You've worked hard for your money, but do you know how to make it work hard for you. You need a team with experience, vigilance, and a strategy to help you live the retirement you deserve. Find your financial safe haven with Haven Financial Group. Today you're listening to the new and improved Haven Financial Group Radio Show, where we bring you comprehensive weekly financial wisdom from the professionals. It's all about helping you solve retirement problems so you can
make your nest egg last. Your tune to the Haven Financial Group Radio Show with your host Larry Kolvig and Kim Karrigan your guides to weekly retirement confidence. If you're interested in protecting and growing what you have, let us be your financial safe haven. The full nines are always open at six point two five four eighty four hundred. Now get your financial questions ready because the Haven Financial Group Radio Show starts now.
Good morning, and welcome to the Haven Financial Group Radio Show.
Thanks for listening. Good to be with you again, and Kim.
We've got a lot to talk about politics all over the place, but we want to bring it back full circle to retirement, so good to be with you again.
It's great to be with you as well. Hey, before we get started, I have to ask you. The Olympics now underway. Are you an Olympics guy?
Oh, we love watching the Olympics.
We absolutely do, so we'll be glued to it as much as we possibly can.
We're the exact same way at my house.
My daughter is absolutely addicted to it, and she's coming to visit from away and she said, can we please watch the Olympics.
We're like, come on down, We're going to do it absolutely, So that's right. Yeah, it's kind of a fun couple of weeks.
It takes you away from the politics that obviously are going to engulf our lives for the next couple of months. There's no two ways about that. So maybe everybody should enjoy the Olympics while you can.
It's a right, I would agree, because you need a little break away from it because it just it just bombards you from every angle, and you know, every talking head in every direction, it's like, oh, you just take it.
Right, absolutely well.
You know, Larry, the minute that the Olympics come to an end, that those commercials are going to start and we'll all be able to recite.
Most of them by the end of October.
Yeah, and I'm I'm sure they're going to be all kind and friendly too, won't they?
Thank you for pointing that out.
The name of our show today is changes on the Horizon for retirement planning, and of course those changes are certainly related to the political landscape that's out there. So we're going to talk a little bit about some of the proposed changes that could take place after the November election, how those could affect your retirement. We're going to begin with Project twenty twenty five policy proposals and how that could affect your retirement. Then we'll talk about Americans thinking
they need one point five million dollars to retire. The question is is that correct? Is that really the magic number? Then the fallacy of the magic retirement savings number? Maybe that answers it for people and retirement solutions in an age of inflation and low savings. So we've got a fantastic show for you coming your way. But we're going to get started talking, like we said, Larry, about a Project twenty twenty five and some of the proposals that
they have. Of course, that's the Heritage Group there, conservative think tank, and they have laid out many proposals that the Republican side of the ticket are looking at very closely and considering.
Yeah, major changes, we'll see, you know, they always come out with these things.
But will it happen. Who knows.
Obviously we had the current president opt out of this next election, but they're obviously there's the conservative viewpoint that if Trump does get in, that there's going to be a major overhaul. And that's what this Truck Project twenty twenty five policy is all about. You know, just to touch on a few of them, and you know, change is difficult. I mean, my wife would say, I don't grasp change well whatsoever. But there's going to have to be some changes, no matter which side of the aye
you're on. Some you're going to like, some you're not going to like. The tax system overhaul is going to be a big one. As far as this proposal, which some see is a really good thing, I necessarily don't see it as a bad thing. As we attempt to change the tax part in the US a flat fifteen percent for some at a thirty percent rate for others. You know, some say it would actually hurt the middle class more. I'd have to see more numbers before I
comfortably would make a real good response on that. You might create better tax breaks maybe for retirees or pre retirees, not sure. So that's a big one. Student loan forgiveness, you know, that's been a big part of this administration right now. Well, you know, I have a tough time because I have four daughters in college, and you know they're paying their part. I paid my part. So some would say that it's not fair to forgive. And if you're going to do that, you need to forgive everybody's
student debt. So in the government, we just can't afford that as a country. So the elimination of loan forgiveness is part of this Project twenty twenty five as well. So again we'll see what happens. There's got to have to be much more dialogue. I'm sure there'll be all kinds of fighting, and there's a lot more to this as well well.
