This is the Haven Financial Group radio show. Each week we get together to talk about life, living and planning on living life after retirement. If you're looking for a clearer picture of your retirement plan, the team at Haven Financial Group is here to offer you clear financial guidance and help you realize that planning
for retirement can be simple and easy. Have a question for the team connect now at Haven Financial Group dot com, or we have team members waiting to talk with you off the air at six one two four four one two four four one. And as always, we thank you very much for listening this morning. If you are in the car, or perhaps just put on your bathrow, grab that first cup of coffee like I didn't. It's good to have you here with us. I am Bill Seller along with Haven Financial Groups
Founder and CEO Larry Kolbig. Good morning, sir, how are you hey? Good? Good morning Bill. So I got to ask, man, I know that last Tuesday was Rachelle's big birthday. I'm not saying the age you already said it. I'm not sure much trouble you got it, but I wanted to check and see everything go well for her for her big birthday that ended in a zero. It went extremely well. I had great help from my daughters. It went off without a hitch. She had a blast
and she was all smiles. So yeah, it wasn't happy with me for a short stint, but I got over she had over it. Yeah, I was well worried about you. I was glad to hear your voice got so. Oh that's very good to hear. Well. Listen, coming up here today, we're going to talk about a bunch of stuff that has to do with your retirement money, how you can keep more of it, and
the best ways to get ready for retirement. On the show, we do have some topics to a covery today, like turning the four percent rule upside down, also setting your sights on a comfortable retirement. How easy is it to do that, getting a jump start on taxes. And a pretty young superstar who was on the verge of becoming a billionaire. We'll talk about that as well. I got a little story to share with you about that person from years ago that if Larry will give me a second, I would love
to share. But before we do get started, Larry, I saw this story and I thought about you, because we talk about this all the time, you know, Unfortunately, with a bunch of brick and mortar stores going out of business, there's a lot of commercial real estate out there right now, right, I mean Prince is like Burlington Code factories, Old Navies, bed Bath and beyond stores. Well, you know what, a lot of them are being turned into pickle ball complexes. Pickleball. We've talked about pickleball
here before. Have you played it yet? I have not. It is so much fun. We took a cruise back in March and it was on the ship and we had a blast. Oh it's so cool because it's almost like tennis, but not nearly as strenuous. There you go, which is exactly what I'm looking for in a game. But yeah, there's plans to open an eighty thousand foot pickleball complex in the old Sacks Fifth Avenue store in Stanford, Connecticut as well. But there you go. Pickleball catching on finally
after you and I got the ball roll in a few months ago. Of course we did. Yes, Yeah, it's all because of us. You know. I read the story the other day too, and I was surprised, and I guess a little bothered by Larry. Do you know that fewer Americans think that they have enough money to live a comfortable retirement. Now, a new Gallop Pole showed that only forty three percent of non retired adults think that they're going to have enough, and that's down ten percent since twenty twenty
one. You know, the pandemic did a number on all of us, right and a lot of us are still trying to come back. But you know, like you always say, Larry, comfortable means different things to different people. But whatever it means, there really seems to be a lack of confidence that it's even achievable right now? Are you? Are you running into that with folks that who are starting to come to you to talk about retirement
planning or how do you handle that? Well? I would agree, Actually Americans, retirement confidence you know, has been noticeably shaken in recent years. You know, with the pandemic, as you mentioned, you know, people retiring earlier than they wanted to, perhaps because because of that, you know, inflation. You know, dollars are tight to their pocketbooks are hurting because everything's so expensive, and you know, the uncertainty, the uncertainty of everything,
and you know that creates a you know a lack of confidence. And I think I read eighty eight percent of Americans worry about having enough money to retire. And you know, the two biggest questions we get on a weekly basis is do I have enough money to retire? And when will I run out of money? If at all? And oftentimes people's perspectives with this worry are you know, they're valid and sometimes they're not. Because last week I
think of you know, Carol who came in from Burdensville. She was retired secretary and she was very worrisome. She was like, I don't I'm just I just can't retire. I can't retire. And when we went through our process and looked at everything, she was in a much better spot, you know, borrowing any life changing moment of course, much better than she thought. You know, you know, worry come with human nature. Sometimes it's real, sometimes it's not. And for her she's like, wow, I'm
in a better position than I thought I was. And by us going through that process, she got much more comfortable. But that's why it's important, as you and I talk about on a weekly basis, to have a plan, talk through the process that gives people an understanding, you know, get into the details, what is your budget, what are accurate expenses, and from that we'll do projections that really are iterations of historical data that can pinpoint
what kind of shape you're in, good, bad, or indifferent. You want to know that ahead of time, so potentially you can make some adjustments and it could be good or bad. But I do agree one hundred percent with the confidence of people's money and retirement. It's really really lacking well.
