Episode Transcript
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Speaker 1 (00:00):
You worked hard for your money, but do you know
how to make it work hard for you. You need
a team with experience, vigilance, and a strategy to help
you live the retirement you deserve. Find your financial safe
haven with Haven Financial Group. Today, you're listening to the
new and improved Haven Financial Group Radio Show, where we
bring you comprehensive weekly financial wisdom from the professionals. It's
(00:23):
all about helping you solve retirement problems so you can
make your nest egg last. Your tune to the Haven
Financial Group Radio Show with your host Larry Kolvig and
Kim Karrigan your guides to weekly retirement confidence. If you're
interested in protecting and growing what you have, let us
be your financial safe haven. The phone nines are always
(00:43):
open at six point two five oh four eighty four hundred.
Now get your financial questions ready because the Haven Financial
Group Radio Show starts now.
Speaker 2 (00:54):
Good morning, and welcome to the Haven Financial Group Radio Show.
I'm Larry Kolbig, founder and CEO of the Haven Financial Group.
We have Lance Larson on our Lance Larson with us today,
our CPA and tax prepare at Haven.
Speaker 3 (01:07):
Kim, good to be with you.
Speaker 2 (01:08):
We got a lot to talk about, and you know,
we're going to talk taxes and first things. Listeners might
wonder as well, we just got done with tax season,
but you really never get done with tax season, which
is why I think it's important to start this off
the right way.
Speaker 4 (01:24):
Well, we want everyone to know this is a positive conversation.
You know, when you say taxes, a lot of people go, oh, no, no, no,
do we have to.
Speaker 5 (01:29):
Talk about that?
Speaker 4 (01:30):
First off, Lance, I haven't seen you since the actual
tax season came to an end.
Speaker 5 (01:35):
And I'm looking at you. You look no worse for
the wear, So you made it through.
Speaker 6 (01:40):
Thanks Kim.
Speaker 4 (01:42):
It's good to have you like always. Well, let's take
a look at what we're going to talk about in
this show. As Larry has just mentioned, you know, we're
going to talk about taxes. It's never too soon to
start preparing for next year, and many of you may
be filed extensions and so October is when you're going
to be paying your taxes and maybe you've got some
things that you need to take care between now and then.
Maybe you pay quarterly. So we're going to talk about
(02:03):
all of that coming up. We'll also talk about taxes
and retirement accounts. It's very important that you understand how
those are taxed and what I know that Lance is
going to talk to us about effective ways to pull
money from those accounts that you don't end up paying
a big chunk of it to Uncle Sam. Then there's
taxes and investments in retirement, and finally we'll talk about
(02:24):
estate taxes and how that affects your retirement. So, gentlemen,
let's get started with this idea. First off, about people
who maybe have put their taxes off, they've filed for extensions.
What are some of the things Lance, when someone comes
to you and says, we want to file for an
extension extension, what are some of the things that you
talk to them about in doing so.
Speaker 6 (02:46):
So, okay, one of the first things we talk about
when looking at an extension is making sure we have
the money into the government by April fifteenth. All the
extension does is give us more time to actually file
the paperwork. We might be missing a document here there,
we might be waiting on a K one because we're
invested into a publicly traded partnership. Otherwise, you know, you
(03:11):
might be going through some family situations that you just
don't have time to get your paperwork done. Whatever the reason,
you know, the extension is there for everybody. One of
the things that I use extensions for is when people
are coming to see me at the beginning of April,
and then I'm just not going to have enough time
to do a proper preparation of the return, make sure
(03:35):
that I'm crossing all the t's, dotting all the i's,
and so i just need to have more time to
get that paperwork done. Even though we filed the extension,
the money is still due on April fifteenth, So you
want to make sure that you've done enough work to
at least get a ballpark idea that hey, how much
are you going to oh? If you're going to oh,
(03:57):
or if you're getting to get a refund, then you're
going to be sitting fine. And then you want to
make sure that we get those payments in by April fifteenth.
Speaker 4 (04:07):
So once that's taken care of, and people or people
maybe who got their filings in before the fifteenth, no
doubt you at this stage of the game begin again.
Speaker 5 (04:17):
With a lot of people.
Speaker 4 (04:19):
We start the new year fresh, you know, the new
year being the sixteenth of April. Moving forward, So what
are some of the things that you are really stressing
to your clients right now that people need to be
aware of as we begin the new tax here.
Speaker 6 (04:35):
So one of the big things that we always talk
about there is the standardize the standard deduction versus itemized deductions.
Otherwise people known as filing the long form or we
put in all the itemized deductions. In the past years,
most people haven't been able to really take advantage of
(04:56):
that because the standard deduction has been so high. This
might be the year that we could either do doubling
up on charitable contributions, that you might have a bunch
of medical expenses that are happening this year. Those are
the type of the ideas that we want to look
at and say, hey, let's plan for this, and is
(05:18):
it going to make sense if you are a charitable person.
Instead of giving every year the same amount, maybe we
prepay our twenty twenty six charitable contributions and pay that
in twenty twenty five, so we essentially double up there.
When we look at medical expenses, the first seven and
(05:38):
a half percent of our adjusted gross income does not
count towards our medical expenses. So to give our listeners
an idea that if you had one hundred thousand dollars
of income, the first seventy five hundred dollars of out
of pocket medical would not count. That's our seven and
a half percent right there. Well, if one of the
(06:00):
partners has to go have some medical procedures done this
year for whatever reason, maybe we look at the other
partners say, hey, this might be a time that we
do some of the elective stuff. Hey, this might be
the day that we do the cataract surgery. We might
want to get laysick, we might want to get the
(06:21):
veneers on our teeth done. You know those things that
are kind of more elective that. Hey, if we're going
to have a bunch of medical expenses already, let's start
taking care of everything so that we can take advantage
of it on our tax return.
Speaker 5 (06:35):
There absolutely.
Speaker 4 (06:39):
Is it too early to know if there will be
changes in this next tax year.
