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. I'm Larry Kolvig, Founder and oh of the Haven Financial Group. Thanks for listening. Give us a call at six one two five zero four eight four zero zero or visit us online at Hanfinancialgroup dot com. All kinds of great retirement tools there, Kim, good to be with you again. It is great to be with you as well, Larry, and I hope you're settling into a wonderful summer. It is certainly a hot one this year. Yes, and we've gotten rain here to replenish the soil and replenish the
lake. So much appreciated rain. So, Larry, let's talk today about retirement accounts and the risk of ignoring them. I think that, you know, for everyone's sake, who's listening, I think it would be great if we just talked about what some of the different kinds of retirement accounts out there might be. Yeah, retirement accounts are so important as you plan for retirement,
and just kind of getting back to the fundamentals. There's iras their employer sponsored plans like four oh one k's, four H three b's, other terminology like four fifty seven's. They're all employer sponsored plans, and there's different contribution limits with iras than four to one k's. Four to one k's have higher contribution limits, so it's important to know how much you can put in, and of course, if your employer's obviously matching, it'd be silly not to
put it into that. So when you do put money in pre tax, it obviously reduces the tax liability in that given year. So we help people try to understand does it make sense to go into the pre tax IRA four one k or wroth for one k's or wroth iras It's taxes are relevant and continue to be relevant, especially in retirement. So do you pay now or
do you pay later? And what makes the most sense. And really that's where we sit down and kind of map out a contribution set slash tax type of plan because it's extremely important to understand these limits absolutely, and there are besides taxes, which are certainly an important part of a great retirement plan, there are some limitations and there are some restrictions associated with some of these retirement
plans. Can you walk through some of the those Yeah, just this last week we sat down with a Klinovar's lois and she is self employed and prime example is she had not been taking advantage because she had no tax advice and there was opportunity a non deductimal amount of WROTH money that she could backdoor wroth irase. So you know, it's important to understand the rules and regulations.
Lance is our CPA, and there's income limits with contributions to roths, but yet there's certainly some ways to backdoor the roths to get it into that position. So, you know, it's important to understand the early retirement penalty, especially with iras, if you're not fifty nine and a half, try to stay away from that because there's a ten percent penalty for taking money out early. So again knowing the limitations, knowing what makes the most sense, and
then having the right recipe within those iras. You know, there's certain things like that irase should be holding, like stocks, bonds, money market accounts, mutual funds, there's some common holdings, and then other types of brokerage accounts we'd have strategically have some different types of investments in those. So, Larry, when you have a customer who comes in and they want to learn a little bit more about, you know, these kinds of retirement accounts,
where do you start with them? I would imagine the first thing you start to ask them is are they available through your employer? Yes? Most definitely, not all employer sponsored plans for one case, et cetera. They're not certainly the same. So what investment options do you have, are there any company matches? What are your fees associated with that? You know going to
We take people through the exact same process every single time. We sit down, ask questions, as we call it a discovery meeting, and then you know, ask a lot of questions, take a lot of notes. There's no cost to do this, and then we develop some sort of strategy and make some recommendations, some suggestions, and if one chooses the implementation process,
then we're going to continue to modify and make changes to that. But as we could sit down with those that are getting closer to retirement or in retirement, but the element of time, as you and I talk weekly, becomes that much more important. And just last week we had a couple in and they go, Larry, we're more conservative now we're in our mid sixties. Yet their recipe for their portfolio was exactly what they were doing when they were
in their thirties and forties. And they go, we didn't like the results in twenty twenty two or in two thousand and seven to two thousand and nine, Well, if you're doing exactly the same thing, can you not expect exactly the same results? So stress testing that portfolio, having a plan. You know, you're not thirty or forty now your mid sixties, it probably
shouldn't look exactly the same. Sure, Larry, I know you've talked about the time issue, but you know, is everybody eligible for these kinds of retirement accounts? And more importantly are they for everybody? Well? I certainly for people starting out, they are a good starting spot because typically these employer sponsored for one case, tend to have lower costs. They don't have all
