Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
You 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
(00:23):
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
(00:43):
open at six point two, five oh four eighty four hundred.
Now get your financial questions ready because the Haven Financial
Group Radio Show starts now.
Speaker 2 (00:54):
Good morning, and once again welcome to the Haven Financial
Group Radio Show. I'm Larry Kolvig, founder and c of
the Haven Financial Group. Lance Lurson, our CPA on staff
at Haven, is with us today.
Speaker 3 (01:05):
Kim.
Speaker 4 (01:05):
We're going to talk a lot about taxes. Yep. Brase
yourself for a tax discussion on this show.
Speaker 5 (01:11):
Kim, Well, nobody really likes to talk about taxes, Larry,
except Lance.
Speaker 3 (01:18):
So good.
Speaker 5 (01:19):
It's a good thing we've got Lance with us today
and it's an important topic, that is for certain. And
here we are in the fourth quarter of twenty twenty five. Wow,
where did twenty twenty five go? That's hard to believe.
So you know, it is that time of year where
we all start to think about what we need to
do towards the end of the year when it comes
to taxes. Let's take a look at what we're going
to cover in today's show. First off, Flant's great to
(01:41):
have you with us. Like always, we are going to
talk about retirement tax strategies. We'll start with taxation of
your Social Security which is such an important topic to
everyone who's listening to us who is in those retirement
years understanding tax treatment of four to oh one case
as well, Iras, we're going to talk about how is
(02:02):
your home sale tax? And finally we'll wrap up today
with techt strategies that come with opportunities and of course
also come with risks. So a great show today, Larry.
I'm looking forward to it.
Speaker 2 (02:16):
Yeah, it is a discussion that again, nobody wants to
have a discussion on taxes, but we have said many
times we are very much forward thinking tax planners at
Haven Financial Group because we're dealing with retirement planning and
those that are in retirement and for many folks, taxes
can be affected more than any other time in their life.
(02:36):
So it's important to address it to minimize taxes where
we can. And we're going to have a lot of
discussion here in these four segments.
Speaker 5 (02:43):
Lance, am I right when I'm saying here, we come
into the fourth quarter, and this is a really important
tax time.
Speaker 3 (02:50):
Yes, Kam. So fourth quarter is typically where we do
a lot of the planning and year end moves. We
have three quarters in the book, so we know where
we're sitting at. It's pretty easy to project out this
last quarter to know where we're going to be at
at the end of the year and see if there's
any opportunities that we can do any type of money moves,
(03:13):
whether it's doing roth conversions, if we need to pay
a little bit more in so we don't hit those
underpayment penalties. This is the time that we start trying
to figure all those questions out before we.
Speaker 5 (03:25):
Get started talking about the actual topics. Larry, I'm sure
there's some people who are listening right now, going, well,
I don't really need to listen to this show because
I have a tax guy and I'll be dropping my
stuff off on the fifteenth of April and I'll see
him on the twenty third with my return or whatever
it is.
Speaker 3 (03:43):
You know.
Speaker 5 (03:45):
You don't see it that way, and I know you
said your forward thinkers, but will you just elaborate on
that just a little bit more.
Speaker 2 (03:52):
Yes, because what we hear often it's just the way
that things are these days is well, we don't even
talk to or see our tax prepare now. Tax preparer
and tax planning are very different. So it's become a
drop off, pickup, get the taxes prepared here, I'll cut
you a check, and there's no tax discussions whatsoever, and
that may lead to gripes like, oh my goodness, every
(04:15):
year I owe money, I just don't know why. And
because there's no discussion, there's no nothing ever gets fixed.
And so by discussing these things, as Lance will mention
throughout the course of the year, and you adhere to
the tax plan, well, tax preparation is easy, there's no surprises,
and believe it or not, you can actually lead Lance's
(04:36):
office with a smile on your face because bingo, it's
exactly what you thought was going to happen.
Speaker 5 (04:42):
Terrific.
Speaker 4 (04:43):
All right.
Speaker 5 (04:43):
So having said that, let's take a look at some
of the strategies that you might need to think about.
Maybe you've never thought about, maybe your tax preparer has
never thought about it. That may save you some money
or make your life a lot better. Let's start with
this idea of taxation and social security, Lance. I think
a lot of people think that social Security just comes
(05:04):
and they deposit that check and Uncle Sam doesn't get
any part of that.
Speaker 3 (05:08):
Well, Kim, for the most part, there's a lot of
people out there that that is actually true, and that
is because they are just living on their Social Security
and that's all they have. And so in cases like that,
it actually it is true that they just get their
social Security check put in the bank and Uncle Sam
doesn't get anything out of that. But more and more,
(05:29):
what we're seeing is that people have saved outside of
social Security so that they have their four one K plans,
that they have other income streams that are coming in
whether it may be from a rental property or a
family farm, or something else that's going on, and all
this other income that's going to come into their household,
(05:51):
it's going to affect how their social Security is taxed.
One of the things that for social Security that people
don't know about is that that up to eighty five
percent of your benefit is going to be taxable based
upon how much other income you have. And so when
you don't have a lot of other income, not much
(06:13):
of that social Security is taxed. But when you do
have a lot of other income, whether it is from
that four toh one k or an ira doing a
Roth conversion, then we have to deal with how much
that Social Security is going to be taxed.
Speaker 5 (06:26):
Okay, so let's talk about that income threshold.
Speaker 3 (06:30):
So there is a calculation that we do, and so
the way that social security works at is we either
take eighty five percent of your benefit or this calculation
where we take half of the benefit plus all your
other income to get a number we call provisional income.
Then we use that number and we put it on
(06:50):
provisional income brackets there which are different than the tax brackets.
So for married filing jointly, those brackets are at thirty
two thousand and forty four thousand up to the thirty
two thousand. All that is at zero between thirty two
and forty four is fifty percent, and anything that's above
that forty four thousand is eighty five percent. And then
(07:13):
we sum up all those numbers there to figure out
how much is that number for provisional income of taxable
and compare that to that eighty five percent threshold of
your gross benefits, and we take the lesser of Okay.
Speaker 5 (07:27):
What if you're drawing Social Security from a spouse that
you've lost, or you know, if it's you're a survivor,
or you know, does that tax the same way it is?
Speaker 3 (07:41):
Okay, So we have people who will get Social Security
in a variety of different ways. Whether you're collected on
your own benefit for your own retirement, you can be
collecting off of a x spouse, you can claim it
off of deceased spouse. Children actually can receive it when
they're miners from their parents and it is all going
(08:05):
to be taxed the same way. We'll pick on the
kids because it's really easy, and most of them don't
even have a job because they're miners. So their calculation.
What they look at is how much other taxble income
they have. Well, it's zero, and so because of that,
when you look at their taxable social security, it's going
to be very very minimal.
Speaker 5 (08:24):
Okay, all right, the way that you're filing your taxes,
So if you're single and you're drawing social Security, does
that make any difference?
Speaker 3 (08:34):
It does as well. So earlier I said that for
the Mary Finding jointly, the provisional income brackets were at
thirty two and forty four. For singles, it's actually a
little bit lower. The first threshold is at twenty five
and that second threshold is at thirty four. So if
you have a married couple, they typically will be bringing
(08:55):
in about seventy eighty thousand dollars on average for cash
coming in to pay for all their bills. Well, if
most had social Security, then most then that's not going
to be that taxable. Whereas if you have a single
person in order to pay for the same things, maybe
maybe they don't need eighty thousand, but they definitely need
probably about sixty. Well, they don't have quite the same
(09:17):
amount of Social Security comes in, so they have to
have more outside sources, which then is going to make
their social Security more taxable than they would for their
married counterparts.
Speaker 5 (09:28):
Are there ways to minimize these taxes though?
Speaker 3 (09:31):
The strategies right there are strategies. The biggest one is
is we want to live in a state that actually
doesn't tax social Security. Minnesota took them some great strides
a couple of years ago, where beforehand they just had
a very small subtraction on the Minnesota return that if
(09:52):
it was taxable on the Fed side, Minnesota said we're
taxing it as well, minus maybe about five thousand bucks. Well,
then Minnesota a couple of years ago changed and it says, hey,
you know what, for your single people, if your adjusted
gross income was under seventy eight thousand dollars, no matter
how much taxable social Security that you had, just take
(10:14):
it all away. And so Minnesota gain made great strides
to help reduce the tax ability of the Social Security
at the state level. Unfortunately, for the Feds, it is
what it is right there. They what we talked about
right now. The buzzwords out there is with that big
beautiful bill, Oh, the politicians are now made our social
(10:37):
Security not taxable. Well, unfortunately that's not quite true. What
they did was actually gave us an extra deduction to
help relieve some of the tax ability of the Social
Security but the same calculations that we have done for
the last many years, it's still the same thing. So
if it was if you had the same situation that
(10:58):
you did this year you did last year, you can
bet that you're don't have the same amount of taxable
Social Security. It's just now you're going to have an
extra deduction which is supposed to be used against that
upsetting it.
Speaker 2 (11:11):
So I think a good takeaway from this segment is
if you have questions on taxation of social Security, which
is the real deal, or maybe you don't know when
to take social Security or does it make sense, It's
precisely why we teach a social Security and tax class
several every month in various areas of the libraries community centers.
(11:33):
You can go to our Havenfinancialgroup dot com and see
all these classes. We're big into the education and social
security is one decision that shouldn't be taken lightly. It's
the biggest income stream for retired Americans, and a lot
of times people just turn it on. At sixty two,
almost seventy percent of Americans actually and one to two
way till age seventy, What is the right age for you?
(11:56):
Come on in and visit with us, or simply give
us a call and we can have that conversation.
Speaker 4 (12:00):
I think it'd be very beneficial.
Speaker 5 (12:02):
Absolutely. Six one, two, five zero for eighty four hundred
is the number. That's how you set up a meeting
with the folks that Haven Financial Group. Sit down to
talk to them about your social security, whether it's about
the taxation of your social security or as Larry just mentioned,
what would be most beneficial for you when it comes
to drawing your social security. You can also sit down
and talk to them about a variety of retirement issues.
