Haven Financial Group Radio - 12/14/25

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Episode Transcript

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 phone 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 (00:55):
Good morning, and welcome to the Haven Financial Group Radio Show.
I'm Larry Colvic, founder and CEO of the Haven Financial Group.
Merry Christmas and happy holidays, and thanks for listening this morning.

Speaker 3 (01:05):
Kim, we got a lot to talk about.

Speaker 2 (01:07):
We also got got Kyle Thomas certified financial planner on
the Haven Investment Team with us today as well.

Speaker 3 (01:12):
And how you doing today.

Speaker 4 (01:15):
I'm very good, Thank you, I'm really terrific. I can't
believe that it's gotten the winter so quickly. Wait, didn't
it happen fast?

Speaker 2 (01:24):
Yeah, we got a we got a winter wonderland here
in Minnesota. We've been spoiled two years in a row,
and let's just say we're really getting winter this year.

Speaker 4 (01:33):
And getting it early, which I'm wondering if that means
getting it early and lasting a long time.

Speaker 3 (01:39):
I'm afraid that could be, but we'll see what happens.

Speaker 4 (01:43):
We got a great show today and I'm looking forward
to this because I think this is an important subject
for so many people. We're going to talk about your
home and what your home means to your financial future,
what it means to your retirement. We're going to talk
a little bit about updating you on the housing market,
which has been certainly in turmoil over the last couple
of years, but seems to be fabilizing some and I'll

(02:05):
look forward to hearing what Larry and Kyle have to
say about that. Retirement tips for empty nesters. We're also
going to talk about property values and are you actually
valuing your property at the right level, and maybe some
of the tips that you need to keep in mind.
And then finally transferring your wealth to the next generation,
which frequently is a transfer that comes through real estate

(02:26):
and through your home, and I think sometimes people forget
that that's a big part of the transfer that you make.
So it's going to be a great show. So let's
get started, shall we reminding everybody that six one two
five zero four eight four zero zero is how you
get hold of the folks that have even financial group.
But if you hear things this morning, you have some

(02:47):
questions about or if you'd like to just sit down
and talk to the experts there about your retirement plan,
give them a call six one two five zero four
eight four zero zero. Larry. A lot of people their
home is a really complex part of their retirement. It's
someplace that they love to be, but might be an

(03:07):
investment they plan to cash in, might be something they
want to hold on to and trying to figure out
how to do so. It can be very complex.

Speaker 2 (03:15):
It can be We certainly included in our retirement financial planning.

Speaker 3 (03:20):
However, we got to live somewhere.

Speaker 2 (03:21):
So when we built out plans for folks, we don't
necessarily include the home as far as their investable assets,
because you've got to live somewhere. But let's face it,
the affordability factor with housing.

Speaker 3 (03:34):
You know, the interest rate environment.

Speaker 2 (03:36):
It changed from a few years ago where people we
got spoiled at two to three percent interest rates and
then all of a sudden it spiked to seven and
a half plus percent. And inventory is coming up, but
prices go up, and the prices are high, and just
this past week, I think they I think I forget
who it was, they said we're going to have a
real estate redo or something like that here coming in

(04:01):
twenty twenty six. So we'll see what happens. But certainly
the house is the main thing. And when we visit
with people, you know that are getting close to retirement,
to common conversation we have is, you know, my knees
aren't so good anymore.

Speaker 3 (04:15):
We're looking for one level living.

Speaker 2 (04:17):
And that's hard to come by these days, and people
are kind of house locked because they can't get the
same house for the same value as they currently have.
So it certainly has been a predicament that people have
been in here in the last couple of years.

Speaker 4 (04:32):
Yeah, absolutely, Well, Kyle, let's talk a little bit about
the housing market as it stands right now and maybe
step through some elements of the housing market that have
either changed or you anticipate might change here in the
near future. The fact of the matter is, you know,
we went from really low mortgage rates to really high

(04:54):
mortgage rates and seem to happen very quickly. Larry tipped
touched on brother the affordability issue. But let's talk about
mortgage rates and where we stand right now. What do
you think twenty twenty six might bring.

Speaker 5 (05:05):
Yeah, absolutely right now. Overall, you know, the national real
estate market is pretty balanced, you know, going forward, I
would I would expect affordability to slightly increase, you know,
meaning more affordable in terms of prices for buyers, just
because of the potentially easing of mortgage rates. We have

(05:28):
seen them kind of slowly start to trend downwards, which
increases buying power for buyers as well. So and there
is a growing inventory as well, which you know, can
you know, if there's more more supply, you know, then
that creates a shift more towards the buyers in terms

(05:49):
of negotiating power, and all of that, so I do
see potential for a good buyer's market with the next
few years in mind ahead for us, especially if those
interest rates can start to come down even further, like
we're expecting, you know, for December here this month, So

(06:10):
definitely it could be good times for buying. You know,
we're not going to get down to the rates that
we had a couple of years ago. I don't think,
you know, we'll see that for a long time, if
we ever see it again, but we should settle in
here with a modest interest rate environment for mortgages.

