You've worked hard for your money, but do you know how to make it work hard for you. You need a team with experience, vigilance, and a strategy to help you live the retirement you deserve. Find your financial safe haven with Haven Financial Group. Today you're listening to the new and improved Haven Financial Group Radio Show, where we bring you comprehensive weekly financial wisdom from the professionals. It's all about helping you solve retirement problems so you can make your
nest egg last. Your tune to the Haven Financial Group Radio Show with your host Larry Kolvig and Kim Karrigan your guides to weekly retirement confidence. If you're interested in protecting and growing what you have, let us be your financial safe haven. The full nines are always open at six point two five four eighty four hundred. Now get your financial questions ready because the Haven Financial Group Radio Show starts now. Good morning, and welcome to the Haven Financial Group Radio
Show. I'm Larry Kolvig, Founder and see of the Haven Financial Group. We're glad you're with us this morning. I give us a call at six one two five zero four eight four zero zero, or visit our website where there's all kinds of retirement tools and calendars of events of classes. That's at Havenfinancialgroup dot com. Good to be with you, Kim, another Sunday morning.
Thank you. It's great to be with you. You know, I know today's subject is about something that I was just gonna share this funny story. For a number of years I worked for Bloomberg, the financial network, and they never wanted us to say the R word. We were to say
that, we were supposed to refer to it as the R word. And of course we're talking about recession, because you never knew if you were actually in a recession or not, so they would always say, let's not talk about recession, let's just talk about the factors that could play into one. So today I know that we are going to talk a little bit about recession, the R word, and what it might mean to your retirement plans.
I have to ask you right off the bat. This has been you know, recession has been sort of the buzzword for the last year and a half. Do you believe that we are in recession or that we have been in a relatively light recession. Well, first of all, I believe that we were in a recession and then slowly coming out of a recession and with interest rates going back the other direction potentially now there's more discussion that we might be
going back into a more severe recession. So that's kind of the long and short of it. I think first we should before we jump in too much. What is a recession right exactly? You know, it's a significant, widespread and prolonged downturn in economic activity. So you know, we got a lot to talk about here. But again, what's on the agenda for today, inflation, anything else? Absolutely, Well, we're going to talk about recession. Then we're going to talk about the differences between the wrath and the
traditional retirement accounts and what that might mean for your retirement. Then the true impact of market volatility on your retirement plans and on your portfolio, and maybe what you can do to stave off some of the issues associated with that. And then finally we're going to talk about long term care and how you go about planning for long term care, especially if you have a healthy spouse. So we've got a lot to pack in in a short amount of time.
Larry, So again you started by talking about what a recession is, maybe walk through some of the key things that you keep an eye out for when you know it feels like we are either in a recession. And I say this because experts will say that you really don't know you're in a recession until you come to the other side. So talk about what some of the key factors are you keep an eye on to determine if we are, in fact in recession. Yeah, let's talk about some of those. And what you
said is accurate. You don't really know you're in it until you're already there. Because here's how they measure a recession. A recession's length is from the prior times expansion peak to the downturns trough. So it's a measurement of time where you're already in it. And interesting enough, you know, I don't know if it was a year or whatever it was when we were talking a lot about recession. We're in a recession. But then they changed the definition
of what a recession really means. So I guess you can do anything you want to that sounds like a political move to make Oh it sure does, it sure does. But the reality is recessions may last as little as a few months, but they could last for actually many many years. It's just hard to hard to tell. And things that we look at, of course are the inflationary rates, the interest rates. You know, interest rates play a key role in managing inflation, and the Fed's been hanging with it numerous
times last year. It's very touchy though, you know, they they it was improving, They were trying to get to two percent, and then we're getting close, and now again the last couple of indicators haven't been so good. They base it really on what's called an inverted yield curve, which can get highly technical. We're not going to get deep into the weeds here, but an inverted yield curve shows that long term interest rates are less than short
term interest rates. With an inverted yeald curve, the yield decreases the longer the farther away that maturity date gets. Now, with that said, there's one important thing that people haven't been talking about is the two year and the ten year treasure yield curve has been inverted for more than six hundred and thirty days now since July of twenty twenty two. So we have seen this and that is one of the biggest indicators of a recession. So With that said,
you know that's a big measurement, unemployment rates. We keep an eye on that because that could be a problem in a recession. Some industries may falter more, some sectors. You know, we've seen the tech sectors struggling a little bit, which ultimately, you know, boils down to our behavior as consumers. Maybe we won't spend as much. However, with the credit card debt being so high, I don't see that happening, but there's a lot of indicators that go into it. Now, sure, what can retirease?
