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 fuone 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. Thanks for listening. We had a lot to talk about today. Give us a call at six one two five zero four eight four zero zero. My name is Larry Kalvig, Founder and CEO, and again thanks for listening to the Haven Financial Group Radio show, and of course you can reach our website at Havenfinanciergroup dot com to see all the different retirement tools, ask questions, see when our classes are Education is extremely important and we'll continue that
in this show today. Kim, good to be with you. Thank you, Larry, it's so great to be with you here we are. I cannot believe it's the last weekend in April. Time certainly feels like it's flying. It sure does, it sure does. Yeah. So hopefully today we're going to impart some wisdom on those who are listening when we talk about time. I think time is probably one of the issues that you're asked about the
most. When is it the proper time for me to retire? So that's one of the subjects that we're going to talk about today, and we're going to talk about the solvency of social security and what kind of impact that might have on people making a decision about the time time that they retire. Also, today, Larry, we're planning to talk about four roh one k's. We're going to talk about you know, how much money you need in your four ro oh one k to be on target? Maybe when you're fifty,
you're fifty five, you're sixty. We'll chat with you about that, and then I'm really looking forward to this. We're going to have a conversation about a state planning and I understand, Larry, someone very special in your office is coming in. Yes, Carrie Renner, I'm in a state planning attorney which helps out a lot of our clients. And again she has the same educational approach, So some really good tidbits on the whole aspect of a state
planning and why it's important for families to do so terrific. Well, we'll look forward to Carrie joining us a little bit later in this broadcast, but first let's kick things off with the age old question when should I officially retire? And I know that Larry is going to tell us because he tells us this about so many things associated with retirement, and that's it's different for everyone. But certainly something you want to think about is when you can claim social
security and when you should claim social security. So let's talk a little bit about that today. Larry, I'm sixty five too low for full retirement. What do you think, well, historically speaking, and I would say yes it is and the black Rock CEO Larry thinks certainly thinks so because it's a little crazy that this whole idea dates back to the lateeen late twelve hundred and thirteen hundreds. So this originated, this idea a long long time ago.
But you mentioned it at the very beginning. We get these questions when should I retire? Can I retire? When will my money run out? And it comes back to having a plan intact and one of the big topics. One of the biggest income streams for retired Americans is social Security, So when should you take it? It's exactly why we teach numerous social security and tax classes. Again, you can go to our site and see those classes and when they're when and where they're going to be. But there's a lot of
concern with that. Now let's start with saying, well, what's the earliest. Sixty two is the earliest, seventy will be the latest. And I mentioned before that about seventy percent of Americans take it right away, at about one to two percent way till seventy, so it's not one glove fits all.
You may have heard the term FRA before full retirement age. This is based on your birthday and I'll just throw this out there that the full retirement age is sixty six if you were born between nineteen forty three and fifty four. Increases gradually if you were born from nineteen fifty five to nineteen sixty, so it could be sixty six, two months, four months, six months,
depending upon your birthday. And then anybody born after nineteen sixty or later that would include me Kim, the full retirement age would be sixty seven. So it's individual, it's not one glove fits all, and it's why we sent people with social security reports, will run them based upon their situation and then they can make an educated decision on what makes sense and what doesn't make
sense. So, Laren, let's talk a little bit about what I mentioned off the top of the show, and that's the fear of social security solvency. A lot of people are getting, you know, to sixty two and saying I'm taking my money now because I'm fearful that by the next decade social security will run out. Where do you stand on that? Social Security has been very highly politicized for many, many, many years, and it really depends upon obviously who you ask, what side of the aisle you on Republicans
of touted raising the retirement age. Democrats supposedly want to keep it the same. Again, we're talking, we're not going to get into politics. What do you really believe? I guess, but they've talked about making some changes because it's not too far down the line. In nineteen thirty three, excuse me, twenty thirty three, the Social Security Trust Fund is going to run short of money and benefit cut up, but at least twenty three percent if
we don't make some changes. Now, we're not going to like about any of these changes that they're talking about. Change is like taxing all of your income. Changing the Social Security formula means testing, meaning if you've done a good job on your own, then you don't get Social Security reinstate student benefits for children of disabled or deceased workers. So there's are whole hodgepods of ideas
and neither side of the aisle can never get on the same page. However, by twenty thirty three, as I mentioned, we run short, So I understand the fear people have of running out. But there's a lot of Americans, I guess I would hope most of the listeners wouldn't be one of them that live on social security only. So if my opinion, my opinion is I don't they're not going to take social security away, but there's going
to have to be some changes. And one that's actually, I guess closer than we think is raising the age full retirement age to sixty nine or seventy depending on how you asked. That actually are closer than you think. So fear and anxiety is not good for decision making. And I think of a couple that was in just this last week from Lakeville. His idea was I'm going to just mack it to the government and I'm taking social security right away.