Speaker 4 (06:28):
You know, you say that it's going to be a
buyer's market, it certainly has been the seller's market for
the last couple of years. I don't know if either
of you, you know, witnessed the open houses and lines
down the street of people trying to get in to
see houses, obviously because there was so little inventory on
the market, which was very much related to the combination

(06:49):
of mortgage rates because people not wanting to give up
their low rate obviously, and the lack of houses on
the market. You know, that just it's been pretty tough.

Speaker 2 (07:00):
Yeah, Existing home sales remain historically low, however, they are
projected to rise the rental market. You know, I just
had somebody in last week that was renting, and man,
I was surprised. I guess I'm so far removed from
the cost of the rental market, but man, to rent
an apartment here in the Twin Cities is I had
no idea was that expensive. So you know, we're expected

(07:22):
to see a little bit of ease come in twenty
twenty six with about a one percent national rent decrease.

Speaker 3 (07:29):
But it all comes down to money.

Speaker 2 (07:30):
And you know, we're in the retirement planning business and
housing is a big part of it. The investment discussion
is a part of it. We looked like to look
at it big picture because all of this is involved
in your retirement planning process. Yes, housing is, but also
your investment and all the other things we do at
Haven Financial Group. And again we do give our advice.

(07:53):
For twenty five years, I've had a real estate license.
I don't practice anymore. I certainly don't have enough time
to practice and certainly have clients that I refer to
that are active in the real estate industry. But yeah,
it's been tough, but I think it's going to change
over time. But I guess we got spoiled by those
interest rates. And you know, when I see somebody come in,

(08:14):
and you know, I'm a big advocate of paying off
your mortgage in retirement if possible, but when I see
folks have two to three percent mortgage rates, it's like,
that's really cheap money.

Speaker 3 (08:26):
I still encourage it.

Speaker 2 (08:27):
But let's not let's not beat ourselves up over a
little mortgage with two to three percent.

Speaker 4 (08:32):
So sure, absolutely, we let's talk about how this relates
to retirement because the issue really for a lot of
retire reason is that they've been in you mentioned this
earlier area, but they've been sort of stuck. There's nowhere
to go. They don't want to give up that low
interest rate for you know, betrayed their house and go
maybe to a smaller property at nine percent, which is

(08:53):
where it was there for a while. We're down around
six six, you know, five and a half probably in
twenty six. But you know, this has been tough for
retirees to make these kinds of decisions.

Speaker 5 (09:03):
Yeah, it really is tough because a lot of retirees
want to go to maybe a rambler type of house
where it's something that they can live in for the
next thirty years and you know, have in home care
if that, if they ever come to that kind of need,
you know, then that way you don't have to move ever. Again.
You can have single level living. But if you're coming

(09:26):
from a place that has a two or three percent
interest rate, it's really hard to sell that and and
give up on that. And I know the administration is
talking about assuming uh, you know, current mortgage rates or
loans that you already have. Who knows if that's ever
going to come into play, but that would change the
game quite a bit because if you could actually move

(09:48):
your current mortgage into a new place, you know, then
you that that whole problem goes away right there. So
but yeah, I mean that's it's definitely a question for people.
And if these rates come down, uh, that'll make it
less of a burden, but it's still going to be
uh you know something that we're probably never going to

(10:09):
really be able to get down to those rates again.

Speaker 3 (10:13):
You know.

Speaker 5 (10:13):
One thing I will say though, is that the the
administration is also trying to push for you know, a
fifty year mortgage that could uh you know, you're not
necessarily you know, shortening the time horizon of your your
loan that you would have, But it's trying to make
things more affordable for people because house prices haven't been

(10:34):
affordable uh for for a little while now, and it's
really hard for people to to buy houses. And you know,
if you get a fifty year mortgage, you're not going
to be in that house for fifty years.

Speaker 3 (10:47):
Right.

Speaker 5 (10:48):
It's more of just that affordability factor. So there is
there is ways to uh to try and you know,
move if you have to and keep it affordable. But
it's definitely you don't want to. I don't want to
give up a three percent mortgage, right, So yeah, it's
definitely a question on just figure out, you know, what

(11:10):
the payments are that you're going to be having, and
you know, just look at what's best for you long term,
not necessarily looking at the only only the financial aspect
of it.

Speaker 4 (11:21):
Well, we wanted to get this this show started by
just talking about the real estate market as a whole.
Certainly real estate market has surprised us all over and
over again in these last couple of years. But to
just sort of sum it up right now, it does
seem like it's balanced, and it does appear that twenty
twenty six is going to be a better year for
the real estate market. So having said that, we're going

(11:43):
to bring that back to what this means for retiree.
So when we come back, we want to talk about
retirement tips for empty nesters. You know, empty nesting is
a big part of why a lot of people do
sell their homes or are interested in doing so, and
we'll talk more about that. The number is six one
two five zero four eight four zero zero. If you've
got a question or if you'd like to chat with

(12:04):
the folks there Haven Financial Group, maybe hitting something that
you really have had some questions about and you'd like
some further discussion, please feel free to call six one
two five zero four before zero zero when we come back.
Empty Masters, this is the Haven Financial Three.

Speaker 1 (12:20):
Don't go too far. We're gathering more important insights and
retirement wisdom the Haven Financial Group Radio Show. We'll be
right back. Stick around. You've got questions, We've got answers.
Your tune to the Haven Financial Group Radio Show with
your host Larry Kulvig and Kim Karrigan. Now back to

(12:41):
the show.