Because that's the gist of the show, is what can we do as we sit here and plan for retirement or maybe you're in retirement and you're listening, You know, what can we do? Well, we can only control our own portfolios, how we do, what we do? How much risk are you taking, which we'll get into more on the show. Those are the things that we can control. Maybe we look at some investments that get
handled a little bit better with the recession and inflation being so high. And there's a couple of rules of thought here the effective measurement of recession are they really accurate? Are they not accurate? So at the end of the day, Maybe a safer approach to your investments is what you need to look at. But if you don't know what you're doing, what does that even mean
to you? And that's where people talk to us, visit with us to develop some comfort, maybe comforts the wrong word, just a better understanding of what they're doing and why they're doing it and getting things into a more balanced approach so these recessions don't have such a negative impact on your own money, which they can, and they can happen really quickly. Absolutely, before we go any further talking about people's portfolios, let me just tap in on your
expert tease and look back to give people maybe some perspective. When's the last prior to twenty two and forward, when's the last time you remember the economy being in recession and what kind of fallout did you see for those who were retired at that point. Oh, it's I know exactly where I was in two thousand and seven to two thousand and nine, hadn't started Haven Financial Group
yet. We've been around nine and a half years and growing. But I remember who I was meeting with, who I was sitting with, and the conversation came to an abrupt halt because the couple I was sitting with when I saw the market just crashed, was could not talk about retirement because it was just it was just so tough, and three out of five seniors had to
go back to work because their portfolio was cut in half. My emotions ran high, and that's what I remember specifically, sure, and then there's the temptation, of course, the fear and anxiety and then making knee jerk reactions.
And that's what you want to help, you know, we want to help people avoid ahead of time, and that's by stress testing your portfolio, getting the right amount of ingredients of the recipes here, portfolio in the right place at this stage of the game, because there's a good chance, well in our lifetime there are recessions. You know, there's the good, there's
the bad, there's the ugly. And factor in another factor here is it can also have an impact globally because we've become such a global economy and of course all eyes on the Middle East stuff now with what's going on with Iran and Israel and Russia, it just makes there's just more things into the equation that we have to factor in. It's not as if we don't like risk, But our appetite for risk for the folks we sit down with at this
stage of the game just tends to be a little bit lower just because there's so much uncertainty. Those are the things we can control. Absolutely. You talk about the fact that you know again that we really started to see the effects of this in twenty two. I mean we were coming out of the pandemic with a whole lot of things going on in the economy and in our
personal finances. Since twenty two, you have you had a lot of retirees or people getting close to retirement who have come to you and have been highly concerned, actually more so than ever actually because you know, our focus is those that have a five year timeline per se to retirement or those in retirement. So the time is now. You know, you have to have faith in something, and I have faith in our economy. It's always rebounded,
but that's over time. The time factor creeps in more as you get closer to those golden years in retirement years. So you know, overall, it's not impossible that a full recession could miss the US economy or it could hit the US economy. So it's important to have a financial plan relative to your situation, and those are the things that we build out for people to give them the confidence to know, hey, we plan for this because we know
eventually something's going to happen. You know the old saying, nothing's going to happen until something happens, so just be prepared. That's the best we can do, all right. So, if you're someone who has been nervous about this economy and you'd like someone to look over your portfolio, or maybe you don't have a portfolio put together, but you definitely want to make sure that when you do, it's been protective. Let me give you the number of