However, in that conversation, and it wasn't us trying to ture him from doing so. After our conversation, he goes, it doesn't make any sense for me to turn it on. So putting thought into that decision is of the utmost performance. So you're not making a mistake. Well when you do collect your social security, regardless of what may happen to social security, when you sit down with people, I realize this is a very individualized decision
that has to be made. What do you base it on? What are some of the decisions that you base it on when you talk to your clients about the age they should begin to draw social Security, their income levels, Are they prepared for retirement? How prepared are they? Do they like to work or are they just sick and tired of working? Then they can't get out of the workforce fast enough. When does their money run out? We'll
run it through adjusted for inflation, with reasonable returns. Some would call Monte Carlo projections out thirty thirty five years because people want to know, do I run out of money when I'm ninety or do I run out of money when I seventy? Is it feasible to retire? Sometimes we'll visit with folks and they've retired and now they're going, I think we're in trouble. So you want to avoid backing yourself in a corner before you get there. So when
we walk people through our proprietary plan, we ask lots of questions. Do you have longevity in your family? You know, if you do, maybe the lower bread winners should turn it on early and the latter one maybe wait longer, because that surviving spouse statistically could live ten, twenty or thirty years at that higher social security amount. So it's an endless conversation. Life happens, and these things can change as well. But again, getting educated is
the first thing to do. Larry, give our listeners an idea of what maybe a percentage difference it might be if you turn it on at sixty two versus maybe waiting until sixty seven or sixty nine. Yeah, from sixty two to sixty six, social Security grows by six percent plus any applicable cost of living adjustments which are announced in October. From sixty six to seventy, here's where we can see some significant increases in those monthly amounts because it grows by
eight percent plus the cost of living adjustment. Well just last year. In these recent years, because of inflation, we've had some pretty big increases. And if you were in that latter sixty six to seventy, you would have got almost a seventeen percent increase in one year. Now, I'm not saying that because I'm trying to convince people to wait. That's a decision individually you have to make for you or your spouse if you're married, in your family.
But it does continue to grow, and we see some significant increases in those latter years up to the age of seventy, if you have questions about social Security, when should you draw it? Maybe you have some questions about the laws you're not fully up to date on that, or you have any kind of retirement questions at all. We want to invite you to reach out to Even Financial Group. You can do so by calling six one two five zero four eight four zero zero at six one two five zero four eight four
zero zero. You can set up an appointment go in visit with Larry and other members of his team, or you can go to Havenfinancialgroup dot com. There by the way, you can learn more and sign up for a number of their seminars that they have. They're free, and social Security absolutely is one of those seminars Larry that people I'm sure flocked to so they can learn more about the system. Yeah, they're very well attended. People want to
learn, they need to learn. They're sometimes maybe a little bit afraid of making the wrong decision, which is perfectly normal because these decisions have never been made before. So yeah, we start with that piece, and then they have the opportunity to come in no strings attached, no cost, and visit with us and just see where things are at to see you know who they
are. If we're a fit, you know what information we can give them and what questions we can answer because you know, look, the the financial landscape changes, tax rates change, social security might change. We'll talk about iras, contribution limits. And if anything of these things concern you and you want answers, give us a call, set up a time. We'd love to visit with you. It's the nature of what we do, and it's so fun to help people Because some people have questions for years, they never
ask the questions and they never get the answers, and that's unfortunate. We want to offer that six one two five zero four eight four zero zero. If you're looking for some answers, that is the number to call to reach Haven Financial Group. Coming up next, how much should you have in your four h one k let's say, when you're fifty fifty five sixty. What puts you on target? We'll talk about that coming up next right here on
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 will be right back. Stick around. You've got questions, We've got answers. Your tune to the Haven Financial Group Radio Show with your host Larry Kolvig and Kim Karragan. Now back to the show. Welcome back to the Haven Financial Group Radio Show. I'm Larry Kolvig, Founder and CEO of the Haven
Financier Group. Feel free to give us a call at six one two five zero four eight four zero zero ask us questions, or go to our website newly revamped website. We've got some really neat things on there. We got a safe Haven community blog that our clients and people can go to. It's just really really interesting. So Havenfinanciergroup dot com. Now, Kim, how much money should we have in our four ron k? What do you think?