Speaker 2 (12:42):
Good morning, and welcome back to the Haven Financial Group
Radio Show. I'm Larry Kolvig, founder and CEO of the
Haven Financial Group. I'm with Kyle Thomas, certified financial planner
on the Haven Investment team, talking about empty nesters in
this segment Empty Nesters.

Speaker 3 (13:00):
Life.

Speaker 2 (13:00):
I'm not there yet, Kim, but eventually we'll get there.
And I'm not in any hurry with four daughters to
get there, but time will tell. And it's a different
season of life, and we hear about it, and we
want to plan accordingly and not fall into, you know,
some traps and til we want to take advantage of
certain things that we're going to talk about in this segment.

Speaker 4 (13:19):
Absolutely right. Well, I think that you know, when our
kids move on and we realize that they probably are
not coming back, they're visiting, that they're not coming back
to live under the roof, there's a couple of things
that go on. You immediately think, Wow, this is going
to be much cheaper, But that's not necessarily the case.
And there are some traps that you can fall into

(13:39):
beyond the idea that maybe that's the time that you
decided you want to downsize and you want to get
rid of that big house. So let's chat a little
bit about those. For example, avoiding the work less trap,
which sort of falls kyle into the idea that I
just mentioned. People start thinking, well, my life's going to
be so much cheaper without the kids in the house,

(14:00):
so I won't have to work as much.

Speaker 5 (14:02):
Yeah, it's it's definitely a thought that comes into people's minds,
but that is the exact opposite of how we would
want you to be thinking. Right, So, yeah, the kids
are gone, your expenses are gonna be less, you're gonna
have more food in the fridge. But don't stop working less.
You should continue to work the same or even more,
because these are going to be the prime years for

(14:25):
your earnings.

Speaker 3 (14:27):
Right.

Speaker 5 (14:27):
It takes so many years to just climb the ladder,
and you know, climb the ladder financially with what you earn,
and those last ten years of employment are going to
be your most lucrative. So if you can just keep
you know, chugging along there and working hard and saving
for retirement, you know you're going to really, you know,

(14:49):
reap the rewards from that later on, you know, when
you're starting to withdraw from your accounts rather than you know,
saving them when like you are when you're working. So
keep working, don't don't just let off on the pedal
because the kids are gone. You know, maybe maybe you
don't need the life insurance type thing anymore because you

(15:09):
know the kids are off on their own, but you
want to keep working and making sure that you're taking
care of yourself and your spouse if you have one.

Speaker 2 (15:19):
So Jim Kyle doesn't have to worry about that because
with two little little ones at home, that's far from
what he's thinking right now.

Speaker 4 (15:27):
He's thinking, oh, if only right. It comes quicker than
you think, Kyle.

Speaker 3 (15:32):
That's right, it does. It does.

Speaker 4 (15:34):
Let me tell you, you know, this is a great time
in your life that you can really take advantage of
those catch up contributions. In some of your retirement plans
talk a little bit about that.

Speaker 3 (15:46):
Larry, Well, guess what, it's the end of the year.

Speaker 2 (15:48):
It's getting to the end of the year, and we
want to take advantage of those catchup contributions. If you're
over fifty and listening, you can put a little bit
more in and guess what, that can really boost your savings.
And a lot of times people don't take advantage of that.
And if you're talking about savings in your four to
one k you know the new year is going to
be coming. How about increasing the percentage that you're putting

(16:09):
in there. You might not even notice it, and that
will help the retirement savings. And you know, we're very
big into hsas you know, the people underestimate the healthcare
and the expenses that go with that in retirement. We
like to see those balances in hsas as high as possible,
and you're going to be thankful in the future that
you did that. We like them actually, probably even better

(16:31):
than rons. It's tax free going in, tax free growth
and tax free coming out. Now you're saying my language,
I really like that. Okay, So don't miss out on
these opportunities, and part of that is having a partner
that you can lean on to remind you to have
conversations about these things. You know, it's fourth quarter and

(16:53):
we're having I guess I can't tell you how many
IRA to Roth conversions we've done already this quarter. Deadline's coming,
so time is running out because of the end of
the year, and we certainly don't want to leave it
till the last week of the year because it's probably
not going to get done. But people don't have the
tax discussions and they miss out on tax planning and
they miss out on opportunities. I call them unforced errors

(17:15):
or missed opportunities. I don't care if it's five thousand
or fifty thousand, but if you're not, if you don't
have a partner that you can have these discussions. Odds
are you're not even aware of these things. And that
Haven Financial Group happily celebrating our ten year anniversary this year.
People are thankful that we're having these conversations. And it

(17:38):
just amazes me that so many people are not getting
the attention they deserve, that they're paying for, and there's
not the coordination of these retirement topics, and it's so
imperative that there is. People are missing out on opportunities.
And if that, if I just describe your situation, how
about you coming in and let's visit. And it could

(17:59):
start with a visit, We'll start with the conversation and
we'll see where it goes from there.

