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Good morning, and thanks for listening to the Haven Financial Group Radio Show. I'm Larry Kolvig and CEO of the Haven Financial Group. Visit us at Havenfinancialgroup dot com or give us a call at six one two five zero four eight four zero zero.
Thanks for listening again. Kim.
Great to be with you. We had a lot to talk about this Sunday morning.
Yes, we certainly do. We're going to be talking about filling the gaps of retirement planning. We're going to actually take a deep dive before we do.
So.
Can you believe that we are so far into August? Would you say it's been a good summer for you and your family so far?
It has been a wonderful summer. Less than two weeks and we bring our youngest to college at the University of Kansas. So maybe not talk to me the couple days after that event. Let's just put it that way.
Yeah, I gotta tell you, when you take the youngest, I think there's just something about that because it really well. For first off, you're usually empty nesters. Do you have some of the girls still at home?
Yeah?
One does online business learning at Bethel College, so she is actually at home. But still it's our youngest and taking her to college six hours away and dropping her off, And I can tell you that is going to be a long six hours home.
I know that.
I'm afraid it will, but you know the good things are coming for her, So that makes it really terrific for certain absolutely. Well, you know when you're young, like your daughters and my kids and whatever, twenties thirties, you know, they're not so much thinking about retirement and they're not so concerned about risk when it comes to their money at that age. But when you get to be five years out of retirement or you're in retirement, then there
certainly becomes a more awareness of risk. And that's where we're going to talk first today about consistency and stability in retirement. And it's important, isn't it, Larry, Because you don't have so much time to make up if in fact you're on the down side of investing.
So true.
I mean, when you're talking five years or less, or maybe you're listening and already in retirement, that's a different timeframe. That's the element of time becomes so much different. And that's why consistency and sensibility alongside asset growth because we still want growth, there's no doubt about it. But then income really comes into the picture to requirement for retirement is can you accomplish both of these income and accumulation.
It's a fine line and there's a lot of things the industry doesn't want to discuss and you know, I think we're gonna boil some of this down because you can do it. There's just no automatic or any simple solution to doing it. But it's why we talk on a weekly basis with clients on what makes sense for them, what's what's the right recipe for going into retirement to get accumulation, and then also bring into the picture where is all your income going to come from?
Absolutely, so as we talk about consistency and stability in retirement, and some of this seems to ring true to you, let me give you the telephone number. It's six one two five zero four eight four zero zero. That's how you reach the folks at Haven Financial Group, or you can go to Havenfinancialgroup dot com. Again, I want to give you the number six one two five zero four
eight four zero zero. As we talk here, I think some things will ring true and you'll want to call that number to talk to the folks at Haven Financial All right, So protecting your well before retirement is very, very important. Let's talk about some of the things that you need to keep in mind, for example, financial security.
Yeah, before I dive into that, I just kind of compare it to a football because we're coming into football season here really really soon and retirement, as I call it, the red zone, you know, the inside the twenty yard line. Up until this point, you've been putting money away. Accumulation risk has been okay because of the long timeline, and now it's in the red zone, the last twenty yards
to get in there. And it's fun to get great returns, and that's great, but defense wins championships and it's not always the most appealing thing. But when you get to that retirement age, a good balance and oftentimes a little more defense is extremely important to really get that financial security. People want stability and security in retirement. They want to reduce that anxiety and money can create anxiety. Let's face it, everything right now is expensive, and this past week the
market was extremely volatile. Confidence starts to go to wan a little bit, and that's why it's important to have that plan that you can fall back on and knowing that market volatility is going to happen. It's just life and dealing with it. And by having a plan where you know the ups and downs and you have somebody to lean on that that you can say, hey, Larry, are we still okay? Well, yes, remember we had these
conversations along the way. You have ample savings of moneies that you can lean on, and if the markets are down, you have principal protected monies. And then also you have the risk of the market. So we want to make sure we adhere to that and focus on wealth protection as a long term plan because retirement can be and I hope it is for many people ten twenty thirty years, and we want to think long term. Do we have enough funds in retirement? You know, I always say the
biggest questions do we have enough money to retire? Or Larry, when's my money going to renount? Is it going to be seventy five or ninety And if it's ninety five, hey, we're okay with that because I would say that the majority of our clients, if we're going to refer to water, they don't want any white caps, you know, they want calm waters, not big white caps choppy jumping all over
the place. And that really comes with a very well balanced investment plan that's tied to all the other retirement stuff you tie that you and I talk about on a weekly basis.
