Episode Transcript
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Speaker 1 (00:00):
You've worked hard for your money, but do you know
how to make it work hard for you. You need
a team with experience, vigilance, and a strategy to help
you live the retirement you deserve. Find your financial safe
haven with Haven Financial Group. Today you're listening to the
new and improved Haven Financial Group Radio Show, where we
bring you comprehensive weekly financial wisdom from the professionals. It's
(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 (00:54):
Good morning, and welcome to the Haven Financial Group Radio Show.
I'm Larry Kolvig, founders CEO of the Haven Financial Group.
Thanks for listening this morning. Give us a call at
six one two five zero four eight four zero zero
or online out always Havenfinancialgroup dot com. All kinds of
retirement tools are classes again this week. Very well attended, Kim.
(01:16):
Good to be with you. A lot to talk about
today on the show, but great to be with you.
Speaker 3 (01:22):
Great to be with you too, and happy spring.
Speaker 2 (01:25):
I sure hope. So it's got to be here sooner
or later. But I think it is here is now
that we had some milder temperatures this past week. So yeah,
the ice is out on the lake, and I think
people are you know, they're getting they're ready.
Speaker 4 (01:38):
Yeah, oh, people, you know, you get to this time
of year. And with Easter being a little bit late
this year, that does make it a little better for
me because I'm very hopeful that Easter could be a
nice Sunday versus you know, I can remember when the
kids were little and they'd be out hunting Easter eggs
with their big parkas on, and that's a little discouraging.
Speaker 3 (01:57):
So yes, well, for you know, we got another.
Speaker 5 (01:59):
Week, but we'll hope for a beautiful Easter Sunday.
Speaker 4 (02:03):
I am very much looking forward to this show, and
I'm going to tell you, for selfish reasons, I'm happy
that this show pertains to others and not to me anymore.
Speaker 3 (02:13):
But you and I have walked this walk, and I know.
Speaker 4 (02:16):
You're still walking it a bit, but it's really interesting
in a really really important show. I wish that people
would have talked to us a little more about this.
And what we're talking about is college planning and family wealth.
You know, I was reading some statistics and Larry some
colleges in the Northeast this next fall, one hundred thousand
(02:41):
dollars are going over the hundred thousand dollars mark. That's,
of course tuition board, but one hundred thousand dollars to
put your kids in college for a singular year. So
people really do have to start to prepare for this,
and it seems like they should start preparing even earlier
than having chilln So we're going to take a look
(03:02):
at some of the topics today, the college planning situation today,
rules and strategies four five twenty nine, Universal life insurance
for college and other expenses, which is really an interesting one.
And then finally well stability and family finances. So I'm
looking forward to this conversation.
Speaker 3 (03:20):
You understand this completely, don't you.
Speaker 2 (03:22):
I do. Yeah, it hits home pretty big time considering
my wife and I have four and four different colleges
from med school in North Carolina to the University of
Kansas to one at Bethel and one at Mount Mercy
and Cedar Rapids, both the twins graduating the spring. But
you know, college costs one hundred grand and Kim, how
in the world can they ever get out of that hole?
Speaker 3 (03:43):
That's it.
Speaker 2 (03:44):
It's frightening. And whether your you know, kids are in
diapers or touring campuses and anything in between. We always
know because you hears say it every week. Time is
of the essence and it really takes a plan because
we know how fast those years get here. And we're
going to talk about the power of pounding and a
segment on universal life. Glenn Raimi, our insurance specialists, will
(04:04):
be on for that segment. Powerful tool a lot of
people overlook and the course five twenty nine plans you
and are going to talk about. So whether you have
grandkids or your own kids, now is the time to
start planning from that because a lot hinges. I'm big,
We're big into education, but at the same time you
have to weigh the costs associated with it, and unfortunately,
(04:27):
I do see folks over the years that have really
dwindled their retirement years and their moneys because of college costs,
tuition enabling kids, and that's also scary because you build
up for these retirement years. All of this is part
of the planning process that necessarily isn't fun. But if
(04:49):
we're going to be ready for it, we got to
start now.
Speaker 4 (04:52):
Absolutely. Well, let's talk a little bit about that kind
of planning. And first thing I'm going to ask you
is how soon is too soon to start planning for college?
Speaker 2 (05:02):
Like I say every week, there's no time, is too soon,
no time. Now. Your pocketbook has to be able to
afford it, obviously, and it's oftentimes that's difficult because you
mentioned one hundred grand on the East Coast, which I
know is the highest. Although when I was looking at this,
I found out Massachusetts has the highest tuition in Delaware
has the lowest tuition in the fifties states. I thought
(05:24):
that was interesting. Averages for in state range from eighty
nine hundred to about twenty grand. For out of state
students for the public college, private colleges anywhere from twenty
seven grand up to sixty grand. And you know this,
that's home because I did my first four years at
Bethel and I'll day myself a little bit here today,
I'm not afraid to do so. I graduated with my
(05:47):
four year from Bethel Private College here in the Twin Cities.
When I went, it was ten to twelve thousand. Today
because our daughter goes there, it's about fifty to sixty thousand. Yes,
and I'm fifty five years old. For the listeners that
I want to go, how old is Larry now? It's
out in the open. So we got that that has
(06:07):
some huge, huge reach increases over this time. And I
get into these debates as well. And me and my
wife included when we talked about college tuition. My parents
made me have skin in the game and for many
if you're able to take care of it all great.
Me and my wife had differences on this. I think
(06:30):
skin in the game is important because if it's a
free gride for your kids because mommy and dad are
picking it up, if you're fortunate enough to be able
to do that, great, If that's what you choose to do,
more power to you. But I felt over the years
that skin in the game, where they have to pay
at least something, is important, and you know, I think
it teaches them something.
Speaker 4 (06:49):
In my opinion, I'll tell you my two children graduated,
one graduated from well, they both graduated from private colleges,
and both of them were north of sixty five thousand
dollars a year. And both of our.
Speaker 5 (07:04):
Kids have skin in the game as well.
Speaker 3 (07:07):
And I think it.
Speaker 4 (07:08):
My daughter would tell you it made her think on
those nights when everybody was going out and she didn't
want to go out because she needed to study, you know,
because she thought, if I don't study this grade, tomorrow
is not going to be great.
Speaker 3 (07:23):
And why am I?
Speaker 5 (07:23):
Why am I in these classes? So I think skinning
the game.
Speaker 4 (07:26):
I was a kid who was lucky enough not to
ever have any skin in the game. Mom and dad
took care of everything. My husband did not, and he
was somebody who we paid after we got married.
Speaker 5 (07:36):
So I think, you know, it works both ways.
Speaker 4 (07:39):
But I understand exactly where you're coming from when you
talk about that.
Speaker 2 (07:43):
Yeah, I mean, I think it's important that you teach
him at a young age to you know, there's no
free lunch. But again, if you're fortunate to be able
to pay, but now is the time to be thinking.
If your grandparents or maybe you have little babies, the
quicker you can start doing this because it's real tax
on families, especially the baby boomer and the gen x
(08:04):
eras what college costs we're there are completely different, So
you know, this is important discussions. How far can you
spread out your money, you know, especially during high inflation,
the stock market being down and all this. We're going
to talk about that on today's show.
Speaker 4 (08:21):
Sure, absolutely, you know one of the other things that's
a real debate now, Larry and I obviously in your
household you have four young women, all of whom are
being educated, and we made the decision as well at
our house, but there is a big debate about the
value of a degree at this point. What do you
(08:42):
say to some of your clients who come in and say, Larry,
you know, we're thinking about not saving because we don't
think that it's worth it.
Speaker 2 (08:49):
Well, we're very big into education. However, at what cost
is too high of a cost? Because a colleagues degree
does hold significant value in the modern job market. Fact,
it opens door doors to higher earnings potential. Some jobs
require a college education for specialized skills, and in previous
(09:10):
years this, you know, a high school diploma would have
been adequate. So I think it still carries a lot
of value. Now. It's interesting in the last in recent
years though, that the trades. I've seen a lot more
kids get into the trades, and there's a great opportunity
in there for jobs and job security. We need tradesmen
that I've seen do very very well and incurring very
(09:33):
low college costs, you know, at the trade schools. You know,
I teach at Dakota County Tech, so I run into
some that are out there. But you really got to,
you know, give it some thought because the purchasing power
of the dollar today isn't what it was in previous generations.
And you know, let's face it, at what point of
student debt does that hole get so big that it
(09:54):
takes many many years to get out of. I had
a couple in last week that they were referred to us,
and he's a medical doctor at the Children's Hospital in
Saint Paul, and they're in their low to mid fifties
and he goes, Larry, I dug a huge hole with
medical bills, and he did, Now, their earnings potential is there.
They're doing. I had to assure them that, you know,
(10:16):
even with the big debt burden that they are doing,
they're really really on track. But again, hold, how big
of a hole is too big to dig out of?
Because there's no guarantee even getting out of college that
you're going to find the job that you want, and
certainly to the degree maybe the pay that you're expecting.
Debt is a big discussion. There's good debt and bad debt.
(10:38):
I'm all about education. Everything costs more, and it's not
just the tuition, Kim. It's the room, the board, and
the feed, the books and all of those things. That's
we've seen significant increases all across the board, not just
in one or two areas, it's really all the areas.
Speaker 4 (10:55):
Yeah, absolutely, Yeah, people don't be fooled by tuition costs
because that's just a portion of what it is that
you're paying when you're sitting your kids away. Our number
is six one two five zero four eight four zero zero.
That's how you reach out to Haven Financial Group. And today,
if we're talking about something that you know brings true
to you and you've got some questions. You're maybe getting
(11:19):
ready to start a family, or you've got kids who
are starting to think about going to college and you've
got some questions, the number is six one two five
zero four eighty four zero zero. We're going to explore
some ways in which you can begin to save those
dollars for college educations, and as Larry said, there are
(11:40):
ways that you might want to get involved in immediately.