the investments on the menu. But you got to start somewhere to get somewhere, and if there is a match involved with your employer, I don't know why you wouldn't do it. Now, when you get to retirement, we do lots of four to one k rollovers. Maybe you have orphaned four to one k's or so other four to one k's that you're not contributing to. We're all about simplification and consolidation. I had an individual last week that had six old four to one k's. Well, that's complicated, and it really
doesn't have to be complicated. So if you're over fifty nine and a half, you might want to look at four to one K rollovers. Even if you're still working, to look at all the investment options out there, and there's no cost for those rollovers, and first of all, you don't have to but there's other reasons why you wouldn't leave it in a four to one
k because of the rules and regulations that have changed in recent years. Absolutely, So, Larry, let's go back just for a second, though, and talk about I know you've said this is a really great way to get started, and maybe you're getting started with a four oh one K when you're
twenty three years old and you've gone to work for someone. At what point as you begin to transition though into retirement do you I mean, how do you explain to people how you can turn those dollars that have been tucked away for all those years into some kind of income. How do you transition it in? Well, that is the most difficult part for people, is Okay, now I'm not working or I'm not contributing to the four oh one k,
Eventually I need to start drawing for retirement income. So we're going to do a needs analysis. What do you need on a monthly basis? What are the tax ramifications? Where should we draw from in the most tax efficient way possible. You know, typically we start with the pre tax IRA type of money and then or actually we would start with the broke reads account money, then to the IRA money and then usually the roth iras are the last
thing people touch. So it's all part of the the discussion process where when, why, how much? What makes the most sense? And you know, the biggest concern people have is do I have enough money to retire or when am I going to run out of money? So, you know, just kind of getting a needs analysis and then mapping out of Monte Carlo projection for the next thirty thirty five years is a typical process that we walk people
through. Yeah, you know, when you start to think about I mean, it's difficult enough when you're younger and you're trying to make decisions about how much to contribute and where to put your money and the tax ramifications and so on and so forth. But it just seems to me that when you start to approach that retirement age and transitioning and then knowing how to manage your money
at that point is the toughest part of retirement. And why would you know this because you've never done it before and you guys are the experts who do know how to do that, and for that reason, I want to tell people how they can sit down with members of your team and talk through, first off, as young people, where to start to invest in, how to look forward, and then as you again begin to approach retirement, how
to transition your money into a great retirement. It's six one two five zero four eight four zero zero at six one two five zero four eight four zero zero. You call that number and you set up a free consultation with a member of Larry's team and talk about you know, what you're looking for and what your needs might be. They are the experts. They understand how this process works. You can also go to Havenfinancialgroup dot com to learn more about
some of their educational seminars and you can sign up there. They are free learn more about different subjects that relate to your retirement, but you do have to sign up because they do go very very quickly to talk in this program. Next about social security and inflation and how that affects your social security when you might want to draw inflation. Certainly, inflation has been an issue in
our lives here for the last couple of years. Yeah, retirement for the gen xers might look a lot different than it did for the baby boomer generation because you know a lot of them had pensions, and you know what, you don't have to do it alone. You know, we help guide people professionally to help navigate through these financial environments, financial decisions, and it just starts with a conversation. And there's certainly no cost for a conversation. Just
give us a call, set up a time. Again, no costs for the consultation whatsoever. Let's talk about social security and inflation. On the other side of the break. You're listening to the Haven Financial Group Radio Show. Don't go too far. We're gathering more important insights and retirement ways. Devinent, The Haven Financial Group Radio Show will be right back. Stick around. You've got questions, We've got answers. Your tune to the Haven Financial Group
Radio Show with your host Larry Kolvig and Kim 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, ask ask us questions six one two five zero four eight four zero zero or visit us online at Havenfinancialgroup dot com. Social security,