Absolutely well, as we talk about consistency and stability. Let's talk about some of the vehicles that maybe can help a retirement plan, and that's annuities. And there are a number of different kinds of annuities. Let's start with principal protection.
Yeah, we're going to be teaching a class. I'm going to be teaching a class coming up. I think it's in October November. Go to our website Havenfinanciergroup dot com. I've taught this class numerous times before COVID, and I'll resume teaching it because the word annuity to many people is just an ugly word because they've heard this or they've heard that. And I'll preface it by saying nobody
has to use annuities all at all. They're an investment vehicle that can be part of an over overall portfolio. But my encouragement would be please understand the four types variable annuity, the immediate annuity, the fixed annuity, and the fixed indexed annuity. Two of them are very different than the others because they start with the word fixed. And these can be utilized for principal protection, yes, not losing any money when the markets are all like a roller coaster.
They can give you potential market gains now albeit not as much as the market specifically, but they're tied to the market. They can give you tax deferred growth. If it's a non qualified account or brokerage account, it can be tax beneficial because it's deferred growth. Now I say non qualified specifically because iras and roth iras are already deferred anyways. But then you also have to weigh is it a benefit. Where CDs and money markets you have
to pay the taxes on the interest right away. But keep in mind if it's a non qualified annuity, does it make sense or not, because when you draw out income from a non qualified annuity, those are taxed at ordinary income tax rates, not capital gains rates. So they can be used for income, they can be used for
accumulation only. Just make sure whoever you're talking to or getting this information from is really talking through all of the ups and downs and the pros and the cons because what I've found over the years is about i'd say, you know, again, generally speaking, sixty to seventy five percent of those that have an annuity number one don't understand which one they have. In many cases it's not appropriate.
This past week, I had a couple that was in that had they've done a great job saving and they had variable annuities with income writers which we'll talk more about, that can provide guaranteed income. But they already had both two pensions and Social Security that's provided enough income. So they're paying for a feature that was not beneficial to them whatsoever. And you have to weigh the good, the bad, the pros and the cons because there's no perfect investment.
But is it a good fit for you? Perhaps it is.
And number one, if you do have one and that you don't understand which one you have, you know, come on in and we'll talk about it. Because what's better than affirmation of confirmation that now I know what I have, I don't like it or I do like it, or I'm stuck, because sometimes people get stuck and we can't even help them.
Absolutely. Yeah, So again, maybe these fixed accumulation annuities aren't for everyone. But if you think it's something that you may have interest in, or as you just heard Larry say, maybe you have an annuity and you really don't know anything about it and you need someone to sit down and talk you through it, you may find it's not the right one for you. After all, The number is six one two five zero four eight four zero zero six one two five zero four eight four zero zero.
You call that number, you tell them that you heard Larry and you heard me right here on the radio, and that you'd like to set up an appointment to come in and to chat with some of the experts. And again, Larry, we want to remind everybody that you guys do educational seminars and people can learn about those at Havenfinancialgroup dot com. And you just mentioned that coming up this fall there will be one of those classes on annuities. I bet you that's going to fill up quickly.
I imagine it will.
The class is called the Truth about Annuities, because you know, the truth will set you free. Let's put it that way, because a lot of people don't know what the truth is.
You know, our industry has a lot of financial marketing, which is fine, great, and numerous times people may have seen I hate annuities, you should hate annuities, and at the end of the day, that's a big that's a real general thing to say because a lot of those companies just try to try to get you to call them so they can talk about other types of investments, which is fine. But what I'll tell you is what type of annuity do you have? What are their terms
of it? Can you lose money? What are the terms? Are they five years, ten years? Are they fixed or variable?
