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Good morning and welcome to the Haven Financial Group Radio Show. Thanks for listening. I am Larry Kolvig and CEO of the Haven Financial Group. Kim Kerrigan my co host. Great to be with you again. We got a lot to talk about retirement, what changes are coming, A lot of politics, and of course great athletics in the Olympics, and a disgusting open ceremony.
My opinion, it was it was hard for me to follow. I mean, I don't mean to be so simplistic, but it was sort of hard for me to follow. So for sure, yeah, absolutely, but boy, we've seen some great athletics. Could not be more proud of the women's gymnastics. They have just been off the charts. And it was really cool to see the women's rugby team do such a great job this last week as well.
It sure was. It sure was a lot of great representation for the United States there in Paris.
You bet, And we've got another full week, so I'm very excited about that. It's take a look at this week's show, how to Protect your finances from Today's hectic world. I mean, Larry, there's no two ways about it. We are living in really interesting times and it is a hectic world.
It's very hectic. I mean, no matter which way you look at it, politics, wars, you know, different geopolitical things going on, taxes, you know, some of the stuff, not the most uplifting things, and it bogs a lot of people down. And I always say, you got to have faith not fear. But there's a lot of undecided things that are going to happen throughout the rest of this year.
That there are, and we want to see how those undecided things may affect someone's retirement plans. Let's take a look at today's show as we break it down. Our first segments, what does a Kamala Harris administration mean for your retirement? Second is what the election could mean for your estate planning depending on who might be in the White House, that could have a real effect on that, and we'll have Larry break that down for you. Your
portfolio strategy is about you, not external factors. And then finally we're going to take a look at how to treat your four roh one ks and iras when you reach withdrawal age. So we've got a great show. Let's get started though with this whole idea of what a Kamala Harris administration might mean for someone's retirement. You know, a couple of weeks ago, we didn't know there was a possibility of a Kamala Harris administration. Now we certainly know that could be a possibility.
Certainly could be a possibility, and a lot of people thought it was coming. Some of the major topics. Of course, you know, we deal a lot with taxes, and the current tax laws that Trump put into effect. They're supposed to sunset the end of twenty twenty five, and you know, the question is what are the proposed changes to the tax code. The individual tax brackets are supposed to revert
back to what they were before. Currently twelve percent on the goes to fifteen percent, up to twenty two to twenty five percent, So they're supposed to go back up. That's why I strongly encourage people are looking at what
they're doing, why they're doing it. We got two years to take advantage of those low brackets, and from a corporate tax perspective, she wants to raise those back up to the thirty five percent, which the tax cuts some Jobs Act reduced those corporate taxes down to twenty one percent, you know, spurring industry. So the question is, you know, how will she follow Biden's path? Many would say she's
even far left of Biden. But taxes are a real big piece of the puzzle that could really change people's outlook on their income and a lot of decisions that could be made because of that absolutely.
Another stance that's a bit different from maybe Donald Trump's healthcare reform and how that could impact your healthcare. Let's talk about that.
Well. My concern here is with the federal budget. I mean, we're already so far in debt, and from what I read, Kamala wants to pretty much offer health care Medicare to anybody that comes into this country. I'm all about taking care of people, but at what expense if I went into a foreign country, would they pay for my medical Can we really do that? I mean, that is that really feasible? She says that's what she wants, and I guess we'll see. But what will come to fruition is
to be determined. They start out with one stance and then eventually and maybe they'll come to the middle. But there's some really concerning things when it comes to healthcare.
What does that look like Medicare if you're in that age gap of Medicare sixty five, there's a lot of changes that are coming no matter who gets in that already have been decided, and we do a lot of Medicare preparation, health care planning, Glenn, at our office, we have all access to all the companies that are accessible to us and really getting the education because you know, we've talked before about how healthcare can be so difficult
to navigate and overwhelming. Let somebody do the work for you. You don't pay anymore to have somebody do the work for you. Just make sure they have a non biased approach and they're listening to what your goals and objectives are. They're not trying to dictate things and try to sell you something that perhaps may not be in your best interest.