Speaker 6 (06:44):
Unfortunately, right now it is. We have indications the Senate
has already gone through they've done a little bit of
work and voting there that we're trying to extend the
Tax Cuts and Jobs Act, trying to keep the lower
tax rates that we have right now. But as of
right now, they have nothing solid that has been passed yet.
Speaker 2 (07:06):
Okay, Kim, if I may add a takeaway from this
first segment is if you're listening and you just did
your taxes, you weren't happy with the results. You owed
a bunch of money. You haven't been doing tax planning,
and you really should have been. Give us a call,
come on in and visit. You should have a partner
that you could lean on them for these things. To
avoid some of the pitfalls that people have every single year,
(07:31):
why not fix the problem so next year you don't
have the same problems. You know, saving money, you know,
on taxes and retirement isn't just possible, it really is
essential to your financial health and your retirement plan. You
can reduce, you know, various taxable income, minimize Social Security taxes,
you know, avoid some costly Medicare surcharges, which we really
(07:51):
haven't even talked much about. You know, every dollar saved
on taxes is a dollar that you keep in your
own pocket. And for most of us, we work hard
for every doc. Do you really want to give Uncle
samer On the irs any more than they deserve? Probably not,
but we see it all the time, Missed opportunities, unforced
errors because there's no planning throughout the course of the year.
(08:14):
You know, we're into May. Now this is tax planning season.
As Lance has said on our show numerous times, April
first of the fifteenth is tax prep time, and planning.
Speaker 3 (08:24):
Is throughout the rest of the year.
Speaker 2 (08:26):
Avoiding these surprises that don't have to happen, but continue
to happen. If you don't have somebody that's having these
discussions throughout the year, it's so so very very important.
Speaker 4 (08:37):
Well, Lance, let me ask you, what do you think
is one of the biggest mistakes that you see some
of your clients make, especially those who may be cut
walk in and they have not been tax planning.
Speaker 6 (08:52):
I would probably say one of the biggest things is
not utilizing the full tax bracket that they're in. So
as we know that our tax system is a progressive system,
well what that means is that the first dollar that
is being taxed is going to be taxed at ten
percent on the federal level. It's not until we get
(09:13):
to in the twenty three thousand dollars range that those
dollars are then taxed at twelve percent. Then we go
up to about ninety six thousand dollars this year and
then the next dollars after that are taxed at twenty two.
So everyone's is concerned about, hey, what they're being taxed at.
And it's great when we're at twelve percent, but when
(09:37):
you have a room for about twenty thousand dollars more
to just fill up that twelve percent tax bracket, well,
that means that we could have taken more money out
that we could have done rebalancing in a portfolio to
get some capital gains then so we don't have to
pay in the future. This is where we could have
(10:00):
done a Roth conversion. There's all sorts of different ideas
depending upon your financial situation and what assets that you have,
but at the end of the day, it's still twenty
thousand dollars that we could have done something with and
had either had a tax at twelve percent or even
at zero percent for your capital gains there that we
(10:21):
missed out.
Speaker 4 (10:22):
On sure, absolutely well again, and it's understandable why people
miss out on this because this is not their their
area of expertise. This is, however, Lance's area of expertise,
and that's why, as Larry just mentioned, if you are
now ready for the preparation phase of your taxes for
twenty twenty five. Give them a call at Haven Financial Group.
(10:45):
It's six one two five zero four eight four zero zero.
That's six point two five zero four eight four zero zero. Colin,
tell me you'd like to come in and see Lance.
I'm telling you heard us here on the radio. And
while you're there, be sure that you meet with some
of the other experts and make sure that your retirement plan,
not just the taxes, but your entire retirement plan is
(11:07):
in tip top shape. All right, when we come back, gentlemen,
let's talk a little bit more about taxes and retirement accounts,
because obviously all of this ties together. You're listening everyone
to the Haven Financial Group Radio Show.
Speaker 6 (11:20):
Don't go too far.
Speaker 1 (11:21):
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 Kolvig
and Kim Karagan. Now back to the show.
Speaker 2 (11:41):
Good morning, and welcome back to the Haven Financial Group
Radio Show. I'm Larry Kolvig, founder and CEO of the
Haven Financial Group. Feel free to give us a call
at six one two five zero four eight to four
zero zero. Are always visit us online at Havenfinancialgroup dot
com Kim. We've had some great, well attended educational events recently,
(12:02):
and I encourage folks to go to the website and
see the upcoming ones. Medicare made simple wills, trusts and
legacy planning, investment classes, social security classes, and numerous others.
We believe we're firm believers in the education piece, you know,
making educated decisions. And certainly the tax discussions we're going
to have today, they're really relative to everybody, but probably
(12:25):
more to the demographics that we serve that those that
are getting close to retirement and in retirement. And it
can't stress enough, you know, when you're in accumulation mode, younger,
you're just accumulating. That is a different season of life
than when you're getting closer to retirement and retirement where
now you're making distributions. So taxes will affect us probably
(12:46):
more at any stage, probably more in retirement than ever before.
And that's not meant to be pessimistic, it's just it's
the reality. So again, come on and visit with us,
you might be surprised.
Speaker 4 (12:57):
Absolutely. Well, we also have with us today Lance Larson.
He is a CPA there at the Haven Financial Group,
and we're going to talk in this segment a little
bit more about retirement accounts and what we can do
to you know, maximize those dollars and minimize the tax
on them.
Speaker 5 (13:15):
So Lance, let's start with four one K plans.
Speaker 4 (13:19):
You know, obviously people start to draw those and then
we have to start thinking about taxes there. So what's
the best advice the best way for people to go
about starting to draw their four A one K.
Speaker 6 (13:29):
So for one case, just so that we can know
that that is a retirement plan that has been set
up under the code section four one k. Uh, there's
going to be other people that will have four fifty
seven b's or four h three b's. So everything we
talk about what this is going to be also related
(13:49):
to those people who have those type of accounts as well.