inflation, these wonderful topics. They're so exciting, aren't they. Kim, Well, you know, I realized that people you know who listen to the radio show on a regular basis probably think, wow, I hear a lot about social security. I hear a lot about inflation, but I don't know how frequently we talk about them as they relate to one another, and they're both such important issues when it comes to your finances. So Larry, why don't you draw the issue here for us? Spell it out why inflation can
have such a dire effect on social security. Well, certainly, we've talked a lot about inflation over the last couple of years, and it's real people's pocketbooks have been greatly affected and their savings, but it also affects socse security and that's one of the biggest income streams for retired Americans, which Americans have relied heavily, I would say, too heavily on social security. It's a big decision. It's why you know that we teach lots of classes on social
security and tax classes that are very well attended. I encourage listeners check out our website and see where we're going to be next, because some educational thoughts should go into when you should collect Social Security for married couples. We call
it a WEE decision, not just a me decision. And you know, these summer months will be the indicator as to what the cost of living adjustments are going to become October because they announced it every single October, which we've seen some great increases because the cost of living adjustment to Social Security every year is not a guarantee, and there's been a couple of years where there's not been an increase where this year there's Social Security cost of living adjustments three point
two. In twenty twenty three it was eight point seven. Wow, that was big inflationary costs in twenty twenty three, and in twenty twenty two five point nine. So we've seen some significant increases. And for the historical buffs out there, if you look back to nineteen eighty and nineteen eighty one, those two years we had a fourteen point three increase and eleven point two increases,
So they are increases. It's going to be you know, this summer months, how we draw in inflation and then that'll be a good indicator. But you know a lot of part of inflation is due to oil prices. So I don't see anything catastrophic here going forward, but put some thought into when you take solid security. Cost of living adjustments are not guaranteed, but we've seen it to be proven to be very beneficial because it helped pay for
all the things that are so expensive these days. Sure, absolutely, I mean I know that it really sounded amazing that there was an eight point something percent increase you know, two years ago, but certainly the cost of groceries and as you just mentioned, you know, your gas prices at the pump, you know, those had gone up as well, unfortunately, so you maybe didn't see as much of that money go into your pocket as you did
go right back out to your cost of living. You're saying, you know, really think about when you take it though, So what does inflation have to do with when you draw your Social Security? Or does it at all? And maybe we could just go down that road why you need to sort of examine what what's best for you when it comes to timing of drawing your
Social Security. Yeah, well, first of all, the earliest you're going to take it at sixty two, and about seventy percent of Americans draw it at sixty two, which tells me there might be a lack of education. Now, our job isn't to determine you should take it now or you shouldn't take it. It's put some thought into it. Are you still working, do you need the income? What's the tax ramifications? Are you too full
retirement age? How much money can you make before they start withholding some So sixty two full retirement age is based on your birthday and age seventy is going to be the latest that you're going to take it, so you know, oftentimes we see for couples the lower bread winner turn it on earlier, depending upon circumstances, of course, and the higher bread winner trying to get to
as close as seventy as possible. Ultimately, that's really driven by your your needs, your expenses, the income, what it takes to have a comfortable retirement, you know, the cost of living adjustments. Yes, they are important to keep up with inflation. But I wouldn't put a lot into it. It's not going to be a I don't think it's certainly a game changer, but no, we certainly like to see it when things are so costly
as they have been. M hm. So, Larry, if you don't draw your Social Security until you're a little bit older, So let's say you at sixty eight, what's the I realized it's individualized. But what might be the difference in the amount that you get in a single check versus if you had started drawing at sixty two. Well, certainly it depends upon what you've
paid into Social Security. What I can tell you there is from sixty two to sixty six you see a six percent increase plus the cost of living adjustment. From sixty six to seventy you see an eight percent plus the cost of living adjustment. So last year, if you're delaying, you almost saw a seventeen percent increase. So in general, waiting to claim provides you with a greater benefit. Yes, and we're looking to maximize. So if you have