Another one of the issues that comes up frequently Larry, if there would be a Harris administration is her position on protecting and expanding social steak security benefits. How might that affect a retiree.
Well, as I mentioned before, social security has been highly politicized for years, and depending on who you listen to, all the Republicans are going to do away with it. Not so, I mean there needs to be some reform which none of us are going to like, because there certainly is a problem with the amount of the financial stability of that. Now many would say that other hands are getting into the cookie jar causing these problems. Not
going to go there, maybe maybe not. The government's pretty good at that, but at the end of the day, I'm confident it'll still be here. You know, we teach a lot of social security and tax classes. Recently they have been very full, even in the middle of the summer because people are concerned with the changes that potentially are going to come. And I just think of the other one that her stance on the border battle. Okay,
illegal immigration. You know, just this last week, I had folks, clients of mind for years from Shakope and they came to this country legally and I asked them, I said, what's your stance on illegal immigration? And they said, we did it legally and that's the way it should be done. And this is from legal immigrants that are now u as citizens. So, you know, the border. For those that say we don't have a problem, I can think of a handful of my clients that have been to the border.
They weep every time they come into my office because they have kids that are at the border working border patrol, and they seriously cry every time because of the reality of what's going on down there. And her stance is very different than Trump's stance.
It just is.
So it's a matter of what stance do you want to take and what do you want to believe? Big decisions to come here in November.
So when you look at her political policies that she's putting out there, her proposals, tell me which ones you think that retirees should consider the most from her platform before making a decision about the way they vote.
I think taxes is the biggest one because some of the brackets she's talking about capital gains tax. I mean, she's literally wants to raise that so significantly, which would you know, change people's investment strategies, their retirement strategies. I read one thing that she wants to tax up to sixty percent of people's income. Well, retirees, many of them are on a fixed income. What would that do to their retirement income? It would damage it severely. So I
think that is the biggest one. And there's so many others, but I think that's the biggest.
Absolutely, And then I guess you'd probably throw it. Follow that up with healthcare, right.
Yep, because healthcare is another major expense. We'll see what happens. You know that healthcare and medicare are a big, big part of I don't know, I can't remember what percentage of the federal budget. It comes back to money and the budget again. How far can the country go into debt before we actually start talking about it, because nobody seems to want to talk about balancing the budget. And you know as well as I that if we operated
our family budget that way, we'd be in bankruptcy. And we don't want the US to go there, all right.
So some ideas are some suggestions. As people prepare to go to the ballot box in November and they're putting together portfolios maybe prior to that, how are you walking your clients through this?
Well, it's it's important and I say this because I've said it for years. Have a partner that can keep you informed of these changes, somebody that you can lean on, that you can go to ask questions in a comfortable atmosphere, that is going to guide you through these times because you know, we've been through times before, maybe not like this, because when you're in the moment, we tend to forget what it was like back in the fifties, seventies, nineties.
But a lot of this we've been through. Some of the stuff we haven't been through, that's for sure. Some of the woe culture that's out there for sure, but have a partner. Lean on them. Medicare all the retirement puzzle pieces you and I talk about on a weekly basis. Don't go it alone. You don't have to go it alone because there are folks like Can Financial Group and us that truly do care. And there's others out there too.
I'm not saying that, but we truly do care on the outcome of your retirement, which they call them the golden ears, and we want them to be as golden as possible.
All right, folks, So if you're looking for a partner in these times that are very hectic and certainly in some ways they're disturbing, then maybe you're looking for the Haven Financial Group. So let's give them one call and let's meet up, sit down, talk through through your portfolio, what you're looking for, maybe your concerns, and see if everybody is a perfect match. It's Haven Financial Group at six one two five zero four eight four zero zero.
That's six one two five zero four eight four zero zero. You can also go to Havenfinancialgroup dot com and there you'll learn more information about some of their upcoming educational seminars. Some of those seminars that can walk you through some of these tax issues that are going on, healthcare, social security. Again the number six one two five zero four eight
four zero zero. Give Haven Financial Group a call. If there would be a Kamala Harris administration, then maybe you'll see some big changes in your plans when it comes to state planning. Let's take a look at that issue. When we come back right here on the Haven Financial Group.