Speaker 3 (11:43):
So that's coming up next.
Speaker 4 (11:44):
We're going to talk about five twenty nine's right here
on the Haven Financial Group Radio Show.
Speaker 1 (11:50):
Don't go too 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 Kulvig and Kim Karrigan. Now back to
(12:10):
the show.
Speaker 2 (12:12):
Good morning once again, and welcome to the Haven Financial
Group Radio Show. I'm Larry Kolvig, Founder and CEO of
the Haven Financial Group. Give us a call at six
one two five zero four eight four zero zero or
Havenfinancialgroup dot com. Check out all the classes the ongoing
classes throughout the year, from investment classes to Medicare classes,
(12:33):
the social security and tax just had two big events
with Will's Trusts and legacy planning with our legal partners
Provision Law Firm. All these things are so important and retirement.
I've just heard it this week again, Larry. This retirement
thing is so complicated. Our job at Haven Financial Group
has tried to simplify things to the best of our ability,
(12:55):
and it's really starts with the education piece. Because I
ask all the time, how many of you remember growing
up all the classes that taught you how to make
all the perfect retirement decisions. Any overwhelming response is we
don't remember hardly any of those classes. So it's never
too early to start.
Speaker 4 (13:14):
Learning, absolutely, And today we're specifically talking about saving for
college educations and maybe that's your grandchildren, maybe that's your children,
but ways to do it that keep you from having
to dip into retirement funds or putting your financial situation
(13:35):
under stress.
Speaker 3 (13:36):
We've talked about the fact.
Speaker 4 (13:37):
That college education is getting to be so ridiculously priced,
and certainly shopping for a college that meets your financial
situation is a smart thing to do. I think Larry
would agree with that for sure. But there is a
plan out there called five point twenty nine. And for
people who maybe are not familiar with saving for college, Larry,
(13:58):
maybe you could start by just explaining what of five
twenty nine is.
Speaker 2 (14:02):
Yeah, there's numerous other ones out there too, you know
old school ones like utmuhs and ugmahs, but the five
twenty nine, it's been around for a while. It's just
a way to save in a certain plan that is
designated for future qualified expenses. But they're more flexible than
people that give them credit. We do help people get
them set up, you know, finance one on one. Bilos
(14:25):
sell high. The market's taken a beating here the last
couple of weeks, and that student or student that may
go to college, maybe very young, and it might have
fifteen to twenty years of compounding returns where you could
take more risks because of the good value and some
of the things that are out there. It can grow
tax free, which we love tax free, and then comes
(14:47):
out tax free if used for what it needs to
be used for. And when I say that, people automatically
think it only can be used for qualified medical or
qualified educational expenses. But it's much more than that. It
can apply to room and board, it can apply to books.
You can use it for K through twelve tuition up
(15:08):
to ten thousand dollars per year, and that's a newer
law now. I encourage folks to check out applicable rules
and regulations and taxes in various states, because states do vary,
that's for sure. Maybe they've already racked up some student
loan debts and you can repay the student loans. This
is another newer one, up to ten thousand dollars per
(15:29):
beneficiary and if well, you have a child that doesn't
go to college. A lot of people don't know you
can switch beneficiaries as long as another family member. It
can be done without penalty, as long as it's done
for qualified uses. So there's a variety of different things.
Another one people don't think of, even though people are
(15:52):
familiar with roth iras. As of twenty twenty five, yes,
this year, up to thirty five thousand in unused funds
can be rolled into a roth ira if the account
is at least fifteen years old. And just recently I've
had clients that they fell into that bucket. So there
are a lot of different things out there that you
(16:14):
can do. But the problem is if you're not really
being exposed to them, nobody explained them to you and
the rules and regulations that go with them, you might
very well be missing out in opportunities, maybe cashing them
in and having to pay income taxes on it when
you didn't know there were all the various options that
were out there. You know.
Speaker 4 (16:33):
I think what you were just saying about the new
rules here in twenty twenty five and that you can
roll up to thirty five thousand dollars into an IRA,
that's something that has not existed, you know, before or now.
And I think that's a really important one to streuss
to people because I think it's a question that a
lot of people have. What if I put that money
(16:55):
in there, I have kids who don't end up not
going to college, or we don't spend all of it,
then what do we do? And obviously that sort of
changes the landscape.
Speaker 2 (17:05):
It's a great opportunity, and it is new this year,
and it frees up the opportunity to get more money
in WROTH so it doesn't go unused. It can go
into your individual retirement accounts. More WROTH you have in
the retirement. The happy people are our tax free coming out. Hey,
why wouldn't we like it? My encouragement would be, though,
with these five twenty nine plans, make sure you keep
(17:28):
receipts and again more receipts, yes, but please keep receipts,
I said earlier, no incentives or perks that individual states have,
some have, some don't. So you're going to want to
know what deductions can be used or what credits are
available for students. Just knowing all these different things that
(17:48):
are available to you. Again, if they're not going to school,
there's no age and when five twenty nine funds can
open up for non educational use. However, education isn't going
to be maybe be in the cards of all everybody,
and that's okay. Just know what your options are, what
the rollover rules are. Just be aware that non qualified
(18:09):
withdrawals are subject to income tax and potentially of penalties,
and we never want to encourage more tax implications or
penalties than we have to. But again it starts with
understanding your options. Now, I said it earlier, Start early,
Start early, Start young, because that power of compounding over
a long period of time can yield The next segment,
(18:32):
Glenn's going to talk about life insurance and how he
just recently helps some folks out this year and what
those numbers look like. Are a great way to prepare
those kids or grandkids or loved ones for those major
expenses when they get to that age, and you and
I both know that it's when it seems like even
if there comes a long way in the distance, but
(18:55):
you know as well as I that that distance, that
gap fills in really ly fast.
Speaker 3 (19:01):
Yes, it certainly does.
Speaker 4 (19:02):
Let me go back, Larry to the fact that you
said that you set these up for people.
Speaker 3 (19:07):
What do people need.
Speaker 4 (19:08):
To set one up? What's what's the requirements?
Speaker 2 (19:11):
Very little requirements. You just open us a special SEP
account that can be done. We ve Schwab and Fidelity Investments.
The Minnesota has a set but can be set up
through the state. There's other variables out there, but it's
not much more than just opening an account and following
the proper contributions that are out there. Not difficult. And
(19:34):
again time is of the essence, so why not look
at it. You know, if you don't have the disposable income,
well at least you know what options are out there.
Maybe that isn't today, maybe that's a year from now
or two years, whatever it is. They're not complicated and
again understanding the rules and come out in a visit
with us. It doesn't hurt anything and it doesn't cost
(19:54):
you anything, and maybe you'll find out that that is
a good thing to do, because we have clients that
have done that continue to do that for their grandkids
rather than just give them frivolous gifts throughout you know,
their birthdays, they do something like this in lieu of
or in addition to other things that they gift. So
(20:14):
just a really effective way of gifting to the to
the younger generation.
Speaker 4 (20:19):
I don't think you talk about the fact that it
has to be qualified educational you know needs Now does
does our states do they restrict that it has to
be used in a state school or couldn't those dollars
be used wherever a student chooses to go to school.
Speaker 2 (20:34):
They can be used wherever they choose to go to
school any again, tuition, state private, it can be even
like I said, for K through twelve, for PRIE private
K through twelve school tuition. Again, there's really no no
major rules or regulations. Again though it can be used
(20:55):
for repaying student loans. It could be again keep receiving,
but it could be used for a variety of things.
Speaker 4 (21:01):
Okay, terrific six one two five zero four eight four
zero zero. Maybe you've been talking about, you know, wanting
to look into a five twenty nine. Maybe your children
are you know, young, or you have no children, or
you have grandchildren and you'd like to gift them dollars
that you've saved through a five to twenty nine plan.
(21:22):
Feel free to call the folks at Haven Financial Group
at six one two five zero four eight four zero zero.
Speaker 3 (21:28):
While you're there, why.
Speaker 4 (21:29):
Don't you sit down with the experts talk a little
bit more, not just about college savings, but about putting
together a comprehensive retirement plan that makes sure that you
live those golden years exactly the way you've always wanted to.
It's six one two five zero four eight four zero zero.
You can also go to Heathen Financialgroup dot com and
(21:50):
learn more about some of their educational seminars that are
coming up in the next.
Speaker 5 (21:54):
Couple of months.
Speaker 4 (21:55):
All right, Coming up next, we're going to talk about
universal life insurance for college and for other expenses. Glenn Remy,
he is an insurance specialist there at Even Financial Group.
He's going to be our guest and we'll chat with
him about the benefits and as Larry mentioned, a family
that he's just recently helped use exactly this kind of system.
So that's coming up next. Right here on the Haven
(22:18):
Financial Group Radio.
Speaker 1 (22:19):
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
(22:39):
to help you find your financial safe haven.
Speaker 2 (22:43):
Good morning once again, and welcome to the Haven Financial
Group Radio Show. I'm Larry Kolvig, founder and CEO of
the Haven Financial Group. This segment we got Glenn Ramy,
our insurance specialist, one of them at the Haven Financial Group,
talking about college costs, expenses, what you can do to prepare.
But if you're not at that age, or maybe you're
(23:05):
just worried about your own retirement. Although this show today
is on college and how to plan, and you're worried
about your own retirement, that might be another reason to
come on in visit it with us on any of
the retirement topics that we really specialize, which is all
the retirement puzzle pieces. To make sure your puzzle looks
like it's all going to be put together in the
(23:25):
way it's supposed to. So we encourage you to give
us a call six one two five oh four eighty
four hundred or visit US online. Kim, it's great to
have Glenn with us again talking about how life insurance
can be very valuable in preparing for those college costs.
Speaker 4 (23:42):
Well, this is so interesting to me, Glenn and Larry,
and it's great to have you, Glenn, because you know,
life insurance for the longest time was just about people
passing away and leaving you money and that's that.
Speaker 3 (23:57):
But it is we're taking on.