(12:25):
We're going to continue, however, today the conversation about taxes.
When we come back, we're going to talk about understanding
tax treatment a four oh one KSE and the iras
that you own. That's coming up next right here on
the Haven Financial Group Radio Show.
Speaker 3 (12:40):
Don't go too far.
Speaker 1 (12:41):
We're gathering more important insights and retirement ways. 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, no the show.
Speaker 4 (13:01):
Welcome back listeners.
Speaker 2 (13:03):
My name is Larry Kalbig, founder and CEO of the
Haven Financier Group, and you're listening to the Haven Financier
Group Radio show where every week we talk about retirement,
all the retirement topics that are so very important. I
call them the retirement puzzle pieces. Do you have all
the pieces? Is your puzzle missing pieces? And are these
pieces being coordinated in a way that you're maximizing the opportunities,
(13:26):
minimizing taxes and a variety of other things that sometimes
definitely go unnoticed, and it's why we're having conversations about
them so you can get ahead of the game a
little bit before you get there.
Speaker 5 (13:39):
Lance Larson, a CPA at Haven Financial Group, is our
guest today and we're talking about taxes. We just talked
a bit about Social Security and taxation associated with that,
and obviously Larry mentioned as we left the last segment
that about seventy percent of Americans rely on Social Security
(14:01):
as the main income when they're in retirement. But another,
of course source of income for retirees are there four
one ks and their iras. So let's talk about Lance,
how those are treated when it comes to the IRS.
Speaker 3 (14:18):
Yeah, kam. So first thing to understand with four one
k's iras, what these things are is that they are
rules that allow employers or the individual to set up
a retirement account. So four one K is set up
specifically for like corporates for corporations there then you can
have four h three b's, four fifty seven b's all
(14:42):
these things. What they are are just code sections that
allow us to contribute money into a retirement account, and
specifically with its retirement account. Is that these rules allow
us to take a deduction up front for all the
contributions we make into these plans. So when you look
at the amount of money that's in your four to
(15:03):
one K in the four to three B in the IRA,
all these traditional ones, they are deferred tax deferred accounts,
so when we finally take the money out, that is
when we have to pay the taxes on them. Recently,
they have been making a push more for a WROTH
(15:24):
account under the same code section. So you can either
have the traditional where we get the deduction for it upfront,
or you can do it as a roth where we
don't get the deduction for it, but then we get
all the growth tax free. Now there's caveats on each
side of Hey, you got to do this, you have
to wait for this period of time, So there's rules
(15:45):
that are associated with them. But that's the biggest question
I've been hearing recently is what's the difference between ROTH
and four to one k ROTH versus traditional IRA. What's
all these differences there. That's kind of where we sit at.
Speaker 5 (16:01):
Sure, it seems that this is where you really need
a partner making some tax decisions. How to draw this
money off of these accounts and not be hit with
a gigantic bill. So maybe you can walk us through
how you advise some of your clients to benefit from
their money but not owe Uncle Sam such big chunks
(16:24):
at one time.
Speaker 3 (16:26):
So one of the biggest things that we look at, Kim,
is how much money do we need to have and
then where do we pull things from. We've had come
across lots of clients that come in there and just
that says, hey, I need to pull out one hundred
thousand dollars and they just do it. They don't. They
just take it out of their IRA and they're just like, hey,
(16:47):
I just I'll jump out to pay taxes. Well, depending
on how much income that you're bringing in, you can
jump tax brackets. There's a big jump going from a
twelve percent bracket to a twenty two percent bracket. There's
another huge jump going from a twenty four percent bracket
to the thirty two percent bracket. So do we really
(17:08):
need to take that much money out right now? Is it?
Could we possibly delay that, especially now in fourth quarter?
Could you wait another three months until January to pull
out more money? We get a fresh new start as
of January first. So these are the questions that we
kind of look at. Is the need versus how much
taxes are going to cost you.
Speaker 5 (17:30):
Then there's always the issue of required minimum distribution, which
hits at a certain age, and then you do have
to start drawing this money taxes or not correct.
Speaker 3 (17:41):
So, again, as we talked about with these traditional accounts,
this is all tax deferred money. And after a while,
Uncle Sam has been very patient with us, waiting for
us to give them their tax revenue on this income
that we've earned. And so now they say, oh, you
have hit a certain age, which right now is seventy three.
(18:03):
I will go up to seventy five here in twenty
thirty three, so there's a little bit of time until that,
but you hit this required minimum distribution age, and then
there's a calculation that has to be done every year
based upon how old you are, the actual table of
when the irs thinks that you're going to leave this world,
(18:24):
and then how much money you have in those accounts.
Speaker 5 (18:27):
And that's not something that you can avoid.
Speaker 3 (18:30):
Nope. The only way you will avoid that, which isn't
really avoiding it, is by giving Uncle Sam at least
twenty five percent through a penalty because you did not
take that, which is an absolutely horrible thing to do.
So we'd rather you take that required minimum distribution even
if you don't need it. There are other things that
(18:51):
we can do with that, such as qualified charitable distributions.
You can take that. I know Larry likes to tell
the story about one client who said, hey, I don't
need to have this money, and Larry said, well, why
don't you take your wife on a trip. And then
two or three years later she came back said, Larry,
(19:12):
you know what, he finally took me on that trip.
It worked.
Speaker 2 (19:15):
I just planted to seed Kim and it worked three
years later. So hey, sometimes we can assist in a
variety of different ways. But I want to point out
being we're talking on four to one k's rmds, et cetera.
For we do a lot of four to one k rollovers.
So if you have a lot of orphan four one k's,
I had somebody in this week that had literally the
five to four to oh one k's.
Speaker 4 (19:35):
Was a consultant jumped around, or maybe you're just retired.
Speaker 2 (19:39):
There's a variety of reasons why you want to roll
that into an IRA. There's different rules with iras than
employer plans. You have better investment options, more options, a
whole bunch of reasons on rollovers. We were talking about
income distribution taxes.
Speaker 4 (19:57):
They all go together.
Speaker 2 (19:58):
And when people retire, you just entered a different season
of life. You were putting it away in the four
to one k. Now you have to draw money. You
have to create your own paycheck. Where is it going
to be drawn from? You want to look at all
your options and you want to be as tax efficient
as possible.
Speaker 4 (20:16):
We're entering the fourth quarter this week.
Speaker 2 (20:19):
This is a timeline where this quarter we look at
We have a conversation with everybody about is a ROTH
conversion a viable does it make sense. For some it doesn't,
but I'd rather have it not makes sense. Then it
makes sense, and then they not do anything about it.
And then maybe it draw from a non qualified brokerage
(20:39):
account with zero capital gains tax. Maybe that's the place
to draw from. And also the timelines with rmds, it's
rm ds have to be the end of the year.
We don't wait till the end of the year. Our
deadline is December first. There's no guarantee that things get processed.
If you wait till the last second, maybe you would.
Speaker 4 (20:58):
Inherit it in IRA. Lost somebody recently.
Speaker 2 (21:01):
Just this week, I was with a sister and a
brother that law of one of my clients passed away
and I needed to help them with the paperwork to
inherit the IRA that mom left for them. Those also
have to have r and ds. So you don't want
to miss these timelines. You don't want to miss these opportunities.
You don't want to accrew any penalties for missing these
(21:22):
timelines as well. That's where a partner you can lean on.
That way, it makes all and it makes all the
sense in the world.
Speaker 5 (21:29):
Sure, absolutely, yeah, you don't want to miss those because
as Lance just told us that twenty five percent penalty
is not anything that you want to play and pay,
and that's up and above the taxes that you're going
to have to pay once you draw that money out.
Let me ask you, guys, you know we're seeing constant
changes in the tax laws iras four oh one k's roths.
(21:52):
Will these be affected in the near future by any
of the changes that might be on the table right.
Speaker 3 (21:56):
Now, not really the code sections that are sut for
these retirements. I'm not a political analyst by any stretch
of the imagination, but in my viewpoint, it just seems
like it would be political suicide for any of these
politicians to go through and try to monkey around with
all these tax laws to say, oh, you can no
(22:17):
longer do a four one K. In fact, it's actually
quite the opposite of there. We saw in the big
beautiful builders things that they're calling the Trump accounts, where
for children being born right now, they're going to open
up an account and the government's going to give them
like a thousand or two thousand bucks of money to
(22:38):
start a retirement account for these new kids. So as
far as changing the code sections for them, no, there's
nothing that should happen that way. If anything that would
change in the future is just going to be the
tax rates. That's where right now we have made the
(22:59):
ten to twelve of twenty two percent that were used
to for the past eight years semi permanent. But again,
as soon as we get a new administration, we get
the House and send it a different control. In that one,
they can change those tax rates and probably bring them
back up to what they historically have been at that
ten fifteen to twenty five rates.
Speaker 5 (23:21):
As Larson is our guest, he's a CPA with Haven
Financial Group. We're talking about taxes today and how they
relate to retirement. If you have questions about taxes, If
you have questions about retirement, these are the folks you
want to speak to. All you have to do is
pick up the phone. Call six' one two five zero
four eight four zero, zero tell them you heard us
(23:42):
here on the. Radio you'd like to come. In As
larry has said many many times and has repeated already this,
morning you, know the fourth quarter is a great time
to sit down and do some tax planning for the next.
Year you don't want to just wait and then wish
that you had made Changes this is the time to
start planning and. Talking six one two five zero four
(24:05):
eight four zero Zero coming up, next how is your home? Sale?
Taxt this is The Haven Financial Group Radio.
Speaker 1 (24:13):
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
(24:33):
to help you find your financial safe.
Speaker 2 (24:35):
Haven welcome back to The Haven Financial Group Radio. Show
I'm Larry, kulviig founder AND ceo of The Haven Financial,
group on With Lance lurs at OUR cpa on staff
celebrating our ten year. ANNIVERSARY i want to point that,
out our ten year, anniversary and you know we're big into.