We got to want to understand that these accounts are
employer accounts that while you're working you can make contributions
to this. They are pre tax accounts unless they are
specifically defined as a wroth account, which then are funded
with after tax money. And so when we look at
(14:13):
the four one K again, it's while you're as an employee,
you're making the contributions. Once you've separated from service, you
may or may not be able to keep the money
in that four to one K, and then you would
want to roll it over if you can't keep it there,
or you could also have an in service rollover while
(14:33):
you'll stire working to have better options. And when you
do a rollover, you're going to move it over to
an individual retirement account an IRA, which is then set
up under a different code section. And we talk about
these code sections just because each one it's going to
have its own set of contribution limits, and that while
(14:55):
you may be covered under one, you might also be
able to make a contribution to your individual retirement account
as well, depending on what your income level is. So
a lot of preface before getting back to your question
on this one. But when we look at taking distributions
from these pre tax accounts, we want to be cognizant
(15:17):
of what our total income is, and especially if we
have other sources such as a pension or Social Security.
Is the biggest one that a lot of people will have.
Because again we go back to we have a progressive
tax system. When we pull money from these different sources,
(15:40):
each source kind of does the withholding tables based upon
that the distribution from their own accounts. So what we
end up saying is that, hey, if I take fifty
thousand dollars out of my four oh one K, then
I have a pension that gives me thirty thousand dollars,
and then I have Social Security. We're right there when
(16:01):
we add up all the income that's going to put
us into a twelve or possibly twenty two percent tax bracket.
The problem that we people run into a lot is
that when we do the withholding at each source, it says, hey,
you only pulled out this much money, therefore we need
to only withhold about ten percent. And so when you
have each source that does ten percent, we're going to
(16:25):
be coming short and then they're going to owe money
on April fifteenth.
Speaker 4 (16:29):
Absolutely, So that would be the case with a four
to one K plan or a plan like that employee plan,
because that's all pretext yep.
Speaker 6 (16:39):
So that's going to be on all pre tax accounts,
even the traditional IRA.
Speaker 5 (16:43):
Right right right now. So it's different with the WROTH.
Speaker 6 (16:46):
It is, so the WROTH is going to be funded
with after tax money and so we get no benefit today.
So when we talk about contributing to a traditional IRA
or to the traditional four to one K plans there,
what we're doing is that we are deferring the taxes
on this income until we decide to pull it out
(17:07):
of those accounts. With the WROTH account, we pay the
taxes today and then we let that sit and grow,
and after five years, all the earnings and the amount
that we've put in there is going to be tax free.
So WROTH accounts are perfect for people just starting out
(17:30):
in their careers if they can do this might not
be as applicable to a typical for a retirement person,
but definitely for the twenty to thirty year olds that
are out there there, they are starting their careers out,
they can put the money in the wrath and have
that element of time to watch that thing grow and
(17:51):
then they will be in a great position for their retirements.
Speaker 4 (17:54):
Sure, now there are required minimum distribution times on all
of these. If you have tax issues or you may
be running into them, you may still have to draw
that money.
Speaker 2 (18:05):
Yeah, I'll comment on this because we deal with this
a lot requirementium distributions. All those years of putting money
in pre tax Eventually Uncle Sam gets a little impatient
and says, you got to start drawing this money out
because we want our tax revenues. And for those born
after nineteen fifty nine, the age is seventy three. And
if you're listening, you say, well, I thought it was
(18:26):
seventy and a half. Well it was for years, and
then it was recently changed to seventy two. Now changed
to seventy three, and I believe in seven years it
goes to seventy five if they don't make any additional
changes where you're going to have to start pulling out
of those. It starts at about just over four percent
of your total pre tax dollars. So, as retirement planners,
(18:47):
what we look at oftentimes in the early years of retirement.
Maybe you're delaying Social Security for good reason, maybe you
haven't turned on the pension yet, and your income is
more lean than it ever has been. That creates a
window of opportunity to do the wroth conversions, converting some
of that iratea wrath, Maybe taking advantage of low capital
(19:10):
gains or no capital gains taxes to minimize the amount
of tax effects that it's going to have when you
do have to start turning it on. So if this
sounds complicated, uh, it doesn't have to be complicated. We
map out income and distribution tax plans for retirees all
the time. It's just the system you want to get into.
(19:31):
But if you don't have somebody that's you're meeting with
and discussing these things, you're probably not getting this attention.
And if you're not getting that attention, you're probably missing
the opportunities again, and most people are not getting the
attention they truly deserve.
Speaker 5 (19:47):
Absolutely. What's tax diversification? What does that mean?
Speaker 6 (19:56):
So tax divers diversification is that when we have different
types of accounts. So we've talked a lot about the pretax,
which is our four to one k, the traditional IRA.
Then we have after tax accounts, which is our wrath.
These are all qualified accounts, meaning that all the growth
that's happening that we don't really care about until we
(20:19):
actually take the distributions from these accounts. There are also
non qualified accounts, which is funded with again after tax money,
but you're going to be paying the taxes on the
interest dividends and any type of growth of social capital
gains when we realize those gains, and those happen every year.
(20:43):
So the tax diversification is saying that we want to
have money in kind of each of these buckets. So
when we map out those income plants right there, we
take money out of the iras and we pay the
taxes on that, but let's take it. Let's keep that
money that we're taking out of those in these lower
(21:03):
tax brackets. So when we max out at twelve percent
tax bracket and we still need to have more income, well,
now we can look at possibly getting money out of
those non qualified accounts or we tap into the WROTH
accounts instead. If somebody goes through and says all they
have is an IRA, okay, well there's not a lot
(21:24):
that we can do. If you need to have two
hundred thousand dollars, you have two hundred thousand dollars and
it's all going to be taxable versus the other person,
we can say, oh, let's only pull out ninety five
thousand from the IRA. Let's pull out thirty thousand out
of the ROTH, and then we can take the rest
of it that we need out of our non qualified
accounts and the tax bills are going to be significantly different.
Speaker 4 (21:48):
Well, a tax diversification sounds like a very complicated, but
very strategic sort of plan, and Larry has said, and
of course Lance has said, these kinds of plans most
of the time we all need little help putting together.