And let's take that back to retirees for just a moment again. Tax system over that are being proposed, and possible student loan forgiveness. You know, there's a lot of pre retirees and retirees who are paying student loans off for their kids right now. That could have a big impact if some of them are maybe going to be able to opt out for portions of the those loans, that could have a big impact on a retiree.
It certainly could.
They're talking about ending the Tax Cuts and Jobs Act that potential eliminates many deductions and tax breaks that could impact the tax liabilities for retirees or pre retirees. You know, in recent years, you know, most people haven't itemized for their taxes because I think the standard deduction for a couple is over thirty thousand dollars right now, So it could bring some of these things back. In tac there's the ever growing concerned and we almost talk about it weekly,
Kim about Social Security. While Project twenty twenty five claims not to advocate for cuts, you know, they it stresses balancing the budget, which imagine that of balancing the budget. When's the last time they balanced the budget. I can't even remember when that last time was. So again, there's gonna be certain things that people like, certain things that don't like. You know, abortion will get thrown in there, and there's rumors of this, you know, the climate change
may be a thing of the past. Of Project twenty twenty five, and you know, I find it very interesting that they talk about this and you know, the source, the Heritage Foundation. But yet Tom Emmer from Minnesota was on and he's like, I don't know anything about this project twenty twenty five. You know, even Trump has denied any connections with it. You know, it's politics. What do you believe? What don't you believe? Dare we believe anything? But at the end of the day, we have to have,
you know, faith in our system. We have to grasp change to the best of our ability. When another one that's a big part of this, you know, is the concern of the Justice Department, some major overhaul in the Justice Department. Healthcare they want to do with, do away with afford affordable Obamacare. Again, major discussions on all fronts. There's a lot of talk, a lot of chatter. Will this ever be implemented? Maybe some things, all of it, probably not, but time will tell here.
So let's talk about what you at Haven Financial Group would be telling your pre retirees as well as those who are already in retirement when they come in and they say, you know, Larry, we're a little bit concerned about the possibility of tax system overhauls or concerned that you know, if there's a conservative administration, maybe social Security
cuts will happen. Talk to us a little bit about how you're talking to your clients about this and what they should do to prepare for possible changes like this.
Yes, Kim, our discussion never changes, the content mine change. Well, we're going to walk everybody through the same process. We're under the certain we're under suit and rules right now. If the rules change, we want to be notified of the changes. So we're big into educating. Life happens, Things change, and we can only be prepared for what we know is current and then make changes if those things do change. So again getting walking people through, well, do you have
a plan? Do you not have a plan? If so, is it an old plan, is it a current plan? What consists in your plan? Again, talking through these things of expenses and taxes, And you know, I've said it many times, we're big into tax planning, which leads to successful tax preparation. You know, lancear CPA, he's involved in a lot of my meetings in our investment teams, meetings with clients because most people aren't getting that tax discussion, and you know, tax loopholes. Where can we what can
we do to minimize the taxes? You know, where do you draw from for retirement? You know, filling up that twelve percent tax bracket because who knows that tax bracket right now is set to go up to a fifteen percent in two years. Now maybe will that change, Well, we'll see. But again, educating discussing these things, giving people confidence no matter what who's in, who's not in, and how the rules change.
That's that's where we're consistent.
Sure, So what I hear you saying is that whether these plans are implemented or they're not, really the whole idea here for those of you listening and wondering how to prepare for this is to have a plan.
Have a plan, and the folks.
That have in financial group, they would love to help you put together a plan, or take a look at the plan that you have that already maybe exists, and help you maybe massage it a bit to make sure that it continues to move you in the right direction as you move through your retirement.
Get hold of the hip folks that have in financial group. Let me tell you how you do it.
It's the number six, one, two, five zero four eight four zero zero, not six one two five zero four eight four zero zero. You can go to the Havenfinancialgroup dot com website. There you're gonna see some educational seminar dates that are coming up and if you'd like to attend one, they are free. They do like to know how many people are attending because they do fill up very quickly, So again, you can go to Havenfinancialgroup dot com.
If anything you hear over the course of this broadcast this morning, you know rings true to you, and then make sure you make the call.
It's six one two five zero.