Well, I mean, I think that's individual. Certainly, I'm starting to take on your traits, Larry, look what you've done to me. But I think a lot of people really do have this question. You get into that kind of what I would refer to as retirement red zone. You're in your fifties, you're really starting to think about am I saving enough money? Am I making all the right moves? And you start to wonder, do I have enough money in my four or one k or in maybe my
ira. So let's talk about that. What is a target and what do you tell people that you visit within their fifties. Let's say, well, fidelity instead of study and Americans in their fifties have left saved and that they would like to see. And you know, I see it as well, because as we're sitting down and visiting with folks that are fifty sixty, seventy eighty that are planning or already in retirement, it is a little bit lackluster,
especially in recent years with inflation and everything that's going on. But some benchmarks we like to see. If you're fifty, one benchmark is you should have three and a half to six times your salary. At mid fifties, four and a half to eight times your salary, sixty six to eleven times your salary, and at sixty five seven and a half to thirteen and a
half times your salary. So this is going to vary, but I can tell you I did research and the media and four to one cave balanced in their fifties is about sixty nine hundred and in their latter fifties up to one hundred and ninety nine thousand, five hundred. So lifestyle plays a part in this. If you have an expensive lifestyle, obviously you need you need to
have more in there. So I have clients though that they are retired and have pensions and social security, not much saved in retirement, and they're perfectly okay. So we're going to talk about income in all these different types of accounts. You know, four to one ks. You might say, well, I don't have a four to one K, but maybe I have a four H three B, A t AT thrift savings plan, dferred comp Those are all employer plans. Maybe you've made contributions on your own to your own
IRA. May hopefully you have some roth IRA sprinkled in there. We just got done with tax time. I hope you made your contributions, you didn't miss opportunities, and that's why we really are big into debt tax discussions, especially with retirement. But again, those are just some target benchmarks. Where are you at? Are ahead of the game, are you behind the game,
or are you on track? And it comes back to having a plan and monitoring it and updating it. You know, I think a lot of people hear those numbers and they get really frightening, especially those percentages of salary that you you know, would be targets to put away. And I think you said it earlier and it's so true. You know, these have been some difficult times, especially in the last you know, four years or so from covid on where people have been trying to sort of play catch up.
So maybe those numbers are not so great, But those are just target numbers, right, Larry, And that those shouldn't scare people away or scare them from calling you or are sitting down and really dealing with this. No, no, they should never feel that way. Life could obviously send some major curve balls and situations. They're simply benchmarks and are you on track are you
not? Some potential solutions would be as I mentioned, you know, taking advantage of catch up contributions if you're over fifty, delaying retirement might have to might be an option if you're not on trap and if that's necessary, or not getting a part time job potentially, or maybe delaying your Social Security benefits so it comes up maybe a little bit higher. And when I talk about those contributions, iras roth Ira simple step iras. They have different guidelines as
far as how much you can put in on an annual basis. Again, you have four to one k plans or four oh three b where this year the max is twenty three thousand. Outside of that you can put up if you're over fifty, up to seventy five hundred. So just working with somebody's and I don't want to throw all these out there, but working with somebody that knows these guidelines, that spends time with you, that will actually help you understand the pros and the cons of four to one k's in these plans,
because there's there's always one, there's always two sides. You know, with four one k's you can systematically get put in there with your employer, they might make contributions and if so, please take advantage, even though that
might be a minimal amount. So there's pros and cons. Have somebody to talk through those with you, so you have a good understanding of maybe you're putting it in the wrong type of accounts, Maybe you'd have a better tax outlook if you put it into a roth rather than the traditional not necessarily maybe today, but maybe ten years from now. Again, not to make this complicated, it's when you partner with somebody that can hold your hand and help
you along the way, especially in retirement. That can be very attractive and give you some comfort and some guidance as to are you on track or hey, we're getting off the track, maybe we should get back on the track. Sure. I want to make sure everybody knows that if they have some questions about this, if you're wondering if you're on track, you can give