And you know that's why having that plan is so important that you talk about all the time, because at least then you have a picture, you have a vision of what's you know, what you're headed for if you're not retirement yet. And of course confidence can't be made any better, you know, Larry, when we're hearing all these horrible stories about the debt ceiling too right, negativity the news, I mean, it just goes on and on. And you know, I took a lot of phone calls, we did for
the last couple of weeks about the debt ceiling crisis. And you know, I'm certainly not one to be able to predict, but you know this happens almost every single time they kicked the can down the road. They did come to an agreement. But through all that it creates a lot of worry. Larry, what do you think should I go to cash? And again it's important not to have any knee jerk reactions. It's a again stick to the
plan that you have, assuming you have one. Yeah, because actually what happened was with all the wrangling over the debt ceiling and the last couple of weeks, right, there was a cell mentality on Wall Street for a few weeks. But if you ask this analyst here, the smart money says hold. But we think the best thing for investors to do is to take a six to twelve month on frame and on that basis, we are pretty upbeat about stocks. We think the morph it's going to be higher. That's David
Katz of Matrix Asset Advisors on CNBC. So with that in my Larry, people are holding, people are rethinking stuff. How often should we review and rebalance? Well, all that depends upon market volatility. You know. First of all, as we get older, the element of time becomes that much more important. You know, what does that roadmap look like? You know,
we map out that plan, the roadmap for the future. You know, it's why we talk about having good liquidity, you know, good liquidity, principal protected investments and stock market investments, and what's the right balance for most people. It can vary per individuals because we're all wired differently, you know, but being able to weather the storm, you know, when things are going up, you know, we plan for the storms when we build
out these plans. We know that the market goes up and it goes down, and you just got a plan accordingly. And you know, we did get into the efficiency and diversification. The problem is most people don't know what they're doing. They're not aware, They maybe don't understand, maybe somebody hasn't taken the time to explain. And because of that, you know, we're
trying to avoid unnecessary surprises, especially in retirement. You know, I think of Joe and Sharon, Joe's retired electrician and Sharon retired teacher from Bloomington. They were in last week and they go, Larry, you know, we're getting our mid to late sixties were much more conservative investors than we used to be. Well, once we took a peek under the hood, they were at much higher risk than they ever anticipated. And that then they said,
no wonder we lost so much money. Last year, So avoiding these surprises and pitfalls that we can fall in, and it's just a matter of someone listening, stress testing your portfolio and making sure you're in the right position again to avoid these surprises, having that plan, and you're going to hear the word plan a lot on this show, but that's really what it comes down
to. And having people on your side that understand everything that's affecting your money and retirement is just so important because it's hard to keep up with all these things that happen, right, I mean, rules get past, things get slid through on other bills that affect our money, like that surprising thing with the mortgage rates. You know, we're all of a sudden, if you have good credit, you're going to pay a higher rate to help somebody who
doesn't have good credit. Where did that come from? So you know. But the folks who are in the know that keep up with these kind of things can help you keep an eye on your money better. And that's what they have in Financial Group does. Larry and his team are there to take a look at what you have lined up for retirement and to make sure that the plan you have in place is working the way that it should be to help you live the way you want to, and they don't care if you
saved a little, a lot, or somewhere in between. Give them a call today for your complimentary retirement readiness review. Six one two four four one two four four one six one two four four one twenty four forty one is the number to get in touch with the folks at Haven for Natural Group, and again it's a complimentary retirement. Reading this review, you go in, you sit down, you talk with Larry and his team. They look things over and you know, if everything looks great, they'll tell you and if
it doesn't look great, and they make suggestions on what to fix. Hey, you don't have to work with them, right Larry, They're not obligated to stay with you. It'd be great, but they're not obligated to. There's no commitment, there's no obligation. I mean, it's no secret we help lots of people through the education process and we're certainly looking to cultivate long term relationships. Are on good communication. We want people to ask questions.