Four eight four zero zero Larry. When we come back, let's talk about the magic number for retirement. I have a feeling you're gonna say there is no magic number.
But.
We'll post one and we'll see what you think.
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 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 listeners.
My name is Larry Kolvig, Founder and CEO of the Haven Financier Group. Give us a call at six one two five zero four eight four zero zero, or visit us online Havenfinanciergroup dot com. Again, thanks for listening. Every week we discussed crucial retirement and financial topics, you know, the state of the economy, the good, the bad, the ugly, and how to survive in retirement and how to plan accordingly. Kim, the magic number I think you mentioned.
Yes, the magic number for retirement. Well, you know, Larry, everybody knows that inflation and of course election years, all these kinds of things. They have a lot real impact on our savings. They have impact on our projections, they have impact on our spending. And there was a recent study that revealed that people think they need fifty percent more to retire now than they did five years ago, which I think is a really big number and is really surprising. So let's talk a little bit about this
retirement magic number. First off, do you believe there's a magic number.
I do not believe there's a magic number. I think in the industry we've done a disservice to announce that it's one and a half million or four million or two million. You know, it's individual and you've heard me say it before because we have clients at Haven that have two hundred thousand and they're happy as can be and they're going to have the best retirement ever. And then we have those that have five million that risk running out of money. So I don't know how you can put a magic number.
Now.
Have people felt it more with the inflation the last several years, of course, and there is a lot of concern. The perceived amount required for a comfortable retirement has searched to one point four to six. Like I said, one and a half million, fifteen percent increase. I think that's probably pretty accurate because everything is so expensive and it's still you know, they're trying to get inflation under control,
but we got a long ways to go. So what this has done, it's created a lot of anxiety and worry, potentially a retirement crisis. You know, the statistics are staggering that you know, seventy nine percent are worry about it and six and tenuous adults with investable assets. I mean, they just a lot of people are not planning. They're not able to save, and all these things have effected retirement planning. Now we shouldn't be surprised because you know,
history has a way of repeating itself. You know, with years of high inflation, you know, people's financial hopes, goals and long term expectations you know, have radically shifted. Therefore people's plans should have shifted to account with these different things. And you know, I think it's just down to developing a discipline, you know, not not getting yourself so worked up over some of these things. And again that's where it comes to us helping people understand what they're doing.
You know.
I just last you know, some people are in better shape than they think they are. I just think of Scott and Judy last week from Lakeville. You know, they thought they were in a terrible retirement position. They had about four hundred thousand of retirement assets, but both of them had pensions and both of them are going to have adequate social security. And they left here after we looked at their plan and we've tweaked it. You know, they were so happy because they thought they were in
a much better, much worse position than they thought. So we see the opposite side of the spectrum too, that people think they're in a good spot and they're certainly not in a good spot. So again, having a plan and sticking to it, well.
You know what you're saying here to me, Larry, sort of indicates that you need to start this plan a little sooner than maybe some people are even doing. Because things do happen in life. You know, you can get to forty eight years old and lose your job, and that doesn't mean you can't get another job, but that might put a bump in the road, and that might mean you have to dip into savings, and that means
maybe you're not saving the way you would planned. You know, are things happen, you know, someone can't work at all anymore, and so you have to shift things or you know. So, I think the idea of people starting their retirement planning at fifty eight years old really really can be problematic and maybe is part of the problem why Americans aren't saving so much.
Yeah, I think more than a magic number. I think people need to look at, you know, what are their income expectations, where is it going to come from.
How much is needed?
Is that that entails social security that embraces a pension if you're lucky enough to have one, and then what is it you need to in addition to live a comfortable monthly live a comfortable lifestyle in retirement. So I think guaranteed income is more important than the magic number by far.
Right and starting to plan for that guaranteed income. So talk a little bit about when you sit down with people instead of saying you need a magic number or you to tell them we need to find you some guaranteed income.
How do you go about planning that well?