And this is the time to start that kind of
a planning. If you're, you know, approaching retirement. Now, if
(22:10):
you're in retirement, there's some other steps that can be taken,
and we're going to talk a little bit more about
that as well. But if you're someone who's looking to
diversify in this way, give the folks at Haven Financial
Group a call six one two five zero four A
four zero zero. That's six one two five zero four
eight four zero zero. Tell them you heard us here
(22:31):
on the radio. Set up an appointment and get in
there Sea Lands immediately so you can sit down and
begin planning and begin.
Speaker 5 (22:39):
Working toward diversification.
Speaker 4 (22:41):
When we come back, we're going to talk about taxes
and investments and how that affects your retirement.
Speaker 5 (22:46):
This is the Haven Financial Group Bringer Show.
Speaker 1 (22:50):
Ready to find your financial safe haven. Your dream retirement
is in reach. Don't go away. The Haven Financial Group
Radio show.
Speaker 6 (22:57):
Will be right back.
Speaker 1 (23:00):
Are you worried that your financial strategy might be missing something, Well,
you're in the right place. Larry Colvig is back and
ready to help you find your financial safe Haven.
Speaker 2 (23:12):
Good morning again and welcome to the Haven Financial Group
Radio Show. I'm Larry Colvig, founder and CEO of the
Haven Financial Group. Thanks for listening talking about taxes and
tax strategies today. Give us a call at six one
two five four eighty four hundred or visit us online
come to our classes. I just wanted to note Kim,
we're celebrating our ten year anniversary when we started Haven
(23:35):
Financial Group, so we're.
Speaker 3 (23:36):
Excited about that.
Speaker 2 (23:38):
We just had a great annual Shred client appreciation event
this past week, very well attended. We took over the
local restaurant and we just in appreciation to all the
folks that we've been able to help over these ten years,
which man, ten years has gone by really really quick.
So again, good to be talking about these things because
(23:58):
people want to know, and it's evident by the amount
of attendees we had this past week at our social
security class, so we always encourage people to come out.
Speaker 4 (24:06):
Absolutely, we do want to remind everyone. Those educational classes
are available to anyone. You go to Havenfinancialgroup dot com
and you'll see the classes that are coming up and
where they are going to be held. Be sure you
sign up. It costs nothing, but they do like to
get a head count if at all possible. Again, that's
Haven Financialgroup dot com.
Speaker 5 (24:28):
Let's talk a little bit about taxes and investments.
Speaker 4 (24:31):
Of course, we have Lance Larsen here CPA with Haven
Financial Group and.
Speaker 5 (24:37):
Capital gains tax.
Speaker 4 (24:38):
That seems to be the one that people, you know,
obviously are the most concerned about. I think that's the
one that people think about the most, Lance when they're
thinking about taxes in retirement. So let's talk about capital games,
gains tax and just sort of an overview and how
you sometimes suggest people deal with that issue.
Speaker 6 (24:58):
So again, capital game is going to be the difference
between what you sell the asset for and what you
kind of bought it for. It's really easy when we
look at stocks that hey, we bought it at ten
bucks a share, it now went up to twenty bucks
a share. So that growth right there is we're going
to be paying a capital gain of ten bucks a share.
(25:21):
The other big one we talked a lot about is
going to be your primary residence. You've lived there, you
bought it many years ago and you paid a smaller amount,
and now today it's worth a lot more, and so
there's going to be a capital gain on there. Fortunately,
for primary residents, there is an exclusion that we can
exclude up to five hundred thousand dollars of that capital
(25:43):
gain for married couples there, and so most of the
time we actually don't really pay anything on the primary
residence there, but the principle of calculating that gain is
always going to be there. When we also look at
capital gains, you need to know is it a short
term or is it long term? And the definition on
(26:05):
that one is that long term is anything over a year.
And the reason why that is very important is because
there are different tax rates for short term gains versus
long term gains. Our short term gains are treated just
like ordinary income. So people who do a lot of
day trading where they say, oh, this one's going to
go up by a quarter of points, so I'm going
(26:25):
to invest my fifty thousand here, watch the stock go
up by three quarters a point and they're over the
moon and they sell it immediately. Well, that's going to
be a very short term and that's going to be
ordinary income for them versus most people. We're in it
for the long haul. We were told to invest there
(26:45):
and ride the market out there and then wait until retirement.
And so now we have long term capital gains. And
why that's going to be important is because depending upon
which marginal tax bracket that you're in, those long term
capital gains could be taxed at zero, fifteen, or twenty
if we have a lot of income that's coming in.
(27:06):
I do remember a client that we helped out a
few years ago that had very little income because he'd retired,
but he had a nice, big portfolio of things that
he'd invested in. We liquidated a whole bunch of his
holdings and he had about one hundred thousand dollars of
capital gains and he had cash. Wise, I want to
(27:28):
stay closer to about one hundred and fifty to two
hundred thousand of cash that came in. So it's not
important to note that the cash that you receive from
selling this does not equal your capital gain all the time.
But in his situation, with that one hundred thousand dollars
of capital gains, and no other income. He actually paid
(27:48):
no federal tax at all because were he was in
the twelve percent marginal tax bracket, wherefore his long term
capital gains were taxed at zero.
Speaker 4 (28:00):
Well, Lenz, let me ask you, are there are there
plans that you can make? Are there ways to get
around or minimize capital gains?
Speaker 6 (28:09):
There are, and it's going to be more taking advantage
of what income brackets that you're in. So at a
bare minimum, long term capital gains are always going to
be at a preferential treatment. So we're not going to
necessarily get around paying them unless we keep them in
the lower tax brackets and then we can actually use
(28:31):
that zero percent for our capital gains. It's the only
true way of getting around that one. But I will
also note that even if you are in the twenty
two or twenty four percent tax bracket, it is better
to pay on the long term capital gains at fifteen
percent rather than that twenty two and twenty four percent.
Speaker 4 (28:51):
So that's the kind of advice that you can give people.
And and maybe also I'm thinking, well, I'm going back
to primary sense. What you say is tax at a
very different rate. But just there maybe are some of
these capital gains that need to be strategically. You gain
them strategically so that they're not all at one time exactly.