We want to be available. We don't want to be the stereotype that says, wow, I talked to Larry and Haven five years ago and haven't heard from them since. We want to be involved as much as people want us to be involved, and people use this as a resource in all of these retirement areas. You don't have to, but you're not obligated, but we're
there. So get on the calendar today for your complimentary retirement readiness review by calling six one two four four one twenty four forty one are We gonna take a quick break, but when we come back, we're going to talk about the old four percent rule been around since the nineties, but we've got a new take on that. Also some mid year tax strategies and why what economist
says the economy may be in better shape than we think. All that and more on the way with the Having Financial Group Radio show here on Twin Cities News Talk eleven thirty and one h three point five FF. Well you win boat Town biding in y'all, embassy invest a little time to be sure your investments are working for you. Reach out to the Haven Financial Group now for
your compliment or even obligation retirement readiness review. Our team is standing by now to take your call at six one two four four one two four four one that's six one two four four one two four four one. Welcome back to the Haven Financial Group radio show. I have Bill Seller along with Haven Financial Group's founder and CEO, Larry Calvig, And so the top of the show I mentioned a young superstar who's about to become a billionaire. Larry, you
might want to get this information here. They might need help with their retirement plan. I'm listening Taylor Swift, Yeah, t Swift, T Swizzle. However you want to refer to her in the middle of her the Era's tour, which has sold out shows all over the country and could very well become one of the highest grossing tours of all times. As a matter of fact, it's actually projected to boost her income by five hundred million dollars. Larry, just as that's a lot of just from this tour, Alane, and
she's already estimated to be worth almost six hundred million. So you know, if this projection comes true, she's going to be a billionaire at the young age that she is right now. So incredible, you know, if you don't mind me jumping in. When I was back in my younger days, I was in country radio and Taylor Swift first appeared and I had her on my show an interviewed her when she was what I think fifteen or sixteen, I don't even know. She had a license hit and she was You could
just tell then she was a smart girl. She was going to be doing good things. And she had a plan even at that age and used to crack me up because the final know how many times in that interview she said, I've dreamt about doing this my whole life. I was like, you're fifteen. But she had a vision and she certainly has made it come true. We should all do that well with our money, right, huh. And that's what Larry. That's what Larry and his team are here to help
you do it. Having financial group. Let me give you the number again real quick. It's six one two four four one twenty four forty one. That's how you get in touch with them to set up your complimentary retirement readiness review. Speaking of money and retirement plans and all that, let's let's do some math. Let's at least talk about math. How about that, specifically
the old four percent rule, Larry. It says that you can withdraw four percent from a portfolio of stocks and bonds, every year that are adjusted for inflation, and your portfolio should last at least thirty years. However, barrens and I'm sure you've seen this article as spotlighting the reverse four percent rule. Can you explain what that's about? Well, yeah, the four percent rule has been around a long time now many would say that that's old, it's
outdated. This reverse four percent rule works like this. You divide your withdrawals or contributions by four percent, and that'll show you how much either one could
affect your retirement in the long term. It can be very helpful, but I think what's important to understand is it's really not one glove fits all, because you know, we sit down with folks that have lots of investible assets for retirement and because of their situation they're going to run out of money, and some that have very low amount of investible assets and they're just fine because you know, what it boils down to is what guaranteed income do you have?