Speaker 4 (23:58):
This new idea of life insurance, you know, during the
course of our life as we live, and boy, I
can't imagine a better way than possibly helping our grandkids.
Speaker 5 (24:10):
Or our kids go to college.
Speaker 3 (24:11):
Five twenty nines are great.
Speaker 4 (24:13):
There are some restrictions, but Glenn, my understanding is that
there are fewer when it comes to universal life insurance.
Speaker 1 (24:19):
Yeah.
Speaker 6 (24:19):
So I actually have a personal experience just this year
and helping a couple with something exactly like that, two
young children with a couple that were both well earning engineers,
and they were looking for ways to fund college for
their kids in a way that wouldn't have strings attached, could,
if structured correctly, be tax free distributions. To help their
(24:41):
kids with their college expenses, and considering college has increased
forty times since nineteen sixty three, even in just with inflation,
that's a two hundred percent increase in what people are
paying to go to college nowadays. And the fact that
college degrees are much more of a requirement and entry
even in our occupations that never used to need a
(25:01):
college degree to enter, right, it's that much more important
to know what are our tools available for planning, not
just one, but all of them, to see which one
is going to fit right for us. And that example
I have there is this couple funding life insurance. In
a ten year period of time. They were going to
put five thousand away per per per child per year
to over ten years fifty thousand per child, and to
(25:24):
a cash value building life insurance policy where gains are
sheltered from any taxation, no dividends or capital gains tax
owed each year on the interest that they're accumulating within
those policies, and they were going to end with probably
close to one hundred and sixty thousand dollars available for
their killed kids to use for college expenses. And because
it's not in those more restrictive options like a five
(25:45):
to twenty nine plan. It can be used for expenses
that might not seem needed in association with college right
above and beyond just room and board and tuition. Right.
In addition to that, let's say we have a more
entreneurial pursuit spirit child, right that doesn't want to go
to college right now that five twenty nine really didn't
do them? That has much good, right, So life insurance
(26:07):
policy is going to have much more flexibility on how
those funds are able to be used and applied to
whatever that child might do to pursue in their later years.
Speaker 3 (26:16):
Well, let me ask you a quick question here, Glenn.
Speaker 4 (26:18):
Does that money have to be designated as that child
is the beneficiary?
Speaker 3 (26:23):
And then does that it does it have to go
to that child?
Speaker 2 (26:26):
No?
Speaker 6 (26:26):
No, no, Well, I think if our child, god forbid, passes
away while owning the life insurance, they're not receiving the
proceeds right the owner of the policy. So, in this circumstance,
as I used as the example, the parents owned the
life insurance policies. The parents were in full control of them,
beneficiary designations, all of that the parents had control of
(26:46):
the kids are just the insured the person that is
ensured that if something happens to one of those children,
the death benefit would topically be paid in this circumstance
to the parents, right, and God forbid, I know that's
not what the parents were hoping for for their kids.
They're not buying life insurance because they're expecting these zero
and one year old children to pass away on them, right.
They want to see those kids live to a ripe
(27:07):
long age. But the mechanism of life insurance allowed them
to set that money into that policy, grow tax free,
and then be able to use later and even structure
in a way that they could at one point give
those policies to their children. I have personal experience with
this again. A colleague of mine whose parents bought life
(27:27):
insurance from when he was just a young child, and
in his teen years he got a not a terminal,
but a chronic health condition before he even entered the workforce.
He know as a health condition that would make it
almost impossible for him to even qualify to buy life insurance.
The fact that his parents helped set something up when
(27:47):
he was still young and healthy meant now that he
was uninsurable in his twenties, he still had insurance because
his parents for land and protected him like that.
Speaker 3 (27:56):
Absolutely.
Speaker 4 (27:57):
Well, let's talk about some of the other benefits where
where applies to saving for college. You've talked about the
facts that the number one, it's tax free withdrawal. I
see someone saying here that no FASPA impact, which is,
you know, these are the kinds of things that people
need to think about when they start to save their
(28:19):
money and they start trying to figure out how to
pay for college.
Speaker 5 (28:21):
So maybe you can explain that.
Speaker 6 (28:22):
Yeah, so easy answer is that it's not counted. Right.
The funds that are inside that cash value life insurance
policy aren't counted as those liquid assets that we would
have to offset the additional need for any financial help
that we might qualify for. Right. So, now, even though
we are setting this money aside for them, it's not
(28:42):
counted against them because we did it that way.
Speaker 4 (28:45):
These funds can be used for any purpose. Now maybe
your intention is to say for college purposes, but they
can be used for any purpose and you aren't going
to be penalized.
Speaker 6 (28:54):
Correct, Correct, There is no strings attached to it. It
is just a cash value life insurance policy, and just
like any other cash value life insurant's policy. The cash
within that policy, you own it. It's yours to do
with as you speak, and there is no restrictions on
what those funds are used for, which I as I
mentioned earlier, maybe that's going to be seed money to
an entrepreneur child wants to start their own business rather
(29:16):
than go to college. Right, maybe those funds will apply
to help them get their startup business or purchasing their
first vehicle, all those other things that are outside the
scope of college.
Speaker 4 (29:24):
Well and Glenn, we always know that life changes and
maybe by the time you know you are ready to retire,
your kids have gone in a different direction.
Speaker 3 (29:34):
You can use that money, right one percent.
Speaker 6 (29:36):
Again, it's so being the owner of the policy allows
you to have that control. Right, you haven't given that
policy the child. You the parent or grandparent own the policy.
And if that child does change their mind and they
don't want to go to college and they're not going
to start a business, where I hope they're still going
to be good for themselves. But in that circumstance, the
parent or grandparent could say, you know what, I'm going
to use these funds now since they're not going to
(29:57):
use them. I didn't desiccated or designate in a way
that I cannot take it back for myself and use.
Speaker 2 (30:02):
It for what I want to absolutely in camp, add
with obviously four in college or somewhere in college, medical,
whatever it is, that no fast fast impact is a
big one because every year, when my wife would fill
it out because I didn't make my wife, but I
kind of made my wife fill it out, she would
get frustrated. And it has no impact on that. And
(30:24):
we know income potentially does have an impact. The tax
free withdrawals echoes without saying how can he not like
tax free? There's no contribution limits, unlike five twenty nine
s there's no IRS contribution caps. So that is a
great benefit. And most people don't think of life insurance
for college plan as a college planning tool, but when
(30:46):
structured right, and Glenn just recently did that, as he mentioned,
it could be one of the most tax efficient, most flexible,
and it could be used for building legacy, protecting your family,
and a whole bunch of other reason. So I'll use
this as a segue to say, maybe you're listening and
you have life insurance and you haven't had it looked
(31:09):
at in years now, maybe a good time to make
sure that it's going to perform the way you want
it to. We do a lot of life insurance reviews
and I'll let go and briefly touch on it, and
we see it eating itself, some policies eating themselves up.
It's not performing the way it should be, and maybe
now you still have an opportunity to make changes if
(31:30):
it makes sense. And then it also coordinates a lot
with long term care coverage and various things that are
out there. So yes, we're talking about college planning. But
maybe you're thinking, well, I have life insurance and it
really haven't paid any attention to it for years. That'd
be another, maybe another reason to come in and visit
(31:50):
it with Glenn and do a life insurance review which
has no cost to it, and you have nothing more
than to gain to make sure that you have confidence
in what you've been paying all these years is going
to do what you expected to do.
Speaker 4 (32:05):
Let me ask you, guys, this, what about you know
you get a five twenty nine, you put it in
and it fluctuates with the market. Is there any growth
potential when you put money in these insurance policies or
is it just sitting stagnant?
Speaker 6 (32:20):
No? Absolutely growth potential there. A lot of companies are
either going to structure this through a policy that's going
to a fixed rate of return in it, and due
to the high interest environment, well, those fixed rate of
returns are actually a lot better than they have in
the past ten to twenty years. On top of that,
they're going to we call shadow of the market. They're
not going to invest that money into the stock market,
(32:41):
but they are going to give you a performance. They
usually refer to this as an indexing strategy, where they're
going to monitor a stock index and when that stock
index is up, you're receiving a portion of the gains
that are happening within the index, but you're also sheltered
from the losses. When that index is negative. You're just
not getting interest that year. And in a negative market year,
(33:03):
zero interest and zero loss is a good thing.
Speaker 2 (33:05):
Right.
Speaker 6 (33:06):
I'm sure a lot of us are experiencing right now
a desire to be in in a market position that
we weren't losing in. Right, with everything that's going on
our market.
Speaker 4 (33:14):
Today, Well, let me ask both of you, gentlemen, what
of the downside? What's the downside here? Because I haven't
heard anything that sounded particularly negative.
Speaker 6 (33:23):
Time horizing it could be the only downside. This isn't
something that you do in two or three years, right, Ideally,
this is a ten year or longer investment strategy, right,
so that it could be the if there is a downside,
that's the only one I could think of.
Speaker 4 (33:37):
Okay, Well, so universal life insurance very interesting and if
you'd like to ask more questions or you heard what
Larry had to say, and boy, he couldn't be more right.
If you've got a life insurance policy that no one's
looked at for a long time, this may be the
time to take a look at it, make sure it's
been reviewed, and make sure that you actually are invested
(33:57):
in something that you think you're invested in.
Speaker 3 (33:59):
Six one two five zero four eight four zero zero.
Speaker 4 (34:02):
That is how you get hold of the experts and
Haven Financial Group. Give them a call, let them know
that you heard us here on the radio. Glynn, you're
going to stay with us, right, We're going to talk
a little bit more super We're going to talk about
wealth stability and family finances on the other side of
the break. This is the Haven Financial Group Radio Show.
Speaker 1 (34:19):
Don't go too far. We're gathering more important insights and
retirement pays Devinent 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 Karragan. Now back to
(34:41):
the show.