What are my fees?
Nobody should be afraid to talk about it, because here's the deal. When we actually help people understand the fees of a variable annuity, we'll actually call the company with them and I'll already write down sub account fee, writer fee, administrative fee, mortality expense fee. And people say, well, how did you know how to do that? Well, I have years of experience number one and number two. If you call the insurance company, because by the way, all annuities
are through insurance companies. If you call and ask them on your own, what's my fee, here's the answer you're going to get. They're going to give you one of the three, four or five different fees. Because you ask what's my fee, They're not going to give you all of them. Now it sounds misleading, but you ask what the fee is, so we'll help people understand which one,
how much? How does it work? Because they promote them on guarantees, but that might that guarantee might not be what you think it is.
Six one two five zero four eight four zero zero. Go to Haven Financial Group dot com and look for that upcoming educational seminar. All right, we've talked about annuity issues. Let's dive a little bit deeper now social security. A lot of people depending on that for their retirement. But what if it's not enough then what do you do? We'll talk about that 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 Devin the Haven Financial Group Radio Show. We'll be right back. Stick around. You've got questions, We've got answers. Your tune to the Haven Financial Group Radio Show with your host Larry Kolvig and Kim Karrigan. Now back to the show.
Welcome back to the Haven Financial Group Radio Show again. Thanks for listening this morning. Give us a call at six one two five zero four eight four zero zero or Havenfinancialgroup dot Com. There's wonderful but retirement tools on the newly revamped site. There's a safe Haven community which our clients can send ideas back and forth from investments to recipes to anything handyman services you've got it. While we've had great responses to that. Then our classes again, Kim,
check out the different classes. We encourage even our existing client tele to come. You can always learn something. So whether you're a client or not a client, or well versed or not well versed, like this stuff or don't like this stuff. And if you're married, try to bring your spouse with because as much as they may not like to talk about this, if you're married, this applies to both of you, whether you like it or not.
And at the end of the day, it does pertain to pretty much everybody that's hoping to retire at some point in life.
Absolutely, it's evenfinancialgroup dot com. That's where you can learn about those educational seminars. We're talking about social security now. We've just talked about well stability and now you are in retirement and you're beginning to think about social security. So let's talk a little bit about what you do if social security is not enough income coming in for you, and for a lot of people, Larry, that's probably the case, right.
It is it is, which first of all, make sure that you're looking at social security, getting educated to make sure when you should take it, you if you're married, you and your spouse, you know, it's a WE decision. Should be a WE decision. Often sometimes it's not a we decision, and that can backfire. Should he take it at sixty two? Wait till full retirement age, wait till seventy? What makes sense? You know, are you going to continue
to work? What are your income needs? And eventually you will turn on that Social Security payment, which I know there's lots to worry that it won't be around. They've been saying that for years. I actually don't worry about that whatsoever. It will be part of the political limelight, no matter which side you're on, no matter what, because it has been forever. But what if that's not enough, Well, then it's a matter of, oh do I have? What
other investments do I have? You know, retire set. You know, most people are gonna need some income. Many people will be on a fixed income to satisfy those monthly needs. And that's where we set up an income distribution plan that's certainly tied to the tax plan. That's why it's so important to have these things coordinated. I say that you don't have to have it under the same roof, but I can tell you when we map these plans out. You know, all lance is are CPA, the investment team
and I are involved. All of this is coordinated to make sure we're doing it in the most efficient way possible, whether it's from dividends that are paying out, or we can come back to the annuity because if you need additional income, annuities can be very beneficial. Fixed indextinuities which are fixed. They can have an income writer. Now what's that fee of that writer? They can have They can have fees. A lot of them do, but there's also
some out there that don't have any fee. So we look at all the different options because they can provide and insurance company are the only ones that can do this a guaranteed lifetime income and all compare it to a self directed pension. Many people out there listeners don't, will not have, or don't have a pension. So if income is a problem, you may want to look at some fixed anuity or fixed indextinuity that can provide that guaranteed income for the rest of your life and potentially
if your their spouse's life. And let's face it, income predictability is extremely important and it's why people with pensions are going to love that pension. Sure you can do the same, but look at all the options to make sure you're making a good educated decision.