Haven Financial a call, sit down, talk with the experts there. As Larru said, there are so many things to know, contribution limits and times and so on and so forth, and the folks there at Haven Financial they understand all of that. Six one two five zero four eight four zero zero six one two five zero four eight four zero zero. Set up a consultation, go in and talk with the folks there at Haven Financial Group to find out you know where you stand and if you're on track when it comes to
maybe your four or one K or some of your other savings plans. Havenfinancialgroup dot com. You can also reach them there. I want to talk to you a little bit about because I here. In a few minutes we're going to talk about estate planning. But let's talk a bit about the role that inheritance might play in someone's retirement. I mean, some people come from situations that they know there will be an inheritance. So what do you suggest for
those folks, and how do you approach that kind of retirement differently? Well as an inheritance. I mean, that's going to come into the picture potentially. I hope your parents or whomever is getting it to you as an estate plan, which we're going to talk about in the next segment, the Great Wealth Transfer of legacy and inheritance. You know, what's the tax implications we'll talk about that. If you do get an inheritance, what types of accounts
or land or businesses will you be inheriting? The tax piece is the big one. Know how much you expected an inheritance to be. I mean that's a touchy one though, because you don't always want to prod family members. Hey am I going to be your beneficiary? And if so, what do you got? I mean, it's probably a good way to go about that.
I just recently had because you got to have a little fun with this topic a little bit where this one single guy came in and he wasn't really into the work thing because he was waiting for his parents to kick the book. If you will. I hate to put it that way, but so he was relying on the inheritance and that was just an excuse for not him not to work. But at the end of the day, you know, if you do have an inheritance, make sure you discuss that with whomever you're
working with. Timeline of that tax ramifications, what does that mean again, It's just to have a good to have an open dialogue in communication with whoever you're whoever you're working with. Sure, absolutely, do you find that these people who come in, like your friend here, who didn't really want to work, are they really a are they are they putting together retirement plans or a lot of times they're not thinking about that because they know there's great wealth
that's waiting for them. Well, he knew that there was no plan in tact that he needed at this time as far as the investments of the retirement goes. But he was just wondering when his mom and dad do pass away, then then he should probably put a plan together. There was a touchy It was an interesting conversation to say. To the least, my advice would be, I'm big into the work thing. Thanks mom and dad. On the forum for teaching me how to work, develop a plan, be accountable.
You got to have some purpose in life, and at the end of the day, whatever your plan is. If you're the type though that's listening. Sometimes people get embarrassed. They bury their head in the sand. I don't have anything. Please don't don't be that person. Small, medium or large, A lot of stuff for little stuff, A small family, a big family, no family. Your situation is your individual situation, and you should have the same attention. Should be no favoritism. It should be the
same no matter who you are and what you're doing. Absolutely, let's remind everybody once again it is six one two five zero four eight four zero zero. That's the telephone number where you can reach Haven Financial Group. We're going to Havenfinancialgroup dot com. I'm looking forward to this, Larry. We're going to have a conversation with your state attorney and we're going to talk a little
bit about first off, just how to approach this conversation. It's not an easy one to have, as you said, and it's an important one. And then we'll have an opportunity to talk more just in general about a state planning and some of the things that you need to think about when you're putting together your estate plan. So that is coming up. Carrie Renner coming up to join us in just a few moments. In the meantime, you are
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. Thanks for listening. Give us a call at six one two five zero four eight four zero zero or Havenfinancial Group dot com newly revamped website. Check it out. Kim, it's great to have Carrie Renner with us in a state planning attorney. The exciting topic of a state planning yet so important, yet so many people never get around to it. They think they have things done and maybe it's not done. So Kim,