Speaker 2 (34:42):
Good morning once again, and welcome to the Haven Financial
Group Radio Show. I'm Larry Kolvig, founder and CEO of
the Haven Financial Group, on with Glenn Raimi, an insurance
specialist at our office, Kim Wealth. This last segment is
on wealth, family finances. It all goes together with life
insurance and planning, all those things we may not like
(35:03):
to do, but they're so important to do because you know,
we know that generational wealth just doesn't happen. We run
into very few trust babies. Contrary to what some listeners
may think. Most of it's done over the course of
time from one generation to the next with hard work.
And it's pretty staggering how quickly that that can get
(35:27):
lost because of a lack of planning, a lack of knowledge,
not knowing what to do. And that's really sad to
see when we see something built over time just disappear
so quickly.
Speaker 4 (35:40):
So having said all of that, and of course we
always talk about here, when you start with making your
financial decisions, you know, you need to consider lots of things.
One of them, as we've been talking about today, is
family education. And then we have medical expenses, and we
have maybe it's life insurance, and we have taxes.
Speaker 3 (36:00):
And we have investments.
Speaker 4 (36:03):
So how do you start to consider generational wealth?
Speaker 3 (36:07):
How do you approach that.
Speaker 2 (36:10):
We start with the same process we do with everybody
to determine do they have any generational wealth or not?
Or what are we working with? We do the same
We walk people through the same proprietary process from the
time we meet them to the time they come into
our office with a very laid back approach, listening to
what their worries and their concerns and ask probing questions
(36:30):
to get an idea what their goals and their objectives
are for retirement, what they worry about, what they think
they're doing good, what maybe they're not so strong, and
what have they done so far? Do they have a
long term financial plan which can create great vision for
their family, their loved ones. You know, is education funding important?
(36:52):
Like our conversations today, a homeownership, what does their retirement
look like or a lack thereof, because having these questions
answered gives us a good idea of what we need
to work on, what areas improvement might be. If they're charitable,
you know, we'll get into if you're a charitable giver,
what we can do. I just set up some qualified
(37:13):
charitable distributions for clients of mind that didn't need their
requirement ofum distributions, and they had some favored charities that
they wanted to give it to, and it made sense.
All of these are going to accomplish some of the
goals that people want. But if you're not having the
conversations and you're only getting a meeting once or twice
(37:35):
a year to talk about investments, that is not enough
attention and weekly I see that's all the attention people
are getting. They're paying way too much for the attention,
and that isn't adequate. So you're probably not going to
find out about these different tools things you can do
to minimize wealth. You know, seventy percent of wealthy families
(37:57):
lose their wealth by the second generation and ninety percent
by the third, ninety percent by the third generation. Do
you have an estate plan. Are you doing what you
can with a trust, tax minimization all these things? Are
you going to protect some assets from things that could happen? Again,
it starts with these conversations again. Just this week, we
(38:20):
had very well attended classes with our state planning attorneys.
We did wills, trusts, and legacy planning. By the attendance
we had, it's obvious that people were concerned and they
didn't know if they had their ducks in a row.
And it's why we have numerous meetings from those well
attended classes, because people are worried, they are concerned, and
(38:41):
they're seeking education. And that's where I think at Haven
Financial Group, we do a really good job of education
and then you can make some good educated decisions. And
that has always been our approach. And you know, Kim,
this is our ten year anniversary and we're not going
to change that anytime soon. That is for Clyn.
Speaker 3 (39:00):
Let me ask you.
Speaker 4 (39:02):
We obviously spoken the last segment about using universal life
insurance for saving for college. Do you advise some of
your clients to use this kind of tool for saving
for passing on legacy money?
Speaker 6 (39:18):
One percent? Think about this respective what's the most generous
way I can give someone a monetary contribution and that's
tax free right where they get to keep all of it,
no one else gets any portion of it. And life
insurance death benefits are one hundred percent tax free. On
top of that, life insurance is leverage, right. You don't
(39:39):
have to give an insurance company one hundred thousand dollars
for them to give someone else one hundred thousand dollars
as your death benefit. You might give them twenty thirty
forty thousand dollars over your lifetime for them to be
able to give you one hundred thousand dollars upon your death.
So it's another way to leverage those dollars that you have,
those very limited dollars that we have, and get more
out of it as part of those legacy planning.
Speaker 2 (40:01):
Glenn, if you would add to the listeners that have
put away adequate retirement funds for retirement, and we know
that in the last in recent years, some of the
rules and laws with transfer of wealth has changed dramatically
for those that have done a good jobps life insurance
retirement planning. Just touch on that briefly if you would.
Speaker 6 (40:22):
Yeah, So, some of the concept of the life insurance
for the kids for college.
Speaker 2 (40:26):
Right.
Speaker 6 (40:27):
Life insurance cash value can be another one of those
tools in retirement planning as a way to set up
a distribution of tax free income that's tied your life insurance,
a way to borrow against the cash value, and when
a properly structured policy, then those funds can supplement your
retirement income. Right, And at the end there's typically still
(40:50):
going to be a life insurance policy left at the
end of the process that's still going to pass on
additional funds to your family on top of it.
Speaker 4 (40:55):
So immediately, Glenn, that makes me think that those premiums
are extremely high.
Speaker 6 (41:00):
It's about what you want to do, So this is
something that's really customized related to your needs. What do
you want to set aside? Now, again, it's all proportional.
The more I'm willing to give, the better the outcome
is going to be. Right, But there isn't a fixed
number on this. This is just about what you're comfortable with.
And even if it's one thousand dollars a month or
(41:20):
one thousand dollars a year and extra income, if it's
tax free, that means again you get all of it.
No one else is getting a piece of that. For you,
where all those pre tax retirement accounts, amazing vehicles for
saving and preparing for retirement are all going to come
with Uncle Sam at the end of it, Right, Uncle
Sam's wants to get his share of that pie at
some point. With the life insurance. Just like the wealthy
(41:42):
borrow against their stock values right to have income, this
is the way you're borrowing against your leverage, your asset
of life insurance and then using that as a tax
free distribution used for income.
Speaker 4 (41:53):
Sure, Larry, we're talking about insurance with Glenn, but certainly
in the office you have attorney and you have full
kinds of people who can sit down with some of
your clients and talk about building generational wealth, legacy wealth.
Speaker 3 (42:08):
And I would think that one.
Speaker 4 (42:10):
Of those would be just just how to transfer the
money and how to go about doing that. How quickly
do you set people down and say have you thought
about this and how we're going to go about it.
Speaker 2 (42:23):
It's part of our ongoing initial conversation always whether they
have an attorney relationship, whether they've done a state planning documents,
do they have wills trusts, do they have their as
simple as their beneficiaries on their accounts, which almost weekly
we see folks that don't have any beneficiaries. That's an
outdated beneficiary. They don't even like that person anymore, perhaps,
(42:45):
although I hope that's not the case. Make sure your
beneficiaries are current and up to date. It starts with that,
which is so elementary. And then we have such a
close relationship with provision law if one chooses to use them,
and by the way, there is no costs for an
initial consultation and they do the work on the legal side,
(43:05):
they'll notify us because we have a working relationship that
this is how it needs to be retitled. This is
the the legal way it should be done, and that
is very It's called funding a trust or retitlement of
assets in the proper way, because a lot of times
if somebody passes and things were not done properly, it
can lead to probate and a lot of headaches that
(43:27):
you don't want to go through. So dotting the i's
and crossing the t's and having a somebody that's looking
at the big picture of retirement, not just the investments. Now,
investments are important, and you know we do wealth management
with Charles Schwab and Fidelity Investments and the investment team,
and we frequently on our show talk about that, but
(43:48):
it's the other things, the things that Glenn and Isabella
with Medicare and healthcare and life insurance and long term care,
which nobody wants to talk about. Lance our CPAs coming
to the end up tax season as far as the
tax deadline, and just he goes, well, there's those that
didn't plan and then we had to final extension. And
(44:08):
I get all that, but I'm anxious to have Lance
on after tax season to talk about what he helped
people with and what we learned from this tax season.
Just putting all the retirement puzzle pieces and at even
Financial Group, we have all those pieces that can be
We can help you put together that puzzle. Although it
(44:29):
can be complicated, it doesn't have to be. If you'd
allow us to give up to sit down with us,
give us a call at six' one two five four
eighty four, hundred just set up a. Time listeners have
nothing to. Lose we encourage even our own existing clientele
to come out to our, classes and our clients do Because,
(44:50):
kim just when you figure out what the rules are
with some of this, stuff then they change the. Rules,
well if you don't have anybody keeping you updated on
how the rules, changed you could be lost in the
past and what they were five years, ago which were
different in many cases than they are today.
Speaker 4 (45:05):
Six one two five zero four eight four zero zero
or go To Havenfinancial group dot. Com be sure you
set up an appointment sit down with the.
Speaker 3 (45:14):
Experts it's one shop.
Speaker 4 (45:15):
Stop it's one stop shopping under one big groof there
At Haven, financial so be sure you set up an.
Speaker 5 (45:22):
Appointment let them know that you heard us here on the.
Speaker 3 (45:24):
Radio.
Speaker 5 (45:25):
Glinn great to see you like, always thank you for
all the great.
Speaker 6 (45:27):
Info thank you so, Much, kim always a.
Speaker 3 (45:29):
Pleasure it was great and great to see You larry as.
Speaker 6 (45:32):
Well.
Speaker 2 (45:33):
Kim great to be with. You look forward to next
week where we're on to more conversations and. Topics have
a good.
Speaker 3 (45:39):
Week 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.
Speaker 2 (45:53):
Guaranteed please consult with the qualified financial advisor and or
tax professional before implementing any strategy discussed herein and comments
regarding it safe and.
Speaker 1 (46:01):
Secure investments and guaranteed income streams only refer to fixed insurance.
Speaker 6 (46:05):
Products they do not refer in any way to securities
or investment advisory.