Radios, don't go too far. We're gathering more important insights and retirement ways. 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 Kulvig and Kim Karragan. Now back to the show.
Welcome back to the Haven Financial Group Radio Show. I'm Larry Kolvig, Founder and CEO of the Haven Financial Group. Thanks for listening this morning. Visit us at our website at Havenfinancialgroup dot com, or give us a call ask questions six one two five zero four eight four zero zero. Come on in for a visit. As Kim mentioned in the last segment, come in. It's a visit where we sit down, no costs, no strings attached, take you through,
ask questions and call it a discovery meeting. You get to know us, we get to know you, and from there wherever it goes, perhaps we come up with some strategies implementation. At the end of the day, if it betters your position and gives you more comfort and more confidence in your individual retirement plan, your way ahead, and you have nothing to lose.
We're talking about these hectic times and how the November election could impact your retirement. You know, whether it's Harris or Trump who end up winning the White House in November, there are going to be some changes when it comes to estate planning laws. So let's walk through some of
those because they certainly are larry important to retirees. And this is something that I know the Haven Financial Group really stresses to clients that you need a plan when it comes to taxes, you need a plan when it comes to healthcare, and you need a plan when it comes to your estate. So estate planning, it's a source of anxiety for a whole lot of people all the time, but especially during these sort of tumultuous times. Talk to us why it is a little more stressful right now?
Well, because the tax discussion again the changes that they're being proposed from one side. First of all, I would say Carrie is our estate planning partner. She visits with Haven clients. Eighty five percent, roughly eighty five percent of Americans do not have a competent a state plan, which can be similar are different to many different people. Depends upon what you have, family, et cetera, whether you're charitable
non charitable. So again you can set up a time to come in and visit with Carrie or Anna also is with the firm as well. It's about paying more taxes or less taxes. Right now, the federal estate tax exemption is about thirteen point six to one million each. That's very high. It doesn't really affect many people. But they're proposing that it goes down to about seven million, which President Biden supports and many would say Kamala supports
as well, or a little lower. So when it comes to that estate tax legacy for a lot of our clients is important, Well, how are you going to accomplish that? Give the government more of your tax money, your hard earned money. So consider you know, gift gifting things now, generous contributions to family members, loved ones, maybe you're at a required minimum distribution age and you don't need that money. Consider charitable qualified charitable donations if you will, where there's
tax implications that can better your position. Again, it comes back to talking with somebody that can map out that plan. Because your estate plan goes with your tax plan, goes with your investment plan. It doesn't have to be that complicated. But what I can tell you is there's a right way to do it in the wrong way, and if you do it the wrong way, it'll better the federal government's getting your money and not your kids, loved one or charity getting your money.
I know that you mentioned that President Biden and most likely Vice President Kamala Harris, they support the idea of reverting those exemptions back to seven million. Can you talk about what Donald Trump's proposals are when it comes to a state.
Well, he's the one that put the current one in place right now, which really benefits legacy passing on money is to your loved ones and heirs. What we want to avoid here, and some people may have heard this is it's called the third generation principle, where it's an op that wealth created in one generation. It oftentimes disappears by the time it reaches the grand kits for a
variety of different reasons. And the first generation was the wealth creator, and by the third generation the money's gone, and you know, there's a kind of a curse. And statistics they do back this up, Kim. And the reason this happens is a lack of a state plan, lavish spending and lifestyle inflation, lack of sustainable investments, just out of control spending. I mentioned insufficient of state planning. The first generation did it right, the second generation did it wrong.