it's great to have carry with us in these next couple segments. Absolutely, Carrie, welcome, Thank you, Kim, thank you Larry for having me. You know, Larry just hit the nail on the head, didn't he, Carrie when he said that. You know, these are difficult conversations
that some people just put off until it's just too late. And I can imagine that you've had some real experiences with people who you know, have had loved ones who passed away and they didn't have any kind of a state plan, and then you know, lots of difficult times come up after that. But let's begin with you know, the typical couple who maybe comes in and they do want to start to talk about their estate planning, and tell us and guide us a little bit about what you tell them in the beginning and
how you get the process started. You're right, this is a topic that is important and is going to affect us all. So this is something that really applies to everybody. How we plan is going to be dependent on what stage of life we're at, generally. And I tell folks that in a
perfect world, you would plan three times in your life. When you turn eighteen years old and you become a legal adult, you're going to have some basic documents in place that are going to allow most likely your parents to still
be involved in healthcare decisions and financial decisions if you need that support. And when you start a family, you're going to probably create that next plan, and now you're going to be focused on things related to your minor children, raising the children if it can't be you, who would take the children in an emergency, who would make medical decisions for those children, and also issues
relating to an inheritance that those children might receive at a young age. Most commonly, I talk to folks who are nearing retirement age and who have adult children, and now they're looking at different goals. Now they're looking at a transfer of wealth that's going to occur when they pass, and their number one goal is usually how do I keep this as a simple as possible and keep
those relationships whole after I'm gone. So let's talk about some of the key financial and legal tools that are out there that you start to talk to the people who are in that final part of it as opposed to maybe the earlier the first two. Sure, absolutely so, people who are are nearing retirement age or have our own children in our past, the years of planning for guardianship and those other considerations still have some of the same concerns that everybody has.
We all need to have an incapacity plan in place, and these are things like healthcare directives, powers of attorney, documents that authorize somebody else to make those decisions if we can't make them for ourselves. And there's a misbelief out there that spouses automatically have these rights, or that our adult children will be able to act, or even that our parents can act for these young
eighteen year olds, and that's just not the case. So if you do not have a healthcare directive, a power of attorney, or other key incapacity planning documents, then the alternative for your loved ones is to go to court, get a guardianship of you, or get a conservatorship of you, and handle matters that way. So that will be a component of any plan.
But more specifically, as people age and their children grow up, they're becoming more heavily focused on the tra answer of wealth that's going to occur when they die. And there is a real misconception out there that a will and an
estate plan are the same thing, and they're not. A will is one tool that we have in our tool belt, but an estate plan is much more comprehensive than that, So wills are effective only when a person dies, and estate plans contemplate incapacity, wealth transfers, probate avoidance, family harmony, and there's far more considerations in a state planning than just putting a will in
place. We're talking with Carrie Renner, she is the estate planning attorney there at Haven Financial, and Larry of course is with us as well, and Larry, you talk about this all the time and how important all of this is, especially as people start to walk into retirement, because things can happen. We all want to believe that our kids will be, you know, thinking the same way, everything will be harmonious, but that's not always the
case. And spelling it out can not only make life better for all of them after you've gone, but it also can save them a whole lot of money, some of that, you know, that money that you're trying to leave them, that wealth that you're leaving behind. It can keep it from going straight to Uncle Sam. Correct. Yeah, the old thought pattern, nothing's ever going to happen, nothing's ever going to happen. Well, eventually
something is going to happen. The mortality rate in every state is one hundred percent, and I'm not making light of it, but the reality is we're all going to go someday. So what is that wealth transfer strategy whether you have small, medium, or large. I would costion some listers or people out there. If I'm all about doing it yourself, if you can do it yourself and save money where you can save money. But you know, the the legal world is a very latigous We're in a very litigious society.