Education if you're interested in any retirement, classes go To
havenfinancialgroup dot com see all the classes we're teaching six
(24:59):
or call us at six, one, two, five four eighty four.
Hundred we'll tell you those. Classes and while we do
them In Dakota County, tech different, colleges community, centers and we.
Speaker 4 (25:10):
Love Our Education CENTER.
Speaker 2 (25:11):
Cam i'm telling you they have the fraud classes that
we had with the local police.
Speaker 4 (25:15):
Department what a.
Speaker 2 (25:16):
Hit and now we're Having medicare, classes big changes In,
medicare and again We're isabella And glenn are very busy
learning all about the changes in that. Area and, UH
i Think Lance larson actually is actually going to teach
the big beautiful bill updates and their education.
Speaker 4 (25:36):
Center so, again really begin too.
Speaker 2 (25:38):
Education you can never stop learning because just when you stop,
learning you get left in the.
Speaker 5 (25:42):
Dust that is for. Certain congratulations on the ten years
and thank, YOU i hope twenty five forty more for that's.
True and everybody there at Hayteen Financial, group we're talking
about taxes this. Morning we want to talk about how
your home is taxed if you sell. IT a lot
of retirees decide it's time to. Downsize they want to
(26:03):
get out of that big house that maybe they raised
a family and maybe they want to move to another
state and it's time to get out of. It and
there certainly can be some repercussions in times when it
is more advantageous to sell than, others especially when we're
talking about. Taxes so let's talk here With. Lance if
you've got a retiree and they come in and they Say,
(26:25):
listen we've been living in this big house and it's
time to get out of this darn, thing and we're
thinking about. Selling we'd like to see some proceeds from
it because obviously we've owned it for all these years
and this was one of our biggest. Investments what do
you warn them? About what do you talk to them?
About what are the steps they need to start to.
Speaker 3 (26:44):
Take, So, kim the first thing we need to understand
is the house that we're. Selling what house is? It
people come here and they say most of the time
it's their primary residence that they've been but there are
times people come in and, say, hey we want to
sell this rental property that we've, had or we're going
to sell our primary residence and then go live in
our rental. Property lots of different ways of going. On
(27:08):
so we just need to understand what we're. Selling but
for most people that we're looking to downsize our, house
it has been our primary residence for, many many. Years
and SO i kind of smile at this when people
come to ask me because they have this big fear
that they're going to owe a lot of taxes on
(27:29):
selling their primary residence because they know about these capital
gains in capital, gains to put it very, simply is
the appreciation that you have on an. Asset so you
bought it when it was worth very, little and now
you're going to sell it when it's worth a lot.
More that appreciation is the capital. Game and typically our
(27:52):
long term capital gains are going to be taxed at
fifteen percent on THE fed. Side, Unfortunately minnesota doesn't give
us a break and every dollars, Dollars so depending on
what bracket you're, In i'm usually going to be six
point eight or seven point eight. Five if you have
a lot of, income it can actually be the nine
point eighty five percent on. That so they people come
(28:14):
in and just like how bad AM i going to get?
Hit and so THEN i start the. Discussion and the
first QUESTION i, Asked, hey has this been your primary
residence for at least two out of the last five?
Years and THEN i get a strange look AND i, like, well, Yeah,
lance we've been living there for the last Thirty, okay that's,
Good so at least two out of the last five,
years because that's one of the rules we. Have and
(28:35):
THEN i started asking some ballpark, Questions, well what do
you think you're going to sell it, for and how
much did you buy it? For and have you made
some improvements to the house over the, Years and so
we go through some numbers and for we calculate out
what that appreciation. Is and THEN i get to, say,
well for a, married finally jointly, couple because it has
(28:57):
been your primary residence for two out of the last five,
years we get to use the primary home, exclusion which
means we can exclude up to five hundred thousand dollars
of capital. Gains AND i just leave it there and
watch the shock look on the client's face and, right,
wait what, like, yeah so we just figured out the
numbers that you bought your house for like three hundred,
(29:18):
Thousand now it's worth six point. Fifty you've made fifty
six fifty to one hundred thousand dollars of, Improvements so
we have a capital gain of somewhere between probably two
to three hundred thousand. Dollars, well that's underneath five hundred thousand,
dollars and so we get to exclude the whole. Thing
they think about a little bit, more and then they
(29:39):
get to the realization that that means that they're going
to be able to walk away with all their proceeds
and not have to Pay Uncle sam, anything, right.
Speaker 5 (29:48):
Right which has got to be one of the happiest
days for a whole lot of, People no two ways about.
That let's say that unfortunately that's not the case for,
you that you cannot use that the primary residence. Exemption
so what happens then let's say you're.
Speaker 3 (30:06):
Own so a lot of times when if you're over,
it it's just the capital gain is going to be
on anything above and beyond that, exclusion and we can
look at other ways we can try to reduce. It
we go through those ballpark numbers they gave, us, say
are you sure that's all the improvements you? Made so
for somebody who's been living in a house for thirty,
(30:27):
YEARS i guarantee you that they've had to replace a,
roof they've probably replaced sighting how many times did they've
replaced the, carpet, cabinets did they do a kitchen? Remodel
and when people start actually really taking a deep dive
into what they've done to the, house they realize that
they've put a lot more into the house than they
actually thought. About wouldn't worry too much about how much
(30:50):
you spent on that, One because if you don't have the,
records there are other alternative ways to come up with
a number to represent what you. Did it is most
important to know what you did and about when you did.
It so if it was twenty years ago that you
did that kitchen, remodel hey do you know how much
that check was for? It, nope that those records are probably. Gone,
(31:14):
well there are ways we go about doing it and,
say well was it going to cost? Today let's use
the consumer price index and say today's dollars what were
they twenty years? Ago and, say if it's going to
cost you eighty thousand, today, well it probably only costs
you about thirty thousand dollars at that point based upon
the consumer price. Indecks so again there's ways around to
(31:36):
try to figure out these, numbers and so we look at.
That then we also get to take any of the selling.
Expenses so nobody's going to go into closing and say,
Hey i'm going to sell my house for six hundred
thousand dollars and think they're going to walk away with
six hundred. Thousand we know that there's the title company
that is going to take their. Fees we have the
government recording charges to change the titles out. There we
(31:58):
probably used the realist it's an agent to list, it
and so that you have to pay the. Commissions all
these excelling expenses also help reduce that capital. Gain so
we look at as many things we possibly can to
help reduce that one to try to get us underneath
that that exclusion. Amount but if we have a place
(32:19):
that is not our primary, residence let's go back to
those rental. Properties so, unfortunately there is no way that
we can avoid the capital gains with that primary. Exclusion
if you're going to sell the, place we have to
figure out the sale, price we have to have all the,
improvements and that capital gain it is what it. Is,
(32:41):
however if you just want to get out of this
particular house that you know that we're renting here In,
minnesota and you're going to move to a different state
and you just want to keep having a rental, income
well sell The minnesota. Place let's buy a new place
in the state that you're going to move. To there's
(33:04):
this opportunity that they call it ten thirty one, exchange
and we have to do it correctly to make sure
that we're not getting any of the proceeds out of.
It that all the money that we take out of
The minnesota place we are going to use to buy
a new rental property wherever we're. At there's a few more.
(33:25):
Rules so if this sounds anything like that appeals to,
you make sure you're working with somebody who understands these,
rules because, unfortunately if you don't follow them one hundred
percent by the, book you can invalidate yourself and get
stuck with a huge tax.
Speaker 5 (33:41):
Bill, larry how about a personal story about somebody who
was selling and didn't know that these were the kinds
of regulations out.
Speaker 2 (33:50):
There, well we hear about it all the, time just
because there's very little tax planning done and they just
go about doing it and then they get hit with
the big tax.
Speaker 4 (33:58):
Bill.
Speaker 2 (34:00):
All the number one thing that we, hear because we
are speaking a lot to those that are getting close to,
retirement maybe getting a little bit, older is, that, man
our knees are really hurting and we need to move
to one.
Speaker 4 (34:11):
Level, living one level. Living we hear that.
Speaker 2 (34:14):
All the time because those steps we just are not
getting up and down and it's not.
Speaker 4 (34:18):
Safe so that may be.
Speaker 2 (34:19):
You so whether you, know your home is where your heart,
is or the other way. Around if you're expecting to
sell in the near, future some sort of home, sale rental,
sale whatever that might. Be you, know there's more that
goes in that. Decision you, know what's your financial. Situation
it isn't one glove fits. All make sure you understand
these key tax implications that could or maybe not happen to,
(34:43):
you but make sure they're not going To so if
this is you give us a call at six one
two five oh four eighty four, hundred or come on
and visit With.
Speaker 4 (34:52):
Lance you Know lance is in this.
Speaker 2 (34:54):
Discussion this is what the Conversation lance has in his
office with our. Client he would have his, whiteboard he'd
be stating at his. Whiteboard he'd be writing these numbers
down and also have a fun time doing it because
he loves to make Sure Uncle sam doesn't get any
more than they.
Speaker 5 (35:12):
Deserve Uncle sam is Not lance's favorite. Uncle that is,
yes six one two five zero four eight four zero.
Zero that's how you get hold of the folks there
At Haven Financial group when we come. Back attack strategies
come with, opportunities, yes but they also come with risks
and we're going to talk about.
Speaker 3 (35:32):
It don't go too.
Speaker 1 (35:34):
Far we're gathering more important insights and retirement. Ways 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 no back to the.
Speaker 2 (35:54):
Show good, morning and once, again welcome to The Haven
Financial Group Radio.
Speaker 4 (35:59):
Show thanks are listening this.
Speaker 2 (36:00):
Morning feel free to give us a call at six
one two five zero four eighty four hundred or visit
us online At hanfinancialgroup dot. Com Call haanfinancialgroup dot. Com
all kinds of retirement. Tools we have a community site.