Speaker 1 (46:09):
Products fixed insurance and annuity product guarantees are subject to
the claims paying ability of the issuing company
You've worked hard for your money, but do you know
how to make it work hard for you. You need
a team with experience, vigilance, and a strategy to help
you live the retirement you deserve. Find your financial safe
haven with Haven Financial Group. Today you're listening to the
new and improved Haven Financial Group Radio Show, where we
bring you comprehensive weekly financial wisdom from the professionals. It's
(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 (00:54):
Good morning, and welcome to the Haven Financial Group Radio Show.
I'm Larry Kolvig, founders CEO of the Haven Financial Group.
Thanks for listening this morning. Give us a call at
six one two five zero four eight four zero zero
or online out always Havenfinancialgroup dot com. All kinds of
retirement tools are classes again this week. Very well attended, Kim.
(01:16):
Good to be with you. A lot to talk about
today on the show, but great to be with you.
Speaker 3 (01:22):
Great to be with you too, and happy spring.
Speaker 2 (01:25):
I sure hope. So it's got to be here sooner
or later. But I think it is here is now
that we had some milder temperatures this past week. So yeah,
the ice is out on the lake, and I think
people are you know, they're getting they're ready.
Speaker 4 (01:38):
Yeah, oh, people, you know, you get to this time
of year. And with Easter being a little bit late
this year, that does make it a little better for
me because I'm very hopeful that Easter could be a
nice Sunday versus you know, I can remember when the
kids were little and they'd be out hunting Easter eggs
with their big parkas on, and that's a little discouraging.
Speaker 3 (01:57):
So yes, well, for you know, we got another.
Speaker 5 (01:59):
Week, but we'll hope for a beautiful Easter Sunday.
Speaker 4 (02:03):
I am very much looking forward to this show, and
I'm going to tell you, for selfish reasons, I'm happy
that this show pertains to others and not to me anymore.
Speaker 3 (02:13):
But you and I have walked this walk, and I know.
Speaker 4 (02:16):
You're still walking it a bit, but it's really interesting
in a really really important show. I wish that people
would have talked to us a little more about this.
And what we're talking about is college planning and family wealth.
You know, I was reading some statistics and Larry some
colleges in the Northeast this next fall, one hundred thousand
(02:41):
dollars are going over the hundred thousand dollars mark. That's,
of course tuition board, but one hundred thousand dollars to
put your kids in college for a singular year. So
people really do have to start to prepare for this,
and it seems like they should start preparing even earlier
than having chilln So we're going to take a look
(03:02):
at some of the topics today, the college planning situation today,
rules and strategies four five twenty nine, Universal life insurance
for college and other expenses, which is really an interesting one.
And then finally well stability and family finances. So I'm
looking forward to this conversation.
Speaker 3 (03:20):
You understand this completely, don't you.
Speaker 2 (03:22):
I do. Yeah, it hits home pretty big time considering
my wife and I have four and four different colleges
from med school in North Carolina to the University of
Kansas to one at Bethel and one at Mount Mercy
and Cedar Rapids, both the twins graduating the spring. But
you know, college costs one hundred grand and Kim, how
in the world can they ever get out of that hole?
Speaker 3 (03:43):
That's it.
Speaker 2 (03:44):
It's frightening. And whether your you know, kids are in
diapers or touring campuses and anything in between. We always
know because you hears say it every week. Time is
of the essence and it really takes a plan because
we know how fast those years get here. And we're
going to talk about the power of pounding and a
segment on universal life. Glenn Raimi, our insurance specialists, will
(04:04):
be on for that segment. Powerful tool a lot of
people overlook and the course five twenty nine plans you
and are going to talk about. So whether you have
grandkids or your own kids, now is the time to
start planning from that because a lot hinges. I'm big,
We're big into education, but at the same time you
have to weigh the costs associated with it, and unfortunately,
(04:27):
I do see folks over the years that have really
dwindled their retirement years and their moneys because of college costs,
tuition enabling kids, and that's also scary because you build
up for these retirement years. All of this is part
of the planning process that necessarily isn't fun. But if
(04:49):
we're going to be ready for it, we got to
start now.
Speaker 4 (04:52):
Absolutely. Well, let's talk a little bit about that kind
of planning. And first thing I'm going to ask you
is how soon is too soon to start planning for college?
Speaker 2 (05:02):
Like I say every week, there's no time, is too soon,
no time. Now. Your pocketbook has to be able to
afford it, obviously, and it's oftentimes that's difficult because you
mentioned one hundred grand on the East Coast, which I
know is the highest. Although when I was looking at this,
I found out Massachusetts has the highest tuition in Delaware
has the lowest tuition in the fifties states. I thought
(05:24):
that was interesting. Averages for in state range from eighty
nine hundred to about twenty grand. For out of state
students for the public college, private colleges anywhere from twenty
seven grand up to sixty grand. And you know this,
that's home because I did my first four years at
Bethel and I'll day myself a little bit here today,
I'm not afraid to do so. I graduated with my
(05:47):
four year from Bethel Private College here in the Twin Cities.
When I went, it was ten to twelve thousand. Today
because our daughter goes there, it's about fifty to sixty thousand. Yes,
and I'm fifty five years old. For the listeners that
I want to go, how old is Larry now? It's
out in the open. So we got that that has
(06:07):
some huge, huge reach increases over this time. And I
get into these debates as well. And me and my
wife included when we talked about college tuition. My parents
made me have skin in the game and for many
if you're able to take care of it all great.
Me and my wife had differences on this. I think
(06:30):
skin in the game is important because if it's a
free gride for your kids because mommy and dad are
picking it up, if you're fortunate enough to be able
to do that, great, If that's what you choose to do,
more power to you. But I felt over the years
that skin in the game, where they have to pay
at least something, is important, and you know, I think
it teaches them something.
Speaker 4 (06:49):
In my opinion, I'll tell you my two children graduated,
one graduated from well, they both graduated from private colleges,
and both of them were north of sixty five thousand
dollars a year. And both of our.
Speaker 5 (07:04):
Kids have skin in the game as well.
Speaker 3 (07:07):
And I think it.
Speaker 4 (07:08):
My daughter would tell you it made her think on
those nights when everybody was going out and she didn't
want to go out because she needed to study, you know,
because she thought, if I don't study this grade, tomorrow
is not going to be great.
Speaker 3 (07:23):
And why am I?
Speaker 5 (07:23):
Why am I in these classes? So I think skinning
the game.
Speaker 4 (07:26):
I was a kid who was lucky enough not to
ever have any skin in the game. Mom and dad
took care of everything. My husband did not, and he
was somebody who we paid after we got married.
Speaker 5 (07:36):
So I think, you know, it works both ways.
Speaker 4 (07:39):
But I understand exactly where you're coming from when you
talk about that.
Speaker 2 (07:43):
Yeah, I mean, I think it's important that you teach
him at a young age to you know, there's no
free lunch. But again, if you're fortunate to be able
to pay, but now is the time to be thinking.
If your grandparents or maybe you have little babies, the
quicker you can start doing this because it's real tax
on families, especially the baby boomer and the gen x
(08:04):
eras what college costs we're there are completely different, So
you know, this is important discussions. How far can you
spread out your money, you know, especially during high inflation,
the stock market being down and all this. We're going
to talk about that on today's show.
Speaker 4 (08:21):
Sure, absolutely, you know one of the other things that's
a real debate now, Larry and I obviously in your
household you have four young women, all of whom are
being educated, and we made the decision as well at
our house, but there is a big debate about the
value of a degree at this point. What do you
(08:42):
say to some of your clients who come in and say, Larry,
you know, we're thinking about not saving because we don't
think that it's worth it.
Speaker 2 (08:49):
Well, we're very big into education. However, at what cost
is too high of a cost? Because a colleagues degree
does hold significant value in the modern job market. Fact,
it opens door doors to higher earnings potential. Some jobs
require a college education for specialized skills, and in previous
(09:10):
years this, you know, a high school diploma would have
been adequate. So I think it still carries a lot
of value. Now. It's interesting in the last in recent
years though, that the trades. I've seen a lot more
kids get into the trades, and there's a great opportunity
in there for jobs and job security. We need tradesmen
that I've seen do very very well and incurring very
(09:33):
low college costs, you know, at the trade schools. You know,
I teach at Dakota County Tech, so I run into
some that are out there. But you really got to,
you know, give it some thought because the purchasing power
of the dollar today isn't what it was in previous generations.
And you know, let's face it, at what point of
student debt does that hole get so big that it
(09:54):
takes many many years to get out of. I had
a couple in last week that they were referred to us,
and he's a medical doctor at the Children's Hospital in
Saint Paul, and they're in their low to mid fifties
and he goes, Larry, I dug a huge hole with
medical bills, and he did, Now, their earnings potential is there.
They're doing. I had to assure them that, you know,
(10:16):
even with the big debt burden that they are doing,
they're really really on track. But again, hold, how big
of a hole is too big to dig out of?
Because there's no guarantee even getting out of college that
you're going to find the job that you want, and
certainly to the degree maybe the pay that you're expecting.
Debt is a big discussion. There's good debt and bad debt.
(10:38):
I'm all about education. Everything costs more, and it's not
just the tuition, Kim. It's the room, the board, and
the feed, the books and all of those things. That's
we've seen significant increases all across the board, not just
in one or two areas, it's really all the areas.
Speaker 4 (10:55):
Yeah, absolutely, Yeah, people don't be fooled by tuition costs
because that's just a portion of what it is that
you're paying when you're sitting your kids away. Our number
is six one two five zero four eight four zero zero.
That's how you reach out to Haven Financial Group. And today,
if we're talking about something that you know brings true
to you and you've got some questions. You're maybe getting
(11:19):
ready to start a family, or you've got kids who
are starting to think about going to college and you've
got some questions, the number is six one two five
zero four eighty four zero zero. We're going to explore
some ways in which you can begin to save those
dollars for college educations, and as Larry said, there are
(11:40):
ways that you might want to get involved in immediately.