Well, as we look at these annuities that emulate social security, you just said, income predictability is one of the benefits, certainly something that allows people to sleep at night. Let's talk about some of the other benefits. So number one certainly simplifies your planning.
Yeah, it can simplify retirement income, you know, by providing a very clear structure of how that income is going to be distributed. You know, you can have the taxes withheld and account for that, and you know they can be used for income, they can be used for accumulation
purposes if you don't need the income. There's income features out there with some of them that has cost of living adjustments or sometimes the companies call them increasing income, meaning over time, if the markets are good, that annual income can be increased. Those are very appealing for some of the younger folks who may think they're too young to be looking at these, but actually it could be exactly the right timing to accommodate for inflation and budgeting purposes.
You know, you know exactly what you get from your pension, if that's applicable, exactly what you're going to get from social security, and you can actually do the same with an income producing annuity. So it can really help for budgeting purposes as well. But it comes back to is whoever you're working with educating you on this, does it make sense because at the end of the day, they can be if used properly. Unfortunately they're used improperly quite often.
And let's face it, a longevity risk, the fear of running out of money before you pass away. It's a concern. And if you have longevity in your family, great, but you have to account by making sure that your income is going to sustain throughout all of retirement. So look at pensions, so security, and what additional guaranteed income because the word, the phrase guaranteed income is certainly much more appealing than variable income, especially with market volatility.
Absolutely, I want to ask you a question. I think probably people who don't know all that much about annuities, and I know you've talked specifically about fixed annuities, because I think that's what you might be more in favor of. I don't want to put words in your mouth. But is that true?
No, very true, And I'm not afraid to say is them because a lot of people have variable annuities and again I'm not saying anybody wronged anybody by putting it in there, but they tend to carry higher fees, they tend to be way more complicated. And our idea is, if you're going to take the risk of the market, why not get the best possible return rather than share. And what many people don't know that anywhere from two
to five percent in fees in these variable annuities. So again, what you don't know can hurt you, but it can affect your pocketbook. And that's why having all the information you can make good, educated decisions that are in your best interest, maybe not necessarily in the best interests of the person that's promoting it.
So, Larry, if someone comes to you and they have a variable annuity and they've decided this was a mistake, can you draw your money out and place it in another another kind of innuity? Can you draw money out? I'm sure there has to be penalty.
Well, that's another thing is these all annuities have terms, and based on these terms, there's surrender charges and if they're early on those surrender charges are way too high. You might be locked in and we might not be able to do anything until you've been in it for a long, long enough period of time. Now, with that said, if it's variable, it's tied to the market, and if it's considerably lower, it may not make sense or it
might not be suitable. So understanding which one of the four you have, how they work, costs involved, and can they be utilized properly inside a portfolio. What we found is from an retirement perspective to create more principal preservation. They can utilize very well as a bond replacement in a portfolio just for a comulation purposes. Or they can be a good way to secure guaranteed income. And one thing I haven't talked about, they also have there's also
some out there that can have some long term care writers. Now, again, what's the cost and how does that work? Long term care writers that maybe can provide some long term care insurance potentially if needed as you get into into retirement.
Sure, all right, the number is six one two, five zero four eight four zero zero. If all of this sounds very complex, well number one it is. But most importantly Larry and his team understand it and they can walk you through these steps. They can talk about maybe what you're already invested in or what would be best for you in the future while looking at your entire portfolio.
So I really want to highly suggest that you give the experts a Haven Financial Group a call, come in, sit down, talk about where you stand at this point and what your goals are for the future. It's six one two five zero four eight four zero zero. You could also go to their website. It's Evenfinancialgroup dot com again, that's Havenfinancialgroup dot com. You'll learn more about some of those educational seminars there, one coming up this fall on annuities.