There clients get to exchange recipes and pictures and their
favorite pet and all the fun. Stuff because you, know
(36:22):
a retirement can get a little, complicated it can get
a little, overwhelming and why not have a little fun
with a fun with it along the?
Speaker 5 (36:29):
Way, Right god is for, certain in, fact let's have
a lot of. FUN i think that's what most of
the people are hoping for. Now we've been talking about,
taxes and while that may not be a subject that's
fun for a lot of, people it certainly is an
important one because you know that is where we spend
a lot of our. Dollars for, Sure Lance larson is
(36:50):
with A cpa for have Been Financial group And. LANCE
a lot of PEOPLE i think believe that when they
get to retirement, age they're going to pay less. Taxes
and maybe in some cases that is, true but in
others it may not be.
Speaker 3 (37:03):
Correct so one of the things we hear a lot is, that,
hey sometimes we're making more money now retirement than we
did while we were. Working so when you have that
increase in, income, well the way our graduated tax brackets,
work you're going to be paying more in.
Speaker 5 (37:18):
Taxes so let's talk a little bit about some of
the levers that you have to pull when it comes
to tax questions in. Retirement let's start with. Pensions you,
know are there certain strategies that need to be used
if you're someone who's lucky enough to be drawing a.
Speaker 3 (37:34):
Pension so with, pensions one of the biggest things THAT
i hear from people is that it's not a lot
because a lot of the pensions people are, getting the
biggest one we see is From, delta and sometimes the
amounts that they get are very, small and we need
to have withholding being done on. That, well, sometimes, no
(37:58):
you don't need to have it because it's not going
to make that much difference in your taxabile income because
it is so. Small other people have larger. Pensions, yep
we're going to need to make sure that we have
pensions that have. Withholding there are people that are moving
To minnesota that have pensions from other. States, well that
(38:19):
can bring in a whole slew of problems right, there
because these other places are not going to do any
type Of minnesota. Withholding so when it comes to the
end of the tax, year we figure it out and, say,
hey because you're A minnesota, resident you have to pay
taxes on this. Income oh, wait they didn't do any.
Withholding so now you have a big tax bill due To.
(38:40):
Minnesota how do we avoid? That so that's where pensions
that we need to kind of understand where it's coming,
from what the third party administrator will allow us to
do as far as, withholding and then what do we
do about all.
Speaker 5 (38:55):
That you, know so we've talked about pensions now and
what we do about. That we're talking about strategies specifically
and throughout the course of the show. Lance you've talked
about strategies associated with retirement, accounts but let's just very quickly,
here if you were to sit down with someone today
(39:15):
in the fourth, quarter what would be a strategy maybe
that you might talk to folks about when it comes
to their retirement accounts and. Taxation so one.
Speaker 3 (39:25):
Of the biggest. Things the first Thing i'm going to
look at is how much income have we brought in
this year so far and figure out where we are sitting.
At then from there we can look at it doesn't
make sense to pull more money, in or does it
make more sense to stop taking money because it's going
to be pushing you into that next tax, bracket or
(39:47):
you might be getting close enough where we have to
worry ABOUT Irma and so as far as medicare, Goes
just last WEEK i had a couple in here that
they had their or monthly income stream and when we
did all the projections, out it, says, hey you're going
to be right here if we continue, On, yeah we
(40:09):
need to stop these last three, months and, like, yep
we can do. That they have enough money and they're
checking account that they're going to be just fine not
taking this additional money. Out of their, iras and then
on the flip side at another couple that came in,
there they were coming in they were not even filling
up the twelve percent tax. Bracket so at this, point say,
(40:29):
hey let's pull some more money out AS ira and
paid at twelve, percent because in the future your rmds
will probably push you into that third, tier either at
twenty two or possibly even twenty five depending on if
the tax rates. Change why not get the more money
out these lower. Rates, sure then we had the decision
of do we need to have the money to pad
(40:51):
us checking account or savings? Account do we need the
money or can we do it as A roth. Conversion
so these tax strategies kind of just really depend upon
where you're sitting at and so that's why we look
at the very first thing is to have an idea
what your income is for the.
Speaker 5 (41:08):
Year what if someone's tax strategy Is i'm going to
move to a state that's friendlier when it comes to,
taxes what's yours advice?
Speaker 2 (41:17):
There, now, cam why would anybody want to lead the
state Of. MINNESOTA i wouldn't condone, that but every listener
knows That minnesota is not a tax friendly.
Speaker 4 (41:27):
State Now i've lived in my.
Speaker 2 (41:29):
Whole life and probably will for the rest of my.
Life maybe not, Probably but we're not a tax friendly.
Speaker 5 (41:35):
State it's a friend, state it's just not tax.
Speaker 4 (41:37):
Friendly, Yeah minnesota, nice but not tax fairly.
Speaker 2 (41:39):
Nice AND i know a lot of the listeners right
now you have if you're honest with, yourself you have
considered yourself moving to the ones we Hear, Florida, Arizona South,
Carolina North, Carolina South, dakota all of These we hear
it all the. Time AND i didn't start, yesterday so
that is an. Option but WHAT i will point out
is make sure you check out applicable, taxes other forms
(42:03):
of taxes in other. States BECAUSE i had a gentleman
client of mine moved to the western side Of South
dakota and he, said, yeah the income tax and that
there's a lot of great, things.
Speaker 4 (42:14):
But the property, tax he, said it's just. Terrible so
that's WHY i say. That you.
Speaker 2 (42:19):
KNOW a couple other things that Maybe lance will elaborate
is as far as strategies on this tax, discussion is you,
know are you doing tax loss?
Speaker 4 (42:29):
Harvesting you?
Speaker 2 (42:30):
Know or is your partner that you're leaning on do
you not even know what tax loss harvesting. Is do
you have the right investments in the right types of investment?
Accounts certain types of investments should go in rots to
in TRADITIONAL i rays and certain ones in two brokerage.
Accounts have you utilized treasure reinflation protected? Securities what state
(42:52):
do you live? In are you using muni? Bonds are
you using the right muni? Bonds these are all the
discussions that a lot of people don't know the answer.
Is yet they may be doing, them they might not
be doing, them and maybe they should be doing. Them
why not have the discussion because fourth quarter is the
time to be having these. Discussions it's actually throughout the whole.
Year we're just entering the fourth. Quarter so why, not, Now, lance.
Speaker 5 (43:14):
Is there something there that stands out that you'd like
to elaborate.
Speaker 3 (43:17):
On, well one of the biggest strategies THAT i talk
to people about just because again being In, minnesota we
are The minnesota. Nice we like to give to. Charity
so all, right let's do this in the best tax advantageous.
Possible let us look at the biggest thing we look
at is doing qualified charitable. Distributions so once you turn
(43:41):
seventeen and a. Half you can actually pay an amount
directly from YOUR ira to a charity that helps out
a lot on the taxes because that instead of having
to go work through all your itemized deductions to see
if it makes sense to be able to use that charitable,
deduction by doing a qualified charitable distribution from THAT, ira
(44:05):
we take it right off the top and then we
get our full standard. Deduction and that's the best. Thing
if to be charitable is the best way to go
about doing.
Speaker 5 (44:15):
It, Yeah, Yeah charity one of one of many strategies
when it comes to. Taxes all, Right so final say, here,
gentlemen give us the final when you think of, taxes
what is it that you want people to? Know one final?
Speaker 3 (44:30):
Word WHAT i want people to know is that we
don't want to give more than we absolutely have to
To Uncle. Sam and if you're not, planning then you're
going to probably end up being paying more than you absolutely.
Speaker 2 (44:43):
Should and most people we've worked hard for every dollar we,
had just don't give it away because you don't have a,
discussion you. Know SO i take away from the, show you, know,
taxes it's real if you're taking it lightly and you're
not really having any planning and you're just barely getting
things prepared and you don't know why you've had the
same questions for a long. Time come on and visit with.
(45:04):
Us and it relates to all retirement puzzle. Pieces you,
know annual and romans right around the corner for a
medicare big lot of. Changes should you be having That
roth conversion discussion fourth? Quarter you should be having, it
whether it relates to you or. Not do you have
your estate plan? Intact are your investments being looked? At
have you rebalanced the? Portfolio all of these things which
(45:27):
may seem so, overwhelming they can, be but if you
have a good partner to lean, on they don't have to.
Be we can simplify, things we can consolidate. THINGS i always,
say there's no quote as to how many times you
could come. In you deserve the attention because you're paying for,
it But i'm guessing you're not getting the attention you really.
Speaker 5 (45:47):
Deserve six, one, two, five zero four eighty four. Hundred
that is the number where you reach the folks that
have been financial. Group give them a call, Today folks
set up that. Appointment we're in the fourth quarter and
now is the time that's for. Sure, gentlemen it was Great.
Lance thank you so. Much Thanks.
Speaker 4 (46:05):
Cam we look forward to next week as.
Speaker 5 (46:07):
Well investment advisory service is offered Through Guardian Well STRATEGIES,
Llc Haven Financial group And Guardian Well STRATEGIES llc are
not affiliated, companies and investments involve, risk, and unless otherwise,
stated are not. Guaranteed please consult with the qualified financial
advisor and or tax professional before implementing any strategy discussed,
(46:27):
herein and comments regarding as safe and secure investments and
guaranteed income streams only refer to fixed insurance.
Speaker 1 (46:33):
Products they do not refer in any way to securities
or investment advisory. Products fixed insurance and annuity product guarantees
are subject to the claims paying ability of the issuing
company
You 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
(00:23):
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
(00:43):
open at six point two, five oh four eighty four hundred.
Now get your financial questions ready because the Haven Financial
Group Radio Show starts now.
Speaker 2 (00:54):
Good morning, and once again welcome to the Haven Financial
Group Radio Show. I'm Larry Kolvig, founder and c of
the Haven Financial Group. Lance Lurson, our CPA on staff
at Haven, is with us today.
Speaker 3 (01:05):
Kim.