We want to avoid this because at the end of the day, you work hard for what you have, small, medium or large. Most people want it to go where you want it to go if you don't spend it. Of course, and every week we visit with folks that say they're going to spend every penny. But I look at them and say, based upon our relationship and conversations, there's no way you're going to spend all that money, And they go, you're right, we're not going to because
they've been discipline their whole life. Spending money doesn't come easy for a lot of folks. Now for some people it comes very easy, and at the end of the day, we sometimes have to draw back the reins to say your retirement's not sustainable if you keep going at this pace. Again, these are friendly conversations, but important conversations that really one should reflect on. So again it comes back to the taxes. We're big into education in all of these areas because education.
Not to say there's a lack of it out there, but to some degree there is. Because the misconception that estate planning is only for rich people, well that couldn't be further from the truth. So how does it affect you? Come on in, let's talk about it. There's no cost to have that conversation, and again it can be extremely helpful to help you navigate through these times where there could be some serious change.
Larry, do you find that people need to come in and update their estate plan on a regular.
Pay They should be looked at. You know, rules and laws have changed, nothing major back several quite a few years ago, when the HIPPA rules came out, the privacy rules, they should have a looked at. Now oftentimes people don't get a looked at because whoever they did it with, they're afraid that they're going to get charged every time and I certainly understand the concern. They're nothing's free. But if you're working with somebody, and again they should be
at least telling you if there has been changes. The question would be do you need a trust? Not everybody does. Can a revocable trust or an irrevocable trust be beneficial for a lot of folks. Oh, it certainly can. And the beauty of how we do it, and how Carrie does it is she'll spend a half hour to an hour simply educating and at the end of the day, at the end of that conversation, it's very obvious on which way people should go or need to go. It's
not about us or her selling anything. It's a matter of them. Now it makes sense, this is what I need to do to protect me, my spouse and my family.
You know, what comes to mind for me is maybe a younger couple. When I say younger, so maybe they're in their forties and they're doing quite well in their lives and they have kids, and so they go in and they have a will put together, and they put together a plan and then maybe their lives change over time, and you know, just initially getting in there to do that it's it's not a discussion that a lot of people want to have. That takes a lot to do.
So the idea of having to go back in and change it or to revisit is difficult for some people.
It is when I completely understand it. You know, we state planning wasn't made to be a senior topic or a senior decision.
Right.
State planning was designed when you got married, if you so choose, if you had children specifically for guardianship, for sure, when you bought a house, when you started accumulating assets, that's what it was. That's what it was designed for. And then throughout your life, throughout your whole life, even to when you pass away. Then the legacy effect or how those assets get transferred on. So again, whether you're young or older, again, see what's necessary, what type of documents.
You know, there's going to be legislative changes they could they could redirect your whole strategy. You know, I think when they change the laws on requirement distributions, which right now are at seventy three. Well, many people, many listeners probably have heard of Ed Slot. He's on television. He's an East coast to CPA. He's speaking on taxes. Great speaker.
I've gotten to know ed. He can spin your head with tax discussions and books that he wrote literally are no longer valid because they took away the stretch multi generational IRA several years ago, and so people look other ways life insurance, retire plans because those legislative changes they change the people's strategy. So if you're listening and your you know so you stand to inherit an estate from your parents or aunts, uncles or whomever, make sure that
they're ducks in a row. That your ducks in a row, stay up to date with these things, and make sure that you are doing things in the most tax efficient way possible. That's my advice, well, my only advice that I can give.
Absolutely well for those of you listening. If you don't have an estate plan and you know that you need one, maybe you do have one, but some legislative changes have taken place and you need it updated and you're looking for a partner in this, let me suggest Haven Financial Group. Larry and his team will sit down with you, walk through what it is that you need, put together a strategy and make sure that it works in all facets
of your retirement, including your estate planning. That number is six one two, five zero four eight four zero zero six one two, five zero four eight four zero zero. That initial visit is free. There are no strings attached. You might have a good cup of coffee and a cookie. I think I'll take that. In fact, yeah, I think you're giving. As it turns out, Larry, and it's the Havenfinancialgroup dot com. You can go to their website more about Haven Financial Group. This has been a great conversation
so far. I'm really enjoying it. I want you to know that I'm coming up next. Your portfolio strategy is about you, not external factors. While we've talked about these external factors and maybe these extraordinary times when it all is said in dawn, putting together, that portfolio is about what you have and what you want out of your retirement. And we're going to talk more about that when we come back right here on 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. Larrycolvig 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 with Kim Kerrigan here at the putting on the show one more time here this weekend. Give us a call at six one two five zero four eight four zero zero. Of course Havenfinancialgroup dot Com as well. Look at all our classes we have coming up, social Security and tax. Some retirement dinners came. I want to point out in October we will be doing that truth about Annuities class that I haven't done in about four years,
completely updated. So if that pertains to you, check out the calendar where we continue to do lots of education because we're true believers that education is the potential for power. Of course, it's what you do with it that really matters.