longevity, maybe it makes sense to wait. There is a break even point, which for many most people it's somewhere between ten to twelve years is the break even. Maybe you turn it on earlier because you don't you want to delay drawing off those IRA accounts. Again, maybe that makes sense, Maybe it does make sense, But I can tell you for those that come out to our classes and they come in for a no cost consultation, they do
walk out of our office with an actual Social Security maximization report. It literally is a report based upon their circumstances on what makes the most sense at a given time. And people find that to be very very beneficial to the degree that, oh, this makes sense, and they actually take that report when
they to the Social Security Office when they start drawing. So just know that there is no cost and it can be very very helpful because it's not the same for everybody, and at the end of the day, it's needs based. If you need the money, turn it on. It's I know, it can be very challenging for people to wait till seventy just because it's like, well, you're giving up all that time. So again, it's an
individual it's an individual situation. Well, and that was what I was going to ask you, because if I'm sure there's a lot of people who think, listen, if I was to amortize from sixty two on to however long I draw Social Security, in the end, I'm going to probably get the same amount of money that I would have gotten had I started at seventy is is that typically true? Again, that break even is typically ten to twelve
years. So I would say, if you have longevity in either side of the family, if you're married, that one of you should wait because again you will live well into your eighties into nineties, Well, then you're going to be ahead. Problem is, we don't have a crystal ball. And at the end of the day, what is your income needs? Where are you going to draw from in the most tax efficient way possible? And okay, social Security is taxed at the state level if you're over one hundred thousand
dollars adjusted gross income. That was a law that just changed last year. If you're under that, Minnesota is not going to tax it, but it will be taxed at the federal level. So all of these retirement topics, social Security taxes, cost of living adjustment, all these are pertinent to that retirement conversation because at the end of the day, social Security makes up a
big chunk of money for the average adults. Larry This might be a question that sounds sort of silly, but I bet a lot of people out there are wondering, can I find out how much I've paid in to Social Security? Is there a way to get that number. Yeah, a lot of people don't get paper statements anymore. But if you go to Socialsecurity dot gov and set up a user name and password, which, by the way, I'm going to courage every listener to do that. I don't care what age
you are. And really for two reasons. Number one, to monitor to make sure that there's not mistakes that have been made. Mistakes do happen, Yes, believe it or not, even with the Social Security administration. I know that's hard to believe. But at the end of the day, I've had clients bring in the report and there was errors and there was omissions. I had a gentleman from Eden Prairie here a couple of years ago where there was ten years of earning's history missing from his report. Oh my god,
that's not something you want to find out today. You're going to sign enough for Social Security. So being proactive, not reactive, because you know it's going to take time, energy, and effort to fix that problem. And the other reason is, unfortunately the world we live in, senior fraud is worse every single year. Make sure somebody is not already collecting on your soci
Security number and you say, it can never happen. It's happened to Jleno, It's happened to prominent people, and if it can happen to them, I hope it never happens to you. That's why soci Security dot gov great resource to keep an eye on it. Absolutely so I'm glad we mentioned that. And again it's Social Security dot gov. And then you just you set up your own account and that way you can keep an eye on what's happening
when it comes to your social security. If you would like to sit down talk to Larry a member of his team, 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 Hapenfinancialgroup dot com. You can check them out there as well. Let's talk about some tax surprises when we come back on the other side of the break. You're listening to the Haven Financial Group Radio Show.
Ready to find your financial safe haven. Your dream retirement is in reach. Don't go away, The Haven Financial Group Radio Show will be right back. Are you worried that your financial strategy might be missing something, Well, you're in the right place. Larry Kolvig is back and ready to help you find your financial safe Haven. Good morning and welcome back to the Haven Financial Group Radio Show. Thanks for listening. I'm Larry Kolvig, founder and CEO
of the Haven Financial Group. Give us a call at six one two five zero four eight four zero zero, or visit us online at Havenfinancialgroup dot com or set up a time come in to visit with us. Our offices in Burnsville, Minnesota thirty five w and Burnsville Parkway, very laid back atmosphere. There's no cost for a discussion, just to discuss your needs, questions, worries, concerns and related to in relation to any of the retirement puzzle pieces.