Speaker 3 (11:43):
So that's coming up next.
Speaker 4 (11:44):
We're going to talk about five twenty nine's right here
on the Haven Financial Group Radio Show.
Speaker 1 (11:50):
Don't go too 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 Kulvig and Kim Karrigan. Now back to
(12:10):
the show.
Speaker 2 (12:12):
Good morning once again, and welcome to the Haven Financial
Group Radio Show. I'm Larry Kolvig, Founder and CEO of
the Haven Financial Group. Give us a call at six
one two five zero four eight four zero zero or
Havenfinancialgroup dot com. Check out all the classes the ongoing
classes throughout the year, from investment classes to Medicare classes,
(12:33):
the social security and tax just had two big events
with Will's Trusts and legacy planning with our legal partners
Provision Law Firm. All these things are so important and retirement.
I've just heard it this week again, Larry. This retirement
thing is so complicated. Our job at Haven Financial Group
has tried to simplify things to the best of our ability,
(12:55):
and it's really starts with the education piece. Because I
ask all the time, how many of you remember growing
up all the classes that taught you how to make
all the perfect retirement decisions. Any overwhelming response is we
don't remember hardly any of those classes. So it's never
too early to start.
Speaker 4 (13:14):
Learning, absolutely, And today we're specifically talking about saving for
college educations and maybe that's your grandchildren, maybe that's your children,
but ways to do it that keep you from having
to dip into retirement funds or putting your financial situation
(13:35):
under stress.
Speaker 3 (13:36):
We've talked about the fact.
Speaker 4 (13:37):
That college education is getting to be so ridiculously priced,
and certainly shopping for a college that meets your financial
situation is a smart thing to do. I think Larry
would agree with that for sure. But there is a
plan out there called five point twenty nine. And for
people who maybe are not familiar with saving for college, Larry,
(13:58):
maybe you could start by just explaining what of five
twenty nine is.
Speaker 2 (14:02):
Yeah, there's numerous other ones out there too, you know
old school ones like utmuhs and ugmahs, but the five
twenty nine, it's been around for a while. It's just
a way to save in a certain plan that is
designated for future qualified expenses. But they're more flexible than
people that give them credit. We do help people get
them set up, you know, finance one on one. Bilos
(14:25):
sell high. The market's taken a beating here the last
couple of weeks, and that student or student that may
go to college, maybe very young, and it might have
fifteen to twenty years of compounding returns where you could
take more risks because of the good value and some
of the things that are out there. It can grow
tax free, which we love tax free, and then comes
(14:47):
out tax free if used for what it needs to
be used for. And when I say that, people automatically
think it only can be used for qualified medical or
qualified educational expenses. But it's much more than that. It
can apply to room and board, it can apply to books.
You can use it for K through twelve tuition up
(15:08):
to ten thousand dollars per year, and that's a newer
law now. I encourage folks to check out applicable rules
and regulations and taxes in various states, because states do vary,
that's for sure. Maybe they've already racked up some student
loan debts and you can repay the student loans. This
is another newer one, up to ten thousand dollars per
(15:29):
beneficiary and if well, you have a child that doesn't
go to college. A lot of people don't know you
can switch beneficiaries as long as another family member. It
can be done without penalty, as long as it's done
for qualified uses. So there's a variety of different things.
Another one people don't think of, even though people are
(15:52):
familiar with roth iras. As of twenty twenty five, yes,
this year, up to thirty five thousand in unused funds
can be rolled into a roth ira if the account
is at least fifteen years old. And just recently I've
had clients that they fell into that bucket. So there
are a lot of different things out there that you
(16:14):
can do. But the problem is if you're not really
being exposed to them, nobody explained them to you and
the rules and regulations that go with them, you might
very well be missing out in opportunities, maybe cashing them
in and having to pay income taxes on it when
you didn't know there were all the various options that
were out there. You know.
Speaker 4 (16:33):
I think what you were just saying about the new
rules here in twenty twenty five and that you can
roll up to thirty five thousand dollars into an IRA,
that's something that has not existed, you know, before or now.
And I think that's a really important one to streuss
to people because I think it's a question that a
lot of people have. What if I put that money
(16:55):
in there, I have kids who don't end up not
going to college, or we don't spend all of it,
then what do we do? And obviously that sort of
changes the landscape.
Speaker 2 (17:05):
It's a great opportunity, and it is new this year,
and it frees up the opportunity to get more money
in WROTH so it doesn't go unused. It can go
into your individual retirement accounts. More WROTH you have in
the retirement. The happy people are our tax free coming out. Hey,
why wouldn't we like it? My encouragement would be, though,
with these five twenty nine plans, make sure you keep
(17:28):
receipts and again more receipts, yes, but please keep receipts,
I said earlier, no incentives or perks that individual states have,
some have, some don't. So you're going to want to
know what deductions can be used or what credits are
available for students. Just knowing all these different things that
(17:48):
are available to you. Again, if they're not going to school,
there's no age and when five twenty nine funds can
open up for non educational use. However, education isn't going
to be maybe be in the cards of all everybody,
and that's okay. Just know what your options are, what
the rollover rules are. Just be aware that non qualified
(18:09):
withdrawals are subject to income tax and potentially of penalties,
and we never want to encourage more tax implications or
penalties than we have to. But again it starts with
understanding your options. Now, I said it earlier, Start early,
Start early, Start young, because that power of compounding over
a long period of time can yield The next segment,
(18:32):
Glenn's going to talk about life insurance and how he
just recently helps some folks out this year and what
those numbers look like. Are a great way to prepare
those kids or grandkids or loved ones for those major
expenses when they get to that age, and you and
I both know that it's when it seems like even
if there comes a long way in the distance, but
(18:55):
you know as well as I that that distance, that
gap fills in really ly fast.
Speaker 3 (19:01):
Yes, it certainly does.
Speaker 4 (19:02):
Let me go back, Larry to the fact that you
said that you set these up for people.
Speaker 3 (19:07):
What do people need.
Speaker 4 (19:08):
To set one up? What's what's the requirements?
Speaker 2 (19:11):
Very little requirements. You just open us a special SEP
account that can be done. We ve Schwab and Fidelity Investments.
The Minnesota has a set but can be set up
through the state. There's other variables out there, but it's
not much more than just opening an account and following
the proper contributions that are out there. Not difficult. And
(19:34):
again time is of the essence, so why not look
at it. You know, if you don't have the disposable income,
well at least you know what options are out there.
Maybe that isn't today, maybe that's a year from now
or two years, whatever it is. They're not complicated and
again understanding the rules and come out in a visit
with us. It doesn't hurt anything and it doesn't cost
(19:54):
you anything, and maybe you'll find out that that is
a good thing to do, because we have clients that
have done that continue to do that for their grandkids
rather than just give them frivolous gifts throughout you know,
their birthdays, they do something like this in lieu of
or in addition to other things that they gift. So
(20:14):
just a really effective way of gifting to the to
the younger generation.
Speaker 4 (20:19):
I don't think you talk about the fact that it
has to be qualified educational you know needs Now does
does our states do they restrict that it has to
be used in a state school or couldn't those dollars
be used wherever a student chooses to go to school.
Speaker 2 (20:34):
They can be used wherever they choose to go to
school any again, tuition, state private, it can be even
like I said, for K through twelve, for PRIE private
K through twelve school tuition. Again, there's really no no
major rules or regulations. Again though it can be used
(20:55):
for repaying student loans. It could be again keep receiving,
but it could be used for a variety of things.
Speaker 4 (21:01):
Okay, terrific six one two five zero four eight four
zero zero. Maybe you've been talking about, you know, wanting
to look into a five twenty nine. Maybe your children
are you know, young, or you have no children, or
you have grandchildren and you'd like to gift them dollars
that you've saved through a five to twenty nine plan.
(21:22):
Feel free to call the folks at Haven Financial Group
at six one two five zero four eight four zero zero.
Speaker 3 (21:28):
While you're there, why.
Speaker 4 (21:29):
Don't you sit down with the experts talk a little
bit more, not just about college savings, but about putting
together a comprehensive retirement plan that makes sure that you
live those golden years exactly the way you've always wanted to.
It's six one two five zero four eight four zero zero.
You can also go to Heathen Financialgroup dot com and
(21:50):
learn more about some of their educational seminars that are
coming up in the next.
Speaker 5 (21:54):
Couple of months.
Speaker 4 (21:55):
All right, Coming up next, we're going to talk about
universal life insurance for college and for other expenses. Glenn Remy,
he is an insurance specialist there at Even Financial Group.
He's going to be our guest and we'll chat with
him about the benefits and as Larry mentioned, a family
that he's just recently helped use exactly this kind of system.
So that's coming up next. Right here on the Haven
(22:18):
Financial Group Radio.
Speaker 1 (22:19):
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
(22:39):
to help you find your financial safe haven.
Speaker 2 (22:43):
Good morning once again, and welcome to the Haven Financial
Group Radio Show. I'm Larry Kolvig, founder and CEO of
the Haven Financial Group. This segment we got Glenn Ramy,
our insurance specialist, one of them at the Haven Financial Group,
talking about college costs, expenses, what you can do to prepare.
But if you're not at that age, or maybe you're
(23:05):
just worried about your own retirement. Although this show today
is on college and how to plan, and you're worried
about your own retirement, that might be another reason to
come on in visit it with us on any of
the retirement topics that we really specialize, which is all
the retirement puzzle pieces. To make sure your puzzle looks
like it's all going to be put together in the
(23:25):
way it's supposed to. So we encourage you to give
us a call six one two five oh four eighty
four hundred or visit US online. Kim, it's great to
have Glenn with us again talking about how life insurance
can be very valuable in preparing for those college costs.
Speaker 4 (23:42):
Well, this is so interesting to me, Glenn and Larry,
and it's great to have you, Glenn, because you know,
life insurance for the longest time was just about people
passing away and leaving you money and that's that.
Speaker 3 (23:57):
But it is we're taking on.