All right, terrific Again, that's Haanfinancialgroup dot Com. Be sure you check that out. Let's talk a little bit about the fact that portfolio strategy really is individualized. You say this all the time, and the more that I talk to you, the more I understand why. I know that it can be overwhelming when you start to think of
about it on your own. But if you sit down with experts like those that Haven Financial Group, and you start to talk about what it is that you're trying to accomplish, you know, some of the hopes and dreams and goals that you have in your retirement. You find out that the folks there at Haven Financial can taylor make a portfolio strategy for you, not for everybody else, not the one your brother in law has or the one your dad had, but a portfolio strategy for you.
So let's talk Larry about how that all gets started, how you go about that.
Well, yeah, you're right. You know, when people say investment strategy, you know, I'm sure they're thinking, you know, complex investments or metrics or algorithms or who knows what. And I wouldn't blame anybody if that's what they thought. And your head starts spitting, and then it's easier just to not
even talk about it because it's the path of least resistance. Now, as you mentioned, your retirement investment portfolio strategy, retirement strategy, whatever you want to call it, it truly is individual. It's about you. The timeline of risk, the element of time is your time horizon, you know, is it thirty years, fifty years, five years, to retirement. Are you in retirement? Yes, we talk about stocks and bonds and investments, of course we do. Our goal is to simplify things, not that
because people are simple. And if you're listening and you would do it yourself or investor and you do all the research, more power to you. That's wonderful. Now what I would say is do you want to do that throughout the whole course of your retirement. Maybe it's important to plan a seat or look for a partner if you're not here and your spouse needs somebody. Of course,
that comes down to you. Are you growth oriented? Be careful there, especially in retirement, And it's why we encourage people to stress test their portfolios so they're not surprised when the market goes down and they lose a bunch of money. That they're aware and where they're at and they have an understanding. Again, they don't have to be the experts. Are you income oriented? Do you have you know? This became a lot more complex when pensions have gone
kind of by the wayside. Although this week I had a class and almost half the class had pensions, so I don't usually see that. So now you have to build your own for when care build your own retirement, and now it phones it falls on the individual, and if you don't do that, you might find yourself, Oh my goodness, I'm sixty now and I didn't do a very good job, and that's not a good position to be in. So it doesn't have to be complicated, and it truly is individual.
So when a couple will say walks in and sits down across the table and says, our heads are spinning. We tried to do it ourselves and we can't. We don't have a pension. But this is what we have walk me through. What happens next.
Well, our process is, first of all, we get to know you, you get to know us, and we're going to ask lots of questions in all areas of retirement, from family to investments, to portfolios, to state planning, medicare, healthcare, all of the above. And frequently people say, wow, nobody's asked me all of these things about retirement, and they really should because they're all they all should be coordinated together when it comes to the investments and money and
the portfolios. Once we dig down deep and we make some recommendations and suggestion, now we're going to get into Do you have a good recipe to your portfolio? You know, are you utilizing all the various types of investment strategies out there. Do you have anybody rebalancing the portfolio? You know when the markets are really volatile? Do you have an efficient portfolio? What does that mean? Well, the correct diversification, the right asset classes, the subasset classes. Do you have
alternative investments in there? And it really boils down to an efficient portfolio that taps into small companies, big companies, middle sized, some international, and really identify what people's risk tolerance really what makes them not sleep at night? When do they panic? Because panic and fear and anxiety when it comes to investments in money is just not a bad recipe. And if that's you, then it sounds like you're not, you know, in the right position, and you
need to change that asap. Because what happens is the market goes down, or put it this way, the market goes up and we're happy and smiley. It slightly goes down and well, I can't sell anything now, and then it goes down further. Well, finance one oh one, bilos sell high and now it's down and people then panic and sell at the wrong time and that could be
a permanent loss. Be careful also with the you know, the coin phrases that a lot of financial people use, and you know, we're in the industry, but we're dealing with those that are close to retirement or in retirement and just a couple hang in there and be long term.