Let's talk about something that everyone absolutely hopes never happens to them, but does happen to people on a pretty regular basis, and that is an unexpected tax bill. You know, maybe you've sold something over the course of the year, you've drawn some money out somewhere, maybe you've gotten some money and you just weren't expecting it. It happens more frequently than people even want to admit, doesn't it, Larry? It does? It does? In about
it. Two months ago, I had a lady then somehow she was convinced to liquidate her for a one k, which caused a taxable event on her whole fura one k, which was you know, it was a major, major tax burden. So the definition of unexpected tax surprive is, you know, maybe a capital gain or an income tax that's really hard to digest and really hard to pay for, and we really want to avoid those to the
best of our ability. All right, let's give some examples. We just said, you know, maybe you've so well you liquidate your four or one k, that certainly would be a very quick way to get a tax bill. Some others selling a house, of course, yeah, capital gains tax if you've stayed in the house if it's a main resident. Obviously for a couple, there's up to five hundred thousand if it's your main residence. But
if it's a rental property, there's different rules that apply to that. So making sure you don't do something to create a taxable event like that, or you know, we do a lot of tax loss harvesting the investment team, does you know, rebalancing and liquidating investments not yet not looking at the cost basis, And of course long term capital gains is any asset or investment you
hold for more than a year in a day. So when we do bring accounts over, we want to look at what that cost basis is right and finding out the tax ramifications before somebody goes ahead with doing that, because those long term capital gains brackets are zero percent, fifteen and twenty percent, So a lack of attention and maybe an unfortunate liquidation could result in some serious tax liabilities. And you know, of course, then we get to the age
of required minimum distributions. It's also it all sounds great and you're always told to put money in pre tax which is great, but then we get to the age of seventy three or if you're eight years out to age seventy five, we want to make sure that you're prepared for required minimum distributions, which is when you're forced to take money out. The federal government becomes impatient and they make you start taking out just over four percent based upon the total value
at the end of the year of those pre tax accounts. So again paying attention to those different timelines. Uh. And then again more income could possibly mean higher Medicare Part B premiums as well, So avoiding these unforced circumstances avoiding I always say surprises aren't necessarily fun at any age, let alone in retirement,
especially when it comes to taxes. Right. Absolutely. So you guys can sit down with people if they know that they're going to sell a house, so they're going to have one of these maybe capital gains in the course of the next year, or they need to liquidate some things, and you can come up with solutions. So what are some of those solutions and how do you approach that with clients. Yeah, I'm always amazed at the lack of attention and that a lot of people are getting when it comes to tax
advice or tax planning. Tax planning is an added value piece to what we do here at Haven Financial Group, and Lance is our CPA. He loves to make sure that Uncle Sam's not getting any more and than they really deserve. And you know, we're having ongoing annual roth Ira conversations to see if conversions are a good opportunity. They have been in recent years because of the low tax brackets that we've had, and so often and in these conversations,
people have missed opportunities for these last several years. And you can't go back and do anything about it. But what you can do is going forward forward thinking tax planning to make sure we're not missing out in some of these WROTH conversions or zero capital gains tax and maybe a backdoor WROTH was a good idea,
but yet nobody talked to you about it. And if you're selling other real estate stuff, doing and like to like exchange or what's called the ten thirty one exchange to avoid and deferring those taxes, all this is part of the tax planning discussion. But if you're not doing any tax planning, you're
probably not having these discussions. And how do you know that you're not missing out on opportunities that might not be here forever because these tax laws are going to change in twenty twenty six, right, sitting down with people walking through first off, just some of the ideas that you have in preparation so that they're prepared. Then of course you have what you just mentioned, the changing
of laws. That's something that I think a lot of people don't realize that maybe they're missing windows of opportunity to protect their money because laws are changing. And obviously you have experts who take care of and stay on top of those kinds of issues almost definitely, and behind the scenes we're looking at if the markets are volatile, you know, tax loss harvesting, selling something off the losers off and creating a tax situation where which can be beneficial to you,