Are you blessed to have a pension? Most a lot of people don't these days. What will social security be? You know, we teach a lot on social security. How much income will that generate? And what other type of income do you need to generate? It's really about guaranteed income. And we put a lot of discussion into that because in retirement most people are on a fixed expenses or a fixed income, and really, how much does it take for income to have a comfortable retirement, Where is it going to
come from, how long is it going to last? You know, It's why it's important to even in retirement to have a budget, you know, monitoring expenses, you know, factor in the do you need to buy a car in the next five years. We've really plug all of these things in to make sure we have an accurate depiction of what income and moneies look like. And you know what, the four percent rule, Yeah, it might work for some, the three percent rule, some would say that two percent
rule. Throw all that out. It's whatever your situation is, talk through it, make adjustments, you know, not you know, not binge buying. You know what a common denominator I've seen for folks that have really been successful in planning for retirement is they're really disciplined and they really adhere to a budget and they're not wastefully spending. It's it's a common denominator I've seen for years, right that and the other one you mentioned a lot too, is
that the happiest folks are retirement have paid off their mortgages. Oh it's true happy, there's no doubt about it. Not Not everybody has the ability to pay off their mortgage. And of course some people have took advantage of really low interest rates. But at the end of the day, if that is a remote possibility, it's a great decision because again, less headache, less worry, gets keep those expenses low, and that will make retirement much more
enjoyable. But Dad used to tell me, son, always pay the rent because somewhere to hide from the other bills. So use a lot of wisdom there. Well, he was a smart man, my father. But yeah, and let me ask you, when people go to pay off their mortgages, sometimes do they dip into their retirement to just take that chunk out and then hope to make it back or how does that usually work? Well,
what fat has to factor in there is the tax situation. I would say typically no, if you have a bunch of money non qualifiedcause that would cause a lot of really big tax big amount of taxes, right, you wouldn't want to do that. The tax discussion is a big part of that. If you have good liquidity and the money sitting on the sidelines and until now
most recently not really making anything, then maybe that makes sense. Or you know, simply paying you know, a little bit more maybe than your mortgage, maybe a more payment and a half or two payments, that can really accelerate how you get that paid off quicker. It's just things to look at. Well, since you're talking about taxes, let's go ahead and discuss though,
shall we. I mean, after all, summer has a kind of a fish begune with Memorial Day weekend, right, so that means we got to talk taxes maybe year taxes, Right, what are some of the things that we could or should be doing at this point of the year to make sure that we are on the right tax track. Taxes are so fun to talk about, of course, and you know, sometimes the tax code doesn't
make sense. You know, there's going to be there's tax changes that come down the pipe, and a lot of these tax laws are supposed to sunset in twenty twenty five. But as it relates to retirement, we're having these discussions all year long. We really are, not because it's fun, because it's important. You know, tax planning. We always say forward thinking tax planning leads to tax preparation and there should be no surprises because you plan throughout
the whole year. UM discussed you know, what should you have for withholdings on distributions? You know? I think of Patty just last week. She's from Hastings, she retired from three M. We started working with her a couple of years ago in a variety of areas retirement areas, but every year we didn't weren't doing her taxes. She goes Larry, I get a big tax bill every single year, and my tax person doesn't seem to have any
solutions. I said, Patty, you obviously don't have a tax plan and they're not helping you with it. She sat down with Lance, our CPA, figured out why she was getting such a big bill because her pension was not having the right withholdings, and we got her to change the withholdings and at this coming year she's going to be pretty much washed. Now there can be a debate on people that have a lot of taxes taken out and they get this big refund and they might use that for a travel or something.
Well, my thought is do you really want to give the government alan if with your money for the whole year, probably not my opinion. Now, if that works for you, more power to you. But again the break even point, it's kind of where I like to be. But make sure you avoid he surprises. And if your tax planning throughout the year, especially in retirement, because a lot of times, you know, you have to figure out where to draw income from and what type of accounts. Taxes are
a big part of that discussion. You want to make sure that it makes tax sense. Otherwise Uncle Sam is going to get more than their due and they will find a way to spend it, you know that, Bill, Yeah, they will, that's for sure. And we don't want to give are not really an uncle Uncle Sam more money than he needs, so certainly not our favorite uncle. And I'll take it a step further. You know, what kind of contributions are you making to your four owen k? Is
it adequate? Would it make more sense to make more four owen k or IRA contributions or would it makes sense more long term to make the roth contributions or is it a blend? You know, these are what we talk through now, Lances, our CPA. He does a great job. He gets giddy about taxes. He's very educationally, he has his whiteboard. You know, I love when I hear people that sit down with him in the office and they say, Wow, a CPA that actually took the time to explain
it in a way that I understand it. I mean, that puts a smile on my face. Well, yeah, and that's that's what Larry and his team do. They make sure that you know what's going on with your money, because if you don't know, then who should nobody better? Right, So right, Larry and his team at Haven Financial Group do exactly that.