Speaker 6 (29:14):
So people who have these non qualified accounts that they
look in they call investment accounts that it kind of
depends on what you're invested in there. One of the
things that we also want to look at is there's
tax efficient funds that are going to be in there.
So typically mutual funds are funds that are going to
(29:38):
cause us to have a lot of income because it's
someone else that's controlling and they are going to make
a whole bunch of sales and then the capital gains
that they create in their fund are going to be
passed upon to the investor. And we have clients that
are invested into many of these funds, and we look
at their statements throughout the year, no capital gains, no
(30:00):
capital gains, no capital gains, and then we finally get
to the December statement, which is now too late for
us to really do much. And this the hedge fund
manager sold a bunch of US stock to get a
whole bunch of capital gains. And now our investor he
has a thirty thousand dollars capital gain distribution. It makes
(30:21):
for a nightmare for tax planning purposes there whereas if
instead of being into that mutual fund, you could be
invested into an ETF which will give you the exact
same risk portfolio that you're looking for, can give you
the exact same type of growth, but it's not going
to produce all those tax problems for us at the end.
(30:41):
And this is one of those things that we want
to have clients come in and talk with Larry and
with Kyle and that we can look at what are
you actually invested in with these things and does this
make sense in one for their risk portfolio and two
from a tax perspective.
Speaker 3 (30:57):
Sure, Kim all the time we as we we look
at portfolios.
Speaker 2 (31:01):
And again at HAN we do wealth management. We're not small.
We manage with Charles Swab and Fidelity Investments. We have
an investment team of twelve. You know, I'm sure listeners
have noticed the market had been very volatile in the
last couple of months, like very volatile up and down.
Speaker 3 (31:16):
Yet that creates.
Speaker 2 (31:17):
Opportunities and when I mean opportunities tax loss harvesting. With
more volatility becomes more activity for that opportunity to harvest
some of these losses, although we don't like them.
Speaker 3 (31:31):
We can sell investments.
Speaker 2 (31:32):
That have lost value to offset capital gains tax and
that really reduces the tax burden.
Speaker 3 (31:38):
I can tell you.
Speaker 2 (31:39):
I can think of numerous clients where we've saved them
thousands and thousands of dollars in taxes and they were
extremely happy. Now they maybe didn't know why, and they say,
why are you doing this now? And when we explain
it to him, it makes perfect sense. However, if you're not,
don't have a relationship or a partner where you're having
these discussions, or many times they're not even paying attention
(32:01):
to your investments. They just set it and leave it
and don't pay any attention. You're probably not utilizing these
tax strategies which are available to many people, and it
just doesn't apply to those that are wealthy. It can
affect those that actually have very minimal to those that
have a lot of wealth. So don't back yourself in
a corner, but have a partner get it looked at.
(32:25):
Let you lance mention the right recipe in the right portfolios.
There's certain types of investments that should go and non
qualified that shouldn't go into IRA's and that may be
different to go into rots. There's the right recipe in
the right mix for the right types of accounts, and
we see them all mixed up all the time, and
we have the luxury. Lance has the luxury I know
(32:46):
numerous times this tax season whereas he's doing their taxes
and looking what they made an interest, Why did you
do it this way? Why did your advisors sell these off?
It just caused you this much in a tax burden?
Did you know that? And they don't usually have any explanation,
they have no idea. Right, we want to avoid those mistakes.
Speaker 4 (33:05):
Rebalancing your portfolio to make sure that it's that keeps
you away from those high taxes. Absolutely, rebalancing and diversification.
These are our two big words today, right.
Speaker 2 (33:17):
Yeah, these are the two big words takeaways. Rebalancing and
tax diversification. And if you if you're not having those conversations,
come on in and visit. We can have those conversations.
It might be well worth your while.
Speaker 4 (33:28):
Absolutely, six one two five zero four eight four zero
zero at six one two five zero four eighty four hundred,
that's how you set up the appointment. Go on in
and talk a little bit about rebalancing and diversification. When
we come back, let's talk about estate taxes and how
that affects your retirement.
Speaker 5 (33:47):
This is the Haven Financial Group Radio Show.
Speaker 6 (33:50):
Don't go too far.
Speaker 1 (33:51):
We're gathering more important insights and retirement poice government. The
Haven Financial Group Radio Show will.
Speaker 6 (33:56):
Be right back.
Speaker 1 (33:57):
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 the show.
Speaker 2 (34:11):
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. Nice to have Lance Larson, our
CPA and tax preparer at at Haven on with us
today to talk about this wonderful discussion on taxes, which
right away listeners are going, oh my goodness, I thought
we were done talking about taxes. We're never done talking
(34:33):
about taxes, and maybe you should be talking about it more.
To avoid some of the mistakes and pitfalls that you
may be grumbled about come April fifteenth, we can avoid
some of these things you complain about every tax season.
So at Haven we're big into forward thinking tax planning
to minimize some of those tax implications that could have
(34:54):
maybe been avoided. And if you're listening and all you
do is get your taxes prepared and you're not doing
tax planning, you may want to think again, because we
find the tax planning throughout the year can avoid a
lot of those negative surprises.
Speaker 4 (35:10):
Lance can make April fifteenth the holiday for you folks,
as opposed to maybe a day that you dread.
Speaker 6 (35:17):
Let's talk a little bit more.
Speaker 5 (35:18):
About a state taxes.
Speaker 4 (35:20):
Now, this is I think people are a little more
cognizant of this, you know, and recognize this as something
they maybe need to plan for. But let's just start
from the very beginning. What's the number one thing people
need to know or prepare for when it comes to
a state planning and a state taxes.
Speaker 6 (35:39):
So with the state taxes, what that is is that
there is going to be an excise tax based upon
the value of your estate. So we look at what
all the value of all the assets that you own
when you pass away, and when that total comes up
(35:59):
for the federal purpose, as long as we're under thirteen
point nine to nine million this year and someone passes away,
then there's not going to be anything any state taxes
do for that. However, Minnesota is not quite as generous
as the Feds are Minnesota, their threshold is three million dollars.