At the starts at the very beginning discovery meeting. We call it them getting to know us. Maybe they came out to a class. And by the way, you can see all our classes that we have at Havenfinancialgroup dot com. We have some great one coming up. We have them all summer throughout the entire year, whether it's investments or Medicare, Social Security taxes. A new one coming up, the Truth
about Annuiti's class. Check out our site from there. No matter if you come in, come to a class, or just come in and visit that discovery, We'll be asking questions. Oftentimes people go nobody even has ever asked me that question, whether it's are you charitable is about the kids. Yeah, we're going to boil it down to what are your income expectations? What are those amounts? We're going to continue to ask if what your expenses are and encourage you to put pen to paper to make sure that we're
as accurate as possible. It entails all the retirement puzzle pieces, from estate planning to insurance to nursing home coverage to taxes, all the retirement puzzle pieces. Do you have all the pieces? Do they go to the same puzzle or are you missing some When you get done with it. From there, we come up with a strategy, if you will, a strategy, a plan that eventually will hopefully people will implement. And
it's not just putting on the shelf and leave it. It's hey, let's to get together quarterly, semi annually, monthly for crying out loud. If that's what gives you confidence, We're not against that now. Not everybody needs that attention, or what I can tell you, Kim is people are getting a lack of attention. Retirement is more than one meeting a year or two meetings a year for forty five minutes
to an hour. There's more to it than that and people should be getting more attention and they're just not so.
Larry.
During the course of those meetings with all of those clients and the sit downs, you guys could put together strategies for retirement income, right, I know that's obviously a big part of the strategy.
What are some of those ideas. How do you go about that?
I know you talk about pension. Obviously there's social security, but then obviously there's investments. You must talk about those kinds of things too.
Yeah, whether it's dividends from your current investments. We'll get into a discussion of annuities of appropriate but where is the best place to draw from in the most tax efficient way possible? You know, Taxes is always going to be a relevant conversation. You know. I know it's been very frustrating for people over the years with this high inflation. But you know, I read a statistic that nearly two and five individuals have a band in the idea of
setting a retirement savings target. Goals are very important. I'm very goal oriented. Anybody that knows me knows that. At the beginning of every year, I write down goals, whether they're business wise and personal, and again accountability to what you're doing and your actions are so important. So you know, we're not about a number, but again, looking at benchmarks
in the industry. You know, I mentioned many times for couples, we like to see you know, fifty to one hundred grand liquid for retirement, having enough investments that are protected from from downward spikes in the market and then risk in the stock market is fine. But having a good balance going into retirement, and that's different for everybody. Simple observation all the years I've done this though, is most people have no idea necessarily what they're doing until something
negative happens. They're happening when the good happens, but when the bad happens, they're like, what happened. We want to address these issues prior to something negative happening, and that means stress testing your portfolio, looking at the good years of the market, the bad years of the market. And again, actually was nice having Kyle on last week because him and the investment team are major parts of this puzzle
when it comes to working with Haven. As we continue to monitor people's accounts, you know, we send out millions of dollars every first team, first and fifteenth of every month for retireason that need retirement income. But guess what when that money comes in, they know that we've addressed the tax situation. They know throughout the year if we
can tax loss harvest. We're looking at all the variables that go with that, and again, details, you want to pay attention to details as you get closer in retirement because those accumulation years they're all done now. It's the distribution phase of life.
And Larry, I know you say this each and every week, but I just think it's so worth reiterating. I'm sure there's a lot of people who are out there right now thinking, well, Larry, I don't have a lot of investments. I don't have you know, a lot of fancy, you know strategies. But my spouse and I have been really good about saving and we've got that money, you know, sitting in the bank. Are you interested in talking to us? Those those folks have a retirement coming too, right.
They do.
You know, everybody in our industry wants to, you know, to go fishing for the big fish, and that's great, but we believe everybody should have the same opportunities. So if you're listening and you have a small amount of assets, a large amount of assets and everything in between. At Haven, we don't have any minimums. At a minimum, let's have
a conversation. That's where it starts. You know, there's in the industry that you know, if you don't have a half million investible, well then we don't want to talk to you. Well, I find that ridiculous because there's circumstances. Life happens. So again, at any stage, it's better to have some conversation than your head in the sand and not have any conversation.
Yeah.
Absolutely, six one two five zero four eight four zero zero. That's how you get hold of the folks there at Haven Financial Group. Set up a consultation, go in and sit down with members of the team and talk about what it is you would like to have happen in your retirement. It's six one two five zero four eight
four zero zero. Or go to Havenfinancialgroup dot com. That's where you're going to find out about those educational seminars, lots of them coming up the rest of the month of August and certainly into the fall.
