haven Financial Group Radio Show. We'll be right back. Stick around. You've got questions, We've got answers. Your tune to the Haven Financial Group Radio Show with your host Larry Kulvig and Kim Karragan. Now back to the show.
Good morning once again, and welcome to the Haven Financial Group Radio Show.
Thanks for listening.
Give us a call six one two five zero four eight four zero zero or visit us online at Havenfinancialgroup dot com. Every week, Kim, we talk about retirement mistakes, things to do, not to do, and again these topics now aren't necessarily the most fun things to talk about, but they are so important whether you're fifty years from retirement or five years, or maybe you're listening in your in retirement things change. Of course, you and I don't change km, but everything.
Else changes, right, everything around us?
Yeah, right, keep up to date on these changes because just when you figure it out, then they change the rules.
Yeah, that is so true. And you know, I know that you keep saying it's not a fun topic, but it really it can be fun because you can start, you know, thinking about and dreaming about what those retirement years will be. If you've got a good plan in place and you're comfortable, it can be a really positive experience. And in your fifties, I think is when you really start to think about that and you start looking at
the you know, the bottom line. When it comes to your four one K and you start looking into some of your investments, you start to wonder, am I in you know, stocks that are too risky? These are the times when you start to have a lot of questions. So let's talk about where you should be in your fifties. And again, Larry, I know that it's not cookie cutter. This is not everybody, but just some general points starting with your four h one K. At that point, where should you sort of be?
Yeah, you mentioned fun, Kim, anybody that's been into Haven knows that we like to have as much fun with serious topics as we possibly can. Whether it is investments, or it's medicare or state planning, we do like to have as much fun because again, some of these topics
can get dry, but they are so very important. But you're right, you get close to your fifties, Well, really, any anybody that's been disciplined should have started saving for retirement when they first got a job and had a four oh one K. And because again the power of compounding is so powerful, and those that did start early are going to reap the reward. Those that started later are going to look back and go, why didn't I
start earlier? And you know, the things of the past, like pensions that used to be the reward people were given for working in a position of the company for a long period of time. Those have been on the decline for many years now, and historically they were replaced by employer sponsored plans four oh one k's, four O three b's, deferred comp TSP. Those are all different names that are synonymous with employer plans, and they can have tax advantages in the form of pre tax that can
reduce your tax liability in the given year. It could be wroth that are taxed upfront but never to be taxed again.
And if you have that.
Available, make sure you look at the way the pros and the cons and then eventually you'll have to start taking money out of those.
But when I.
Say make sure that which ones are right for you, it comes back. It comes back to the tax discussion. If you're a high income earner, maybe they're getting that pre tax. Pre tax makes a lot more sense to reduce your tax liability in the given year. There are
some income threat Schultz for roth contributions. If you make too much money, you might not be able to contribute, but you might be able to do backdoor roths, which we won't get into the weeds of that, but I do have clients that are in that situation and they do backdoor. They put it into an IRA, don't get the tax benefits, and then they back it in that way.
So there there's sometimes a method to the madness that if you're not if you're doing it alone or not working with somebody, you might miss those opportunities.
Catch up contributions.
If you're over fifty, you know you can put up to eight thousand dollars, you know, the seven thousand plus the additional one thousand. You know, these are the types of things you want to be doing. You know, over time they can make a very big difference for the success or potential success for your retirement.
So give us some points, if you will. You know that people listening can just sort of put themselves in. When you're in your fifties and you're working, where should your dollars be when it comes for one case.
Well, I can't tell you based upon a study by Fidelity here recently Fidelity Investments, which we our investment team. We use Fidelity and we use Charles Schwab as our trading platform and manage quite a bit of wealth.
We're not small by any means.
There's a discodect Americans that they have saved less now of these days than ever before, and they're below the averages of what we would like to see. And you know, I'll tell you this the media if you want to just kind of put yourself on the grid medium for when K balances for those in the fifties today is just over sixty grand, probably not adequate by any stretch.
And that's that's a problem. Average for a one K balance for Americans in their fifty the average is about just under two hundred thousand.
Okay, now we're in the game.
Now this is individual and if you're behind the eight ball and you've been slow and haven't been doing it, well, now it's a good time to start look at doing it. But why have people why is the WHI are Americans lacking?
Why are they behind? Well?