When you go in for your complimentary retirement readiness review, they are going to sit down and make sure that you at least leave understanding exactly where you are as far as your retirement plan goes, and answer the overall question of are you ready for retirement or in retirement? Well, that's what they're there to help you do. So set up that complimentary retirement readiness review by calling six one two four four one two four four one six one two four four
one twenty four forty one. And of course you can find out more about Larry and his group at the Haven Financial Group by going to Haven Financial Group dot com. Can I say group one more time in a sentence? Haven Financial Group dot com. You can find them online with more stuff about what it is that they can do for you. On the way here after the
break. Is the economy actually in better shape than it seems? Also the unexpected dangers of floating interest rates and what to expect coming up on June fourteenth, It's on the way with the Haven Financial Group Radio Show here on Twin Cities Newstalk eleven thirty and one h three point five, fad investing, the state planning taxes and more. Want your complimentary retirement readiness review? Call now
at six one two four four one two four four one. That's six one two four four one two four four one, or connect with us at Haven Financial Group dot com. This is the Haven Financial Group Radio Show. This is the Haven Financial Group Radio Show. If you're looking for a clearer picture of your retirement plan, the team at Haven Financial Group is here to offer
you clear financial guidance. Have a question for the team, connect now at Haven Financial Group dot com or we have team members waiting to talk with you off the air at six one two four four one two four four one. This is the Haven Financial Group Radio Show with Haven Financial Groups Founder and CEO
Larry Calvig. I am Bill Schulber. We appreciate you listening this morning, and if you've been with us for a while on and off over the years, you know I love me a good crooks'er stupid story, Larry, and this is one of them. A couple in San Antonio. We're fleeing the scene of a hit and run accident when they ran into a nearby restaurant. The man decided to hide a restaurant ceiling. So you probably know where this
is going with the music we're playing. Ceiling gave way and the guy landed right in the middle of a stall in the men's room, and boy, the quick thinker he was, he just crawled back up in the hole and GOLLI the police found on there. He didn't think they would notice the hole in the bathroom ceiling. So they were arrested and taking care of thing. Goodness. But I don't know why those made me giggle. Just people thinking
that didn't get away with stuff when they really can't. It's just, you know, it's kind of like watching Jerry Springer, right, It just makes me realize my life's okay. I'm doing all right. Oh man. So before the break, we were talking about maybe an optimistic look at the economy. Right One optimist view is from black Rock's chief of bond investing, Rick Reader, and he's liking what he sees, according to NBC that things maybe notn't as bad as we think they are. He said, quote, the
US economy is in much better shape than people give it credit for. It points to a high savings rate, consumer spending, home building data, unemployment numbers, saying that you know, it's less like are likely that we're going to have a dramatic slowdown. Do you think he has a point, Larry, or is it still just kind of everybody giving their opinion. I'm not really sure. Well, you know, I like to be optimistic. You know, I'm a glass half full, and you know we want to be
optimistic. And you know, I encourage people. You got to be careful of the social media and you know, you got to be careful of internet infection, I call it. You know, being aware of things is important. But there's so much garbage out there that puts people in a position. Oh my goodness, the sky is falling and everything's going and yeah, we've had some tough times, but you can bombard yourself like a lot of people do and put worry in your brain and just be careful of too much internet
and social media because it's crazy. But here's what I'll say. I mean, he has some valid facts. You know, we have a zillion government you know, corporate and consumer spending, positive homebuilder data as you mentioned. Do I think we have a ways to go to, you know, to really get this inflation and under wraps. I do, But I think we're
trending in the right direction. And you know, my optimism would say a fourth quarter, you know, we turn we turned the corner in the fourth quarter of twenty twenty three, and I certainly don't have a crystal ball, but it's, uh, it's what we're certainly hoping and looking at. Well. Yeah, and we're hearing some optimistic things like what was it a couple of weeks ago, the guy who runs Wyndham Hotel says that reservations are through
the roof. We're seeing flights full everywhere, restaurants are packed when you try to go eat. So again, it's almost like folks have hope that if we ignore what's going on, it just keeps spending. Things will get better and maybe that will eventually help us come out the other side. Well, we're optimistic and we certainly hope that's the case. You know, the stock market always comes back. It's just the timing of it. And we just don't have a crystal ball. So you know, again, be careful of
internet infection and social media. It just reeks havoc and people's just worth you know, it gets people all riled up. An important part is do you have you your and your family ducks in a row? Do you have a plan? Have you discussed it all the different puzzle pieces of retirement. You can only do the best you can and you're accountable for your actions and your planning, and you know, the investment side of it, the money side, the income piece, the tax piece, the medicare and of course these