Speaker 4 (18:03):
You have nothing to lose, well, and it really starts
with a phone call, which is six one two five
zero four eighty four hundred six one two five zero
four eight four zero zero. If you're looking for a partner,
and these times when maybe the nest is empty and
now you're just trying to figure out what to do
with that extra money that apparently a lot of people

(18:25):
feel like they have. You know, Larry, one of the
suggestions I know that people have for empty nesters is
to really keep track of your money, because I think
that's a time when you get a little more loosey goosey,
you know, with the kids around or whatever. You had
maybe more schedules, and this is the time to maybe
be a little more strict about it.

Speaker 3 (18:46):
Oh.

Speaker 2 (18:46):
Yes, everybody loves to talk about a budget.

Speaker 3 (18:49):
We love to talk about a budget, don't we.

Speaker 2 (18:51):
Oh it's so much fun cracking all those expenses and
how many trips to Starbucks and all the other things
that you're spending money on and you may not even
realize it and you tally it up at the end
of the month ago, Oh my goodness, I can't believe
I spent that much. So having a good idea, good
tabs on that, you know, fine tuning that your household expenses,

(19:12):
maybe looking at maybe shopping out those insurances or the
cell phone or you know, memberships and all these different
memberships for TV and all these all these things you
could spend money on and you don't even know where
the money's going. So I certainly think that's extremely important,
you know, considering annuities for stability throughout the course of

(19:34):
the year. We've talked about, you know, I teach a
class a couple of times a year, the truth about annuities.
You know, you know, everybody's got an opinion, and we're
entitled to our own opinions. But they can be used
to guarantee an income stream, or they simply can be
used in a portfolio to guarantee the principle, get some
good growth potential, create diversification in a portfolio. But understand them.

(19:56):
It's why I teach the class, because there's marketing. There's
lots of financi marketing. I hate annuities. You should hate annuities.
Everybody should hate annuities. Well, your Social Security payment is
an annuity payment. Your pension payment, if you're blessed to
have one, is an annuity payment. You're not going to
you're not going to reject those paychecks. But you don't
have to use annuities for payments. They can be used

(20:17):
for accumulation, and I'll tell you we use it as
more of a bond replacement in portfolios.

Speaker 3 (20:22):
If it's the right thing to do.

Speaker 2 (20:25):
They're not for everybody, but I will tell you this,
if you're listening and you have an annuity, seventy five
percent of the folks that I visit with that have
them don't know which one of the four that they have. Now,
I think that's a problem because if you have an
immediate annuity or a variable annuity, or a fixed annuity
or a fixed indexed annuity, I would hope you were
able to answer immediately going I have this one. Seventy

(20:48):
five to eighty percent of the people don't know which
one they have. So if that's you, come on in.
Let's have an annuity exam and we will help you
get a better understanding of what you have. And if
it's a if it's a great thing have. You don't
fix something that's not broke. You only fix things that
could have the ability to be broke. And number one,
you deserve to know what you have.

Speaker 4 (21:09):
Sure absolutely, you know. Let's talk on the same lines
of annuities. We were talking about social security and during
this empty nester time, this is a lot of times
when people are making decisions about social security, and I
think a lot of people think, oh, the kids are gone,
I'm going to work less and I'll just start drawing
by social Security. And that's not really always a great

(21:30):
attitude to have either, right.

Speaker 3 (21:32):
It isn't It should be an educated decision.

Speaker 2 (21:35):
Just this past week, Yes, even in December, we had
social Security and tax class here in the South metro
and even amidst a Minnesota snowstorm, we had very good attendance. Which, yes,
even in the Minnesota snowstorm. Education is where it starts,
and social Security is one of those things that's oftentimes

(21:55):
taken so lightly. Well, I just thought everybody turned it
on at sixty two. That's the earliest you're going to
turn it on. But is that the right decision? Are
you still working? Are you married? There's a whole bunch
of variables that should go into that decision making. In fact,
a statistic that I just read is the average American

(22:15):
loses out on approximately one hundred and eighty two thousand
dollars by making a suboptimal decision on when they turn
on Social Security. Now, if I were to say I'll
deposit one hundred and eighty two thousand into an individual
retirement account, every listener would say, yes, could you please
do that? By the way, I'm not doing that, but
I'm just saying you would accept it. But yet, by

(22:37):
making the wrong decision and turning on social Security, that's
what the average American is giving up. And I will
tell you social security is oftentimes the biggest thing that
folks have in their portfolio. In fact, oftentimes full retirement
age couple will benefit a.

Speaker 3 (22:53):
Million dollars or more in a normal.

Speaker 2 (22:56):
Life expectancy, and for a lot of folks that's bigger
than their portfolio. So it should be an educated decision
and thought through and avoid this. I'm just going to
sock it to the government and turn it on right
away and.

Speaker 3 (23:10):
Do you just watch.

Speaker 2 (23:12):
I don't think that's a good way to make decisions,
but I understand why people say it.

Speaker 4 (23:17):
Yeah. Absolutely, In the end, the government doesn't doesn't so
much care. You're the one who's affected by those kinds
of decision.

Speaker 3 (23:24):
So true.