Haven Financial Group. You can make a call and sit down, have a free consultation with either Larry or someone on his team and talk through some of the issues that are happening in the economy and how you can protect your portfolio. It's six one two five zero four eight four zero zero at six one two five zero four eight four zero zero, or you can reach out on
their website it's Havenfinancialgroup dot com. So Larry, when we come back, let's talk about some of the things that you help your clients through to maybe protect against all of this kind of volatility. This is the Haven Financial Group Radio Show. Don't go too far. We're gathering more important insights and retirement ways. Devin, The Haven Financial Group Radio Show will be right back. Stick around. You've got questions, We've got answers. Your tune to the
Haven Financial Group Radio Show with your host Larry 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 the Haven Financial Group. Thanks for tuning in this morning where we talk all different topics about retirement and give us a call kind of stump us with questions six one two five zero four eight four zero zero or visit us at Havenfinancialgroup dot com. Iras Roth. IRA's
just coming off tax season. Let's discuss that absolutely. I think the first thing that's really important and I think most people do know. But just to lay the groundwork here and Ira, what exactly is that individual retirement accounts? Notice it's individual, so sometimes with spouses go can I add to my wife's or my husband's? IRA? No, it's individual for a reason, individual retirement accounts. It could also have four to one K types accounts with employers
and enables individuals to invest for retirement long term. Typically, iras are tax free growth. It's pre tax money that you haven't paid the taxes on that. Eventually when you take it out at seventy three or seventy five, whatever your age is, when you get there, then it will be taxed.
So it comes with tax benefit because it's it minimizes your tax implications in the given year that you contribute, either in those employer plans or of course the deadline just happened last week where you can put up to about seventy five hundred bucks in on an individual basis, So I hope people took advantage of that. Now, contrast that with a roth ira. Roth iras they haven't been around that long compared to individual retiment accounts, and people say, well,
I wish to I had more money in roths. I completely agree. That's after tax moneies, after tax moneys, which will never be taxed again when you take it out. So great, great way to do it if you possibly can. If you make too much money though there's income limits, there's income limits with it, you won't get the tax advantages that you will with iras upfront, pay an hour, pay later, and you know where are you in the timeline. That can have an effect. But again it can
also be used for legacy purposes. It's a great way to pass moneys on to your kids or loved ones if that's that's important to you. So when I mentioned that income limits, well then how do the wealthy people? How do they have wroth irays? And that's called the backdoor wroth IRA and we do see it for our high income earners. What that happens is they don't
get the tax benefit, but they put it into a wrath IRA. They don't get the benefit, so it's a non deductible, but they take that money then and roll it into the wroth So they didn't get the benefit now upfront, but they potentially will get it later because that wrath won't be taxed when it comes out. So a variety of factors go into does this make sense? Does this not make sense? Tax considerations would be a big part of this. Don't get this confused. And I hear this and we see
it often IRA wroth IRA, brokeraach accounts. That's just the tax classification. Okay, you can use any investment vehicle in any of these different tax classifications. So you could have an IRA annuity, you can have an IRA mutual fund, you can have a ROTH annuity. So again tax classification an investment vehicle. The people need to determine the difference of that, And I mentioned conversions. We're big into forward thinking tax planning. You and I almost talk
about it weekly. Fourth quarter. We have a good indication of what individuals are, couple's income is going to be, and people miss opportunities over and over again because they're not planning. They're just getting taxes prepared. So thoughts should go into this sure, absolutely well, tell me how. We talk about this pretty frequently as well. Well. The sunsetting tax brackets. The law is going to sunset beginning in twenty five. Tax brackets may change.