are all the things that we help people with. If you have your ducks in a row, that's all you can do. But again that's where we try to help as money people as we possibly can. And that's why we give out the phone number so much, is so you can get on the calendar to have the folks of having financial group help you. Six one two four four one two four four one is the number. Six one two four
four one two four four one. That's how you get your complimentary retirement rating this review, and that's how you get all these folks that Larry has put together in his team helping you with things like taxes, like estate planning, like getting ready for healthcare and Medicaid and all those things, as well as your investments. Six one two four four one twenty four to forty one is the number for the Haven Financial Group. Get on the calendar today. Spots
are going to fill up quickly. You know. We're talking about inflation and the FED always raising rates and all that. And again they were unanimous and voting to raised interest rates at their meeting last month, but the board was split when they talked about another rate hike. In The New York Times reports several of the fed's governors think that they're going to take a pause at the
June meeting. As a matter of fact, that aligns with the thoughts of Bank of America analyst Aditier Bevet. He was on power lunch when he said this. I think the FED minutes are very much consistent with our base case that June is a close call. We still don't expect them to hike in June, but it's very much on the table now. I know you don't have a crystal ball. You talk about that, and the next FED meeting
is June fourteenth. What do you think they're gonna do here, Larry, with all these other things we're seeing, Well, I think there's gonna be another hike, and I know that people will contradict me, and we'll see. It's a really fine line. But inflation is still high. It has made some provements. Yes, I'll give it that. You know, I did some research and according to the Fed Fund's futures market, there's a fifty eight percent probability of a rate hike in June and a seventy three percent chance
of a second increase by the end of the year. So you know, inflation is not under control. We need to get it under control. You know, groceries they're still expensive. You know, we were privileged to help host a bunch of people, family and friends Memorial Day weekend, and our daughter Sierra, who's a full time college student and works here at the office, she went and guy groceries and she's like, Dad, groceries are expensive. I'm like, tell me about it. She say, it's like I
hardly got any thing and it costs this much. And when a twenty year old notices that, which she's very aware, things still are costly, I think there's going to be another hike. I could be wrong, but we're always away from hitting that two percent target that we're trying to get to. Yeah, and apparently we've talked about it before too. The hikes are sort of working, but not the way that they normally do. Right, correct, correct, So normally when these things happen, things start to even out
a little bit more. But people just keep spending, they do, things keep rolling along. So again, if if stuff like this is not what you're ready for when you get to retirement, and when I say stuff like this, I mean all these outside factors that are affecting your money and retirement. If you don't have a plan to help you get through these you know, rocky waters as it were, then you're going to be a lot more trouble than if you do have a plan. And that's what the folks that
have in financial group do. They help you with your plan a matter of fact, you go in, sit down, have a great cup of coffee with Larry and his team, maybe even a very tasty cookie as well, and chat with these folks. They want to get to know you. They just don't come in or don't have you come in and say, all right, what do you guys? Show me your statements. Here's what you can do. It's a little deeper relationship than that. Oh, it absolutely is.
There is no cost. It's laid back, it's educational. I always say, if it doesn't feel right, it's not the right place. We're not perfect for everybody. But we're gonna spend the time. We're not in a rush. We're gonna ask a lot of questions, we're gonna take a lot of notes. We want you to be heard. And so often times people are not getting the added value. They get forty five minutes to an hour once a year maybe, and that is not enough attention for retirement.
There's a lot more moving pieces and retirement than one may think. And you want to make sure you're getting those decisions made correctly. And it starts with that education piece. And there's nothing like making those decisions with people who understand the laws and the things that are changing better than we do. Six one two four four one two four four one. That's the number to call at
Haven Financial Group. Coming up here right after this quick break. The highest price ever paid for a private home in California and who paid for me? Also because it's here a summer travel tip. Yeah, I'm one of those guys who believe summer starts Memorial Day weekend. So we're gonna go with y. That's going that more coming up here on the Haven Financial Group Radio show on twin Cities News Talk eleven thirty and one on three point five FL Have
you had your three R check up? Your compliment or your retirement readiness review is just a phone call away. Our team is waiting to talk with you off the air right now. Six one two four four one two four four one. That's six one two four four one two four four one, or online at Haven Financial Group dot com. Have you had your three R check up? Your compliment or your retirement readiness review is just a phone call away. Our team is waiting to talk with you off the air right now.