All right, come in your way.
The fallacies of that magic retirement savings number. You know, we've already heard Larry say that at Haven Financial Group they don't necessarily think there is a magic number. But let's talk a little bit more about what it might take you to retire comfortably.
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.
Welcome back to the Haven Financial Group Radio Show. I'm Larry Kolvig, founder and CEO of the Haven Financial Group, an independent advisory firm in all retirement areas. All the retirement puzzle pieces so important. Give us a call six ' one two five oh four eighty four hundred or send us an email online at Hanfinancialgroup dot com. Kim the fallacy of the magic number, we talked about that and how income I think is more important, but it's still out there.
Well, I think you know, when you talk about the magic number, you have to go back to the magic question that I think does exist for a lot of people, and that's do I have enough money to retire?
And probably for.
A lot of those people, it would be great if they could come and sit down across the table and look at you and say do I have enough money? And you say, well, you've hit the magic number. Bud Again, there is no magic number. So that's why you want to sit down with experts to try to, you know, look at your dollars and make your dollars work for you once you get to retirement.
Would you say that's true.
I'd say it's true.
I don't think it's the most beneficial way putting a number on it. I don't think that's a good target for retirement preparation. Some statistics out there right now are staggering with the concern of do people have enough? You know, there was a study done by Schroeders that a large percent feel they're anticipating falling short of the goal, with three and five predicting savings of less than five hundred thousand, and a third expecting not to reach two hundred and
fifty thousand. All that aside, those numbers are important, and you might have your number. That number certainly has gone up, as we talked about, because of inflation, but I think it's if I would just say where do you start? You know, factors to consider in retirement planning. You know, I would say, determine your retirement time horizon. You know what is the timing is a ten twenty thirty years out.
You know I mentioned estimate your expenses, actually estimate actually put make sure you're being as accurate and real as possible. Calculate your after tax returns, Assess your risk tolerance. I'm just kind of giving you a basic checklist here to do a state planning. Don't wait till you're older. Estate
planning was never designed to be a senior topic. It was designed when you had kids, got married, had something consider inflation investments, And I'm shocked how many times, over even the last couple of years, with inflation roaring, that some advisors don't even factor it into their projections, which to me is really, really silly. I don't know how you can't and start planning as early as you possibly can. Anybody knows the power of compounding over time can make
a huge difference. So again, some basic checklist items that I think could help people alleviate some of the stress, and a lot of that stress ended up causing health concerns.
So just kind of a checklist.
So, Larry, what do you say to people who maybe started to save a little later in.
Life when they finally do come in and meet with you.
Are there other strategies? Are there ideas that you throw out for them.
No, it's going to be the same process. It's going to be the same discussion. Oftentimes people get caught and well, I got started late, so I got to take a whole bunch more risk. Well, if you go to the casino, I don't recommend bringing your checkbook. That probably is not a good idea. So again matching it up for what your risk level at a certain age. Now, granted, if you're younger, you can take more risk because God willing, the element of time is on your hands. But it's
just developing that discipline weekly. When I asked folks that come into our office, you know you've done a great job. What's been your secret? Well, we talked last week about the envelope approach. But it's all about the discipline of money, expenses and saving. You know, a lot of times the younger generation says, well, I don't have any money to any extra to put in my four o one K.
Well, if if.
You don't, if you just set it up where you're it's automatically coming out, it's out of sight, out of mind, and you'd be surprised how much that can build in a very short amount of time. And you know, we're tailoring retirement planning individually. You know, there's no cookie cutter. I mean, there shouldn't be a necessarily cookie cutter. It's not the same for everybody. You build in lifestyle, we factor in you want to travel. You know, healthcare is
a big expense of retirement. I just had somebody last week that pretty much everybody in their families seem to have dementia or Alzheimer's. And let's face it, nursing homes is extremely expensive. So we're going to talk about all these different things and develop an understanding of what's important,
what's not important. What I do know is I found that this statistic that you know, retirement savings for adult age forty five to fifty four was about two hundred and fifty five thousand, and twenty nineteen, well fifty five to sixty four had approximately four hundred and five or a four hundred and eight thousand. There's a significant gap on what the expectations needed are and what people are doing. So again, no universal there's no universal magic number. It's hey,
what's important, how do you get there? And let's develop a plan.