Speaker 4 (01:05):
We're going to talk a lot about taxes. Yep. Brase
yourself for a tax discussion on this show.
Speaker 5 (01:11):
Kim, Well, nobody really likes to talk about taxes, Larry,
except Lance.
Speaker 3 (01:18):
So good.
Speaker 5 (01:19):
It's a good thing we've got Lance with us today
and it's an important topic, that is for certain. And
here we are in the fourth quarter of twenty twenty five. Wow,
where did twenty twenty five go? That's hard to believe.
So you know, it is that time of year where
we all start to think about what we need to
do towards the end of the year when it comes
to taxes. Let's take a look at what we're going
to cover in today's show. First off, Flant's great to
(01:41):
have you with us. Like always, we are going to
talk about retirement tax strategies. We'll start with taxation of
your Social Security which is such an important topic to
everyone who's listening to us who is in those retirement
years understanding tax treatment of four to oh one case
as well, Iras, we're going to talk about how is
(02:02):
your home sale tax? And finally we'll wrap up today
with techt strategies that come with opportunities and of course
also come with risks. So a great show today, Larry.
I'm looking forward to it.
Speaker 2 (02:16):
Yeah, it is a discussion that again, nobody wants to
have a discussion on taxes, but we have said many
times we are very much forward thinking tax planners at
Haven Financial Group because we're dealing with retirement planning and
those that are in retirement and for many folks, taxes
can be affected more than any other time in their life.
(02:36):
So it's important to address it to minimize taxes where
we can. And we're going to have a lot of
discussion here in these four segments.
Speaker 5 (02:43):
Lance, am I right when I'm saying here, we come
into the fourth quarter, and this is a really important
tax time.
Speaker 3 (02:50):
Yes, Kam. So fourth quarter is typically where we do
a lot of the planning and year end moves. We
have three quarters in the book, so we know where
we're sitting at. It's pretty easy to project out this
last quarter to know where we're going to be at
at the end of the year and see if there's
any opportunities that we can do any type of money moves,
(03:13):
whether it's doing roth conversions, if we need to pay
a little bit more in so we don't hit those
underpayment penalties. This is the time that we start trying
to figure all those questions out before we.
Speaker 5 (03:25):
Get started talking about the actual topics. Larry, I'm sure
there's some people who are listening right now, going, well,
I don't really need to listen to this show because
I have a tax guy and I'll be dropping my
stuff off on the fifteenth of April and I'll see
him on the twenty third with my return or whatever
it is.
Speaker 3 (03:43):
You know.
Speaker 5 (03:45):
You don't see it that way, and I know you
said your forward thinkers, but will you just elaborate on
that just a little bit more.
Speaker 2 (03:52):
Yes, because what we hear often it's just the way
that things are these days is well, we don't even
talk to or see our tax prepare now. Tax preparer
and tax planning are very different. So it's become a
drop off, pickup, get the taxes prepared here, I'll cut
you a check, and there's no tax discussions whatsoever, and
that may lead to gripes like, oh my goodness, every
(04:15):
year I owe money, I just don't know why. And
because there's no discussion, there's no nothing ever gets fixed.
And so by discussing these things, as Lance will mention
throughout the course of the year, and you adhere to
the tax plan, well, tax preparation is easy, there's no surprises,
and believe it or not, you can actually lead Lance's
(04:36):
office with a smile on your face because bingo, it's
exactly what you thought was going to happen.
Speaker 5 (04:42):
Terrific.
Speaker 4 (04:43):
All right.
Speaker 5 (04:43):
So having said that, let's take a look at some
of the strategies that you might need to think about.
Maybe you've never thought about, maybe your tax preparer has
never thought about it. That may save you some money
or make your life a lot better. Let's start with
this idea of taxation and social security, Lance. I think
a lot of people think that social Security just comes
(05:04):
and they deposit that check and Uncle Sam doesn't get
any part of that.
Speaker 3 (05:08):
Well, Kim, for the most part, there's a lot of
people out there that that is actually true, and that
is because they are just living on their Social Security
and that's all they have. And so in cases like that,
it actually it is true that they just get their
social Security check put in the bank and Uncle Sam
doesn't get anything out of that. But more and more,
(05:29):
what we're seeing is that people have saved outside of
social Security so that they have their four one K plans,
that they have other income streams that are coming in
whether it may be from a rental property or a
family farm, or something else that's going on, and all
this other income that's going to come into their household,
(05:51):
it's going to affect how their social Security is taxed.
One of the things that for social Security that people
don't know about is that that up to eighty five
percent of your benefit is going to be taxable based
upon how much other income you have. And so when
you don't have a lot of other income, not much
(06:13):
of that social Security is taxed. But when you do
have a lot of other income, whether it is from
that four toh one k or an ira doing a
Roth conversion, then we have to deal with how much
that Social Security is going to be taxed.
Speaker 5 (06:26):
Okay, so let's talk about that income threshold.
Speaker 3 (06:30):
So there is a calculation that we do, and so
the way that social security works at is we either
take eighty five percent of your benefit or this calculation
where we take half of the benefit plus all your
other income to get a number we call provisional income.
Then we use that number and we put it on
(06:50):
provisional income brackets there which are different than the tax brackets.
So for married filing jointly, those brackets are at thirty
two thousand and forty four thousand up to the thirty
two thousand. All that is at zero between thirty two
and forty four is fifty percent, and anything that's above
that forty four thousand is eighty five percent. And then
(07:13):
we sum up all those numbers there to figure out
how much is that number for provisional income of taxable
and compare that to that eighty five percent threshold of
your gross benefits, and we take the lesser of Okay.
Speaker 5 (07:27):
What if you're drawing Social Security from a spouse that
you've lost, or you know, if it's you're a survivor,
or you know, does that tax the same way it is?
Speaker 3 (07:41):
Okay, So we have people who will get Social Security
in a variety of different ways. Whether you're collected on
your own benefit for your own retirement, you can be
collecting off of a x spouse, you can claim it
off of deceased spouse. Children actually can receive it when
they're miners from their parents and it is all going
(08:05):
to be taxed the same way. We'll pick on the
kids because it's really easy, and most of them don't
even have a job because they're miners. So their calculation.
What they look at is how much other taxble income
they have. Well, it's zero, and so because of that,
when you look at their taxable social security, it's going
to be very very minimal.
Speaker 5 (08:24):
Okay, all right, the way that you're filing your taxes,
So if you're single and you're drawing social Security, does
that make any difference?
Speaker 3 (08:34):
It does as well. So earlier I said that for
the Mary Finding jointly, the provisional income brackets were at
thirty two and forty four. For singles, it's actually a
little bit lower. The first threshold is at twenty five
and that second threshold is at thirty four. So if
you have a married couple, they typically will be bringing
(08:55):
in about seventy eighty thousand dollars on average for cash
coming in to pay for all their bills. Well, if
most had social Security, then most then that's not going
to be that taxable. Whereas if you have a single
person in order to pay for the same things, maybe
maybe they don't need eighty thousand, but they definitely need
probably about sixty. Well, they don't have quite the same
(09:17):
amount of Social Security comes in, so they have to
have more outside sources, which then is going to make
their social Security more taxable than they would for their
married counterparts.
Speaker 5 (09:28):
Are there ways to minimize these taxes though?
Speaker 3 (09:31):
The strategies right there are strategies. The biggest one is
is we want to live in a state that actually
doesn't tax social Security. Minnesota took them some great strides
a couple of years ago, where beforehand they just had
a very small subtraction on the Minnesota return that if
(09:52):
it was taxable on the Fed side, Minnesota said we're
taxing it as well, minus maybe about five thousand bucks. Well,
then Minnesota a couple of years ago changed and it says, hey,
you know what, for your single people, if your adjusted
gross income was under seventy eight thousand dollars, no matter
how much taxable social Security that you had, just take
(10:14):
it all away. And so Minnesota gain made great strides
to help reduce the tax ability of the Social Security
at the state level. Unfortunately, for the Feds, it is
what it is right there. They what we talked about
right now. The buzzwords out there is with that big
beautiful bill, Oh, the politicians are now made our social
(10:37):
Security not taxable. Well, unfortunately that's not quite true. What
they did was actually gave us an extra deduction to
help relieve some of the tax ability of the Social
Security but the same calculations that we have done for
the last many years, it's still the same thing. So
if it was if you had the same situation that
(10:58):
you did this year you did last year, you can
bet that you're don't have the same amount of taxable
Social Security. It's just now you're going to have an
extra deduction which is supposed to be used against that
upsetting it.
Speaker 2 (11:11):
So I think a good takeaway from this segment is
if you have questions on taxation of social Security, which
is the real deal, or maybe you don't know when
to take social Security or does it make sense, It's
precisely why we teach a social Security and tax class
several every month in various areas of the libraries community centers.
(11:33):
You can go to our Havenfinancialgroup dot com and see
all these classes. We're big into the education and social
security is one decision that shouldn't be taken lightly. It's
the biggest income stream for retired Americans, and a lot
of times people just turn it on. At sixty two,
almost seventy percent of Americans actually and one to two
way till age seventy, What is the right age for you?
(11:56):
Come on in and visit with us, or simply give
us a call and we can have that conversation.
Speaker 4 (12:00):
I think it'd be very beneficial.
Speaker 5 (12:02):
Absolutely. Six one, two, five zero for eighty four hundred
is the number. That's how you set up a meeting
with the folks that Haven Financial Group. Sit down to
talk to them about your social security, whether it's about
the taxation of your social security or as Larry just mentioned,
what would be most beneficial for you when it comes
to drawing your social security. You can also sit down
and talk to them about a variety of retirement issues.
(12:25):
We're going to continue, however, today the conversation about taxes.
When we come back, we're going to talk about understanding
tax treatment a four oh one KSE and the iras
that you own. That's coming up next right here on
the Haven Financial Group Radio Show.
Speaker 3 (12:40):
Don't go too far.
Speaker 1 (12:41):
We're gathering more important insights and retirement ways. 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, no the show.