Six one two four four one two four four one. That's six one two four four one two four four one, or online at Haven Financial Group dot com is a very very very fine house with two cats in beyond. Life is tod So. Welcome back to the Haven Financial Group Radio Show with Haven Financial Groups Founder and CEO Larry Caffe. I'm Bill Seller and we do appreciate
you being here this morning. Just before the break, we mentioned that a record price was just paid for a home in California, and according to TMZ, it was paid for by Beyonce and Jay Z. They just purchased a Malibu seaside mansion for two hundred million dollars. Larry, of course, why not, which is nothing compared to Uh. I wonder if they got the loan from their buddy Taylor Swift, who has a billion. Yeah. The home has over thirty thousand square feet and originally listed for two ninety five,
so they got a deal. They only pay two hundred for it. But gosh, that's that's a lot of money to live anywhere. That's a lot of money. Do you need that? Well, like you know, I guess if you have it, go for it, right. I mean, everybody spends their money differently. As you always say, it's not one glove fits all. We all look at our money in a different way. But that's a that's a lot of money for a house. Of course, in California, if you watch HDTV, you know you can sell a one bedroom,
three hundred foot bungalow for a million dollars. So you watch all those shows. But who knows? Who knows? So uh, floating interest rates could be steering us into some dangerous territory. Our financial correspondent Drew Nelson explains a little bit more. The economists wrote about this con sept which boils down to this, When the current rate of interest is higher than the increase in the country's gross domestic product, that's bad. Since the end of the Great
Recession, growth has outpaced the federal funds rate. But right now GDP growth is around five percent, and so is the Fed funds rate. But economic forecasts show GDP slowing, meaning debt with a floating interest rate will be growing faster than the economy. On a small scale, think of it like you've got an adjustable rate mortgage that's recently gone up to five percent, but your salary only goes up by three percent. On a larger scale, think of
a city that has a billion dollars in tax revenue. This year and a billion dollars in debt. Next year, revenue goes up to one point zero three billion, but the debt increases to one point zero five billion. That difference will add up for as many quarters as interest remains higher than growth. Yeah, So the question is Larry, our floating interest rates like an adjustable
rate mortgage a smart idea? Well, they can be justified when the rates are low, but you'd be very careful because remember the real estate plunge back in oh seven oh nine, and all those folks had arms and they went from a really low rate which is really fun, to astronomical rates and mortgage for closures were higher than they were ever And is it ever good to have
more money going out than coming in? No, and the debt service and you know it leads me to note that be careful folks on credit cards because interest rates have gone up significantly and US has more consumer credit card debt than ever before. And managing debt, especially in retirement is so important because as mentioned before, most people are on a fixed income. Do what makes sense? You know? I think of Paul and Nancy from Prior Lake. Just
this last week. He was a custodian retired custodian. She was a retired secretary, and all of a sudden, they go, Larry, we got some balances on our credit cards and it wasn't a problem before, but now it's the interest rate has become astronomical. And you know what I said, they had the wherewithal to pay that off. I said, pay it off. You don't want that. I mean, that's just way too much debt service. So managing debt, especially in these rising interest rate environment, extremely
important at all times of life, but especially in retirement. Yeah. You know, it's funny. Our youngest kids are now twelve years thirteen years out of high school, right, and they're living their lives, are doing very well, and we are now just at the point where we have paid off our credit cards and it feels awesome. I'm not going to lie to you. You know, we use a couple now and then, but we pay
them off every month now and it just feels better. There's you use the phrase a lot about being able to sleep at night in retirement, right, and knowing that those are gone, right, Oh boy, can I sleep
a little bit better? And I just think that it makes sense that if you can do it and I get that a lot of people are in a situation right now because of everything that's happening that you know, the credit card might be your only answer, but be very careful, like Larry says, right, because those interest rates will chew you up and spit you out. But I can tell you from one who's done it that getting rid of as much of that as you can just takes a lot of weight off your shoulders.
So a lot of weight, peace of mind, and all that extra stress. It takes its toll on people, And I get it with you know, the inflation and everything costs so much. Some people are in a tough bind. But just do what you can. Just be aware of it. Absolutely. That's the most important thing, right is just stay on top of it and make sure you know what's going on. So listen. Another thing that's come up because at summertime is that people are starting to travel.