And so when we look at people and saying, hey,
(36:22):
if you're going to be worth more than three million dollars,
you know what your state is going to be cutting
a check to Minnesota before the beneficiaries can get their cut.
And when people start hearing that, they're like, oh, my gosh,
I don't want my hard work to go to the
state of Minnesota. Well, now that's when we start need
to do some planning where if you're still alive, then
(36:44):
we can do gifting. Right now, we can get money
out of your estate, we can put things into irrevocable trust.
There's a lot of different plans out there to help
reduce your estate value. But once you pass away, that
opportunity has now gone and your executor or trustee they're
the ones that are going to have to figure out
(37:05):
what the value of all your assets are. And then
they might come up and say, oh, yep, we're worth
more than three million dollars. Here's the check that we
have to cut to Minnesota.
Speaker 4 (37:14):
Sure, so let's start with some of these steps that
people can consider when doing their state planning. And let's
start with irrevocable trusts. I'm not sure everybody understands what
that means.
Speaker 6 (37:26):
So typically trusts are going to be defined as either
irrevocable or revocable. Irrevocable means that it is set in
stone you can no longer change that. Revocable means that
you can change it. So if you have children there
and all of them are doing great, and everything is kosher,
(37:48):
and you want to split it all between the kids, great,
and then one day little Johnny, who's grown up now,
decides to go do some silly things in life that
you don't agree with, and now you're going to die
and give him money. Maybe you're not so sure about
that anymore, and so you want to make changes. Well,
if you had an irrevocable trust, that's no longer an opportunity.
(38:10):
But with that revocable trust, well you can still make changes.
So then when we look at taxes for your estate,
the irrevocable is good for us because it's now out
of your control. The revocable ones that is going to
still be a part of your estate. So just be
(38:30):
careful when you're looking at trust out there and when
you're talking to a lawyer about setting one of these
things up, or if you're doing it on your own,
what you're really setting up there because there are different
tax implications for each one that you're doing.
Speaker 3 (38:45):
So I encourage you.
Speaker 2 (38:46):
As you know, Kim, Carrie, Anna and Keith are our
estate planning attorneys here at Haven. If you're listening and
you don't know if you haven't a state plan or
it's maybe it's way outdated, or you've been putting it
off like many people for thirty four years, give us
a call and set up a no cost consultation with
them to go over whatever you have or the questions
(39:07):
you have. And eighty five percent of Americans do not
have a competent CE state plan and that can post
some big problems if you're no longer here, so we
strongly encourage it. And of course data state plan also
has to do with minimizing and reducing these taxes, so
important to get that done. There's always a sense of
(39:28):
peace of mind and a smile on people's face when
they finally get it done and they say we've finally
got something done We've been putting on for all these years.
Speaker 3 (39:37):
And it's really about peace of mind.
Speaker 4 (39:39):
It's a hard thing to have to broach, but in
the end, I think you're probably right. You walk out
a feeling like a weight has been lifted. I want
to ask you about gift taxes. So gifting your state away,
how much can you do and can you actually gift
it away tax free?
Speaker 6 (39:57):
So every year there is an exclusi an amount that
we can give to other individuals without having to report
on a gift tax return. And so right now, the
gift taxes at nineteen thousand dollars, So mom and dad
can give nineteen thousand dollars each to each of their children.
(40:21):
They can also give nineteen thousand dollars each to their
in lack children as well. So if you look at
it and you have mom and dad who have three
kids who are all married, they can turn around and
gift out about sixty one hundred amost one hundred twenty
(40:42):
thousand dollars out of their state without having to report
a single thing to the irs. Once you go above
that nineteen thousand dollars limit, though you are required to
fill out a gift tax return. People freak out about
that one because they're saying oh, now I have to
report something. Now I have to pay it. No, As
(41:05):
we talked about in the beginning, the Feds have a
thirteen point ninety nine million threshold when you go over
that nineteen thousand dollars of gifting. Now we're just going
to start using up that thirteen point ninety nine million
of your exclusion. That is a lifetime exclusion there. We
(41:28):
just had this year a client come in who was
looking at some farmland that she wanted to get out
of her estate. It was valued at over one and
a half million, I believe. Yep. We fill out the
gift tax return and says we gave one point five
million dollars of land out of her estate over to
(41:49):
her daughter. And now we have that record on file. Now,
if she passes away, her estate does not include that
one point five million of that farmland right there.
Speaker 4 (42:01):
Sure, absolutely, let's talk about it before we run out
of time here. About charitable contributions, you can also give
money to charity and that has tax implications.
Speaker 6 (42:13):
So as part of your state, if your will or
trust there has a specific exclusion that part of your
money is going to go to a charity, church, a
wildlife fund. That one will become a deduction for your state.
So again to put some numbers out there for our listeners. There,
(42:35):
if you're at three point five million dollars in your
estate and we put into our trust or our will
that says we want one million dollars to go to
our church, what will work is that Minnesota says, here's
your grossest state of three point five the charitable deduction
(42:55):
is going to be one million. So now we're left
with that two and a half million dollar taxibleist date. Well,
that two and a half million dollars is now below
our three million dollar threshold. Therefore we're not going to
need to cut a check to Minnesota.
Speaker 5 (43:08):
Sure.
Speaker 4 (43:09):
Wow, Again, these are the kinds of things that people
probably don't know, you know, because this isn't what you
do for a living. And these are the kinds of
things that can save your airs and so much money
and can also keep your hard earned money going in
the directions that you want it to go in. All
things that need to People need to strategize.
Speaker 5 (43:29):
Right now, right lance, you need.
Speaker 6 (43:31):
To strip this process. So as we talked to the beginning,
right now between April sixteenth and December thirty. First, this
is the planning season. This is where we can make
the changes. We can get everything planned out for twenty
twenty five so that when we get to tax prep
season starting January first, there's not going to be any surprises,
and then April fifteenth is not going to be that
(43:53):
much of a burden for you.
Speaker 4 (43:54):
Yeah, big mistake to start that planning on December first.