and then maybe purchasing an equivalent that is priced a little bit lower. So you know, there's no singular plan that can protect all of your risks associated with retirement, but identifying opportunities when they become opportunities, which is the low tax rates that are not going to stay here forever. We believe retirement is more than a forty five minutes to an hour discussion once or twice a year, especially when you're factoring in the investments, money management, insurance, long
term care, of state planning, tax planning. All this is part of retirement. It's much more than a pie chart that says I have stocks and bonds. So we believe that the coordinated approach in discussing all of these over the course of years really because retirement hopefully is many many years for you, that's what you know. We want to spend the time and give people the time that they're they're really due, especially in retirement, more so in retirement
than ever. I think it was you, Larry who said along the way that there's a lot of people during their earning years who have their taxes prepared versus in your retirement years when you have to have a full on strategy. Completely agree. Yes, for sure, get your taxes prepared. That's kind of important. Otherwise there could be some there is penalties. However, tax planning during the course of throughout the year should lead to tax preparation. There
really should be no surprises in every tax year. Oh my goodness, I owe this amount of money. I can't believe. Well, rather than talking about the same problem year after year after year, you know, Lance and US will help you develop a plan to avoid those negative outcomes like maybe better withholding, maybe estimated tax payments, or just avoiding some of these negative results when they could have been fixed throughout the year, which leads to tax preparation.
So and I also see a lot of people Kim that are paying way too much for tax preparation and they're not getting any planning with the preparation right right, Yeah, the worst time to plan for your taxes for the year is about December fifteenth. That doesn't really help you too much, does it? No, it does not. Let's tell everybody how they can come in and talk about this kind of holistic approach. You give Haven Financial Group a call, you go in, and you sit down. I love that.
Larry always says. The only thing you might find a little snobby is they're taste in coffee, because they are particular about that. If that's the case, that's okay with me. Coffee and cookies and chat to find out if Haven Financial Group is the right fit for you, and if you're the right fit for them, and if so, then you begin to get to know one another. You talk about some of your issues, like your tax planning or your state planning, or what you want to do during your retirement,
and what your expectations of the next twenty years might be. And then you begin to build a plan, a plan that's intertwined so that you know your taxes are helping with your state planning, and your state planning is related to your investments and so on and so forth. So let me give you the number so you can get that process started. It's six one two five zero four eight four zero zero six one two five zero four eight four zero zero.
You can also go to Havenfinancialgroup dot com. There you can learn more about some of the free seminars. They're educational seminars that are offered around the city, so they're convenient for everyone. They're all different topics and maybe you're interested in all of them and maybe there's some specific areas that you'd like to learn more about. You sign up there. You do want to sign up. They'd like to know how many people are going to attend, and they
do fill up very quickly. All right, we have just a bit more to go here, Larry, And what are we looking to talk about next? Well, first of all, I want to add one thing, Kim. You can come you can come in and sit down with us. It won't cost you anything and we'll teach you know, take the time to learn about your unique situation. And at the end of the day, I wanted to add, Yeah, we are coffee snobs, but we also have Sweet Martha's cookies. Kim, did you know that? So anybody to tell you
Minnesota and the State Fair they know Sweet Martha's cookies. So we have the real deal. We're going to talk about required minimum distributions in the next segment, Kim about timelines and things associated with rmds that can sometimes rea havoc if you haven't planned accordingly. That sounds terrific. You're listening to the Haven Financial Group Radio Show. Don't go too far. We're gathering more important insights and
retirement pays Devin the Haven Financial Group Radio Show. We'll be right back. Stick around. You've got questions, We've got answers. Your tune to the Haven Financial Group Radio Show with your host Larry Kulvig and Kim Karrigan. Now back to the show. Welcome back to the Haven Financial Group Radio Show. I'm Larry Calvig, founder and CEO of the Haven Financial Group. Thanks for listening this morning. Next segment required minium distributions or rmds. They're crucial.