Speaker 4 (23:25):
Six one, two, five zero, forty four hundred. That is
how you get hold of the folks at Haven Financial Group.
If you're looking for a partner, do you get questions
about you know, some of the things that we've talked
about this morning, maybe you have questions that we haven't
talked about yet this morning. Give them a call six
one two five zero four eight four zero zero, set
up an appointment. Go in and see my friends there

(23:46):
at Haven Financial Group. We are talking about your home
and what your home means to and your in your
situation with your home and what it means to your retirement.
When we come back, we're going to talk about your
property value. Are you giving your home the proper value
and what does that mean for your retirement. You're listening

(24:07):
to the Haven Financial Group Radio Show.

Speaker 1 (24:10):
Ready to find your financial safe haven. Your dream retirement
is in reach. Don't go away. The Haven Financial Group
Radio Show will be right back. Are you worried that
your financial strategy might be missing something, Well, you're in
the right place. Larry Kolvig is back and ready to
help you find your financial safe haven.

Speaker 3 (24:32):
Welcome back, listeners.

Speaker 2 (24:33):
My name is Larry Klvic, the founder and CEO of
the Haven Financial Group. And if you're just tuning in,
you're listening to the Haven Financial Group Radio Show, where
weekly we discuss crucial retirement and financial topics that can
make the difference between surviving retirement and thriving through those
wonderful golden years, which we want them to be golden. However,
a lack of planning may lead to the wrong destination.

(24:56):
It's why ten years ago Haven Financial Group we all
kind of like the lake, we all like water, and
we have a nautical theme. We have a ship's wheel
above above our front desk. And the reason is is
if you get off one or two degrees, you might
be end up in the wrong place and retirement. And
that's what we're helping people avoid, is you get to

(25:19):
the true destination of where you want to be in retirement.
So if you're listening, feel free to give us a
call at six one two five O four eighty four hundred,
visit us online at Hanfinancialgroup dot com. I know it's
the holiday season and we wish you Merry Chrismin and
all the happy holidays. However, now is a great time
to schedule a time to come visit with us. The

(25:41):
new year's approaching. New Year's resolutions. You've been thinking about
an estate plan for thirty five years and you still
haven't done it. You're not doing any tax planning. You
don't even know, you don't even talk to your tax preparer,
whole bunch of retirement puzzle pieces. Do you have the
pieces or are you missing some? Why not start the

(26:03):
new year out the right way.

Speaker 4 (26:06):
Absolutely Again that number six one two, five zero four
eighty four zero zero, that's how you get hold of
the folks there at even Financial group. Home is the
heart of your financial security. That's what we've been talking about,
and your financial strategy, by the way, and that's what
we've been talking about today. We've been talking about your

(26:26):
home and how it plays a role in your retirement.
Lots of moving parts when it comes to your retirement.
Your home is probably one of those. And maybe you're
someone who's been thinking, we are in retirement, the kids
are gone, this is a big house, there's a lot
of stairs, a lot of cleaning. It's worth some decent
money here, and it's time to get out of it.

(26:48):
So before you do that, there's some things that you
really really want to consider. So Kyle, let's start with you.
The first thing is, you know, people need to understand
really what their house is worth, what they bought it
for and maybe what it was worth, you know ten
years in may not be the same thing that it's
worth now.

Speaker 5 (27:08):
Absolutely you know, we get so emotional with our financial assets,
you know, like our investments and you know stocks all
that stuff, but we also get very emotional with our homes.
You know. It's where we spend a lot of time.
Most of our time on this earth is spent in
our homes. Right and you you put years in there,

(27:29):
and you make it your own, and you know, naturally
it's going to be worth more to you than someone
that's just going to come in and buy it. Right,
But we have to we have to detach ourselves emotionally
from that price, because a home is worth what someone's
willing to pay for it. Right there is there is
no you know, stock exchange where you can go see

(27:50):
what's this thing worth. You know, Zillow can give you
an estimate, but it's not exactly correct, right, It's it's
a market system. You know, how many what's the demand
for it, and then how much is someone willing to pay.
You know, there's also a lot of things to consider
that that are going into play there too. There's a
lot of new builds going on right now. So if

(28:11):
someone can get the same square footage, uh, same bedroom,
same bathrooms in a new build as your current house.
You know, that's someone's going to prefer a new build, right,
so we just have to be realistic about what that
home is actually worth and uh and and pricing that accordingly,
and and getting the fair market value out of that,

(28:35):
you know, and and on top of that, there there's
a big cost to relocation, right, there's you see those.

Speaker 4 (28:42):
Hidden costs, right that people don't think about.

Speaker 5 (28:44):
You're right exactly. Yeah, there there's a lot of different
you know, changes in lifestyle that can happen by moving
from one city to the next. Your property taxes, for one,
could be a dramatic increase or decrease hopefully, you know.
Then there's also uh, you know, gas prices. Gas prices

(29:04):
change quite a bit from from city to city, especially
if you're you know going uh traveling further distances. But
you know then you know, restaurants, you know, social clubs
or you know, workout clubs. Right, all of these different
things can make it more expensive or less expensive, just
depending on you know, where you're at too, because you know,

(29:27):
they're there's stigmas with different cities, right, So if you're
looking at you know, Edna, right, that's going to be
a more expensive place. Just everything is more expensive there.
It seems like going out to eat, going shopping, all
of that, right, So you've got to keep all of
that in mind because there is more cost than just
the price of the home.