Speaker 4 (13:01):
Welcome back listeners.
Speaker 2 (13:03):
My name is Larry Kalbig, founder and CEO of the
Haven Financier Group, and you're listening to the Haven Financier
Group Radio show where every week we talk about retirement,
all the retirement topics that are so very important. I
call them the retirement puzzle pieces. Do you have all
the pieces? Is your puzzle missing pieces? And are these
pieces being coordinated in a way that you're maximizing the opportunities,
(13:26):
minimizing taxes and a variety of other things that sometimes
definitely go unnoticed, and it's why we're having conversations about
them so you can get ahead of the game a
little bit before you get there.
Speaker 5 (13:39):
Lance Larson, a CPA at Haven Financial Group, is our
guest today and we're talking about taxes. We just talked
a bit about Social Security and taxation associated with that,
and obviously Larry mentioned as we left the last segment
that about seventy percent of Americans rely on Social Security
(14:01):
as the main income when they're in retirement. But another,
of course source of income for retirees are there four
one ks and their iras. So let's talk about Lance,
how those are treated when it comes to the IRS.
Speaker 3 (14:18):
Yeah, kam. So first thing to understand with four one
k's iras, what these things are is that they are
rules that allow employers or the individual to set up
a retirement account. So four one K is set up
specifically for like corporates for corporations there then you can
have four h three b's, four fifty seven b's all
(14:42):
these things. What they are are just code sections that
allow us to contribute money into a retirement account, and
specifically with its retirement account. Is that these rules allow
us to take a deduction up front for all the
contributions we make into these plans. So when you look
at the amount of money that's in your four to
(15:03):
one K in the four to three B in the IRA,
all these traditional ones, they are deferred tax deferred accounts,
so when we finally take the money out, that is
when we have to pay the taxes on them. Recently,
they have been making a push more for a WROTH
(15:24):
account under the same code section. So you can either
have the traditional where we get the deduction for it upfront,
or you can do it as a roth where we
don't get the deduction for it, but then we get
all the growth tax free. Now there's caveats on each
side of Hey, you got to do this, you have
to wait for this period of time, So there's rules
(15:45):
that are associated with them. But that's the biggest question
I've been hearing recently is what's the difference between ROTH
and four to one k ROTH versus traditional IRA. What's
all these differences there. That's kind of where we sit at.
Speaker 5 (16:01):
Sure, it seems that this is where you really need
a partner making some tax decisions. How to draw this
money off of these accounts and not be hit with
a gigantic bill. So maybe you can walk us through
how you advise some of your clients to benefit from
their money but not owe Uncle Sam such big chunks
(16:24):
at one time.
Speaker 3 (16:26):
So one of the biggest things that we look at, Kim,
is how much money do we need to have and
then where do we pull things from. We've had come
across lots of clients that come in there and just
that says, hey, I need to pull out one hundred
thousand dollars and they just do it. They don't. They
just take it out of their IRA and they're just like, hey,
(16:47):
I just I'll jump out to pay taxes. Well, depending
on how much income that you're bringing in, you can
jump tax brackets. There's a big jump going from a
twelve percent bracket to a twenty two percent bracket. There's
another huge jump going from a twenty four percent bracket
to the thirty two percent bracket. So do we really
(17:08):
need to take that much money out right now? Is it?
Could we possibly delay that, especially now in fourth quarter?
Could you wait another three months until January to pull
out more money? We get a fresh new start as
of January first. So these are the questions that we
kind of look at. Is the need versus how much
taxes are going to cost you.
Speaker 5 (17:30):
Then there's always the issue of required minimum distribution, which
hits at a certain age, and then you do have
to start drawing this money taxes or not correct.
Speaker 3 (17:41):
So, again, as we talked about with these traditional accounts,
this is all tax deferred money. And after a while,
Uncle Sam has been very patient with us, waiting for
us to give them their tax revenue on this income
that we've earned. And so now they say, oh, you
have hit a certain age, which right now is seventy three.
(18:03):
I will go up to seventy five here in twenty
thirty three, so there's a little bit of time until that,
but you hit this required minimum distribution age, and then
there's a calculation that has to be done every year
based upon how old you are, the actual table of
when the irs thinks that you're going to leave this world,
(18:24):
and then how much money you have in those accounts.
Speaker 5 (18:27):
And that's not something that you can avoid.
Speaker 3 (18:30):
Nope. The only way you will avoid that, which isn't
really avoiding it, is by giving Uncle Sam at least
twenty five percent through a penalty because you did not
take that, which is an absolutely horrible thing to do.
So we'd rather you take that required minimum distribution even
if you don't need it. There are other things that
(18:51):
we can do with that, such as qualified charitable distributions.
You can take that. I know Larry likes to tell
the story about one client who said, hey, I don't
need to have this money, and Larry said, well, why
don't you take your wife on a trip. And then
two or three years later she came back said, Larry,
(19:12):
you know what, he finally took me on that trip.
It worked.
Speaker 2 (19:15):
I just planted to seed Kim and it worked three
years later. So hey, sometimes we can assist in a
variety of different ways. But I want to point out
being we're talking on four to one k's rmds, et cetera.
For we do a lot of four to one k rollovers.
So if you have a lot of orphan four one k's,
I had somebody in this week that had literally the
five to four to oh one k's.
Speaker 4 (19:35):
Was a consultant jumped around, or maybe you're just retired.
Speaker 2 (19:39):
There's a variety of reasons why you want to roll
that into an IRA. There's different rules with iras than
employer plans. You have better investment options, more options, a
whole bunch of reasons on rollovers. We were talking about
income distribution taxes.
Speaker 4 (19:57):
They all go together.
Speaker 2 (19:58):
And when people retire, you just entered a different season
of life. You were putting it away in the four
to one k. Now you have to draw money. You
have to create your own paycheck. Where is it going
to be drawn from? You want to look at all
your options and you want to be as tax efficient
as possible.
Speaker 4 (20:16):
We're entering the fourth quarter this week.
Speaker 2 (20:19):
This is a timeline where this quarter we look at
We have a conversation with everybody about is a ROTH
conversion a viable does it make sense. For some it doesn't,
but I'd rather have it not makes sense. Then it
makes sense, and then they not do anything about it.
And then maybe it draw from a non qualified brokerage
(20:39):
account with zero capital gains tax. Maybe that's the place
to draw from. And also the timelines with rmds, it's
rm ds have to be the end of the year.
We don't wait till the end of the year. Our
deadline is December first. There's no guarantee that things get processed.
If you wait till the last second, maybe you would.
Speaker 4 (20:58):
Inherit it in IRA. Lost somebody recently.
Speaker 2 (21:01):
Just this week, I was with a sister and a
brother that law of one of my clients passed away
and I needed to help them with the paperwork to
inherit the IRA that mom left for them. Those also
have to have r and ds. So you don't want
to miss these timelines. You don't want to miss these opportunities.
You don't want to accrew any penalties for missing these
(21:22):
timelines as well. That's where a partner you can lean on.
That way, it makes all and it makes all the
sense in the world.
Speaker 5 (21:29):
Sure, absolutely, yeah, you don't want to miss those because
as Lance just told us that twenty five percent penalty
is not anything that you want to play and pay,
and that's up and above the taxes that you're going
to have to pay once you draw that money out.
Let me ask you, guys, you know we're seeing constant
changes in the tax laws iras four oh one k's roths.
(21:52):
Will these be affected in the near future by any
of the changes that might be on the table right.
Speaker 3 (21:56):
Now, not really the code sections that are sut for
these retirements. I'm not a political analyst by any stretch
of the imagination, but in my viewpoint, it just seems
like it would be political suicide for any of these
politicians to go through and try to monkey around with
all these tax laws to say, oh, you can no
(22:17):
longer do a four one K. In fact, it's actually
quite the opposite of there. We saw in the big
beautiful builders things that they're calling the Trump accounts, where
for children being born right now, they're going to open
up an account and the government's going to give them
like a thousand or two thousand bucks of money to
(22:38):
start a retirement account for these new kids. So as
far as changing the code sections for them, no, there's
nothing that should happen that way. If anything that would
change in the future is just going to be the
tax rates. That's where right now we have made the
(22:59):
ten to twelve of twenty two percent that were used
to for the past eight years semi permanent. But again,
as soon as we get a new administration, we get
the House and send it a different control. In that one,
they can change those tax rates and probably bring them
back up to what they historically have been at that
ten fifteen to twenty five rates.
Speaker 5 (23:21):
As Larson is our guest, he's a CPA with Haven
Financial Group. We're talking about taxes today and how they
relate to retirement. If you have questions about taxes, If
you have questions about retirement, these are the folks you
want to speak to. All you have to do is
pick up the phone. Call six' one two five zero
four eight four zero, zero tell them you heard us
(23:42):
here on the. Radio you'd like to come. In As
larry has said many many times and has repeated already this,
morning you, know the fourth quarter is a great time
to sit down and do some tax planning for the next.
Year you don't want to just wait and then wish
that you had made Changes this is the time to
start planning and. Talking six one two five zero four
(24:05):
eight four zero Zero coming up, next how is your home? Sale?
Taxt this is The Haven Financial Group Radio.
Speaker 1 (24:13):
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
(24:33):
to help you find your financial safe.
Speaker 2 (24:35):
Haven welcome back to The Haven Financial Group Radio. Show
I'm Larry, kulviig founder AND ceo of The Haven Financial,
group on With Lance lurs at OUR cpa on staff
celebrating our ten year. ANNIVERSARY i want to point that,
out our ten year, anniversary and you know we're big into.
Education if you're interested in any retirement, classes go To
havenfinancialgroup dot com see all the classes we're teaching six
(24:59):
or call us at six, one, two, five four eighty four.
Hundred we'll tell you those. Classes and while we do
them In Dakota County, tech different, colleges community, centers and we.
Speaker 4 (25:10):
Love Our Education CENTER.
Speaker 2 (25:11):
Cam i'm telling you they have the fraud classes that
we had with the local police.