Number one, we've seen extremely high inflation. We talk frequently on the show about however, the costs so much housing costs and methemtical and all that stuff. So the savings rates have really been deprived, especially in recent years. And for many people, even listeners, I'm sure they might have even depleted their liquid accounts here in recent years, they've had to tap into them. And if you can turn
the corner and start building those bags back up. I do talk about we talk about frequently we like to see for retirees, you know, fifty to one hundred grand liquid liquidity is important. And then making sure that you have the right amount of risk investments, the right amount of risk, not the wrong amount of risk and mayble some investments that you don't have any risks that are
getting some decent returns. So we're going to look at all the different options that are on the menu, not just some of the options, all of the options, and try to come up with some strategies and solutions that one may have not thought about before and that they maybe should be thinking about. Maybe that's conversions. We help
a lot of people in that area. And again, if you're not if you don't have a partner to lean on in investments, in taxes, in healthcare, in a state planning, now's a good time to come up with a partner. And again, Kim, these should be coordinated because all of these things go together in retirement, and you and I talk about it every week.
Some of those solutions, I know you've already mentioned them. You can get involved with catch up contributions for your your for one k the timing of taking your Social Security benefits. Are there other strategies.
Well, maybe you're relying, you're going to rely on an inheritance. Maybe there's an inheritance that's coming your direction point. And we hope those loved ones, whoever's we hope they live a long, fruitful life. It embarrasses me times when I see folks that are well, I'm gonna get an inheritance, but they can't wait for that person to pass away. It's like, are you kidding me? How are you owed anything? But having an estate plan is a good is important.
You know, Carrie and Anna and Keith are estate planning attorneys. We're able to help a lot of people in this area because it's extremely important to have a will, to have powers of attorney, to look at maybe having a trust. Do you want to avoid probate? You know, we've had Carrie on the show here a couple of times. It's great to have her on once in a while, just to hear it from an estate planning attorney specifically. But
are you counting on that inheritance? Be careful there, maybe be more reliant on your own plan rather than somebody else's legacy plan. How is that inheritance if you are going to get it, how is it going to be taxed? Again, there's difference between states, of course, and let's face in Minnesota as a high tax state, there's no doubt about it. And how will that inheritance fill the gap of income
if that's what you're relying on it to do? So again, there's strategy there can be immediate strategies, there can be some delayed strategies. We're going to look for solutions and remedies that a lot of times if you're doing it alone, or you're doing yourself, or that you may not have thought of. Again, that's where it comes back to education is so important, Lari.
We've talked about for one case, there's certainly a way to save for retirement, but not everybody has access to a four or one K and they're not the only thing out there. So what are some of the things that you might talk to somebody in their fifties about.
Well, brokerage accounts, after tax moneyes. Maybe you don't have access to an employer sponsored plan, maybe you're self employed. What about a SEP plan? What about a simple plan? Those are important and by the way, HSA plans, if you do have that available and you're listening, please max that out. We love probably HSA is more than we like roths, although we do like roths a lot as well.
But you know, give it some thought.
You know, four O one case can be great, but maybe there's some other options that are on the menu that have it looked at. Look at the tax advantages now tax advantages later? What brings more value to that? You know, four O one k's aren't the only retirement
tool out there. And if you're not sure, and if you're not sure how to maximize and you're not sure, that means you have questions, and that means why not give us a call six one two five four eighty four hundred or just come in and a visit with us to see am I on track? How do I get on track? And what does on track look like? Based upon my age?
Right now? Hey? Why not?
You have nothing, nothing, nothing to lose and feel and again, don't feel like, oh my goodness, I'm so embarrassed. Well, we're all going to be embarrassed at some point in life. And if this isn't anything to be embarrassed of, if you're not on track, why not get back on track right now?
Absolutely? When we come back, well, let's talk a little bit more about a state planning and how important that is when it comes to putting together your retirement portfolio. 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.
Good morning once again, and thank you for listening to the Haven Financial Group radio show. I'm Larry Kalvig, founder and CEO of the Haven Financial Group. Feel free to give us a call at six one two five zero four eight four zero zero or visit us online Havenfinancial Group dot com.
Check out the classes that.
We have almost every week and those range from Maximize Social Security and Tax to Medicare Made Simple classes to Annuity the Truth about Annuities class Kim. I think it's coming up in a couple months as state planning, wills, trust and legacy planning. All of these related to retirement, whether you're years from it, are in it.