Speaker 4 (29:45):
Absolutely I could add to that.

Speaker 2 (29:48):
You know, the grass isn't always greener on the other side. Okay,
when we hear often because you know, let's face it,
Minnesota is a high tax state. I think listeners would
agree a very high tax date. So what we hear
often is I'm going to move to Texas, I'm gonna
move to Florida, I'm going to move to South Dakota
or one of those other states, which I completely get.

(30:08):
I understand the whole concept with it. But I think
a Randy who used to live in Lakeville here and
he moved him and his life partner and they moved
to South Dakota, and about every quarter he comes back
and we visit, and you know, he's like, you know,
South Dakota's fantastic.

Speaker 3 (30:25):
He's out on the western side.

Speaker 2 (30:26):
He goes, but man, I didn't realize the property taxes
were so expensive out there. So we always encourage folks,
if that's your plan, check out all applicable expenses and
taxes relative to that state, because yes, it may seem
on the surface that it's much better, but make sure
you do what you should to find out all the

(30:47):
true costs associated with moving. You know, what the benefits are,
what the downside is. Talk through it. And maybe you
have some rental properties. Just this last week I had
somebody they did a ten thirty one change. So when
we're looking at all these ideas, we're incorporating the properties.
If somebody has we'ren't talking, you know, we're incorporating the investments.

(31:11):
One thing the investment team does well is tax loss harvesting,
whether that's with real estate or the investments. We can
say we save people money every year by doing this.
So it's the it's the full retirement approach. It's making
sure that the investments to go with the estate plan,
go with the insurance go. They all work together, and

(31:31):
if they're not working together, they work a part. And
that's what we're trying to avoid in retirement.

Speaker 4 (31:36):
Absolutely. I'll tell you another thing that people have to
think about, and that would be capital gains tax and
what that might do to you. Explain that just a
bit if you would, gentlemen.

Speaker 5 (31:47):
Yeah, yeah, So there's there is capital gains that can
be you know, taxed for your house. So for example,
a single person can have two hundred and fifty thousand
dollars of gains on their house before they start having
to pay tax. So, if you buy a house for

(32:08):
two fifty, you sell it for five hundred as a
as a single person, you're going to have no capital
gains tax. Well, if you bought it for two fifty
and you sell it for any amount over five hundred,
you're going to pay capital gains tax on the amount
that's over five hundred. Now for a joint married people

(32:30):
you get five hundred thousand, so two hundred and fifty
thousand each for gains. So if you buy something together
for two hundred and fifty thousand and then you sell
it for seven hundred fifty thousand, that's going to be
completely tax free, but you're gonna have to pay capital
gains tax on any amount over seven hundred and fifty.
So there is taxes that can come into play. Typically

(32:55):
that's you're going to have to live in that house
a pretty long time in order for that to come
about for you though, So you know, there there are
many people that we meet with that have been in
their houses for twenty years, and if they decide to
sell that house, that could actually be a realistic scenario
where they end up, you know, paying some taxes. So

(33:17):
and also, you do have to live in that house
for two of the last five calendar years in order
to qualify to not pay taxes for you know, the
two hundred and fifty thousand and the five hundred thousand.
So as long as you're living in that house for
two of the last five years, you don't pay capital
gains tax. You know, if you were to only have

(33:38):
lived in a house for one year and you have gains,
you're gonna have to pay tax on those gains. So
just got to be there two years to not pay
that tax.

Speaker 4 (33:48):
And as we continue to talk about, you know, a
little hidden expenses that maybe you're not thinking about because
you've lived in your house for twenty five or thirty years,
you haven't sold a house. This is an interesting one.
Double closing costs. Can you guys address that. That's just
something people need to keep in mind.

Speaker 5 (34:06):
Yeah, closing costs can be can be very expensive. You
know when you take into consideration, well, just the closing
costs themselves, but then also real at oor fees. You know,
before you know it, selling your house, you're you're paying
you know, six percent, but then you're also going to
be buying something else where there's gonna be other fees

(34:27):
as well. And in Minnesota had some new rules, uh
come about this last year where you know, buyers agents
are paid differently now and I'm I'm not an expert
on that, but uh, the costs are definitely in there,
and and you should expect on both sides that you're
going to be, you know, paying upwards of five to

(34:49):
six percent, you know, for each transaction. And and that's
when we're talking you know, five hundred thousand dollars house.
That's a lot of money. And and that's something that
we need to do a count for because yeah, you
could list your house for five hundred thousand, but what
are you actually going to receive from that after the
closing costs and the real litur fees.

Speaker 2 (35:09):
And I'll add to that, I always say, nothing's free, okay,
but what value are you getting for what you're paying?
Understanding the costs and what is that value? And I'll
take it full circle to conversations we have with folks.
I asked, folks, what are you paying your guy or
gal to manage your money? Maybe you do it yourself

(35:29):
and that's fine, but it may come a day where
you don't want to and you want to rely on
a professional. We do wealth management obviously with Fidelity and
Charles Schwab, and we're not small by any stretch. In fact,
we're growing rapidly. But I ask folks, what are you paying?
And you know the answer I get seventy five to
eighty percent of the time. That's a really good question.
We have no idea, And my point is why don't

(35:52):
you know? Why don't you ask? Why isn't there transparency?
You don't have to pay two to three times to
going rate all in, you don't have to. You can
if you want to. The problem is most people don't know.
It's a very competitive industry and you should not be
afraid to ask that question. We believe transparency should be expected.