Came before I started having financier group. I was with a different company and it was between it was about two thousand and eight when the market collapsed, and I remember having this conversation with a farm couple in New Alm, Minnesota, and eighty five year old lost a big chunk of his money, and I said, when did your financial person ever give you a call and say you know, enough's enough? He goes, well, I'd call and he said, hang in
there long term. Well, this gentleman was eighty five years old. He already was long term, right, And again he never recouped those losses because of the timeline. It's the timing of when those losses happen, do you make good or bad decisions? And do you have enough time to get the money back? You know, these are all those conversations that we're going to have.
Larry when things like that do happen? How did the Haven Financial Group team deal with him? Are these personal phone calls that are being made what.
Happens well and developing an effect a plan that's talked through. People have the confidence to know or they should. Now there's always somebody that you know, almost every big downturn, somebody's gonna call and we have to remind them. Remember we actually we looked at the sustainability of your plan from the very beginning we can. We've continued to monitor make up dates as you get older, just reminding them
of what we did, why we did it. And because of that, we have very few that, oh, my goodness, that pushed the panting button right, but that that's done because a lot of people aren't getting the time spent with them that they should for what especially for what they're paying, and that's not good. You know, we want our clients to be able to weather the storm, because the storm is gonna come at some time. It's just a it's not a matter of if, it's a matter
of when. And it's why we're going to talk about, do you have a good bucket of I don't like the word bucket, but a good bucket of liquid money that you can fall back on if the markets down, and we'll talk through some benchmarks that we think are appropriate for retirees. Do you have all your money in the wrist bucket. If so, that's probably not good for retirement, or do you have some that you will have some principal protection. So again it's individual, it's one on one.
I can tell you that, you know, our median age sometimes is roughly about sixty five, but we're not limited to that. There's some common denominators as far as people's comfort level based upon what they have. But again it's just priming them to know that when things are bad, they don't have to worry. They might worry a little bit, but they know they have us to fall back on. To have that discussion, and we say, I don't care if it's monthly, quarterly, four times a year, or six
times a year. You're paying us to do something, and if we're not doing what we're supposed to do, then you have right, every right to go somewhere else.
I'm going to assume that you wouldn't have of that eighty five year old farmer in investments that he needs to hold tight and stay in it for the long haul.
You are absolutely correct. Of course, you know I come from a farming background. Mom and dad still crop farm in Candyheim, Minnesota. But you are exactly correct. And another one I remember in seven to nine is had a couple from Owatana and they had most of their money tied up in alternative investments reats, real estate investment trusts, alternative investment and ill liquid investment. Their money was tied up on it. The real estate market went in the
toilet and they couldn't access their money. Now, how is that the right position to be? And it wasn't, but that they were stuck again. You want to be at the right place at the right time, whatever time of life that is.
Well. I think this all circles back to the whole theme that we've been talking about this segment, which is individual strategies for people who are putting together their folios. You know, it's about you. It's not about what it seems to be trending. It's not about, uh, you know, what your brother in law did or your dad did in his retirement. It's about you, where you are in your life and your risk tolerance. Haven Financial Group is the name, it's six one two five zero four eight
four zero zero. Again that's six one two five zero four eight four zero zero. Give them a call today. I know you'll be glad you did. You can also check out some of those educational seminars at Havenfinancialgroup dot com. When we come back, let's talk a little bit more about four one ks and iras and withdraw up. When you reach that withdrawal age and how you need to handle that. This is the Haven Financial Group Radio Show.