Chances are very good it's not going to get better for the tax payer unless this is renewed. So how would that affect decision making when it comes to roth iras versus iras. Yeah, again, tax planning in house lance is
our CPA. Eventually he's going to come up for water because he just finished tax preparation, which he does an amazing job, and he really educates the name of our game in all areas of retirement here at Haven Financier Group is education, you know, educating people so they can make good, sound decisions and have an understanding of what they're doing. So does a Roth conversion or this make sense? We're going to have that discussion. What tax brackets are
you in? Now? What taxts brackets will you be in? When he turns seventy three? And when I keep bringing that up, that's the age where you're forced to take money out of these iras or pre tax accounts, and maybe you're listening and go, well, seventy three, Yes, there's been changes from seventy and a half to seventy two last year to seventy three this year, and in eight years it'll go to seventy five. So when we're thinking short term, we don't want to just be narrow minded and think
short term. We want to think longer term, you know, out ten, fifteen, twenty years, because that'll help determine does this make sense? Does it not make sense? And let's face it, human nature and taxes, people tend to okay, what did I do last year, That's done, and not really look in the future. When it comes to retirement, the future should be really important to you. And then it's important to to just distinguish, well, what type of investments should I have in certain types
of accounts. OK, it does make a difference, and I'll just kind of summarize. For example, for WROTH, I raise, we want to have some dividend paying stocks in there, or higher growth stocks, and typically we can tend to take a little more risk with roths because their longer term. Maybe some high paying interest bonds or some ETFs or mutual funds that have low expenses, where iras we're going to look to a little different because those
are tax deferred. So maybe some alternative investments individual stocks can be utilized. But key here is diversification amongst these different types of accounts. I call it the right recipe, the right ingredients in the right accounts to create the best possible outcomes. And that's part of what we do. That's put what the
team does. We don't expect individuals, although do whats. There's some do it yourselfers that are very good out there, and more power to them, but the average investor is not researching this on a daily basis, and they're not spending a lot of time. And I think if Frank and Nancy that were in last week and I said, now, do you spend a lot of time working on this and researching? And Nancy's like, Frank spends way too much time in retirement. I'd like to see him do more with me.
And I'm like, oh, I think I did hit a nerve there. I'm pretty sure I did. So everybody's individual. You know, this is individual, but that's what course people that work with us, that's what we shoulder for them in order to maximize the potential. So Lari, I hear you talk about diversification within these accounts, but diversification in your portfolio is so important, right, So maybe you have some wroth ira raise, maybe
you have some irorais that kind of diversification is important as well. Yeah, it's worth noting that, you know, diversification is key to a successful retirement plan, having a mix of these types of accounts, rocks and traditional and brokerage yeh. In case of that downturn, being able to strategize your situation and help mitigate some of the effects of these investment losses when there is a
downturn, and having a good balance being able to weather the storm. Maybe you don't need to tap into your money, but you can draw off some savings if you know. If that's more so, there's considerations, careful considerations that need to go into this and that doesn't come that doesn't come naturally for a lot of people. So again, working with a partner that's working for you to help you in these situations, that's where people find real true value.
When we started this show, we started talking about, you know, inflation and talking about recession. How are and I realized it's it's individual, But how are Iras and roth Iras? How did they perform during maybe recession time? Is it just based on where they're invested? Well, that would be the investments that those accounts are currently in, right, Roth and Ira being the text classification. You can have the same investments in those same accounts.
But really it's the investment mix. And when I say diversification, I'm very I want to be thoughtful in this because sometimes people think that that means I'm going to spread my money out over four different companies. We see folks come in with with that idea in mind. They show us as they ask us to review a big picture what they're doing. Three different colored statements, so three different companies, all with the same recipe. And that's not diversification.
That's just three different statements with three different companies. Right. I'm not saying you should one glove it's all, or put all your eggs in one basket, but you can have multiple baskets within one company. I will say people tend to want to have more comprehension, simplification, and consolidation as they get to retirement and still maintain the diversification piece absolutely. If you'd like to talk to Larry or someone on his team, six one two five zero four
eight four zero zero. That's the number at Haven Financial Group, or you can reach out to their website, Havenfinancialgroup dot com. Lots of educational seminars there. If you see one that strikes your fancy, be sure that you sign up because Larry says they fill up very very quickly. Okay, Larry coming up to talk about market volatility, how this impacts you in retirement,
and what you can do to protect it. We've talked about, you know, protecting for tax purposes and some diversification, but now let's just talk about volatility as a whole and what we can do to protect against it. You're listening to the Haven Financial Group Random 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, and welcome back 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 at Havenfinanciergroup dot com, send us an email, send us questions.