Speaker 4 (23:58):
This new idea of life insurance, you know, during the
course of our life as we live, and boy, I
can't imagine a better way than possibly helping our grandkids.
Speaker 5 (24:10):
Or our kids go to college.
Speaker 3 (24:11):
Five twenty nines are great.
Speaker 4 (24:13):
There are some restrictions, but Glenn, my understanding is that
there are fewer when it comes to universal life insurance.
Speaker 1 (24:19):
Yeah.
Speaker 6 (24:19):
So I actually have a personal experience just this year
and helping a couple with something exactly like that, two
young children with a couple that were both well earning engineers,
and they were looking for ways to fund college for
their kids in a way that wouldn't have strings attached, could,
if structured correctly, be tax free distributions. To help their
(24:41):
kids with their college expenses, and considering college has increased
forty times since nineteen sixty three, even in just with inflation,
that's a two hundred percent increase in what people are
paying to go to college nowadays. And the fact that
college degrees are much more of a requirement and entry
even in our occupations that never used to need a
(25:01):
college degree to enter, right, it's that much more important
to know what are our tools available for planning, not
just one, but all of them, to see which one
is going to fit right for us. And that example
I have there is this couple funding life insurance. In
a ten year period of time. They were going to
put five thousand away per per per child per year
to over ten years fifty thousand per child, and to
(25:24):
a cash value building life insurance policy where gains are
sheltered from any taxation, no dividends or capital gains tax
owed each year on the interest that they're accumulating within
those policies, and they were going to end with probably
close to one hundred and sixty thousand dollars available for
their killed kids to use for college expenses. And because
it's not in those more restrictive options like a five
(25:45):
to twenty nine plan. It can be used for expenses
that might not seem needed in association with college right
above and beyond just room and board and tuition. Right.
In addition to that, let's say we have a more
entreneurial pursuit spirit child, right that doesn't want to go
to college right now that five twenty nine really didn't
do them? That has much good, right, So life insurance
(26:07):
policy is going to have much more flexibility on how
those funds are able to be used and applied to
whatever that child might do to pursue in their later years.
Speaker 3 (26:16):
Well, let me ask you a quick question here, Glenn.
Speaker 4 (26:18):
Does that money have to be designated as that child
is the beneficiary?
Speaker 3 (26:23):
And then does that it does it have to go
to that child?
Speaker 2 (26:26):
No?
Speaker 6 (26:26):
No, no, Well, I think if our child, god forbid, passes
away while owning the life insurance, they're not receiving the
proceeds right the owner of the policy. So, in this circumstance,
as I used as the example, the parents owned the
life insurance policies. The parents were in full control of them,
beneficiary designations, all of that the parents had control of
(26:46):
the kids are just the insured the person that is
ensured that if something happens to one of those children,
the death benefit would topically be paid in this circumstance
to the parents, right, and God forbid, I know that's
not what the parents were hoping for for their kids.
They're not buying life insurance because they're expecting these zero
and one year old children to pass away on them, right.
They want to see those kids live to a ripe
(27:07):
long age. But the mechanism of life insurance allowed them
to set that money into that policy, grow tax free,
and then be able to use later and even structure
in a way that they could at one point give
those policies to their children. I have personal experience with
this again. A colleague of mine whose parents bought life
(27:27):
insurance from when he was just a young child, and
in his teen years he got a not a terminal,
but a chronic health condition before he even entered the workforce.
He know as a health condition that would make it
almost impossible for him to even qualify to buy life insurance.
The fact that his parents helped set something up when
(27:47):
he was still young and healthy meant now that he
was uninsurable in his twenties, he still had insurance because
his parents for land and protected him like that.
Speaker 3 (27:56):
Absolutely.
Speaker 4 (27:57):
Well, let's talk about some of the other benefits where
where applies to saving for college. You've talked about the
facts that the number one, it's tax free withdrawal. I
see someone saying here that no FASPA impact, which is,
you know, these are the kinds of things that people
need to think about when they start to save their
(28:19):
money and they start trying to figure out how to
pay for college.
Speaker 5 (28:21):
So maybe you can explain that.
Speaker 6 (28:22):
Yeah, so easy answer is that it's not counted. Right.
The funds that are inside that cash value life insurance
policy aren't counted as those liquid assets that we would
have to offset the additional need for any financial help
that we might qualify for. Right. So, now, even though
we are setting this money aside for them, it's not
(28:42):
counted against them because we did it that way.
Speaker 4 (28:45):
These funds can be used for any purpose. Now maybe
your intention is to say for college purposes, but they
can be used for any purpose and you aren't going
to be penalized.
Speaker 6 (28:54):
Correct, Correct, There is no strings attached to it. It
is just a cash value life insurance policy, and just
like any other cash value life insurant's policy. The cash
within that policy, you own it. It's yours to do
with as you speak, and there is no restrictions on
what those funds are used for, which I as I
mentioned earlier, maybe that's going to be seed money to
an entrepreneur child wants to start their own business rather
(29:16):
than go to college. Right, maybe those funds will apply
to help them get their startup business or purchasing their
first vehicle, all those other things that are outside the
scope of college.
Speaker 4 (29:24):
Well and Glenn, we always know that life changes and
maybe by the time you know you are ready to retire,
your kids have gone in a different direction.
Speaker 3 (29:34):
You can use that money, right one percent.
Speaker 6 (29:36):
Again, it's so being the owner of the policy allows
you to have that control. Right, you haven't given that
policy the child. You the parent or grandparent own the policy.
And if that child does change their mind and they
don't want to go to college and they're not going
to start a business, where I hope they're still going
to be good for themselves. But in that circumstance, the
parent or grandparent could say, you know what, I'm going
to use these funds now since they're not going to
(29:57):
use them. I didn't desiccated or designate in a way
that I cannot take it back for myself and use.
Speaker 2 (30:02):
It for what I want to absolutely in camp, add
with obviously four in college or somewhere in college, medical,
whatever it is, that no fast fast impact is a
big one because every year, when my wife would fill
it out because I didn't make my wife, but I
kind of made my wife fill it out, she would
get frustrated. And it has no impact on that. And
(30:24):
we know income potentially does have an impact. The tax
free withdrawals echoes without saying how can he not like
tax free? There's no contribution limits, unlike five twenty nine
s there's no IRS contribution caps. So that is a
great benefit. And most people don't think of life insurance
for college plan as a college planning tool, but when
(30:46):
structured right, and Glenn just recently did that, as he mentioned,
it could be one of the most tax efficient, most flexible,
and it could be used for building legacy, protecting your family,
and a whole bunch of other reason. So I'll use
this as a segue to say, maybe you're listening and
you have life insurance and you haven't had it looked
(31:09):
at in years now, maybe a good time to make
sure that it's going to perform the way you want
it to. We do a lot of life insurance reviews
and I'll let go and briefly touch on it, and
we see it eating itself, some policies eating themselves up.
It's not performing the way it should be, and maybe
now you still have an opportunity to make changes if
(31:30):
it makes sense. And then it also coordinates a lot
with long term care coverage and various things that are
out there. So yes, we're talking about college planning. But
maybe you're thinking, well, I have life insurance and it
really haven't paid any attention to it for years. That'd
be another, maybe another reason to come in and visit
(31:50):
it with Glenn and do a life insurance review which
has no cost to it, and you have nothing more
than to gain to make sure that you have confidence
in what you've been paying all these years is going
to do what you expected to do.
Speaker 4 (32:05):
Let me ask you, guys, this, what about you know
you get a five twenty nine, you put it in
and it fluctuates with the market. Is there any growth
potential when you put money in these insurance policies or
is it just sitting stagnant?
Speaker 6 (32:20):
No? Absolutely growth potential there. A lot of companies are
either going to structure this through a policy that's going
to a fixed rate of return in it, and due
to the high interest environment, well, those fixed rate of
returns are actually a lot better than they have in
the past ten to twenty years. On top of that,
they're going to we call shadow of the market. They're
not going to invest that money into the stock market,
(32:41):
but they are going to give you a performance. They
usually refer to this as an indexing strategy, where they're
going to monitor a stock index and when that stock
index is up, you're receiving a portion of the gains
that are happening within the index, but you're also sheltered
from the losses. When that index is negative. You're just
not getting interest that year. And in a negative market year,
(33:03):
zero interest and zero loss is a good thing.
Speaker 2 (33:05):
Right.
Speaker 6 (33:06):
I'm sure a lot of us are experiencing right now
a desire to be in in a market position that
we weren't losing in. Right, with everything that's going on
our market.
Speaker 4 (33:14):
Today, Well, let me ask both of you, gentlemen, what
of the downside? What's the downside here? Because I haven't
heard anything that sounded particularly negative.
Speaker 6 (33:23):
Time horizing it could be the only downside. This isn't
something that you do in two or three years, right, Ideally,
this is a ten year or longer investment strategy, right,
so that it could be the if there is a downside,
that's the only one I could think of.
Speaker 4 (33:37):
Okay, Well, so universal life insurance very interesting and if
you'd like to ask more questions or you heard what
Larry had to say, and boy, he couldn't be more right.
If you've got a life insurance policy that no one's
looked at for a long time, this may be the
time to take a look at it, make sure it's
been reviewed, and make sure that you actually are invested
(33:57):
in something that you think you're invested in.
Speaker 3 (33:59):
Six one two five zero four eight four zero zero.
Speaker 4 (34:02):
That is how you get hold of the experts and
Haven Financial Group. Give them a call, let them know
that you heard us here on the radio. Glynn, you're
going to stay with us, right, We're going to talk
a little bit more super We're going to talk about
wealth stability and family finances on the other side of
the break. This is the Haven Financial Group Radio Show.
Speaker 1 (34:19):
Don't go too far. We're gathering more important insights and
retirement pays Devinent 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 Karragan. Now back to
(34:41):
the show.