Be sure you check it out. They are free, but you need to sign up because Larry and his team want to get a sense of how many people may be in attendance. All right, Larry, So now let's talk a little bit more about social security on the other side of the break. Let's just get into the brief history of social security, why it was originally developed, what the idea behind it was originally and how people are using it. Now 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 Colvig is back and ready to help you find your financial safe haven.
Welcome back listeners.
I'm Larry Kolvick, founder and CEO of the Haven Financial Group, and you're listening to the Haven Financial Group Radio Show. Thanks for tuning in, where we discussed crucial retirement ideas topics every single week that can really make the difference
between really surviving retirement and thriving through it. Every week, can we talk about various things good, bad, ugly and indifferent but so important because retirement it gets here sooner than we think it is, at least for most people, and we want to certainly be prepared.
You know something you said earlier that just really sticks out to me. I think there's always one of in a couple, there's always one of you who would really rather not deal with these kinds of issues and would really rather not talk about it. And you were stressing that when you know, as a couple, you should to some of your educational seminars, or you should come to meetings together because you never know who may be dealing
with these issues, possibly alone at some point. Really good, that's good advice to me.
It seems well, I've heard it so many times, you know.
And I think of Len and Diane here that live locally here in the South Metro and I remember meeting them. They came out to a class several years ago, and then they came in and Len was very open and said, Diane didn't like this stuff, but he had all of it and he did a great job too. He still does to some degree. But I said, well, Lenn, you like this stuff, so what could we help you with? He goes, Diane needs to have a relationship with somebody that she trusts and have faith in when I'm not here.
And again he's a three I think, three time cancer survivor still with us. But he goes, I need to know my wife is well taken care of, and that starts with building the relationship. Now, that's not something you want to start in the heat of the emotion when you lose loved one. So again, that was very unselfish of him, And over the years I've heard it many,
many times. And that's why I strongly encourage develop this relationship now so you're prepared for when those types of things have when life happens, because life's calendar doesn't always cooperate with our calendar. We hope it does, but you know as well as I that oftentimes it does not.
Yeah, I certainly do, and I know those are really tough decisions to make, but these are the kinds of things that once you get them taken care of, then you know, maybe you don't have to focus on it so so strongly. But I think everybody has to take a moment and sit down together and sort of do this kind of planning. Let's talk about social security. Why
it exists. Social Security is something that the minute that you go into the working world you become aware of if you weren't prior to that, because you're paying in you get that chuck check stub. And I'm sure your girls are going through this. I'm seeing this with my kids. My youngest in her first job and she's like, where is all that money going? And you know, it's kind of tough when you're younger, but it's been an important thing for a lot of people.
It is, it is until you actually start working get a paycheck, and then you get your first check and I say, Dad, why in the world there's all this money being taken out? Why is that That doesn't seem right? Well, it is what it is. Life happens you paying in. And it's why social security is such a big discussion. Is for years we've paid in. We'd like to see our money paid back to us. So I completely I get it. I completely get it.
Absolutely, So let's talk about social You are you know somebody who says all the time you believe that the system will continue to exist, and that right now it's a big political football more than anything, and certainly there may have to be some changes along the way.
Oh, I agree. I mean it dates way back into history. Social security dates way back. You know, throughout history people have had faced you know, economic insecurities, you know, unemployment, illness, disability, death, old age. It just didn't happen yesterday. I mean back into the ancient Greeks. When I was researching this, you know, they stockpiled olive oiled as a form of economic security. The Romans they utilized anybodies date back to the early Romans.