Hey, education can be very, very powerful.
And maybe you haven't looked at your stuff or whatever you have, and maybe you don't have anything. What if you haven't looked looked at it in a long time. This isn't something you just throw on the shelf and never look at it again. This is an ongoing thing. And again, what better than a good partner that's going to that you have to lean on. So you know, Kim, is state planning another one of those topics.
Yes, it certainly is, and it's not an easy one. You know, nobody really. I know that as a child, I never really want to sit down with my parents and talk about their estate planning and you know where they want things to go and how they wanted to do because you want to just say, oh, no, everything is going to be okay. But unfortunately life isn't going to always be okay. And I know that my kids have absolutely no interest in talking about that. They're very
quick to cut us off. So these are hard conversations.
To have, extremely extremely difficult, and all families are different.
You know, some can.
Handle this a lot better than other families. Some families have circumstances that maybe you can talk about, or maybe unfortunately you're dealing with a child that has drug or alcohol problems or a variety of different things that can really throw a curveball into this discussion. Now, you got to treat this conversation with empathy and compassion and a
certain sort of personability. This can be very emotional. Again, beneficiaries are so important, but you know having something when we think of on a state plan what are your wishes? Now you got to think of it to state planning as when you're living and when you're gone. And you know, what's the old saying, Kim, Life doesn't always cooperate with
our calendar. Nothing's ever going to happen. Nothing's ever going to happen until something happens, and eventually something will happen, especially when it comes to mortality, because last time I checked, that's one hundred percent. I heard there's an exception and it is Sunday morning. We could talk about that as well. But at the end of the day, you know, when you're living, you know powers of attorney, Well, my spouse is my power of attorney? How so well just by automatic?
Not true, there is no automatic. I've appointed my wife, Rachelle, to be my lawful attorney. In fact, if something happens where I can't speak, God forbid, I get an accident, and if she can't then obviously now I've appointed. My father and my mother are still with us, and at some point I'll make our four daughters. But we'll have that discussion for decision making, ability, for financial decisions, for health care, decisions, medical decisions. You know, a living will.
It's not going to be fun to fiddle out. It's not going to be fun to talk about. But if you don't have control of your affairs, then who has control of your affairs?
Is it the state?
Through conservatorship and guardianship? Guardianship meanings now the state is your parent. Conservatorship means the state has your checkbook. I don't want them to be my parent or have my checkbook because I can't speak. This is applicable, Kim, to anybody that's eighteen years old and I like to carry our state planning partner. She gives that as a gift to kids when they turn eighteen and they graduate from high school.
What a great gift because it applies to them.
So these are when you're living, and then of course when you pass away, that's a whole other set of documents that you don't have to do. You don't have to there's nobody going to make you do anything. But if you don't die with a will, the state already created a will for you. I know that's not the will that you want it for you and your spouse and your family. So creating a will, looking at the trust if it's necessary. You know, don't get talked into
something that you know you don't need. You know, I do know that there are people that try to talk to people that everybody into getting a trust, a revocable trust. Now, they can be a great benefit for many, many individuals and couples and families. But if you don't need something, don't.
Get it right.
But if you do, I sure hope you have it. You don't for many you only get one chance, and if it doesn't work, you don't get a redo. I get kick out of I love people that, you know, like to do things themselves. You know, I like to save a buck where I can save a buck. But when I get on the plane, I'm going to let the pilot fly the plane. People that try to do their own legal documents, you know, we're in a very
litigious society. Doing it yourself in the legal work world can be very costly, and you don't want to you don't want to shortcut something, especially like a state planning. Now, don't pay more than you need to. But having the right documentations, having your beneficiaries word it properly, all this is so extremely important, Larry.
One of the things I feel confident it's happening right now. People who are listening to us are thinking, well, I really don't have enough, so it's really not an issue. I'll just help you know my son that he can take this house, and that's that. And that's not the case.
I hear it.
Well, I'm not rich or wealthy, so this doesn't apply to me, right, Well, probate in Minnesota is seventy five thousand dollars of assets. It doesn't take a lot to get to seventy five thousand for a formal probate. Well, trusts are only for rich people. That is completely not true. Now they are for wealthy people if they have an
estate tax problem. So, but you don't have to have an estate tax problem to want to avoid probate or incondestibility provisions, or maybe you have a special needs situation with one of your kids. There's a lot of different control control mechanisms that can be put in place, you know, simplifying and consolidating.