Description is really answering questions in any of these retirement areas, and again one should never be ashamed to ask lots of retirement questions. You know, leary market volatility can't necessarily be predicted, but that doesn't mean that you can't protect yourself in some ways against it right or to at least take the ride the best possible way that you can. So let's talk a little bit about that. First, understanding exactly how you define market volatility, well, market volatility
is oftentimes overlooked. You know, we can't predict the future. If your guy or gal cannot predict the future. We live in a world where things move really quickly. By the time it gets to us common folk, I say, it's already happened. So you know, timing the market, adjusting on the fly, Yeah, you might get lucky, but at the end
of the day, it's tough to control. And if you're the one, actually, as we talk through this volatility, if you're the one listening that has done the same thing for thirty or forty years, because all the time I ask people, well, what's your strategy, Well, we really haven't have a strategy. We've just been doing the same thing for thirty or forty
years. And now you're sixty or sixty whatever age you are, and you did not like the results back when the markets were tough, from maybe the dot com bubble or the real estate bubble, or maybe the COVID of twenty
twenty two when the market was down. If you didn't like those results, doesn't it take something, some measure of doing something different to avoid those And that's where market volatility comes in. We see folks that don't need to take a bunch of risks, some people that love the thrill of taking risk. And I asked the question, what's your willingness for risk, what's your need for risk? And do you have the ability to take risk? And a lot of you know, it's not going to be the same for everybody,
And who am I to say you should take risk or not. We tend to be a little more conservative in our mindset because our average client is sixty five, or their preparing for retirement, or they're well into retirement. So what does the element of time look for you? Because they're saying that the market always comes back, Well, that's over a broad horizon, that's over a long period of time. Well how many of those horizons do you have
left? Maybe in your accumulation years or your presidentation years. So making sure you know the sequence of returns risk, you know, that's a big one because the timing of when you retire is different for everybody. I remember a couple of years back, of twenty twenty one, I had a client from Ecal New Market. They both did well. He retired the end of the
year, the market went down. Just all I did was go down the first quarter of twenty twenty two, and he's like, Larry, do I have to go back to work because it's only gone down since I've retired. Now that's a very uneasy feeling. Yes, it is. No. Remember, John, I said, we have a plan. It's intact. I know this is not fun, but you're fine. And we had to have about three or four of those meetings just for the sake of having a good
understanding. Remember we talked about this stuff because the psychology of money and investments buy low, sell high. Well that's easy, that sounds great, but unfortunately, you know what people do. They buy high and sell low. Yeah, because when we have a high market and we say, well, maybe you should take some of the cream off the top and lock some of this in, Well, I can't sell. And now the market's just really
going good. But then all of a sudden it starts going down a little bit, and man, I sure wished I would have locked some of this in. Well, I can't sell. Now, I gotta wait till it comes back up. And then it goes down some more, and now you're fearful, and then you make a decision that doesn't bode well for your retirement planner for your investment. So much of our job is the psychology or consulting or hey, this is a good idea or this isn't a good idea,
and you want to be proactive in that. So again a lot goes into risk in this stuff very much. So so what do you advise clients to do to prepare for this kind of volatility. Well, we talk about balanced approach, especially close to retirement. Maybe having a certain amount in a savings account, CD certificate, a deposit money market, something of that nature that's more conservative that maybe you can tap into, especially when the markets are jittery.
Then you don't have to tap into something that's that's potentially going down. There is benchmarks that we use for retirees for liquidity features, and most people do not have enough liquid monies. So that's a big one. Look at all the different options, consider some low risk options. You know, we're not sorrying to tell people to look at all the options. Maybe a fixed annuity or fixed index aduity, or maybe different types of mix in your portfolio.