Absolutely, let's tell everybody how they can get hold of Haven Financial Group.
It's six one two five zero four eight four zero zero. If you are.
Looking to sit down and talk to an expert about you know, how to put together a plan, or maybe you already have a plan and you'd like someone to take a look at it. Maybe your plan needs a stress test. You need to find out if you have put together a plan in the way that can endure some of the inflationary times that we have seen here of late. The folks that Haven Financial Group can do just that for you. It's six one two five zero four eight four zero zero. You can go to Havenfinancialgroup
dot com. That is their website and there can learn more about Haven Financial Group, about Larry and his team. You can also learn more about educational seminars that they offer throughout the course of the year. They are free. They do ask that if you'd like to attend one, that you sign up because they like to get a headcount, get an idea of how many people will be there, and they do fill up very quickly.
We talk about those those.
Educational seminars pretty frequently, Larry, and it's always worth it talking about it again because I think we often have a new audience. But you guys offer these all around the Minneapolis area and at different times of the week and on different subject matters.
Tell everybody about that we do.
Social Security and tax medicare made simples, another class R and D taxes, a kind of a wide brush on all the different retirement topics investment classes. Again, you can find them all online.
You know.
The truth is, Kim, no matter what your number is, whatever that is, your savings go really hinges on personal factors, you know, needs, risks, preferences, goals, objectives specific to you. Again, it's it's not the same as everybody else. So if you want to find out what your savings target is or what it should be based on and what factors it should be based on, all it takes to start is getting ahold of us set up a time to come in again six one, two, five, zero, four eighty
four hundred or havevenfinancialgroup dot com. There is no cost, Kim, there's no cost, there's we're not high pressure headquarters. I joke, this isn't a timeshare sales meeting. This is you get to know us, we get to know you and see see what all this is about.
So I also want to go back to the educational seminars. That's also free and gives you an opportunity to ask some questions.
And I think that's really important for people.
I think when people educate themselves about some of these topics, they realize that they need help putting you know, these plans together. You go and you listen about social security, go and you listen about estate planning. You realize that it's you know, we don't do this all the time, that that you do need those experts. So I think these these seminars are just a really great opportunity for anyone who's listening.
Yeah, there are no there is no cost for any of these classes. There's no cost to come in. When people work with us, hey, I'm all we're all about full transparency. There's no secrets, we're not hiding anything. I love when clients well how do you get paid? We'll discuss how we get paid. We're not free. I have a wife and four daughters. There'll be going to med school or college. We're not free, but I can tell you this, nothing happens without you knowing exactly the costs.
You're not going to be the one that says, I have no idea when I'm paying those guys. It's all about full disclosure in every area of retirement. So I get a kick out of people that, well, we're worried about you because we never know if we're going to pay you. Well, we'll cross that bridge if we ever get to that bridge.
So sure, absolutely Again it's six one two five zero four eight four zero zero six one two five zero four eight four zero zero or Havenfinancialgroup dot com. Coming up in our next segment, we're going to talk about retirement solutions in an age of inflation and low savings.
We've talked about this throughout the show.
Obviously, inflation has taken a bite out of a lot of pre retirees and retirees budgets. So we're going to talk about ways to get around that or to plan for that, because that we have seen through some of the studies that we have cited, many people say their savings are low. They're lower than they have been for four Larry just told us two in five people. Recent study showed that people gave up on their savings goals.
So let's talk about that and some.
Of the solutions for those issues coming up right here on the Haven Financial Radio Show.
Don't go too far. We're gathering more important insights and retirement boys, 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 Karrigan. 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 to one to two five zero four eight four zero zero or Havenfinancialgroup dot com. Set up a time to come on in. There is no costs, there's no commitment, no obligation. We'll walk out with more education and we have good good we're coffee stops. Let's just put it that way. Kim and some fresh cookies to throw in there as well. So again, just come on in. We'd love to visit with you.
You know, Larry, we mentioned this I think every week because this is who you are and it's so important. But your wife works in the firm, You've got the four girls. You know, you are a family man. I know you talk about your mom and dad still being
on the farm. You're a family man, and I think you have a real appreciation for when people come in and they're trying to protect what they've worked so hard for all their lives, whether it's for their own personal retirement or it's something they want to pass on to their kids.