We do a lot of that.
When it comes to investments. People have things spread out all over. Well, that can be a headache for folks if somebody passes away. So all this is part of the big picture of state planning is a very broad topic. Yes, there's legal documents that you should have. Yes, it's not fun to talk about, and it can be very emotional. And you really got it. You really got a tiptoe around the best of your ability. But you also, you know,
I tell you this, we also see unfortunate situations. And right now we have a client that has a mom that they have multiple kids, and the son is trying to strong arm the mom into doing it his way, and mom is in well in her eighties and she doesn't want to do it that way, and you know, we're you know, we're in a position that this is mom's situation. The son trying to strong arm that's a no no. So again, some of this can get really dicey, and it's our whoever you're working with, to really help
you navigate through that to avoid this. A couple last week that was in We've been with us for several years and after their tax meeting with Lance, Lance does their taxes. I went back to Lance and I said, well,
how'd that go? Well, taxes for them went great, but unfortunately they lost he lost the WAFE lost mom and dad last year and mom and Dad didn't have adequate estate planning, and because of that, there's a lot of moving pieces, unfortunate moving pieces, and tax implications and headaches, if you will, that could have been avoided had they been done properly. And again it's too late. The kids are having to deal with it, but avoiding these mistakes
could have happened. And again I hope they're going to avoid it because now they know absolutely.
I feel sure that what you've just said rings true with a lot of people. Whether you're someone who maybe has lost loved ones who were not prepared, or you're not prepared and you want to make sure that you are. You can give the folks that Haven Financial Group a call six one two five zero four four zero zero six one two five zero four eight four zero zero. You don't have to be worth millions and millions of dollars to take these kinds of steps. As Larry said,
the threshold in Minnesota seventy five thousand dollars. And if you own a home, or you own a couple of cars, you own, you know that a life insurance it all becomes something. So be sure that you give them a call. This is all Larry, part of we've talked about it. But you know, this is all part of a full plan for retirement because state planning, you know, is really important in all of this big portfolio plan.
Everything's connected in the retirement cam. It really really is carrying. Anna and Keith are our state planning partners. And by the way, if you're listening and your ears are ringing and go, wow, I just don't know if my stuff's in order or not, there is no cost for a thirty to forty five minute consultation with them. Just call us up and set us up here at the office at Haven Financial Group.
But it is it's a state.
Planning encompasses your investments, the right beneficial interest on your accounts, to taxes, to medicare and healthcare, long term care, all those retirement puzzle pieces. Either they're working together or they're working a part. And if you're trying to piece me a it, they could very well be working in different
directions and you can. We're celebrating our ten year anniversary here at Haven Financial Group, and the goal when I started the company ten years ago was truly to have multiple personalities in all these different arenas underneath the same roof. Now you don't have to have them all under the same roof, but it's very difficult to coordinate all these retirement puzzle pieces.
If they're not now it can be done.
But the number one complement, and again our tenyear anniversary this year, the number one compliment, and I'm very proud of it, and I think I should be is when I get this, Larry, it's so nice to have all these different personalities in the same office where they're connected and they're talking to each other.
And that's a big, big plus.
And that's a big, big asset for us as we try to help people, but also for our clients knowing they're being well taken care of in all these areas.
And again we're.
Very proud to have you having our tenure anniversary this year.
Well, congratulations to you and all the hardworking folks there at heven Financial. All Right, folks, when we come back retirement accounts and your taxes Texas Texas taxes, it's tax season. Are you prepared? Maybe you weren't prepared for this year, but you want to get prepared for next. We're going to discuss that when we come back right here on the Haven Financial Group Radio Show.
Don't go too far. We're gathering more important insights and retirement payeevinent the Haven Financial Group Radio Show. We'll be right back. Stick around. You've got questions, We've got answers. Your tune to the Haven Financial Group Radio Show with your host Larry Kulvig and Kim Karragan. Now back to the show.
Good morning once again, and welcome 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 eighty four hundred. Visit us online at Havenfinancialgroup dot com. We teach classes almost weekly, a variety of different classes, all related to retirement, very appealing and all educational, no costs materials are provided and we encourage that with existing clients as well as new
folks we've never met. Because education is so so very important. And when I'm finding Kim as these classes are so being so well attended, people want to learn and they don't know where to go. Yes, you could do it yourself, but where do you start and actually what do you believe? The internet can be a great resource, but you can find anything you want on the internet, whether it's true or not true. You can find anything you want. Sure,
so Wor's a reliable resource. And we've been doing this for again our ten year anniversary, and again it's nice to see people that want to learn. And again that's why they're so well attended and we love doing them, we really do.