What fits you. The problem is most people have no idea. They trust somebody, which I get, and they rely on somebody and that's okay, but they're there needs to be some accountability with what they're doing because if you lose it, it's your fault, so it does matter. So again, look at these options. If income is important to you, then maybe you should have some an investment that can guarantee you income for the rest of your life. And that can be done. But remember, retirement is a
long term plan, at least I hope it is. You know, God forbid it isn't because the alternative is not very good. But maintaining a long term investment perspective can help you navigate through some of these things. Short term fluctuations should not deter retirement, but then sticking to that plan and if you haven't revisited your plan in the last year or two, or five or ten.
I just had a couple that was in They work so hard and they put together a very adequate portfolio and they came out to one of our classes. We we took them through the very same process and mind you, they had a good sized portfolio. And it's not about that, but I said, how often you get to go with your guy or gal and they go, well, we've gotten together once in the last two years. I'm with
what you've put together. You're paying this much and you've gotten together once in two years, I would say you're getting the raw end of the deal. Retirement is more than once or twice a year or every two years. It's an ongoing discussion in all these retirement areas, not just investments, but what about all the other retirement puzzle pieces. And that's really what we enjoy,
helping put that puzzle together. And these things change over time, they really do, and in fact as short as in two years, right, Oh, for sure, I mean Medicare stuff changes. It's companment on major changes coming, the tax law changes, the markets change, they fluctuate. Certain industries or sector sectors are hot and then they're cold again. It's why we want to come up with the best recipe based on your situation. And please don't take it. Oh, he's only talking to those that are affluent,
right, this is for those that have very little or a lot. Don't back yourself in a quarter, be embarrassed, bury your head in the sand, and go, oh, this isn't for me because I don't have much. I don't care what you have, small, meatum or large. Whatever you have is yours. And your spouses if you're married, and your families. You deserve to do whatever you need. And it starts by everybody getting
the same information access to the same information. So, Larry, you know you've talked about this a lot, and you say, you know people who see their guy and talk to them once a year. What typically you know is the timeframe? How frequently do you meet with clients and is it just based on what their needs might be. Well, we have those you know that want more attention. They haven't got the attention and they're kind of afraid to ask, and I'll address and we will address it. Say there's no
quotas to how many times we can get together. Some people they want to get together more often. Others think twice you're three times a year is adequate. I can I tell you when new people come on board, and they're onboarding, you know, it's more attention, just for the dust to settle, for us to understand how they work and how we work on their behalf. Some people come in and they you know, we handle pretty much all of their retirement stuff, from taxes to tax planning, to medicare to estate
planning. And by the way, these all should be coordinated. And that's the beauty of what we can do is we can coordinate all these again, some more so than others. But I always say, if you have questions, schedule an hour, come in and visit with us. People have questions and questions and they never get an answer, and then that leads to worry, not knowing, and they don't know who to turn to, and they kind of sometimes they feel a shame. There should be no shame here.
This is your retirement small medium or large, complex or simple, married or not married, big family, small family, no kids, whatever it is, you should have the same attention. Well, I think we you know, we don't talk about that frequently enough because I do think that a lot of people listening are wondering, you know, is this someone i'll go in and see. And I got to have it already, and I have to be ready to go the very first time I see them, because I won't
see them again, or I'll only see them once a year. And I have to tell you, folks, I've come to known Larry and what he says is what he means. He's a family guy. He gets to know you, asks all the right questions, and a comfort level is very important to him and Larry I have to say you're a comfortable person, so that I mean that is a real compliment. If you'd like to speak to Larry or someone on the team, it's six one two five zero four eight four
zero zero six one two five zero four eight four zero zero. Even Financialgroup dot com is their website. You can check that out as well. One of the things I think that's really hard to talk about, Larry, when you talk about retirement, you know, you want to talk about the fun things. How am I going to have money to travel, go see my grandkids, take, you know, take you know whatever. It might be trips and whatever. But the tough part is talking about things like long term