Speaker 4 (25:15):
Department what a.
Speaker 2 (25:16):
Hit and now we're Having medicare, classes big changes In,
medicare and again We're isabella And glenn are very busy
learning all about the changes in that. Area and, UH
i Think Lance larson actually is actually going to teach
the big beautiful bill updates and their education.
Speaker 4 (25:36):
Center so, again really begin too.
Speaker 2 (25:38):
Education you can never stop learning because just when you stop,
learning you get left in the.
Speaker 5 (25:42):
Dust that is for. Certain congratulations on the ten years
and thank, YOU i hope twenty five forty more for that's.
True and everybody there at Hayteen Financial, group we're talking
about taxes this. Morning we want to talk about how
your home is taxed if you sell. IT a lot
of retirees decide it's time to. Downsize they want to
(26:03):
get out of that big house that maybe they raised
a family and maybe they want to move to another
state and it's time to get out of. It and
there certainly can be some repercussions in times when it
is more advantageous to sell than, others especially when we're
talking about. Taxes so let's talk here With. Lance if
you've got a retiree and they come in and they Say,
(26:25):
listen we've been living in this big house and it's
time to get out of this darn, thing and we're
thinking about. Selling we'd like to see some proceeds from
it because obviously we've owned it for all these years
and this was one of our biggest. Investments what do
you warn them? About what do you talk to them?
About what are the steps they need to start to.
Speaker 3 (26:44):
Take, So, kim the first thing we need to understand
is the house that we're. Selling what house is? It
people come here and they say most of the time
it's their primary residence that they've been but there are
times people come in and, say, hey we want to
sell this rental property that we've, had or we're going
to sell our primary residence and then go live in
our rental. Property lots of different ways of going. On
(27:08):
so we just need to understand what we're. Selling but
for most people that we're looking to downsize our, house
it has been our primary residence for, many many. Years
and SO i kind of smile at this when people
come to ask me because they have this big fear
that they're going to owe a lot of taxes on
(27:29):
selling their primary residence because they know about these capital
gains in capital, gains to put it very, simply is
the appreciation that you have on an. Asset so you
bought it when it was worth very, little and now
you're going to sell it when it's worth a lot.
More that appreciation is the capital. Game and typically our
(27:52):
long term capital gains are going to be taxed at
fifteen percent on THE fed. Side, Unfortunately minnesota doesn't give
us a break and every dollars, Dollars so depending on
what bracket you're, In i'm usually going to be six
point eight or seven point eight. Five if you have
a lot of, income it can actually be the nine
point eighty five percent on. That so they people come
(28:14):
in and just like how bad AM i going to get?
Hit and so THEN i start the. Discussion and the
first QUESTION i, Asked, hey has this been your primary
residence for at least two out of the last five?
Years and THEN i get a strange look AND i, like, well, Yeah,
lance we've been living there for the last Thirty, okay that's,
Good so at least two out of the last five,
years because that's one of the rules we. Have and
(28:35):
THEN i started asking some ballpark, Questions, well what do
you think you're going to sell it, for and how
much did you buy it? For and have you made
some improvements to the house over the, Years and so
we go through some numbers and for we calculate out
what that appreciation. Is and THEN i get to, say,
well for a, married finally jointly, couple because it has
(28:57):
been your primary residence for two out of the last five,
years we get to use the primary home, exclusion which
means we can exclude up to five hundred thousand dollars
of capital. Gains AND i just leave it there and
watch the shock look on the client's face and, right,
wait what, like, yeah so we just figured out the
numbers that you bought your house for like three hundred,
(29:18):
Thousand now it's worth six point. Fifty you've made fifty
six fifty to one hundred thousand dollars of, Improvements so
we have a capital gain of somewhere between probably two
to three hundred thousand. Dollars, well that's underneath five hundred thousand,
dollars and so we get to exclude the whole. Thing
they think about a little bit, more and then they
(29:39):
get to the realization that that means that they're going
to be able to walk away with all their proceeds
and not have to Pay Uncle sam, anything, right.
Speaker 5 (29:48):
Right which has got to be one of the happiest
days for a whole lot of, People no two ways about.
That let's say that unfortunately that's not the case for,
you that you cannot use that the primary residence. Exemption
so what happens then let's say you're.
Speaker 3 (30:06):
Own so a lot of times when if you're over,
it it's just the capital gain is going to be
on anything above and beyond that, exclusion and we can
look at other ways we can try to reduce. It
we go through those ballpark numbers they gave, us, say
are you sure that's all the improvements you? Made so
for somebody who's been living in a house for thirty,
(30:27):
YEARS i guarantee you that they've had to replace a,
roof they've probably replaced sighting how many times did they've
replaced the, carpet, cabinets did they do a kitchen? Remodel
and when people start actually really taking a deep dive
into what they've done to the, house they realize that
they've put a lot more into the house than they
actually thought. About wouldn't worry too much about how much
(30:50):
you spent on that, One because if you don't have the,
records there are other alternative ways to come up with
a number to represent what you. Did it is most
important to know what you did and about when you did.
It so if it was twenty years ago that you
did that kitchen, remodel hey do you know how much
that check was for? It, nope that those records are probably. Gone,
(31:14):
well there are ways we go about doing it and,
say well was it going to cost? Today let's use
the consumer price index and say today's dollars what were
they twenty years? Ago and, say if it's going to
cost you eighty thousand, today, well it probably only costs
you about thirty thousand dollars at that point based upon
the consumer price. Indecks so again there's ways around to
(31:36):
try to figure out these, numbers and so we look at.
That then we also get to take any of the selling.
Expenses so nobody's going to go into closing and say,
Hey i'm going to sell my house for six hundred
thousand dollars and think they're going to walk away with
six hundred. Thousand we know that there's the title company
that is going to take their. Fees we have the
government recording charges to change the titles out. There we
(31:58):
probably used the realist it's an agent to list, it
and so that you have to pay the. Commissions all
these excelling expenses also help reduce that capital. Gain so
we look at as many things we possibly can to
help reduce that one to try to get us underneath
that that exclusion. Amount but if we have a place
(32:19):
that is not our primary, residence let's go back to
those rental. Properties so, unfortunately there is no way that
we can avoid the capital gains with that primary. Exclusion
if you're going to sell the, place we have to
figure out the sale, price we have to have all the,
improvements and that capital gain it is what it. Is,
(32:41):
however if you just want to get out of this
particular house that you know that we're renting here In,
minnesota and you're going to move to a different state
and you just want to keep having a rental, income
well sell The minnesota. Place let's buy a new place
in the state that you're going to move. To there's
(33:04):
this opportunity that they call it ten thirty one, exchange
and we have to do it correctly to make sure
that we're not getting any of the proceeds out of.
It that all the money that we take out of
The minnesota place we are going to use to buy
a new rental property wherever we're. At there's a few more.
(33:25):
Rules so if this sounds anything like that appeals to,
you make sure you're working with somebody who understands these,
rules because, unfortunately if you don't follow them one hundred
percent by the, book you can invalidate yourself and get
stuck with a huge tax.
Speaker 5 (33:41):
Bill, larry how about a personal story about somebody who
was selling and didn't know that these were the kinds
of regulations out.
Speaker 2 (33:50):
There, well we hear about it all the, time just
because there's very little tax planning done and they just
go about doing it and then they get hit with
the big tax.
Speaker 4 (33:58):
Bill.
Speaker 2 (34:00):
All the number one thing that we, hear because we
are speaking a lot to those that are getting close to,
retirement maybe getting a little bit, older is, that, man
our knees are really hurting and we need to move
to one.
Speaker 4 (34:11):
Level, living one level. Living we hear that.
Speaker 2 (34:14):
All the time because those steps we just are not
getting up and down and it's not.
Speaker 4 (34:18):
Safe so that may be.
Speaker 2 (34:19):
You so whether you, know your home is where your heart,
is or the other way. Around if you're expecting to
sell in the near, future some sort of home, sale rental,
sale whatever that might. Be you, know there's more that
goes in that. Decision you, know what's your financial. Situation
it isn't one glove fits. All make sure you understand
these key tax implications that could or maybe not happen to,
(34:43):
you but make sure they're not going To so if
this is you give us a call at six one
two five oh four eighty four, hundred or come on
and visit With.
Speaker 4 (34:52):
Lance you Know lance is in this.
Speaker 2 (34:54):
Discussion this is what the Conversation lance has in his
office with our. Client he would have his, whiteboard he'd
be stating at his. Whiteboard he'd be writing these numbers
down and also have a fun time doing it because
he loves to make Sure Uncle sam doesn't get any
more than they.
Speaker 5 (35:12):
Deserve Uncle sam is Not lance's favorite. Uncle that is,
yes six one two five zero four eight four zero.
Zero that's how you get hold of the folks there
At Haven Financial group when we come. Back attack strategies
come with, opportunities, yes but they also come with risks
and we're going to talk about.
Speaker 3 (35:32):
It don't go too.
Speaker 1 (35:34):
Far we're gathering more important insights and retirement. Ways 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 no back to the.
Speaker 2 (35:54):
Show good, morning and once, again welcome to The Haven
Financial Group Radio.
Speaker 4 (35:59):
Show thanks are listening this.
Speaker 2 (36:00):
Morning feel free to give us a call at six
one two five zero four eighty four hundred or visit
us online At hanfinancialgroup dot. Com Call haanfinancialgroup dot. Com
all kinds of retirement. Tools we have a community site.
There clients get to exchange recipes and pictures and their
favorite pet and all the fun. Stuff because you, know
(36:22):
a retirement can get a little, complicated it can get
a little, overwhelming and why not have a little fun
with a fun with it along the?
Speaker 5 (36:29):
Way, Right god is for, certain in, fact let's have
a lot of. FUN i think that's what most of
the people are hoping for. Now we've been talking about,
taxes and while that may not be a subject that's
fun for a lot of, people it certainly is an
important one because you know that is where we spend
a lot of our. Dollars for, Sure Lance larson is
(36:50):
with A cpa for have Been Financial group And. LANCE
a lot of PEOPLE i think believe that when they
get to retirement, age they're going to pay less. Taxes
and maybe in some cases that is, true but in
others it may not be.