Yeah. So again, folks Havevenfinancialgroup dot com. Take a look. No doubt there'll be something of interest to you. Be sure you sign up. They are free and you don't have to be an existing client. You do need to sign up, however, because they need a headcount. Let's talk about taxes and retirement accounts. You know, taxes are some of the biggest expenses that some people face in their retirement.
So you want to do everything you can to prepare and to make sure that you're you're paying your part but not more than what you are expected to pay. And there are strategies out there that exist if you work with a partner like Haven, that can cut down on that tax bill. What do you think is the biggest mistake people make in retirement when it comes to taxes.
Well, let me ask the listeners, what is your tax plan? You know, if taxes rise, what are you going to do. Is your retirement strategy as it secure you? Are you a forward thinking tax planner? Do you do any tax planning or not? Or are you just the one last week that brought your box of statements into your tax prepair, dropped it off and then you'll pick it up and not even talk about it. I can tell you, Kim, that's what a lot of people are doing, and they're
not getting the attention that they deserved. And I will tell you, and you know this and the listeners, no taxes will probably affect you more in retirement than ever before. And again that's not a good thing to leave with the listeners on our fourth segment on this show. But it's real and it's true. So what are you doing? Do you have a partner? Are you doing tax planning? Lances are in house CPA. It's tax season. If you don't have somebody good or if you're paying too much,
give the office a call, get on his calendar. He is very educational. He loves his whiteboard. He loves to explain things. Just this past week, a newer client that her tax prepare raised her prices dramatically and it's like and she goes, I just listened to you on the show, and she came in and visited with Mitche on Social Security.
She came in with Glenn.
I met with her and I said, what about tax She goes, I already have my meeting with Lance. She goes and she told them how much that they were the last CPA. It was actually wasn't even CPA. Actually Lance is a CPA. How much they were charging. And she goes and Lance is very fair. Plus she goes, I get to have conversations with all of you, and I didn't have any of this attention before. So taxes drives investments, It drives your income plan and distribution plan
when you retire. Where do you draw from? What types of accounts? These are the discussions. You worked hard all your life to get the dollars you have, small, medium or lard. You want to take out the money out in the most tax efficient way possible.
Yeah, what are some of the tools out there, the retirement tools that help you with axes?
Well?
Iras again pre tax or wroth iras. What's right for you?
Don't know?
I just know that they probably both are right for the listeners, depending upon your income. Employer sponsored plans. We taught four oh one k's deferred com all those different ones take advantage of them that don't take it out early and get penalties. We want to avoid any penalties, interests, or find any charges. We certainly want to avoid that. Understand contribution limits, you know, can I contribute to a wrath if it makes sense?
Can I not? What are those limits? You know?
Every year they continue to change, and we'll go over those changes if folks come in, because there's way too many to list on this show. Sure discussing does you know in those early retirement years which we deal a lot of folks, that they retire maybe earlier than expected for a variety of reasons, whether they wanted to or not.
And maybe they say, have some lean years of income where they're delaying so security because it makes sense, or they're delaying their pension because it makes sense because maybe it's still growing and maybe they're going to live off savings or something of that nature. Now, this is where we get into the discussion of is now a good time to do conversions?
Everybody we to visit with.
We'll have a fourth quarter discussion about roth conversions filling up that twelve percent tax bracket.
What are those limits? What are the.
Limitations given your individual situation? When I say individual, everybody's situation is different. The problem is, and this is why, on a weekly visit, in my conversations with many folks, including many of my staff members' conversations with folks come
in missed opportunities. Did you do this last year? Nope, our tax preparer told us too late, or nobody told us, well, we have had a great opportunity to do tax planning in these recent years and for the next several years because of the low tax brackets that are currently exists. Problem is, many people are going to look back and go, why didn't anybody tell me? Why didn't I have this conversation?
And if you're just dropping off your taxes and picking them up and not having a discussion, I will almost guarantee you you're missing out on something.