healthcare and protections from my spouse maybe when I'm not there anymore. These are the things I think that are tough to talk about, and we're going to take that up in our segment here on the Haven Financial Group Radio Show. Don't go too far. We're gathering more important insights and retirement pays Devinent The Haven Financial Group Radio Show. 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 Kolvig 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 the Haven Financial Group. Thanks for listening. Give us a call at six one two five zero four eight four zero zero or Havenfinancialgroup dot com. Newly revamped website, all kinds of retirement tools, some neat's
community things on their share information visitor site again Havenfinancialgroup dot com. Yes, that end at those end of the life things, Kim, very stressful. They certainly can, and nobody wants to talk about them. No, they don't. But you know, healthcare costs are something that's so important and can have such an effect on your retirement income. So let's let's get started here and talk a little bit about. First off, let's put a scenario together,
Larry. Let's say that one of the two in a couple needs to go into a nursing home. So let's start with that premise as the background, and how the healthier spouse is protected. Yes, if you're a married couple. Now, if you're single, obviously, then who then who are
you going to fall back on. But let's say this couple. If your spouses are entering a nursing home or care facility, you will not lose your income as the healthy spouse, whether the source is employment or social security, your income, your individual income, is not considered when your spouse does the medical app medicaid application and when it's filed and determined eligibility. When that's determined, only your spouse's income will be considered for eligibility in that program. Now,
with that stead, there are state differences. It's important to understand whatever state you're in. Of course, Minnesota is different, Wisconsin's a little bit different. However, in some cases, for example, you can keep a house, you can keep a car, and you can keep three thousand in Minnesota. I think it's two thousand of money regular cash here in Minnesota, I think it's two thousand over in Wisconsin. Now, what happens to the
income of the spouse who enters retirement. The healthy spouse, although they might be entering a nursing home, does not matt automatically you're going to lose your income. There's a formula involved. They're not going to kick you to the curb. You can keep your house Now there is a chance if there's a longevity and that spouse being in a home where they could put potentially put leans on the property. But your home home is considered exempt from counting towards Medicaid,
as is your furnishings, your personal effects. Like I said, you can keep one vehicle, funeral plots and not all the stuff are off limits, but just note that they could put a lien against it. Now, sometimes be very careful here because a lot of times people think, well, revocable trusts avoid the nursing home. That is not true. That sounds good
on paper, but it's simply not true. There's been laws that have changed in over the years when it comes to this, I will say that probably I would say two thousand and three was when these nursing home loopholes were really patched. Prior to two thousand and three, people would do put a deed together that's called a life estate. Life estate, you reserve the right to live there for as long as you're alive, and then maybe your kids or loved ones are named in the deed. Now, prior to two thousand and
three, that's off limits to the nursing home. After two thousand and three it is not. Some people say, well, I'm just going to turn everything over to the kids and relinquished ownership rights and that way the nursing home will not affect us. Well, I say that's usually not a good decision. You don't know how long you're going to need the money. I'm sure you have the best kids now they own your assets and your money, and then you need the money. Are you going to get it back? I
don't think that's a good way to do it. What is your suggestion having a discussion on the front end to see what other avenues are available for end of life nursing home confinement, and that's discussing long term care, because I'll give you some staggering statistics that can decimate a retirement what you've worked hard for and your spouse. Average cost of a nursing home in Minnesota is somewhere for
full care is twelve to fifteen thousand dollars a month. For regular care in your home, home healthcare, which more people are trying to do for cost saving, it's about sixty thousand dollars per year for about forty five hundred per month. For assisted living, thirty eight hundred four home health care aid. The numbers are exasperating, They're just huge. So how long are you going to be able to self fund for these things? The average person not very
much. So we encourage people not because these discussions are fun, but discussing long term care earlier than later. Now right away people think, well, somebody tried to sell me a Cadillac plant fifteen years ago and nobody in the right mind could afford it. And then there's price increases and this and that and if they pay, and we don't see traditional long term care much anymore. Glenn handles all our insurance, Medicare and long term care does a great
job, Isabella. We have access to all the stuff that's out there, and asset based long term care is very popular. If you're questioning what is it, come on and visit with us. Asset based using your own assets to offset the risk of going into the nursing home. Some people sometimes can use annuities to offset some of that. It can be some hybrid long term care. We're going to look at all the options. It's not for everybody, but nothing's for everybody, but even having some sort of help can help.