So this annuities aren't something that was just new and discovered recently to help compensate soldiers back then and their families during their tough times. And the poor laws in England dates back to sixteen oh one, whether there was some sort of systematic deposits or their approach to welfare and all these things. And then into Colonial America, early Americans, you know, they mirrored some of these English practices because people needed help. There was taxation issues, poverty, This stuff
has been going on a very long time. And then into the Civil War where a national pension system emerged for veterans. So back to the Civil War times and again which created a model for future social security program So this whole idea and this whole practice has been going on a very very long time. Now do I personally, in my opinion, think that it's kind of overboard a little bit? Yes, I've said before, I think people have
become too reliant on social security. And let's face it, the largest income stream for retired Americans is social security and a lot of people don't know that. And when we put together social security reports, I and the team, Mitch, jeff Yellisa and everybody else. Over the course of ten twenty thirty years. For many people, social security makes up by far the biggest part of their portfolio, which is
why we want to make good, educated decisions. What I caution folks is do you really want to become too reliant on the government or should we rely more on our private practices, our own way of saving for retirement. To me, that would be the right thing to do and not rely on the government. Now, when I ask the question of my classes, who wants to live on social security only, it's always no, thank you. So when you take those security matters and many people take it
way too early. Now I'm not trying to convince people to take it way too late, but just like we talked about pensions, I always say, would you take your pension early knowing that you're going to have a reduced amount? And it's always a resounding absolutely not. Well, then why isn't the same thought pattern going into social security and when you turn that on, so be careful becoming too
dependent on the government. My opinion is take action yourself, be responsible and do your best for retirement, saving for retirement on your own rather relying on them.
Absolutely well, social security was never set up to be a full on income stream. Right, it was a backup. It was a safety match.
Correct, it was old age.
Yeah, it was called O'SD old age disability insurance. It was for the provide for those that were you or widowers. The definition was not to provide a very comfortable lifetime income for many, many, many years.
It was never designed for that.
However, it's because a lot of people back in the day when Roosevelt signed it in in nineteen thirty five, social Security was designed for really a two year about a two year timeframe. Today it's become ten, twenty or thirty years. So is it any wonder why the Social Security Trust Fund has a shortage which is going to have to be addressed at some point in time. And no, it's no wonder because it was never designed for what it is today.
Well, do you think then we still need this current social Security program? Are there other alternatives out there that you know, the next generation behind us should be turning to.
Well, there's the great debate it should it be government, you know, it should have been backed by the government, or should it be privatized.
There's a great debate there.
My idea is, you know, save on your own delayed gratification, invest and again, and we'll SoC security be here. I think it will be, but you know, don't rely on it. And if it's not here, if you've done a good job on your own, you don't have to worry about it. There has to be some reforms. I think there definitely needs to be some sort of structure because there's always going to be those that, you know, life happened or health happened, you know, something happened where they can't they
can't do it on their own. So I don't want to be so cold to say, oh no, we should just do away with it all together. That's not the case whatsoever. There has to be something in place to take care of people that just can't take care of themselves. There's going to have to be reforms, and I'll tell you the reforms that that are just being discussed. We're
not gonna like any of the reforms. You know, taxing all your social security oh great, means testing means testing well means testing is if you've done a good job on your own, you don't get it ouch. Changing the social security formula. My joke is, I'm sure they would let us know beforehand. I highly doubt it. Or one that's being talked about right now and has been is changing the retirement age. Well, right, guess what they've already done that a couple times. They're talking about raising it
to seventy is what I've read recently. Well, I know France raised it from sixty two to sixty four last summer and there was riding in the streets and I hope that never comes to America. But all of these reforms being discussed, it's going to be very difficult, but something has to happen. Stay tuned to be determined.
Yeah, absolutely all right. So if you'd like to learn more about social security, maybe maybe you've never thought about the idea of taking your social security a little bit later, and you're not sure what the benefits of that might be for you. You can speak to some of the experts here at Haven Financial Group it six one two five zero four eight four zero zero. I want to give you the number again, six one two five zero four
eight four zero zero. Give him a call, tell him you heard us here on the radio you'd like to talk about social security, or you can go to Havenfinancialgroup dot com when we come back. Eight mistakes to avoid when you're transitioning to retirement. These are definitely mistakes that you want to stay away from, So don't go anywhere everybody you'll want to hear these. This is the Haven Financial Group Radio Show.
Don't go too far. We're gathering more important insights and retirement ways Devin the Haven Financial Group Radio Show. We'll be right back. Stick around. You've got questions, We've got answers. Your tune to the Haven Financial Group Radio Show with your host Larry Kolvig and Kim Karragan. Now back to the show.