(36:13):
You truly shouldn't have to ask, but if you have to,
don't backpedal and don't walk away from it. Find out
what you're paying. Or let's get a second opinion and
we'll do a cost analysis and we'll do a comparison.
So It's just one piece to that retirement puzzle. What
costs can we control and what costs can't we control?

Speaker 4 (36:33):
Absolutely six one, two five zero for eighty four hundred.
You can control your ability to go to the phone
and call the folks that have in financial group, sit
down and chat with them about a retirement portfolio and
any questions you might have related to retirement for that matter.
For that matter, money management also in there, and obviously

(36:56):
the subject that we've been talking about today, and that
being your home and transferring the wealth of your home
either to you or to the next generation. And that
is the subject of our next segment here from the
Haven Financial Group Radio Show.

Speaker 1 (37:10):
Don't go too far. We're gathering more important insights and
retirement ways Devin the Haven Financial Group Radio Show. We'll
be right back. Stick around. You've got questions, We've got answers.
Your tune to the Haven Financial Group Radio Show with
your host Larry Kolvig and Kim Karragan. Now back to

(37:30):
the show.

Speaker 2 (37:32):
Good morning once again, and welcome to the Haven Financial
Group Radio Show.

Speaker 3 (37:36):
Thanks for listening.

Speaker 2 (37:37):
Merry Christmas and happy Holidays to all the listeners out there,
and feel free to give us a call. Yes, it
is the season, but maybe it's the season to review
what you're doing for retirement. Maybe you don't even know
what you're doing for retirement or what the plan is
six one, two, five zero four eighty four hundred. Visit
us online at Havenfinancialgroup dot com our upcoming classes this

(37:58):
month at even two thousand, twenty six classes we teach
a variety of those kim as you know, social security
and tax investment classes, truth about annuities, medicare made Simple,
et cetera, et cetera. Check out our website. You're more
than you're more than invited to attend. There are a
lot of them. There's waiting lists, so I encourage you

(38:19):
to do that in advance. And you know, we're going
to talk a little bit here about transferring wealth, the
Great Wealth Transfer and it's obviously important to people because
our good partners from Provision Law, Carrie and Keith, we
just had a in Lakeville a Wills Trust and Legacy

(38:40):
planning two educational events in the last two weeks. Waiting
lists full rooms, people wanting to know how do they
accomplish their goals of transferring whatever it is, And right away,
I think the listeners are going, oh, that's only for
the rich people.

Speaker 3 (38:56):
It's not.

Speaker 2 (38:57):
It's for whatever you have to transfer it of probate.
So again it's just extremely important.

Speaker 4 (39:03):
Well, it's if you own a home, if you own property,
then that this is an issue that you need to
address or certainly need to be thinking about transferring your
wealth to the next generation. And your home is included
in that. And if you know your intention is not
to downsize, but you want to stay in that house,
what happens to that house after you have passed away?

(39:25):
Where does that house go? So let's talk a little
bit about that. First off, I was just blown away
by this stat Kyle. Baby boomers are expected to transfer
more than fifty trillion dollars in wealth in the next
twenty years. That's a lot of money. And that's that
when you sit down with folks and you start talking

(39:46):
about transferring wealth, what's the first thing people need to know.

Speaker 5 (39:50):
Yeah, well, fifty trillion dollars. That is a lot of money.
And that flashes the rat alarms, saying that we need
to do some estate planning and making sure everyone ones
objectives are aligned with what, you know, what they want
to have happened. So and you know, when it comes
to the home, that's something that is something that needs

(40:13):
a lot of attention. You know, we don't we need
to make sure that we have homes properly titled or
have proper designations, because one of the things when we
talk about a state planning is trying to avoid probate, right,
that's one of the big goals. And if we don't
have any beneficiary a transfer on death deed for our home,

(40:33):
or we don't have it owned in a trust, it's
probably going to go to probate or it will go
to probate. Right, So that's one of the first steps
when we talk about, you know, transferring wealth to the
next generation. In regards to homes, you can just go
to the county's you know, recorder's office and pay forty
six dollars to have a transfer on death deed to

(40:53):
your kids. Or if you have a trust, we can
just change the title of the house to be the
trust and you avoid that probate process altogether. So definitely
something to look at. And also all of your other
financial accounts should have beneficiaries on them too, just just
like the house, right, So that's how you avoid probate.

Speaker 3 (41:13):
With that.

Speaker 5 (41:15):
And just making sure that we can transfer this these
funds to the next generation without having to go through
a court process because that also has fees, you know,
anywhere from three to seven percent of the estate. We
want to avoid that. We want to get the most
money we can into our airrors pockets, you know, as
much as possible.

Speaker 4 (41:35):
Now, one of the ways to do that is to
start to transfer wealth while you're still living.