Speaker 6 (43:57):
Correct, it is because we've run out of a lot
of time.
Speaker 2 (44:01):
Big mistake, Kim, But we see it all the time.
Try to avoid those. And you know, if I could
just add, you know, at Hamen Financial Group again our
ten year anniversary, we do everything specific to retirement planning.
Numerous times over the years, I've said that, you know
the retirement puzzle pieces.
Speaker 3 (44:17):
Do you have all the puzzle pieces?
Speaker 2 (44:19):
The estate planned, the investment plan, the tax plan, Medicare, healthcare,
long term care. Many people completely forget about that amongst
all the other different things, all the puzzle pieces.
Speaker 3 (44:32):
Look at all of them.
Speaker 2 (44:33):
And if you're not getting the attention, if you're not
visiting several times a year, Again, retirement is more than
getting together with your guy or gal once or twice
a year for forty five minutes to an hour. That
just is not enough tension attention that you should be getting,
especially for what you're paying, and you should know what
you're paying. By the way, there's nothing free, and you
(44:54):
may be paying a lot.
Speaker 3 (44:55):
More than you should have.
Speaker 2 (44:56):
And in closing, if I could just point out something
that I've really seen weight too often this year, and
I don't know why. Is a lot of individuals coming in.
If you're a married couple, and this affects both of you,
and if you're single, obviously you need to have a
plan too. But I just recently had a lady come
in and she goes, Larry Glenn took care of my Medicare.
(45:19):
Thank goodness, Lance helped me with the taxes. And she goes,
this is our investments. I have no idea what I'm doing.
I lost my husband seven months ago, unexpectedly, and I
was the wife who did want to be participated any
of this stuff, and he passed away and I've spent
seven months trying to figure it out on my own.
(45:42):
And she goes, if you can encourage anybody else, please
do so. And that's not saying this out of fear
or making people fearful. It's real. It affects both of you.
Have a backup plan. Maybe you're an investor, maybe you
do all your investing. Your spouse doesn't pay attention. Have
a relationship with somebody ahead of time, because if you
(46:02):
lose a loved one, that is not the time to
start figuring it out. So again, I've just seen too
much of it and I can encourage get the attention
you deserve. And at Haven Financial Group we love that opportunity.
There's no cost to visit with us. We'll walk you
through our process and at the end of the day,
if we're a good fit, great. At least we help
you out in some way, shape or form.
Speaker 4 (46:23):
Absolutely six one two five zero four eighty four hundred.
Speaker 5 (46:26):
That's how you start the process.
Speaker 4 (46:28):
Give them a call, tell them you heard us here
on the radio and you'd like to set up an appointment.
Six one two five zero four eighty four hundred. Gentlemen,
Great to be with you, Lance, thanks so much for
being a part of the show today.
Speaker 6 (46:41):
Thanks for having me again, Ken Keim, Great to be
with you.
Speaker 3 (46:43):
We'll see you next week.
Speaker 4 (46:46):
Investment advisory service is offered through Guardian Well Strategies LLC,
Haven Financial Group and Guardian Well Strategies LLC. Are not
affiliated companies and investments involve risk, and, unless otherwise stated,
are not guaranteed. Please consult with the qualified findcial advisor,
and or tax professional before implementing any strategy discussed herein,
and comments regarding it safe and secure.
Speaker 1 (47:06):
Investments and guaranteed income streams only refer to fixed insurance products.
They do not refer in any way to securities or
investment advisory products. Fixed insurance and annuity product guarantees are
subject to the claims paying ability of the issuing company.
You worked hard for your money, but do you know
how to make it work hard for you. You need
a team with experience, vigilance, and a strategy to help
you live the retirement you deserve. Find your financial safe
haven with Haven Financial Group. Today, you're listening to the
new and improved Haven Financial Group Radio Show, where we
bring you comprehensive weekly financial wisdom from the professionals. It's
(00:23):
all about helping you solve retirement problems so you can
make your nest egg last. Your tune to the Haven
Financial Group Radio Show with your host Larry Kolvig and
Kim Karrigan your guides to weekly retirement confidence. If you're
interested in protecting and growing what you have, let us
be your financial safe haven. The 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 Kolbig, founder and CEO of the Haven Financial Group.
We have Lance Larson on our Lance Larson with us today,
our CPA and tax prepare at Haven.
Speaker 3 (01:07):
Kim, good to be with you.
Speaker 2 (01:08):
We got a lot to talk about, and you know,
we're going to talk taxes and first things. Listeners might
wonder as well, we just got done with tax season,
but you really never get done with tax season, which
is why I think it's important to start this off
the right way.
Speaker 4 (01:24):
Well, we want everyone to know this is a positive conversation.
You know, when you say taxes, a lot of people go, oh, no, no, no,
do we have to.
Speaker 5 (01:29):
Talk about that?
Speaker 4 (01:30):
First off, Lance, I haven't seen you since the actual
tax season came to an end.
Speaker 5 (01:35):
And I'm looking at you. You look no worse for
the wear, So you made it through.
Speaker 6 (01:40):
Thanks Kim.
Speaker 4 (01:42):
It's good to have you like always. Well, let's take
a look at what we're going to talk about in
this show. As Larry has just mentioned, you know, we're
going to talk about taxes. It's never too soon to
start preparing for next year, and many of you may
be filed extensions and so October is when you're going
to be paying your taxes and maybe you've got some
things that you need to take care between now and then.
Maybe you pay quarterly. So we're going to talk about
(02:03):
all of that coming up. We'll also talk about taxes
and retirement accounts. It's very important that you understand how
those are taxed and what I know that Lance is
going to talk to us about effective ways to pull
money from those accounts that you don't end up paying
a big chunk of it to Uncle Sam. Then there's
taxes and investments in retirement, and finally we'll talk about
(02:24):
estate taxes and how that affects your retirement. So, gentlemen,
let's get started with this idea. First off, about people
who maybe have put their taxes off, they've filed for extensions.
What are some of the things Lance, when someone comes
to you and says, we want to file for an
extension extension, what are some of the things that you
talk to them about in doing so.