They can sneak up on people quickly. There's been law changes and rule changes, and we want to dig into some of those. You know, Lar, this is one of the reasons why I really want to stress to folks who are listening that working with professionals like you and your team, this can make all the difference in your retirement because these dates do sneak up on you and people who are not involved with these dates all the time, don't even really I think, know what they are. So let's start with the one
that you feel is the most important. Yeah, required minium distributions. There's been recent law changes. Many people still think that at the age is seventy and a half, But it was seventy half for years a couple of years ago. Last year it was seventy two. This year it's seventy three, and eight years down the road the requiredment goes to seventy aged seventy five.
Now that may sound all fine, but as those IRA pre tax accounts grow, you could be forced to take more money out later, which could cause more tax implications. So just being prepared for that. It's why if there is an opportunity to do irate a rath conversions in their earlier years of retirement, you know, early mid sixties, that's a great opportunity to minimize potential
taxes later. Now, those R and D amounts are based upon what your balances are at December thirty first of every given year, So sometimes people say, well, how does the government know how much IRA money I have? Well, they certainly do know, because it's reported to the IRS every December thirty first, so they know exactly how much you have. Now, the other part of that is, well, what percent do they make you take
take out? That's based on federal mortality tables. So probably doesn't make people too comfortable to know that the IRS knows exactly how much you have and they know exactly how long you're going to live. Not exactly, but you could look at it that way if you wanted to. So the total is about just over four percent of the total amount of pre tax money that you have. And you know, we see it all the time for couples that the baby boomer in generation and others have done a good job for a lot of
folks of saving in those those accounts. They get to age seventy three and all of a sudden, now they have another fifty to eighty one thousand dollars of income. That can cause a lot of tax implications. So it's a good problem to have. But if there's ways to minimize those tax implications early on, like conversions and maybe waiting to claim Social Security is a good option
to take advantage of drawing off of IRA or conversion. Then again, just knowing opportunities, you know, I just last week I had Barbara who's a very charitable client. She did a qualified charitable distribution to about a dozen of her favorite charities, and she does that every single year. Again just knowing what tax tools are out there to take advantage of to minimize the tax implications individually. So I think it's pretty obvious, but I'm going to ask it
anyway. If you miss that deadline, so you get to seventy three and whatever age, is there anything that can be done then or is it too late and then you're just going to have to pay the price. That's a really good question, Kim, because over all the years I've done that side people say, well, I don't want to take myself my rm ds. Well it's a good idea to take him because up until this year, there was a fifty percent penalty for not taking your rm ds. Now they have
minimized that. I think it's now if you ask for mercy or grace, which by the way, is not fun to do when it comes to the irs, there can be a twenty or twenty five percent that went from fifty to I think twenty or twenty five, and if you've plead your case, maybe they'll reduce it to ten percent. Just take your R and ds out and I'll never forget Gene. Some time ago, client of mine from Melcho Newmarket, he asked me, well, what do I do with these rm
ds? And his wife said that he had not taken her on a vacation for like twenty five years. So I just said, playfully, take your wife out of vacation. She's been complaining about it. He goes, you know, that's a pretty good idea. So it worked out for her because they took a vacation. About that. I love that idea. Yeah, So there's penalties you just don't want to deal with, and you know it, just stay on the graces of you know, of the I R S. Now. I will tell you that Lance a our CPA here, he
has no problem taking on the I R S where people see fit. In fact, we just had this conversation this week that clients have not got their checks cashed for what they paid in and then the I R S these mailers have gone out and these clients call and say, well, what's the deal.