Speaker 2 (34:42):
Good morning once again, and welcome to the Haven Financial
Group Radio Show. I'm Larry Kolvig, founder and CEO of
the Haven Financial Group, on with Glenn Raimi, an insurance
specialist at our office, Kim Wealth. This last segment is
on wealth, family finances. It all goes together with life
insurance and planning, all those things we may not like
(35:03):
to do, but they're so important to do because you know,
we know that generational wealth just doesn't happen. We run
into very few trust babies. Contrary to what some listeners
may think. Most of it's done over the course of
time from one generation to the next with hard work.
And it's pretty staggering how quickly that that can get
(35:27):
lost because of a lack of planning, a lack of knowledge,
not knowing what to do. And that's really sad to
see when we see something built over time just disappear
so quickly.
Speaker 4 (35:40):
So having said all of that, and of course we
always talk about here, when you start with making your
financial decisions, you know, you need to consider lots of things.
One of them, as we've been talking about today, is
family education. And then we have medical expenses, and we
have maybe it's life insurance, and we have taxes.
Speaker 3 (36:00):
And we have investments.
Speaker 4 (36:03):
So how do you start to consider generational wealth?
Speaker 3 (36:07):
How do you approach that.
Speaker 2 (36:10):
We start with the same process we do with everybody
to determine do they have any generational wealth or not?
Or what are we working with? We do the same
We walk people through the same proprietary process from the
time we meet them to the time they come into
our office with a very laid back approach, listening to
what their worries and their concerns and ask probing questions
(36:30):
to get an idea what their goals and their objectives
are for retirement, what they worry about, what they think
they're doing good, what maybe they're not so strong, and
what have they done so far? Do they have a
long term financial plan which can create great vision for
their family, their loved ones. You know, is education funding important?
(36:52):
Like our conversations today, a homeownership, what does their retirement
look like or a lack thereof, because having these questions
answered gives us a good idea of what we need
to work on, what areas improvement might be. If they're charitable,
you know, we'll get into if you're a charitable giver,
what we can do. I just set up some qualified
(37:13):
charitable distributions for clients of mind that didn't need their
requirement ofum distributions, and they had some favored charities that
they wanted to give it to, and it made sense.
All of these are going to accomplish some of the
goals that people want. But if you're not having the
conversations and you're only getting a meeting once or twice
(37:35):
a year to talk about investments, that is not enough
attention and weekly I see that's all the attention people
are getting. They're paying way too much for the attention,
and that isn't adequate. So you're probably not going to
find out about these different tools things you can do
to minimize wealth. You know, seventy percent of wealthy families
(37:57):
lose their wealth by the second generation and ninety percent
by the third, ninety percent by the third generation. Do
you have an estate plan. Are you doing what you
can with a trust, tax minimization all these things? Are
you going to protect some assets from things that could happen? Again,
it starts with these conversations again. Just this week, we
(38:20):
had very well attended classes with our state planning attorneys.
We did wills, trusts, and legacy planning. By the attendance
we had, it's obvious that people were concerned and they
didn't know if they had their ducks in a row.
And it's why we have numerous meetings from those well
attended classes, because people are worried, they are concerned, and
(38:41):
they're seeking education. And that's where I think at Haven
Financial Group, we do a really good job of education
and then you can make some good educated decisions. And
that has always been our approach. And you know, Kim,
this is our ten year anniversary and we're not going
to change that anytime soon. That is for Clyn.
Speaker 3 (39:00):
Let me ask you.
Speaker 4 (39:02):
We obviously spoken the last segment about using universal life
insurance for saving for college. Do you advise some of
your clients to use this kind of tool for saving
for passing on legacy money?
Speaker 6 (39:18):
One percent? Think about this respective what's the most generous
way I can give someone a monetary contribution and that's
tax free right where they get to keep all of it,
no one else gets any portion of it. And life
insurance death benefits are one hundred percent tax free. On
top of that, life insurance is leverage, right. You don't
(39:39):
have to give an insurance company one hundred thousand dollars
for them to give someone else one hundred thousand dollars
as your death benefit. You might give them twenty thirty
forty thousand dollars over your lifetime for them to be
able to give you one hundred thousand dollars upon your death.
So it's another way to leverage those dollars that you have,
those very limited dollars that we have, and get more
out of it as part of those legacy planning.
Speaker 2 (40:01):
Glenn, if you would add to the listeners that have
put away adequate retirement funds for retirement, and we know
that in the last in recent years, some of the
rules and laws with transfer of wealth has changed dramatically
for those that have done a good jobps life insurance
retirement planning. Just touch on that briefly if you would.
Speaker 6 (40:22):
Yeah, So, some of the concept of the life insurance
for the kids for college.
Speaker 2 (40:26):
Right.
Speaker 6 (40:27):
Life insurance cash value can be another one of those
tools in retirement planning as a way to set up
a distribution of tax free income that's tied your life insurance,
a way to borrow against the cash value, and when
a properly structured policy, then those funds can supplement your
retirement income. Right, And at the end there's typically still
(40:50):
going to be a life insurance policy left at the
end of the process that's still going to pass on
additional funds to your family on top of it.
Speaker 4 (40:55):
So immediately, Glenn, that makes me think that those premiums
are extremely high.
Speaker 6 (41:00):
It's about what you want to do, So this is
something that's really customized related to your needs. What do
you want to set aside? Now, again, it's all proportional.
The more I'm willing to give, the better the outcome
is going to be. Right, But there isn't a fixed
number on this. This is just about what you're comfortable with.
And even if it's one thousand dollars a month or
(41:20):
one thousand dollars a year and extra income, if it's
tax free, that means again you get all of it.
No one else is getting a piece of that. For you,
where all those pre tax retirement accounts, amazing vehicles for
saving and preparing for retirement are all going to come
with Uncle Sam at the end of it, Right, Uncle
Sam's wants to get his share of that pie at
some point. With the life insurance. Just like the wealthy
(41:42):
borrow against their stock values right to have income, this
is the way you're borrowing against your leverage, your asset
of life insurance and then using that as a tax
free distribution used for income.
Speaker 4 (41:53):
Sure, Larry, we're talking about insurance with Glenn, but certainly
in the office you have attorney and you have full
kinds of people who can sit down with some of
your clients and talk about building generational wealth, legacy wealth.
Speaker 3 (42:08):
And I would think that one.
Speaker 4 (42:10):
Of those would be just just how to transfer the
money and how to go about doing that. How quickly
do you set people down and say have you thought
about this and how we're going to go about it.
Speaker 2 (42:23):
It's part of our ongoing initial conversation always whether they
have an attorney relationship, whether they've done a state planning documents,
do they have wills trusts, do they have their as
simple as their beneficiaries on their accounts, which almost weekly
we see folks that don't have any beneficiaries. That's an
outdated beneficiary. They don't even like that person anymore, perhaps,
(42:45):
although I hope that's not the case. Make sure your
beneficiaries are current and up to date. It starts with that,
which is so elementary. And then we have such a
close relationship with provision law if one chooses to use them,
and by the way, there is no costs for an
initial consultation and they do the work on the legal side,
(43:05):
they'll notify us because we have a working relationship that
this is how it needs to be retitled. This is
the the legal way it should be done, and that
is very It's called funding a trust or retitlement of
assets in the proper way, because a lot of times
if somebody passes and things were not done properly, it
can lead to probate and a lot of headaches that
(43:27):
you don't want to go through. So dotting the i's
and crossing the t's and having a somebody that's looking
at the big picture of retirement, not just the investments. Now,
investments are important, and you know we do wealth management
with Charles Schwab and Fidelity Investments and the investment team,
and we frequently on our show talk about that, but
(43:48):
it's the other things, the things that Glenn and Isabella
with Medicare and healthcare and life insurance and long term care,
which nobody wants to talk about. Lance our CPAs coming
to the end up tax season as far as the
tax deadline, and just he goes, well, there's those that
didn't plan and then we had to final extension. And
(44:08):
I get all that, but I'm anxious to have Lance
on after tax season to talk about what he helped
people with and what we learned from this tax season.
Just putting all the retirement puzzle pieces and at even
Financial Group, we have all those pieces that can be
We can help you put together that puzzle. Although it
(44:29):
can be complicated, it doesn't have to be. If you'd
allow us to give up to sit down with us,
give us a call at six' one two five four
eighty four, hundred just set up a. Time listeners have
nothing to. Lose we encourage even our own existing clientele
to come out to our, classes and our clients do Because,
(44:50):
kim just when you figure out what the rules are
with some of this, stuff then they change the. Rules,
well if you don't have anybody keeping you updated on
how the rules, changed you could be lost in the
past and what they were five years, ago which were
different in many cases than they are today.
Speaker 4 (45:05):
Six one two five zero four eight four zero zero
or go To Havenfinancial group dot. Com be sure you
set up an appointment sit down with the.
Speaker 3 (45:14):
Experts it's one shop.
Speaker 4 (45:15):
Stop it's one stop shopping under one big groof there
At Haven, financial so be sure you set up an.
Speaker 5 (45:22):
Appointment let them know that you heard us here on the.
Speaker 3 (45:24):
Radio.
Speaker 5 (45:25):
Glinn great to see you like, always thank you for
all the great.
Speaker 6 (45:27):
Info thank you so, Much, kim always a.
Speaker 3 (45:29):
Pleasure it was great and great to see You larry as.
Speaker 6 (45:32):
Well.
Speaker 2 (45:33):
Kim great to be with. You look forward to next
week where we're on to more conversations and. Topics have
a good.
Speaker 3 (45:39):
Week 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.
Speaker 2 (45:53):
Guaranteed please consult with the qualified financial advisor and or
tax professional before implementing any strategy discussed herein and comments
regarding it safe and.
Speaker 1 (46:01):
Secure investments and guaranteed income streams only refer to fixed insurance.
Speaker 6 (46:05):
Products they do not refer in any way to securities
or investment advisory.
Speaker 1 (46:09):
Products fixed insurance and annuity product guarantees are subject to
the claims paying ability of the issuing company
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