Good morning again and welcome to the Haven Financial Group Radio Show. I'm Larry Kolvig, founder and CEO of the Haven Financial Group. Visit us online at Havenfinancialgroup dot com. Give us a call six one two five zero four eight four zero zero. We encourage you to check out our classes. Numerous educational classes related to retirement, social security,
and timing medicare made simple investment classes the truth about annuities. Again, education is a big piece to making good, educated decisions. That's much better than making a decision and then regretting it after the fact. So again, thanks for listening.
Kim. Mistakes, Yeah, new WANs wouldn't make mistakes, would they?
Oh gosh, I don't know anybody who makes any mistakes. You know, think about retirement is you don't do it but once. So mistakes certainly can be made, but they can be detrimental because you're only doing it once. This entire morning, we've been talking about filling the gaps of retirement planning. We've talked about social security and annuities and being stable in your decision making. These are the things that you want to avoid so that you don't have gaps.
So let's get started, Larry by talking about planning to work indefinitely. You say that's a mistake.
Well before I get there. You know, we hope many people hope the only retire ones because if you retire more than once, you either missed work a lot and you want to go back, or you're really screwed up and you were forced to go back to work, which is exactly what we don't want. For now, at the end of the day, planning to work and definitely, I don't know if anybody. I don't know a lot of people that really want that, especially if you're forced into it.
But let's face it, health issues, job market changes, getting that pink slip because you're replaced by some younger person. That does that really happen? Well, unfortunately it does. Sometimes people avoid the stock market. Now, listeners that have listened to our show at Han Financial, we're not against the market. We have an investment team of twelve we manage with Charles Schwab in the market. The team does with certify
financial planners and so on and so forth. But what we are is we see things through the lens of retirement, not avoiding the stock market, but having a good balanced approach and have a good understanding and awareness of what you're doing, why you're doing it. You know, you want to get the growth. We want some principal preservation. Yes, stocks, bonds, mutual funds, look at a good recipe for that portfolio.
So not avoiding it all together, but what portion of your portfolio would be the right amount to be directly in the market. That's what a lot of people don't understand. And then we talked about I talked earlier about claiming social security too early at sixty two is the earliest, seventy is the latest. Seventy percent of Americans roughly turn it on at sixty two that in one to two percent wait till seventy. That tells me there's a disconnector
lack of education. And at the end of the day, our job is to never steer anybody to convince them to wait. But a lot of times in our conversations when we get together after they come if they come in after the classes we teach, they come in with this idea that I'm going to turn it on here and this is why. And then in the conversation it comes out very obviously that it does. It makes sense for whatever reason, maybe they're working or whatever reason it
might be. So it's thinking these things through to make to make to avoid some of the pitfalls and mistakes that people make, or we can learn from other people's mistakes. So that's the big part of it.
Let me ask you real quick, Laric, can you tell us what the percentage difference is if you take it at sixty two versus seventy.
Well, it grows by six percent from sixty two to sixty six plus the cost of living adjustment and eight percent and in those late term, late later years from sixty six to seventy. So you can almost say from sixty two to seventy it's gonna double. So really and again we've had some big increases here recently. Again, another mistake, and we see this often, is ignoring long term care needs. Right now, Isabella and Glenn do all of our long term care and insurance stuff. Seventy percent of us came
We're going to need some sort of care. The statistics are staying. And anybody that's listening that has had to deal with a mom or dad or a loved one that's been in a nursing home or needing some care, they understand what I'm saying. And the costs here in the Twin Cities for care ten to fifteen thousand a month.
What is your plan for that? Have you entertained long term care insurance?
Maybe you looked at a Cadillac plan five ten years ago nobody could afford, and the options out there right now are very different. I encourage get the information to see what I was out there because a high percentage of us are going to need some sort of care. I know we don't want to talk about it, but avoiding it doesn't do any good. And you know, then we get into borrowings against some of those your retirement accounts.
They're called retirement accounts for a reason. For when k's taking loans out, taking withdrawals too early, getting penalties, you want to avoid all of that to the best of your ability.
I call that expensive money, expensive money.