Don't go too far. We're gathering more important insights and retirement pays. The Haven Financial Group Radio Show will be right back. Stick around, got questions, We've got answers. Your tune to the Haven Financial Group Radio Show with your host Larry Kulvig and Kim Karragan. Now back to the show.
Welcome back, listeners. You're listening to the Haven Financial Group Radio Show. I'm Larry Kalvig, founder and CEO of the Haven Financial Group, where weekly we talk about all retirement discussions, topics, conversations, what the economy is doing, investments, all things pertinent to your retirement. Kim, I raising four to one case relevant especially in retirement.
Absolutely, let's talk about you know when you're younger, you may be looking into when you can draw off of your four oh one k's your IRA. But let's talk about what those official dates are. Let's start this conversation there shall we.
Yeah, I'll preface it by saying, if you are younger, let's start that four O one k right away, don't wait, don't delay. Okay, you say you can't afford it, but start somewhere, to get somewhere, even if it's a little bit, and where you're working is matching. You don't want to throw away money. That's free money, Okay, if there ever was such a thing. So again, first of all, make
sure you started early. The power of compounding is powerful. Now, there are some ages, some crossroads that you will because when you put these moneies in the four to one K four three b TSP, they're all pre tax type of accounts, employer sponsored plans. It's not made to be accessible. Now those most of those you can take loans against. Just FYI not recommend it, because this money is supposed
to be designated for retirement. Fifty nine and a half is a big, big year because the federal government allows in service fifty nine and a half rollovers what is that. Well, they in layman's terms, it's Hey, by the way, you're getting closer to retirement, you may want to look at all investment options because, let's face it, more those four to one K plans today don't have nearly as many
options as they did years ago. You're limited in the options. Well, at fifty nine and a half, you can go explore all the options. You know, I would say we do quite a few four to one K rollovers on a weekly basis, not because people have to. However, you know, we just had somebody in from Rosemount that works at three M for forty one years and Gene says, I
don't want the risk of the market. She rolled the good chunk of hers into something that was a lot safer because she didn't need to take a bunch of risks. So number one, if you're that age and you're still working, you can do those without any tax implications, without affecting anything that you're contributing or the matches. It can be a portion of what that four to one K is. So again, look at those options. Fifty nine and a half is a big one. Fifty five the rule of
fifty five. We don't see this very much. There are ways to access it without penalty. Again, we don't want to tap into it too early. So for nine and a half is the big one.
Yeah, and you know, I think you mentioned it off the top, but you can certainly borrow that money. But that's expensive money.
It is expensive money, it really is, and you don't want to tap it any earlier. It should be a last resort. I'll give you another reason why folks might want to do four o one K rollovers. I had a couple from Lakefield. They both are IT consultants. They've popped around to various companies, and they had six different four one ks orphan for a one case no longer contribute, no longer there, and I don't care. That's confusing. That's
too many statements, it's too much stuff. Well, they consolidated all those into one I RA each and still maintain good diversification. Again, we do again, if you have those orphan four one k's out there, simplify things. You don't want things complicated, especially for retirement. Consolidate and simplification goes certainly a long way. And once you get to age fifty, now you can actually contribute more. It's called the catch up contributions, you can contribute up to an additional seventy
five hundred for your own IRA contribution. Actually n ROTH IRA contributions. Take advantage of that. Don't miss out on that opportunity. There could be some rule changes with this. The Secure two point Act made some changes to four
to one K contributions and all point one out. Starting in twenty twenty six, workers earning over one hundred and forty five thousand annually will no longer be able to deposit catch up contributions into a traditional four to one K. That could be not very advantageous to retirees, So make sure that you keep an eye on the various things that could be changed. In higher earning workers will reduce their tax savings and it could affect again their retirement
what they've saved. And then always look at the tax effects of any any withdrawals or any rollovers or any contributions, and you know, sometimes it's more advantageous to take advantage of that ROTH. So again, have a partner that can at least give you the information to make educated decisions.