You know, I think you have a real attachment to that kind of thing.
It is the where the passion comes from. I have been in this industry quite a long time. I'm not going to date myself. I'm just not going to go there, Kim. But you know, I've seen families affected by this. You know, we've been through market corrections, you know, whether it's health issues, whether it's the stock market collapsing. You know, people's lives are affected by the decisions they make. And you know, we like to be a partner with those help people
make educated decisions. So you're right, and we have that chemistry throughout the office. Everybody. Yes, family is extremely important. They asked, I'm blessed to have mom and dad still with us. And at the end of the day, you know, we affect people's lives and that's where the passion really comes from, and that's what's spread. I'm very proud throughout the whole organization.
Absolutely.
Well, let's talk about retirement solutions in this age of inflation and unfortunately low savings.
So let's bringin with the issue.
One of the things that I think a lot of people consider doing is withdrawing the equity from their I'm sorry, the problem of withdrawing from equities for their income, because if you're dependent on the stock market, this can be a real problem. We see this frequently. If you're you know, in your sixties, you don't have time on your side. So when we have a dip in the markets, that could be a really scary thing.
Yeah, the element of time comes back into play, and this is a big focus of what we do. Income. No more working, no more paycheck. Now, how do you start your own paycheck? The distribution plan tied to the tax plan. This is where we really get into it because and it's why it's so important to have good liquidity, some principle protected investments. And then the stock market is great, but you don't want to start drawing from those equities
of the markets down. You want to draw from something else and let that come back up, because the markets do fluctuate, and we call that sequence of returns risk early retirement markets go down rather than if the alternative,
if the markets go up. You know, there's a slide that I show that with all the same thing, except it was inverted where people had exactly the same amount the markets when for one they went up, the others went down, and in twenty one years one was broke and twenty and thirty years later the other one had twice as much money. So time does matter, and time
is of the essence. So when you're saving, you know, we want to hit these you know, savings marks prior to retirement because you want you want to draw off those types of accounts when the markets are down. Sure not those equities. And you know, income in monthly income should be the focus. And because what does it take to cover those expenses, cover the needs before you cover
the once And that's what it's really all about. Certainly, what you know, you want to house, a house over your head, you want to healthcare, all the things that you need, and then we'll factor in the wants as far as your target saving school, So monthly should be really be the folks absolutely.
I know that you guys teach a seminar on annuities. A lot of people have a negative feeling about annuities. Others, you know, just aren't educated or don't know enough about them. And then I know that there are some annuities that you think are a pretty good idea.
What about annuities?
Yeah, everybody has their opinion on anything, and we're all entitled to our own opinions. I included, but there's four types of annuities. Now, first of all, listeners don't have to use any annuities at all, because you don't. There's some people out there that only do annuities. Well, you should never put all your eggs in one basket. But if you're looking at monthly income, if you're looking at income, the discussion with us is going to go, do you have any pensions? If so, how much and when?
What?
What will your social security be? When are you going to take your social security?
Are going to wait?
Let it roll up. If you're married, maybe the younger one takes it a little earlier. What does that income look like and for many people, they're not going to have pensions. So how do you develop your own self directed pension? Well, you can do that by staggering or laddering CDs. You can do that by setting up some sort of systematic withdrawal out of your stock market investments. Great, but if the markets are down we just talked about, you don't want to do that. Or you can use annuities.
And here's what I'll say, start with education. There's four types of annuities. There's immediate annuities, there's variable annuities, there's fixed annuities, and there's fixed indexed annuities. What I'll say is I want to seventy I'd say seventy five percent of people that have annuities do not know which one of the four they have. Now I'm not saying panic, but that could be a recipe for something that you don't want, especially retirement. Just last week I had John
and Sandy from Burnsville in. They came in, we sat down, I think it was a second or third meeting. They had to evaluate their current statements and they have done a great job saving They both have pensions, social Security strong. Yet they had a variable annuity a large amount, and a variable annuity that had an income writer on it. They don't need any more income. They're paying exorbitant amount
of money. They didn't know they were paying exorbitant amount of money for something for a bells and whistles on their account that they're never gonna need. And that's the problem. If you don't know which one you have, that you could be paying for something. And most people have no idea what they are paying. So identify which one of the four you have, and again we review that again unbiased. We just let you know, well, this is how it works, and for many people they don't know how it works.