Really expensive money, and that can be a downward spiral spiral really quick. And you know we talked about investments. You know, do it yourself is fine, but are you rebalancing the portfolios to make it as effective and efficient as possible? A lot of do yourselfers are not, and it's a critical part. And when we boil it down on UH with returns with a rebalanced, ongoing rebalanced portfolio to a state in portfolio, the increases and they are
very staggeringly different. So again, making sure you're rebalancing and you know, looking at expenses the.
Right way, accurate way.
All of these are mistakes people may make or maybe they just don't address. Maybe they're not mistakes they just haven't addressed, or maybe they haven't had a partner to really help them with these things. And ultimately, at the end of the day, that is our goal, and that's where we help lots of people just with thinking about things that they haven't thought of in retirement, and there's no cost to have these discussions.
Kim absolutely, Yeah, you know, I think you want to streamline things. You don't want it to be complicated. I think if you have a partner in this to readjust your portfolio, there's a lot of effort that has to go into that. Maybe you're tired of those kinds of things and you're ready to turn that over to somebody else, and that's where some of the experts there in your office can certainly step in.
Yeah, there are a lot of mistakes that can happen in the decision making, the things that can change the trajectory of your retirement. And if you want to make sure you avoid or at least attempt to avoid these things, you know, give us a call, come to one of our classes, come on and visit with us. There's no cost to do that, you know, there's no commitment or obligation. It's just as much as you figuring out if we're a good fit as you're a good fit with us.
And at the end of the day, if you're doing everything proper exactly the right way, we have no problem. Hey, great job. You know, let us know if there's anything we can help you with or we're going to make some recommendations and suggestions. All we ask is that you have an open mind, any idea. When people do come in, they're coming in for a reason. They have worries, they have concerns, and a lot of people are not getting
the attention they deserve. Just last week, I had a couple came in and they said, our guy has gotten us to where we've gotten, but we're not confident he can get to us get us to where we need to go. Or I quote another client, wonderful lady here from Burnsville, Sarah is her name, and she goes, you know, I've tracked you for about ten eleven years now, and she goes, Now I came in and I'm glad I came in. I didn't know you did all the stuff related to retirement. I quote her. She goes, you're a
male clinic for retirement. I love it, and can I use that?
Yeah?
Absolutely, I'm like, thank you so much.
That's fantastic, that's great. Well, let's give everybody the number. It's six one two five zero four eight four zero zero. That's six one two five zero four eight four zero zero. You call and like Larry said, you know, it's it's much about you sitting down to see if they, the folks at Haven are the right fit for you, and they're going to determine if you are the right fit for them. There's no cost in that, and you know,
a great conversation. I think we'll teach you a lot about what your needs are or what actually does fit for you. Six one two five zero four eight four zero zero you go to Havenfinancialgroup dot com. Larry we said there were eight mistakes. The last two are miscalculating retirement income and failing to create a backup plan. That backup plan issue, I think is one that people really do need some help doing.
Oh, I agree. You know, you start with the plan first. You've got to get a plan. You know, a failure to plan is a plan to fail. So come up with a plan, whether it's with us or somebody on your own, whatever it is. But then life happens, so that plan doesn't just put it on the shelf and never touch it again. Based upon circumstances and time, that needs to be modified, changed, updated, life happens, inflation, et cetera.
So having that backup plan is so very important. You know we take these topics very seriously, yet Haven Financial Group we still like to have fun with these important topics. We absolutely do so, whether it's these classes and you know, any of our clients that are listening can attest if they had the availability to do so. My wife is the event planner and we have a client appreciation event coming up in September and we'd like to have a
good time. It's that Charlie's on Prior Lake. So not only do we help a lot of people maintain these relationships, but.
We also like to give back in our events.
My wife's a great planner and you also get the privileges and fringe benefits of going to those as well.
That's fantastic. Well, we've had another really informative week. Let's remind everybody one more time. Six one two five zero four A four zero zero. That's how you reach the folks at Haven Financial Group, where you could go to Havenfinancialgroup dot com.
Kim.
Great to be with you listeners, Thanks for listening, look forward to next week and have a blessed week.
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