Larry, this may be talking to a very small percentage of the audience, but if you're in a tax situation, you can actually give your iras to certain charities. Correct, and that's a tax free deal.
Right, good point, Kim Qualified charitable distribution qcds. You know, I think of Barbara from Egan. I think she gives to about a dozen different ones annually. She's very charitable to begin with. These aren't very important to her, and the moneys go directly to these charities, and it's advantageous for her and it's also advantageous for the charities. So
you can also do this with non IRA money. I'll just point this out with donor advice funds, donor advice funds with non qualified money where it can really play into your tax planning significantly. I don't want to get into too many details, but if you are a listener that's very charitable, look at these various options that could be very tax beneficial to you and to the recipient.
Absolutely, So, just sort of looking at this whole segment and sort of wrapping it up in a big ball. But fifty nine and a half, this is when you can begin to take dollars out penalty free. If you decide you're not going to do so, or you need to roll it. Walk me through those steps again.
If you will, Yeah, rollovers right away, people think, oh, no taxes, no in service fifty nine and a half rollovers, or after you retire, you're also going to want to roll those into an iras for a variety of reasons that as well those there's no tax implications. It goes into a traditional ira from the four oh one k moneies typically get checks, usually get cut to the institution
for your benefit, and then accounts have been opened. We open accounts iras and those money's deposited and then invest it accordingly. So again there's nothing Sometimes people worry when we talk about money. I get it, but there are no tax ramifications. There's nothing to be afraid of. But always think through these the tax ramifications when you're making the distributions. So in retirement, eventually people need to tap
into these iras, and we do income planning well. We want to make sure we're tax efficient with how we take these monies out, and we do that considering we send millions of dollars out the first and fifteenth for retirees that need retirement income. So all of these things are intertwined and they should be coordinated. They don't have to be under the same roof. But the truly, the best compliment I've said before is Wow, it's nice to be able to come here, to know that all of
these are available and that you guys talk with each other. Certainly, we're very obviously we're bound by all the privacy rules, but we work together to make sure we're doing things the retirement way.
Absolutely, one stop shopping, I call that. I always love that, that's for certain. As we wrap things up here, I've heard a consistent thing throughout this entire show, and that's tax ramifications, whether it has to do with the possible next administration or how you are planning your estate, or for that matter, how you're planning to withdraw moneies out of your four to one k iras during the course
of your retirement. So, Larry, as we as we wrap things up, your observation of all of this and what you think is the most important part.
Well, I think a lot of folks are not getting the attention they deserve for what they're paying. And by the way, you should know what you're paying. Nothing's free, but we're in a competitive industry. You don't have to pay more to get more to have better success. So get the attention, walk through a plan. When reaching retirement age, it's not the end. It's like reaching the mountaintop and now you've got to come down and that requires distribution.
It requires talking through the tax implications. You know, what's the timeline behind it? Go go years slow goo years, no go years. You know, are you planning and mapping out your expenses? We do Monte Carlo projections, you know, thirty thirty five years to see the sustainability of your portfolio. And you know, at the end of the day, we're here to give advice, to give service, to help people. But we're in the people business, you know what. We want to get to know you and we are genuine.
I can say that because you know we do care and you're not just a number, You're not just a name. We have client events and any listeners that are you know, we have client events that they get to know each other. If you come in and you just don't know you know what, I will have you out to just kick the tires to see if you know, if we really say who we say we are, and at the end of the day, if you have that partnership in retirement or that relationship, you are going to develop the confidence
that you want and you should have a need in retirement. Again, Haven Financial Group, you know it is that we came up with the name because it is we want to be a safe haven for those especially in retirement.
Six one two five zero four eight four zero zero. That is how you reach the team at Haven Financial Group six ' one two five zero four eighty four hundred or go to Havenfinancialgroup dot com. It's been another great show, Larry. I enjoyed it very much.
Thanks so much, Kim. Look forward to next week.
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