I sent the check in. Well, the I R S is so far behind that the checks haven't been cashed and these now these computer generated letters have gone out and nobody wants to get a letter from the I r S because it puts some fear into people, and the I r S is so far behind that don't panic. And Lance loves to tackle those situations just to help clients rest assured that everything's okay. Let me go back if we could, to this idea of not taking or taking along the way, and you
should be taking obviously. Talk to me about how people who are your clients are alerted to these dates. Are you constantly talking to them about them? Are you reaching out as they approach? How do people know what these different anniversary dates? If you will these dates are well. Certainly anybody that works with us knows that we're big into the education piece and we're going to inform them. You know, a lot of the r and ds we have set
up automatically so every year they come out at the same time. You don't have to do that. But again, out of sight, out of mind. It does put a lot of peace of mind into people. But for us, it's about education, you know, setting out newsletters, quarterly newsletters,
drawing attention to these. But if you're only having a meeting once or twice a year, you're probably not getting the attention, so you could miss an opportunity, and mistakes do happen, But if you're working with somebody that's proactive, and you have a partner that's working on your behalf on your side, that shouldn't be a concern. We want to be as involved as people
want us to be involved. And knowing that we're here and as a partner and we work for people gives people that peace of mind that while Larry and the team is paying attention, and that's important, that there's peace of mind
that goes with that. There's a lot of peace of mind Larry. And it's why I asked you the question because I do think that one of the things that people when they get into retirement want to do is stop worrying about you know, deadlines and problems and issues and want to think that somebody is on their team. I mean, I realized you have to you have to put effort into it. It's your dollars and your money and your situation.
You certainly don't want to just set it and forget it. But I think by by working with a team that understands what the ramifications can be has to be very comforting to a lot of people. Yeah, all the retirement puzzle pieces that you and I talk about on a weekly basis, they're all important pieces to the puzzle. And without all the pieces, you can't put it
all together. You know. I think next week we're going to talk about some long term care and medicare and you know the topics that not very exciting,
but all of these pieces are so important. And a state planning carries our state planning attorney and Glenn with all the other healthcare stuff, and you know, these conversations aren't necessarily fun, but if we're having enough of these conversations, it gives people the confidence to know why they're doing something or why they're not doing something, that they're entertaining and exploring all the options that are
on the table. Whereas if you're not having these conversations on a regular basis, then how do you know you're doing the right thing? That's absolutely right. Yeah, So let's give everybody the telephone number. It's six one two five zero four eight four zero zero. I'm want to slow that down and give it to you again. It's six one two five zero four eight four zero zero. You reach out, tell them you heard Larry on the radio and you're calling to see if you can set up a consultation, come in
and talk to members of the team. You can also go to Hanfinancialgroup dot com. That's Hanfinancialgroup dot com. There you can learn more about the team and you can also learn more about some education seminars that are coming up in the near future. Yeah, Larry, it just seems to me that there's so much about retirement that's positive, and there's so much about it that can
feel very overwhelming. And if you have professionals working with you on your team, you know, you're not out there by yourself trying to navigate this, you know what, it can be a bumpy road at times. Yeah, sometimes it's easier said than done. You know, there are many moving parts
to the retirement puzzle that depends upon your own unique situation. And you know, you've worked hard for most people, A lot of people have worked very hard to build whatever wealth, small, medium, and large that they have, and you know now might be the time to protect it for years and
years to come. Will help people with their situation, their unique situation, create a plan and not just leave it and forget about it, but modify it and make adjustments and you know, when life happens and challenges come people's way, and our clients know that we want to be reached out, we want to be updated so that we can make the proper modifications for them. You know, the future of your retirement is completely completely dependent on what you
do now. You know. Sometimes you know people say, well, it's just just not the right timing. There's never going to be the right timing, right. You got to start somewhere to get to somewhere. And the old saying a failure to plan is a plan to fail. Nobody wants to fail. But if you have failed to put a plan together, or you don't know what your plan is, or you haven't taken a look at it or a peek under the hood for months or years, now would be the
time to do it, especially as you prepare for those retirement years. It's even Financial Group Folks six one two five zero four eight four zero zero six one two five zero four eight four zero zero Havenfinancialgroup dot Com. Another really informative show, Larry, thank you so much, Thanks Kim, good to be with you, and we'll look forward to next week. Investment Advisory Serve.
This 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.