Anybody's ever had to go through this with parents or loved ones or somebody you know exactly what I'm talking about. If you never have, then you probably it's not as important to you. And we joke on a regular basis that your kids are going to take care of you. Yeah, sure they are. I'm sure they will, and maybe they will, maybe I'm wrong, but look at ways to protect these things. Talk through medicaid and medicare.
It is state specific, so again it's not fun, it can be emotional, but having the discussions upfront and then that leads to a state planning. You know, not for this week, but now what what happens if somebody passes away? Do I have my powers of attorney? Can people make decisions for me? And again, we live in a very litigious society. Don't you got to be proactive because once you're there, if you haven't prepared, it's too late. But you can prepare on the front end. So
let me ask you. We talked a little bit about just going back to ask a few questions about this. We talked about, you know, if you are the spouse who is not going into the retirement home or the nursing care and you are the healthier of the Two, it doesn't affect your income. What happens to the income of the individual who does go into the long term care facility. That's going to be counted as part of a formula to pay for the care, okay, And once they spend down your assets,
then it would be medicaid okay. So the spouse, Yeah, and again this formula includes if it's I RA money, they're not going to take all the healthy spouse, They're not going to take all their income. They're going to allow you to have a lifestyle, a house and a car and some cash. However, they could put leans on property or other things. So again, just talk through those things, depending upon what type of assets you have, and then be prohacked up on well what can I do now?
If anything? Of course, it has to fit into your budget. And those are the discussions that we have. Sure, absolutely, I bet you have some seminars, some learning seminars on this exact subject because a lot of people need a lot of guidance. Yes we do. We're just actually if you go to our site you can see our calendar events. We do a lot of community education, very well attended. We were in Prior Lake and Elko, New market this past week with Social Security and tax Okay, people
are looking for education and answers to these things. I know I don't have the d dates in my head, but we have a medicare made simple class as a coded tech. Just in the process of booking a class. I'm going to teach the truth about annuities. If you have annuities or don't have annuities, would like to get more info, the truth about annuities, the
four types of annuities, how they work. So yes, education is extremely important again, tying up, tying all these pieces together, the puzzle pieces, putting the puzzle together, and uh, you don't have to do it alone. This is what people rely on us to do. And we are going to spend the time. I love when people say I don't want to I don't want to take up too much of your time. We owe you the time. Whether you work with us or not, we owe you the
time. I mean, if somebody's not willing to spend the time, are they really acting in your best interests or not? It's just a question you should ask yourself. Sure, Now, these are the tough These are the really tough subjects, No two ways about that. Laria. I bet you have a lot of people who come in and ask you about everything but that, and you have to be the one who probably spurs on that conversation.
But long term care costs and protecting your healthy spouse seems like something that should be in the forefront of your mind as you begin to plan your retirement. Six one two five zero four eight four zero zero. Then number again for Haven Financial is six one two five zero four eight four zero zero Haven Financial Group dot com. That's where you find those sessions and get yourself signed up for one. Larry, this has been a really interesting, I think show
today. You know, the real life kind of thing is the combination of recession which all of us are feeling, and how that can affect you in the long term, what you can do to try to alleviate some of the stress on your portfolio, and then of course the long term care costs. So a good show. Thank you for all the great information. Yeah,
you know what you should ask yourself and the listeners. You've worked tired to say, for retirement and live it happily and healthily, and now you must protect it for hopefully years to come, not just this year, but years. You know at Han Financial Group, we're going to look at your individual unique situation, create a strategy, take you through our proprietary process the same way as we do with everybody, and come up with a plan that works
best for you and your overall retirement plan. You know you don't have to do it alone. You know, whether you look to maintain your current lifestyle, what you're doing, have fun. We want to factor all these into the equations. So again, Kim, great to be with you again. Six one two five zero four eighty four hundred or Havenfinanciergroup dot com. Look forward to it every week, look forward to next Sunday. In between they'll
have a blessed week and we'll talk soon. 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.