Speaker 3 (37:03):
Correct so one of the things we hear a lot is, that,
hey sometimes we're making more money now retirement than we
did while we were. Working so when you have that
increase in, income, well the way our graduated tax brackets,
work you're going to be paying more in.
Speaker 5 (37:18):
Taxes so let's talk a little bit about some of
the levers that you have to pull when it comes
to tax questions in. Retirement let's start with. Pensions you,
know are there certain strategies that need to be used
if you're someone who's lucky enough to be drawing a.
Speaker 3 (37:34):
Pension so with, pensions one of the biggest things THAT
i hear from people is that it's not a lot
because a lot of the pensions people are, getting the
biggest one we see is From, delta and sometimes the
amounts that they get are very, small and we need
to have withholding being done on. That, well, sometimes, no
(37:58):
you don't need to have it because it's not going
to make that much difference in your taxabile income because
it is so. Small other people have larger. Pensions, yep
we're going to need to make sure that we have
pensions that have. Withholding there are people that are moving
To minnesota that have pensions from other. States, well that
(38:19):
can bring in a whole slew of problems right, there
because these other places are not going to do any
type Of minnesota. Withholding so when it comes to the
end of the tax, year we figure it out and, say,
hey because you're A minnesota, resident you have to pay
taxes on this. Income oh, wait they didn't do any.
Withholding so now you have a big tax bill due To.
(38:40):
Minnesota how do we avoid? That so that's where pensions
that we need to kind of understand where it's coming,
from what the third party administrator will allow us to
do as far as, withholding and then what do we
do about all.
Speaker 5 (38:55):
That you, know so we've talked about pensions now and
what we do about. That we're talking about strategies specifically
and throughout the course of the show. Lance you've talked
about strategies associated with retirement, accounts but let's just very quickly,
here if you were to sit down with someone today
(39:15):
in the fourth, quarter what would be a strategy maybe
that you might talk to folks about when it comes
to their retirement accounts and. Taxation so one.
Speaker 3 (39:25):
Of the biggest. Things the first Thing i'm going to
look at is how much income have we brought in
this year so far and figure out where we are sitting.
At then from there we can look at it doesn't
make sense to pull more money, in or does it
make more sense to stop taking money because it's going
to be pushing you into that next tax, bracket or
(39:47):
you might be getting close enough where we have to
worry ABOUT Irma and so as far as medicare, Goes
just last WEEK i had a couple in here that
they had their or monthly income stream and when we
did all the projections, out it, says, hey you're going
to be right here if we continue, On, yeah we
(40:09):
need to stop these last three, months and, like, yep
we can do. That they have enough money and they're
checking account that they're going to be just fine not
taking this additional money. Out of their, iras and then
on the flip side at another couple that came in,
there they were coming in they were not even filling
up the twelve percent tax. Bracket so at this, point say,
(40:29):
hey let's pull some more money out AS ira and
paid at twelve, percent because in the future your rmds
will probably push you into that third, tier either at
twenty two or possibly even twenty five depending on if
the tax rates. Change why not get the more money
out these lower. Rates, sure then we had the decision
of do we need to have the money to pad
(40:51):
us checking account or savings? Account do we need the
money or can we do it as A roth. Conversion
so these tax strategies kind of just really depend upon
where you're sitting at and so that's why we look
at the very first thing is to have an idea
what your income is for the.
Speaker 5 (41:08):
Year what if someone's tax strategy Is i'm going to
move to a state that's friendlier when it comes to,
taxes what's yours advice?
Speaker 2 (41:17):
There, now, cam why would anybody want to lead the
state Of. MINNESOTA i wouldn't condone, that but every listener
knows That minnesota is not a tax friendly.
Speaker 4 (41:27):
State Now i've lived in my.
Speaker 2 (41:29):
Whole life and probably will for the rest of my.
Life maybe not, Probably but we're not a tax friendly.
Speaker 5 (41:35):
State it's a friend, state it's just not tax.
Speaker 4 (41:37):
Friendly, Yeah minnesota, nice but not tax fairly.
Speaker 2 (41:39):
Nice AND i know a lot of the listeners right
now you have if you're honest with, yourself you have
considered yourself moving to the ones we Hear, Florida, Arizona South,
Carolina North, Carolina South, dakota all of These we hear
it all the. Time AND i didn't start, yesterday so
that is an. Option but WHAT i will point out
is make sure you check out applicable, taxes other forms
(42:03):
of taxes in other. States BECAUSE i had a gentleman
client of mine moved to the western side Of South
dakota and he, said, yeah the income tax and that
there's a lot of great, things.
Speaker 4 (42:14):
But the property, tax he, said it's just. Terrible so
that's WHY i say. That you.
Speaker 2 (42:19):
KNOW a couple other things that Maybe lance will elaborate
is as far as strategies on this tax, discussion is you,
know are you doing tax loss?
Speaker 4 (42:29):
Harvesting you?
Speaker 2 (42:30):
Know or is your partner that you're leaning on do
you not even know what tax loss harvesting. Is do
you have the right investments in the right types of investment?
Accounts certain types of investments should go in rots to
in TRADITIONAL i rays and certain ones in two brokerage.
Accounts have you utilized treasure reinflation protected? Securities what state
(42:52):
do you live? In are you using muni? Bonds are
you using the right muni? Bonds these are all the
discussions that a lot of people don't know the answer.
Is yet they may be doing, them they might not
be doing, them and maybe they should be doing. Them
why not have the discussion because fourth quarter is the
time to be having these. Discussions it's actually throughout the whole.
Year we're just entering the fourth. Quarter so why, not, Now, lance.
Speaker 5 (43:14):
Is there something there that stands out that you'd like
to elaborate.
Speaker 3 (43:17):
On, well one of the biggest strategies THAT i talk
to people about just because again being In, minnesota we
are The minnesota. Nice we like to give to. Charity
so all, right let's do this in the best tax advantageous.
Possible let us look at the biggest thing we look
at is doing qualified charitable. Distributions so once you turn
(43:41):
seventeen and a. Half you can actually pay an amount
directly from YOUR ira to a charity that helps out
a lot on the taxes because that instead of having
to go work through all your itemized deductions to see
if it makes sense to be able to use that charitable,
deduction by doing a qualified charitable distribution from THAT, ira
(44:05):
we take it right off the top and then we
get our full standard. Deduction and that's the best. Thing
if to be charitable is the best way to go
about doing.
Speaker 5 (44:15):
It, Yeah, Yeah charity one of one of many strategies
when it comes to. Taxes all, Right so final say, here,
gentlemen give us the final when you think of, taxes
what is it that you want people to? Know one final?
Speaker 3 (44:30):
Word WHAT i want people to know is that we
don't want to give more than we absolutely have to
To Uncle. Sam and if you're not, planning then you're
going to probably end up being paying more than you absolutely.
Speaker 2 (44:43):
Should and most people we've worked hard for every dollar we,
had just don't give it away because you don't have a,
discussion you. Know SO i take away from the, show you, know,
taxes it's real if you're taking it lightly and you're
not really having any planning and you're just barely getting
things prepared and you don't know why you've had the
same questions for a long. Time come on and visit with.
(45:04):
Us and it relates to all retirement puzzle. Pieces you,
know annual and romans right around the corner for a
medicare big lot of. Changes should you be having That
roth conversion discussion fourth? Quarter you should be having, it
whether it relates to you or. Not do you have
your estate plan? Intact are your investments being looked? At
have you rebalanced the? Portfolio all of these things which
(45:27):
may seem so, overwhelming they can, be but if you
have a good partner to lean, on they don't have to.
Be we can simplify, things we can consolidate. THINGS i always,
say there's no quote as to how many times you
could come. In you deserve the attention because you're paying for,
it But i'm guessing you're not getting the attention you really.
Speaker 5 (45:47):
Deserve six, one, two, five zero four eighty four. Hundred
that is the number where you reach the folks that
have been financial. Group give them a call, Today folks
set up that. Appointment we're in the fourth quarter and
now is the time that's for. Sure, gentlemen it was Great.
Lance thank you so. Much Thanks.
Speaker 4 (46:05):
Cam we look forward to next week as.
Speaker 5 (46:07):
Well investment advisory service is offered Through Guardian Well STRATEGIES,
Llc Haven Financial group And Guardian Well STRATEGIES llc are
not affiliated, companies and investments involve, risk, and unless otherwise,
stated are not. Guaranteed please consult with the qualified financial
advisor and or tax professional before implementing any strategy discussed,
(46:27):
herein and comments regarding as safe and secure investments and
guaranteed income streams only refer to fixed insurance.
Speaker 1 (46:33):
Products they do not refer in any way to securities
or investment advisory. Products fixed insurance and annuity product guarantees
are subject to the claims paying ability of the issuing
company
Popular Podcasts
My Favorite Murder with Karen Kilgariff and Georgia Hardstark
My Favorite Murder is a true crime comedy podcast hosted by Karen Kilgariff and Georgia Hardstark. Each week, Karen and Georgia share compelling true crimes and hometown stories from friends and listeners. Since MFM launched in January of 2016, Karen and Georgia have shared their lifelong interest in true crime and have covered stories of infamous serial killers like the Night Stalker, mysterious cold cases, captivating cults, incredible survivor stories and important events from history like the Tulsa race massacre of 1921. My Favorite Murder is part of the Exactly Right podcast network that provides a platform for bold, creative voices to bring to life provocative, entertaining and relatable stories for audiences everywhere. The Exactly Right roster of podcasts covers a variety of topics including historic true crime, comedic interviews and news, science, pop culture and more. Podcasts on the network include Buried Bones with Kate Winkler Dawson and Paul Holes, That's Messed Up: An SVU Podcast, This Podcast Will Kill You, Bananas and more.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com