So doing a state planning work on your own, there's a lot that goes into that, and some people just try to you know, piece meal or do something simple, or I'm just going to do this and it'll take care of itself. Be careful with that. Or you know, Larry, we don't have any kids, so I really don't need a plan. Whatever you have is going to go somewhere. It's a matter of how does it get there. And maybe you have a complicated situation, maybe you have a co
mingled family or you know, second third marriage. Those complications can cause problems as well. So everybody's situation's different, but everybody should have some sort of a state plan, or if you don't, maybe the government taxes and other things could take a chunk of what you worked hard to put together. Sure, absolutely, you know, Carrie, you said something that I thought was
so interesting, and I think it is so true. There's a misconception with the idea number one, that your spouse or your adult children will either just automatically inherit everything that you have or they can make any kind of decisions for you. So let's talk about, you know, how that all works and how you can dictate that whether you're putting together a full plan or you're just putting together a will. Right. The conversation around wealth transfer is a big
one. There's a lot of tools we have available to us, and many
folks are implementing them already and not even realizing that they're doing that. For example, joint ownership is a wealth transfer method that's commonly used between spouses, and a lot of people assume that's the case and are planning on that being the case, but working with somebody who's going to double check those things for you to make sure your home is titled the way you think it will and that you won't end up being a surviving spouse going through probate to own your
own home. So joint ownership is one way. That's a great tool for spouses, that's a bad tool for parents and children to use to transfer assets. Another thing a lot of people have already put in place are beneficiary designations. If you've got retirement accounts, chances are you've got your spouse listed as the primary beneficiary and your children listed as contingent beneficiaries. And that is that is a plan that's going to avoid probate, that's going to trump any sort
of will or trust that you have in place. But that may not always be the best idea for everybody or for every asset. So it's important to not just implement these wealth transfer tools, but to take a step back before doing that and really looking at what your goals are. So, for example, just looking at beneficiary designations that can be a great tool in a smaller family or maybe a family with an only child, That may not be the best tool for a larger family, and they may want to look at as
a trust instead as a transfer vehicle. I mentioned joint ownership, which is great for spouse, is not great for children. So there is no one size fits all, cookie cutter approach to implementing X, Y or Z and that takes care of the problem. It's really an analysis of what your situation is and then working to identify what those goals are. Can you give people an idea of what it's like if a state has to go through probate?
Yeah? Absolutely, So another myth, Well it's where Since we're busting myths right now, I will just say that not every estate goes through probate. That is a concern that we hear sometimes is there's no way I can avoid probate. That's not true. Probate happens when an asset is being transferred via a will or when there's been no method at all implemented for the transfer of
that asset. When a person dies, and so many folks come in and they and when I ask them, what are your goals for your estate plan? And they say, well, we don't want there to be probate. And when I ask them why, they rarely can answer the question. They know it's a dirty word, they know it's something they want to avoid, but nobody has ever told them what it is and why they might want to
avoid it. So the reason that probate is generally not something people want to plan for when they die is because it's relatively long, it's relatively expensive, and it's very stressful unloved ones left behind having to utilize this court method to transfer an asset. It is a court proceeding, they're generally going to take nine months to a year. They are probably going to hire an attorney. And in Minnesota, we have a four month creditor claims period that is built
into a probate process, which means assets are frozen for four months. And during that timeframe, families are paying out of pocket for expenses like funerals, attorneys fees, house related expenses, and that can put a real strain on a family. So generally, probate is something people do want to avoid.
So we're going to take a quick break here, Larry and Carry, and when we come back, I'd like for both of you to talk us through the conversation that families need to have and how you can avoid probate exactly. I know Carry, you've alluded to this, but maybe we could just walk through exactly how families can avoid probate if at all possible. The number six one two five zero four eight four zero zero, that's how you reach them
at Haven Financial Group. Maybe you'd like to sit down and talk with Carrie, you can call and set up a consultation, or it's Havenfinancialgroup dot com. You're listening to 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. 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 Karagan. Now back to the show. Welcome back to the Haven Financial Group Radio Show. Thanks for listening this morning. Give us a call at six one two five zero four eight four zero zero, or visit us online at Havenfinancialgroup dot com. My name's Larrykalvig, Founder and CEO of the Haven Financial Group, and it's great having Carrie Renner here with us today. A state planning, wealth transfer, you know, not exciting but
very important things. I always, I always love when folks finally get an estate plan done. There seems to be a breath of fresh air. I finally got it done. We've been trying to get it done for years. Again, it's it's fulfilling to know that they finally got it done. But it doesn't happen by itself. It is a process, and if laws do change, you should have a partner that you can go to to make sure
that everything is up to date. And you know, I know the temptation for a lot of folks, well I've got the best kids out there, they'll never fight. Well, how are you going to know if you're no longer here. So my encouragement would be always be to dot the i's, cross the t's, make sure you can do what you can do while you're
still here, and be proactive rather than reactive when you're gone. Even the best of families, my extended family had had issues after or a loved one past even so again, it can affect people's lives when we're living, and it can affect people's lives when you're gone. Well said Larry, It's so true. And unfortunately, while we all think that we do have the greatest kids and that everybody's going to get along, kids get married, kids get
divorced. Things happen, and these are the kinds of things that you have to protect against. Carrie Renner with us today and Carrie, before the break, you talked a little bit about the experience of probate. Unfortunately, my family had a situation and we ended up in probate. My husband did and was there for almost eighteen months going through it. And I can tell you the stress of that for my mother in law was something that nobody should have
to go through. It's just too much. The stress of loving my father in law was bad enough. So you talked about that experience and you said that there are ways. You have people who come in clients who say, Carrie first and foremost, I just don't want my family members having to go through probate. So let's talk about what you say to them from that point forward, how you try to avoid that when you start an a state plan, right that is you write Kim, that is the number one goal of
most people is avoiding probate. And as I stated earlier, there is this misconception out there that having a will is going to take care of everything. And by taking care of everything, people believe that there will be no probate, that there will be this smooth transition, and that's not the case. Wills go through probate. And I can't emphasize that enough. I get questioned, are you sure, what about in this scenario, wills go through probate.