Some can be very confusing, some can have way higher fees, and a lot of people don't even know it. I had an engineer in about a month ago. He's like, I'd never get a variable annuity.
Guess what. He had two of them. He didn't know it.
In fact, he felt kind of silly, which that wasn't. The point is, he goes, I would never have one, and now I have two, so avoid the surprise.
Is what I will tell.
You is if income additional guaranteed income is something you need and want in addition to your pension or social security. They can be used very effectively for guaranteed lifetime income, to secure that you're never going to run out of income even though the investment might go to zero. Now, let's talk about this full circle when you come in
about what are you giving up? Are you giving up some liquidity, what's the term to it, what's the cost if any and not all of them have costs, And right now with the higher interest rate environment, some of the payouts on these are very very attractive. Now, again, just don't jump into something because it sounds good, you know, if it sounds too good to be true, I'm saying, get more information. However, in our industry there's lots of financial marketing and you got to be careful. I see
it in the back of the Star trip. I hate annuities and you should hate annuities, well two of the four I don't really I don't like either. But guess what Your Social Security is an annuity payment. Your pension is an annuity payment. I guarantee you're going to cast those checks, but have a good understanding of how they work, what they cost, and what are you giving up. That's where what's so important.
Absolutely so let's sum this up this week. Some of the things that we have talked about, and that's that you know there could be some changes coming down the pike thanks to the fact that this is an election year and we don't at this stage of the game. We know that we will have a different administration no matter what, because now President Biden stepping out of the race, so things are going to look different. So we've talked
a little bit about some of those changes. We've talked about whether there is a magic number to retirement, you know, do you need to have saved a certain amount of money before you can retire. We talked about some retirement solutions as a result of inflation issues and low savings.
It's part of that being annuities.
And so to sum this up this week, Larry, I think what I've heard you say more than anything is that life happens outside. Issues happen, and you need a plan you do.
A failure to plan is a plan to fail. I don't know what's going to happen. Yes, you are correct, there is going to be a new administration, and you know change can be difficult. I didn't mention on the Project twenty twenty five, which I found very interesting that the federal agencies this is proposing a scaled down federal government. I'm all personally, we're all entitled to our opinions about less government, not more government.
Uh.
They've been talking here about doing away with the Department of Education, Department of Homeland Security, and other ones that eat up a lot of money. Whether that happens or not, I don't know, but there's no telling which policy suggestions will come to fruition or not. You can only control the things that you can control, and that's having an individual plan, making sure you're paying attention to it, perhaps having a partner that you can rely on navigate through
these two good times and bad times. Because history has a way of repeating itself. It's not as you know, it may seem like we've never seen times like these. Well maybe we haven't, but there's been other times that it felt the same way. So we can only control what we can control, and you know, and that's making good, educated retirement decisions. And I talk frequently about the coordination
of all these retirement topics. Now they don't have to be under the same roof, but the intention when I started having financial grew have multiple personalities in a variety of these retirement areas. Lance is our CPA, Carrie is our estate planning attorney, the investment team of twelve, the insurance and medicare All of these things should be coordinated. They work together. They should work together, but oftentimes they
work in different directions. And nothing is better than the best compliment I can get, Larry, it's nice having all these things here where you guys have multiple personalities to bounce things off of each other. And I'll tell you what that gives peace of mind. And another thing that makes me happy is when people say it. I bet you I heard it five times last week. We love coming here. It feels so good, it feels so comfortable. We're so glad we made this decisions as a business owner.
Nothing could make me happier.
So the folks who are listening out there, let's make a good decision here and go in and visit with the folks that have in financial Group. Then number six one two five zero four eight four zero zero. They can help you control the thing that you can control again at six ' one two five zero four eight four zero zero. Give them a call today or go to Haydenfinancialgroup dot com. Larry I will be in front of the television watching the Olympics.
I will as well look forward to it, and we look forward to next week visiting with you. I hope all the listeners have a very blessed, fruitful week.
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