Well, let's talk about that just for a moment. The Tax Cut and Jobs Act, it expires in twenty twenty six. Because the administration changed, chances are very good it will stay in place. But that's something that and no one knows yet. And I know for the last you know, year and a half two years, you've been talking about the fact that people need to plan for that, which may mean making some changes now to take advantage of where we're see it.
For certain now I almost I'm quite certain they're going to extend it, which will give people an opportunity. But eventually there's going to be changes and taxes are going to go up. And if you're in this, you know anywhere sixties, at sixty five and ten years, you're all going to have to take required minimum distributions because based upon how old you are right now, the R and D age where the government forces you take it out is that's seventy three. Now, many listeners might be confused.
I thought it was seventy and a half for years. It was seventy and a half. For a year ago or two, I went to seventy two. Last year I went to seventy three. It currently is seventy three, and then seven years it goes to seventy five. So what this means is anybody that's put a lot together, and a lot of the Baby Boomer generation and others have pre tax large balances and they get to that age and now they're forced to take it out. Kimp And so what do I hear Oh my goodness, Larry, we
make more money now than we did when we were working. Congratulations. Now you may owe more taxes. So anything we're able to do to minimize taxes early on in retirement planning could minimize taxes later on. But if you're not having those discussions to find out what makes sense and what doesn't make sense, then you're probably doing yourself a disfavor. We are constantly talking about taxes, not because it's such
a fun thing to talk about. What's fun is avoiding surprises and knowing you're doing what you can to keep more money in your account than Uncle Sam's account. And again that's why forward thinking tax planning. And we don't charge extra for that lance he does tax We do tax planning from the tax deadline in April fifteenth throughout the rest of the year.
That will be tax.
Planning from January through tax day. That's tax preparation. I like people to avoid this. Oh my goodness, Larry, we owe ten grand or five grand, and I didn't see this coming. Why didn't you see it coming? Had you had a discussion and maybe had better withholdings, or had somebody guide you, this would have been a surprise. That didn't happen, could leave the office with a smile on your face going I didn't know anything, or I might have even got a little a few dollars back.
Sure, absolutely, Yeah, So I mean giving Haven a call right now and setting up an appointment so that you can begin that preparation, not necessarily for twenty fours taxes, but for twenty fives taxes, and the sooner the better, that would be a smart move. That number is six one two five zero four eight four zero zero six
one two five zero four eight four zero zero. Call them and let's get on Lance's schedule so that you can get in and talk to him about maybe what you're paying for twenty four and what you don't want to pay in twenty five.
Right, Yeah, maybe it's just coming up with some tax strategies nobody's talk to you about, or if you have questions about how not to pay more taxes ideas there. Lance's goal is to abide by the tax code, but not give any more money to the government than possible. And I've said this many times. Tax code doesn't always make sense. Use it in your favor where you can, because that is the tax code. Taxes will affect you more in retirement than ever. Make sure you're doing your part to minimize that.
Well, Larry, today we have tried to answer some questions, but I know that our listeners have lots of questions related to retirement, and again they can get those questions answered by calling six one two five zero four eight four zero zero. Be sure you check out that website. It's evenfinancialgroup dot com. Like always, this has been a delight.
It's your ass, Kim.
You know retirement puzzle pieces, put them all the pieces together to the same puzzle. Taxes, investments, and if you're worried about the volatility of the market, stress free stress fee or stress tests that portfolio. Keep your costs down as much as possible. If you're retiring soon, that Medicare discussion, healthcare, a state planning, which we talked about on this show.
Maybe you're worried about the nursing home. I just had a client that just went in and unfortunately they were not prepared, and that's what we're trying to help people avoid.
Again, Kim, always good to be with you.
I encourage listeners there's no cost to come in and visit six' one two five oh four eighty four hundred Or Havenfinancial group dot com And. Kim we like to have a little bit of fun there and we're coffee snobs and we do like good.
Cookies have a great, Week, lary you as.
Well Kim take.
Care investment advisory service is offered Through Guardian Well STRATEGIES. Llc Haven Financial group And Guardian Well STRATEGIES llc are not affiliated, companies and investments involve, risk, and unless otherwise, stated are not. Guaranteed please consult with the qualified financial advisor and or tax professional before implementing any strategy discussed herein and comments regarding it safe and. Secure investments and
guaranteed income streams only refer to fixed insurance. Products they do not refer in any way to securities or investment advisory. Products fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing.
Company