The only exception to that is if they're controlling assets under seventy five thousand dollars and there's no real estate involved. So knowing that, we know that a will is not going to be the primary basis for an estate plan when the number one goal is to avoid probate, it doesn't mean wills are bad. Wills are a great backup plan. Everybody should have a will, but have it as a backup plan. The primary plan is going to be one
of two things. They're either going to put beneficiary designations on all of their accounts, and in Minnesota, we can put essentially a beneficiary designation on our homes. On our real estate, we can record a transfer on death deed that will pass that real estate to those beneficiaries named on that deed at our death outside of probate. So that's one option. The other option is a trust, and a trust is a legal entity that you move assets into.
Oftentimes you don't move anything in and tell the time of death. Sometimes you move it in while you're living. There's different reasons for doing it different ways, but that legal entity will distribute those assets at a given time a given time that's designated in the trust, typically when I die or when I die in my kids have reached x age. That would be a common scenario for how a trust would operate. So really the question becomes which is better for
me? Do I want to utilize the beneficiary designations and transfer on death deed or do I want to utilize a trust or some combination of the two. And for most people it's going to be some combination of the two. Trusts are not for rich people. Well, they are for rich people, but therefore all people, trusts are there to solve problems that we anticipate might happen when we pass away. So let's just use our house. Most of us own homes, and so let's just use the house as an example. So
I'm meeting with a client and I give them these two options. You can put a transfer and death ded on your house, which is essentially a beneficiary designation, or we could move your house into a trust. What are the differences there? Both of those avoid probate. That's good, and if that's all we're looking at, then then that's the end of the conversation. We really don't need to delve any further. But I know that that's not the
only thing that matters to folks. The number one thing they tell me is, I don't want my kids to fight when I'm gone. I don't want this to be a mess. So if you've got five kids and you use a transfer and death ded to pass that house to them, that will have probate. But now you've got five kids who own a house together, and the rule in Minnesota is you don't sell any real estate that you own without
the consent of your spouse. So now you've got ten people who effectively own a house together, and they're not going to get that property sold or improved or get anybody to move out of that property unless they all agree with that. And that's where people will be looking to a trust to say, Okay, I see some potential problems with this. How can a trust do better?