Speaker 5 (41:39):
Correct, absolutely, And that's that's becoming a really popular trend
with people because rather than you know, giving it to
them after you pass away and not being able to
see the benefits of that on this earth, you know,
you can transfer it to them while you're living and
you can see the real impact that you're making on
their lives. Maybe you're helping them with a down payments,

(42:01):
maybe you're helping them pay off college debt, right, or
maybe you're just helping them buy their dream home. So
that's definitely something that people are doing to see the
benefits in their children's lives or grandchildren's lives. But it

(42:22):
also can help you in your own situation, especially if
you're running into those lifetime exemptions for limits, right, and
some people say, oh, I'm never going to reach those limits. Well,
Minnesota is three million per person, and it's been three
million per person for a while, so I don't really
expect Minnesota to have an appetite to change that going forward.

(42:48):
You know. So you can have three million dollars to
your estate before it starts to get taxed, right, And
if you're thinking three million dollars, that's a lot of money. Well,
this includes everything in your state, your investment assets, your house.
And if we live another twenty thirty years, the rule
of seventy two says a lot of people could get
to three million. Right. Assets are going to grow, Inflation

(43:11):
is going to be there. Things are going to be
worth a lot more in twenty thirty years than they
are right now. So we need to do a state
planning for everyone because it's probably going to be impactful
for everyone as well.

Speaker 4 (43:26):
And I think it's really important and I realized this
is pretty obvious, but it's really important for people to
understand that state planning is individualized. So while we're talking
about this in generalities here on the radio, it's really
important for you to sit down with someone who can
help you step through the best plan for you to

(43:48):
transfer your wealth, whether that's while you're living or if
that's after you've passed away. Larry, I don't think i'm
speaking out a term there right.

Speaker 3 (43:55):
No, the best thing to do is give us a call.

Speaker 2 (43:58):
We set up no call consultation with Krrie or Keith
here at our office because a lot of times we
live in a very litigious society. You just don't want
to just put a tod on some property without thinking
through all the complications that it's one to buy, two
to sell at real estate. If you give it to
three kids, then they're all married, the spouses have to

(44:19):
sign off on it. So you just don't want to
do something because somebody told you to do it. You
want to make sure you're making the right decisions, having
the right documents, either a trust, a will, transfer on
death deed, powers of attorney, all that is important. Another
and again, people are giving it away earlier.

Speaker 3 (44:37):
It is a trend.

Speaker 2 (44:38):
I agree with Kyle that hey, I'm going to gift
some right now while I'm alive when the kids need it,
rather than waiting till I die and then I don't
get to see the fruit of what I'm giving them.

Speaker 3 (44:48):
I think it's a great idea.

Speaker 2 (44:49):
At as long as it's not to the detriment of
your own retirement plan. So I want to offer that.
And the other thing that can truly decimate any estate small, medium,
or large or extra large is long term care nursing home.
And none of us want to talk about it. You know,
if we don't talk about it, then it won't happen. Well,

(45:10):
that's not true. Seventy percent of us are going to
need some sort of long term care services in our lifetime.
Seventy percent. Yet a very small percentage have ever even
looked at long term care options, which are much more
viable options.

Speaker 3 (45:27):
Than there used to be.

Speaker 2 (45:28):
You know, the traditional long term care is still around,
but there's hybrid long term care, there's asset based long
term care, and if I'm speaking a foreign language, come
on in and visit with Glenn. Much better viable options.
Another thing I'll add to because it is getting the
end of the year. If you've taken a required minimum
distribution and you don't need the money, why not do

(45:50):
a qualified charitable distribution a QCD. You give it to
the charity of choice, get the tax benefits on both ends.
Maybe a big income here, and you want to do
a donor advice fund for tax planning purposes. Look at
all your options. But again, if you're not having a
partner to lean on to have these conversations, you're going

(46:14):
to miss opportunities unless you're really really sharp and doing
all the research. And from what we see, a lot
of times people just don't know what they don't know.

Speaker 4 (46:23):
Sure absolutely, which is understandable. So seek out a partner, folks,
to help you with all of the subjects that you've
heard us talk about here this morning, and so many
more that partner can behave in financial group. Give them
a call at six one two five zero four eight
four zero zero at six one two five zero four
eighty four hundred. Tell them you heard us here on

(46:44):
the radio. You'd like to set up an appointment cost free,
go in and sit down with the folks there at
Haven and chat a little bit about some of the
questions that you have, some of the goals that you
have for your retirement. Maybe you've already got a portfolio
quick you think it needs to be reviewed. They're happy
to do that as well. Larry Kyle, great fun to
be with both of you this morning, and thanks for

(47:06):
all the great info.

Speaker 2 (47:08):
Good to be with you as well, and again, Merry
Christmas and happy holidays to all the listeners and Kim
we look forward to being with you next week.

Speaker 5 (47:15):
Investment advisory service is offered through Guardian Well Strategies LLC.
Haven Financial Group and Guardian Well Strategies LLC are not.

Speaker 2 (47:22):
Affiliated companies, and investments involve risk, and, unless otherwise stated,
are not guaranteed.

Speaker 4 (47:28):
Please consult with the qualified financial advisor and or tax
professional before implementing any strategy discussed herein, and comments regarding
as safe and secure investments and guaranteed income streams only
refer to fixed insurance products.

Speaker 5 (47:40):
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.