About fifty nine million Americans say they plan to travel internationally this summer, and that's according to the Vacationers Annual Summer Travel Survey. And if you're among them, there might be a little bad news here, right Your dollar might not go as far as you think. Have you run into this with people getting ready to travel and having to talk about the exchange rate and all that kind of stuff with the euro. Oh yeah, absolutely, and this is a
moving target. It's interesting because I've read that eighty five percent of Americans intend to travel this year. Forty two plan to travel more than last summer, and then more than four fifty four percents, so more than half plan to fly on a plane one hundred million to road trip over two hundred and fifty miles or more. So people got cooped up over this pandemic and they want to get out and about and just go live a little bit because they were
so bound up for so long. But you know, make sure you buffer in this retirement money's because travel costs, and do you have you budgeted it? Is it part of the budget. Does it work into your retirement plan. We factor these things in when we do projections for people in retirement, just because again, you want to account for all things that might require moneies to go out. Again, I'm all about travel, and I look to travel as well here this summer, but just be aware of it, and
kind of a vocation or tip. Don't leverage that credit card, which we just talked about, because that will have to be paid back at some point, right, And of course if you have to use one, at least use one that gives you travel rewards, right, get a little something out of it on the other end. But oh, I'm all about the points. Yeah, no, not about it, right. And you know, as we say a lot here, as you're planning for retirement, there's really
two major lists, right, Larry. There's the the half to list the things that I need money for to get through my retirement, to maybe keep paying my mortgage, for healthcare, for other bills. And then there's the want to list. And travel is definitely on the want to list, right, you know, maybe maybe moving to another state because that's where the grandkids are, maybe renting an RV, maybe flying to Europe. That's the want to list. And I'm thinking that the budget for that list right now in
these times has gotten a little bit tighter. I would agree. There's the needs and the wants. You know, make sure you lock up the income you need for the needs, and then plan for the for the income that's necessary to do the ones. And you to discuss all the retirement puzzle pieces you know, at haveing financial group. You know, most of our clients like simple. You know, our mission is to keep things simple so people
understand it. It's why we have multiple personalities doing all the different retirement puzzle pieces in the office. You know, from wealth management to medicare to life insurance to long term care or state planning or carries or a state planning attorney. We do lots of education on social security. All of these different things are part of retirement. They all require attention, and nobody should be ashamed if you have small, medium or large, it's whatever your situation is.
But just be accountable for what you're doing and have a plan and work with somebody that spends the time and listens to you. If somebody's not listening and they're being controlling, I would say you're probably not in the right spot and you deserve better than that. Yeah. I just remember, and Larry be the first one to tell you this. If you go into anywhere like Haven Financial Group or whatever, these folks are still working for you, right.
I mean, you're the one that's in charge of your money. It's just good to have people who know more about what's happening to your money on your side. And that's what they do with the Haven Financial Group. And again, getting it on the calendar is very easy. I know it's early, and I know you don't want to spend a lot of time on the phone, but we do have folks standing by right now to talk with you to
set up your appointment. That's all you have to do. Six one two four four one two four four one is the number six one two four four one twenty forty one. That's how you reach the Haven Financial Group right now to get on the calendar for your complementary And I can't say that word loud
enough or write it in big enough letters, complementary retirement. Reading this review to make sure that you're set for retirement, gosh, more so now than in the recent years, right because things were going along very well for us for a long time. We all knew that one day that that plug was coming up out of the tub. I think we're not going to go well for a little bit. Well, here we are, folks. So having some folks on your side to know what's going on is it's a great thing.
And also Larry and his team do a great job of teaching classes about a lot of this stuff, and you can find those online as well. Yeah, none of us are getting any younger. Bill, You know that as well as I. So if you don't have a plan, or you haven't looked at your plan, or your plan is old and outdated as it relates to twenty thirty years ago, you might want to have a discussion. You might want to get it updated, modify it and make some changes again,
why not, you have nothing to lose. Yeah, that's the old, that's my old. How's that working out for your rule? Right? If you're still doing things the way you did twenty years ago but not getting that return, how's that working out for you? So it might be time to go ahead and change things up a little bit. Well. As always, Larry, they're waving out us here. We got to get out of here, because man, every time I look up, this hour goes by
so quickly, but it does. I enjoy our time to get you have a great week, and we will get back together next weekend to talk more about how to get through your retirement. You saved my friend. Fantastic. Have a great week, Bill, and thank you for listening to the Haven Financial Group Radio show here on Twin Cities New Stock eleven thirty and one oh three point five fl i'mble out of being in a stumbled to the key to
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