And a trust will put one person in charge, a trustee who's designated to act on behalf of all of the beneficiaries and get that property sold and the money distributed. So, Larry, you and I have talked about estate planning, and obviously Carrie is a little delves in a little bit deeper than what we have had conversations about. But tell me what's the reaction from your
clients. Are they surprised by the fact that wills are not the end all be all and they end up in probate And which direction do they go trusts or do they do the beneficiary? Well, everybody, you know, there's so much access to information out there that Larry, we heard that you know, wills avoid probate, like Carrie said, and that's a misconception. Well, I just heard one last week and maybe Carry can talk about Well, I went to a class and they taught said that a trust will avoid the
nursing home. I'll let her discuss that, but again, be careful with what you hear, and that's where will validate what you're doing. And that's why sitting down and visiting with somebody that like Carrie, that knows she is the estate planning attorney, she has years of experience in it. We come from the mindset in all areas of retirement that not everybody needs everything, but what do you need? If anything? There's certain documents that I think Carrie
would agree that everybody should have. But I was you know, there was one person out there on TV that said everybody should have a trust. Everybody should have it. Well, not everybody needs a trust, So get what's appropriate for you, your spouse, your family, your situation. And because nothing's free, and you know, we like full transparency and everything we do at Haven Financial Group and carry as well, there's no surprises. There's costs
that come with doing certain things. You can buy the name brand or the off not the name brand, but what are you getting for what you're getting? I can tell you when she works with folks, the end product, those documents, the time and the effort and the energy that she puts into it. There's the sense of all the in all the areas that we care
because we do not only for you, but what happens afterwards. And the longer I do this the more Unfortunately, the more funerals of clients that I go to, I want to know their families going to be well taken care and very well represented. I want their parents, if they pass, to know they have somebody to go to that took care of mom and dad and that is of the utmost importance. So you know, if Krrie could talk about some of those other misconceptions, that would be wonderful, right, Larry.
That's is a very common misconception that people think estate planning is the tool to protect their assets from nursing home costs, and that is not true. In Minnesota, we don't have a magical trust or any vehicle that's going to protect those assets. So the answer for those folks is, you plan to pay for your care. You plan to buy insurance to pay for your care.
Now, there's other things we can protect against in estate planning. We've talked about some of them, probate avoidance, keeping those relationships whole after we're gone. Tax planning is another big one. And so when we're talking to folks of all net worth levels, we're discussing tax planning, more so with people of a higher net worth, But that is going to be part of any conversation. And Carrie, when you say that, you mean you're trying
to avoid the state being attacked so dramatically. And as I think it was Larry who said earlier, you know, your hard earned money going to Uncle Sam versus going to your loved ones, that's absolutely right. Ada does have an estate tax. Our exemption in the state is three million dollars, meaning anybody who dies with over three million dollars, their estate will be subject to a tax, and there are ways to avoid that. There are ways to
mitigate it or eliminate it altogether through estate planning. Another type of tax that we recognize in estate planning or capital gains taxes. So oftentimes people will come to us with highly appreciated assets with an eye on a state taxes and they'll say, well, what if I get this out of my estate before I
die, then it won't be counted against my three million. Well that's true, but now your beneficiaries are going to miss out on this step up and cost basis that they would have had if they received it at your death, And so navigating those tax laws is something that's going to be important for everybody. Well, I think Larry said this earlier in the broadcast, and it
just seems to me to ring so true. Certainly, you can do things on your own, but it is a very complex situation and laws are changing constantly, and the best way to put together in a state plan that protects your family and all of your hard earned wealth is to talk to people like Carrie Carrie Renner, an estate planning attorney, and to the experts at Haven Financial and the way you can do that is to set up an appointment and go and see these folks in person, sit down and talk to them about
what your goals are when it comes to estate planning and how you can achieve those goals. Even Financial Group it's six one two five zero four eight four zero zero six one two five zero four eight four zero zero. You can go to their website Henfinancialgroup dot com. Lots of educational seminars there you can sign up. Don't hesitate to do that because they certainly book fast. Carrie,
it's been a delight to have you on the program with us. I hope you can come back because it feels like we just barely scratched the surface about estate planning. Thanks so much, Kim. It's fun to be here, and I think you're right, there's lots more we can talk about it. I look forward to coming back again. Thank you, Larry. Yeah, Kim, great to be with you again this week in close. If I could say, you know, it comes back to what I've always said,
you have all the retirement puzzle pieces? Do you have all the pieces to the puzzle? The coordination of these puzzle pieces, especially in retirement, the estate planning connects with the investment planning, to the financial planning, to the income planning, long term care and then the insurance. All of these things should be coordinated. If they're not working together, they could be working
a part and inefficiency inefficiencies could be there. Again, all these topics are all the areas that we work in, that we talk about and we want to talk about as much as people want to to give them the confidence that as they get closer to or in retirement, they are in a good spot. Because you spend all these years getting to this point. They call it golden years for a reason. We want them to be as good as possible. Larry, thank you very much. Have a great week. We'll see
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