Speaker 6 (02:46):
So, okay, one of the first things we talk about
when looking at an extension is making sure we have
the money into the government by April fifteenth. All the
extension does is give us more time to actually file
the paperwork. We might be missing a document here there,
we might be waiting on a K one because we're
invested into a publicly traded partnership. Otherwise, you know, you
(03:11):
might be going through some family situations that you just
don't have time to get your paperwork done. Whatever the reason,
you know, the extension is there for everybody. One of
the things that I use extensions for is when people
are coming to see me at the beginning of April,
and then I'm just not going to have enough time
to do a proper preparation of the return, make sure
(03:35):
that I'm crossing all the t's, dotting all the i's,
and so i just need to have more time to
get that paperwork done. Even though we filed the extension,
the money is still due on April fifteenth, So you
want to make sure that you've done enough work to
at least get a ballpark idea that hey, how much
are you going to oh? If you're going to oh,
(03:57):
or if you're getting to get a refund, then you're
going to be sitting fine. And then you want to
make sure that we get those payments in by April fifteenth.
Speaker 4 (04:07):
So once that's taken care of, and people or people
maybe who got their filings in before the fifteenth, no
doubt you at this stage of the game begin again.
Speaker 5 (04:17):
With a lot of people.
Speaker 4 (04:19):
We start the new year fresh, you know, the new
year being the sixteenth of April. Moving forward, So what
are some of the things that you are really stressing
to your clients right now that people need to be
aware of as we begin the new tax here.
Speaker 6 (04:35):
So one of the big things that we always talk
about there is the standardize the standard deduction versus itemized deductions.
Otherwise people known as filing the long form or we
put in all the itemized deductions. In the past years,
most people haven't been able to really take advantage of
(04:56):
that because the standard deduction has been so high. This
might be the year that we could either do doubling
up on charitable contributions, that you might have a bunch
of medical expenses that are happening this year. Those are
the type of the ideas that we want to look
at and say, hey, let's plan for this, and is
(05:18):
it going to make sense if you are a charitable person.
Instead of giving every year the same amount, maybe we
prepay our twenty twenty six charitable contributions and pay that
in twenty twenty five, so we essentially double up there.
When we look at medical expenses, the first seven and
(05:38):
a half percent of our adjusted gross income does not
count towards our medical expenses. So to give our listeners
an idea that if you had one hundred thousand dollars
of income, the first seventy five hundred dollars of out
of pocket medical would not count. That's our seven and
a half percent right there. Well, if one of the
(06:00):
partners has to go have some medical procedures done this
year for whatever reason, maybe we look at the other
partners say, hey, this might be a time that we
do some of the elective stuff. Hey, this might be
the day that we do the cataract surgery. We might
want to get laysick, we might want to get the
(06:21):
veneers on our teeth done. You know those things that
are kind of more elective that. Hey, if we're going
to have a bunch of medical expenses already, let's start
taking care of everything so that we can take advantage
of it on our tax return.
Speaker 5 (06:35):
There absolutely.
Speaker 4 (06:39):
Is it too early to know if there will be
changes in this next tax year.
Speaker 6 (06:44):
Unfortunately, right now it is. We have indications the Senate
has already gone through they've done a little bit of
work and voting there that we're trying to extend the
Tax Cuts and Jobs Act, trying to keep the lower
tax rates that we have right now. But as of
right now, they have nothing solid that has been passed yet.
Speaker 2 (07:06):
Okay, Kim, if I may add a takeaway from this
first segment is if you're listening and you just did
your taxes, you weren't happy with the results. You owed
a bunch of money. You haven't been doing tax planning,
and you really should have been. Give us a call,
come on in and visit. You should have a partner
that you could lean on them for these things. To
avoid some of the pitfalls that people have every single year,
(07:31):
why not fix the problem so next year you don't
have the same problems. You know, saving money, you know,
on taxes and retirement isn't just possible, it really is
essential to your financial health and your retirement plan. You
can reduce, you know, various taxable income, minimize Social Security taxes,
you know, avoid some costly Medicare surcharges, which we really
(07:51):
haven't even talked much about. You know, every dollar saved
on taxes is a dollar that you keep in your
own pocket. And for most of us, we work hard
for every doc. Do you really want to give Uncle
samer On the irs any more than they deserve? Probably not,
but we see it all the time, Missed opportunities, unforced
errors because there's no planning throughout the course of the year.
(08:14):
You know, we're into May. Now this is tax planning season.
As Lance has said on our show numerous times, April
first of the fifteenth is tax prep time, and planning.
Speaker 3 (08:24):
Is throughout the rest of the year.
Speaker 2 (08:26):
Avoiding these surprises that don't have to happen, but continue
to happen. If you don't have somebody that's having these
discussions throughout the year, it's so so very very important.
Speaker 4 (08:37):
Well, Lance, let me ask you, what do you think
is one of the biggest mistakes that you see some
of your clients make, especially those who may be cut
walk in and they have not been tax planning.
Speaker 6 (08:52):
I would probably say one of the biggest things is
not utilizing the full tax bracket that they're in. So
as we know that our tax system is a progressive system,
well what that means is that the first dollar that
is being taxed is going to be taxed at ten
percent on the federal level. It's not until we get
(09:13):
to in the twenty three thousand dollars range that those
dollars are then taxed at twelve percent. Then we go
up to about ninety six thousand dollars this year and
then the next dollars after that are taxed at twenty two.
So everyone's is concerned about, hey, what they're being taxed at.
And it's great when we're at twelve percent, but when
(09:37):
you have a room for about twenty thousand dollars more
to just fill up that twelve percent tax bracket, well,
that means that we could have taken more money out
that we could have done rebalancing in a portfolio to
get some capital gains then so we don't have to
pay in the future. This is where we could have
(10:00):
done a Roth conversion. There's all sorts of different ideas
depending upon your financial situation and what assets that you have,
but at the end of the day, it's still twenty
thousand dollars that we could have done something with and
had either had a tax at twelve percent or even
at zero percent for your capital gains there that we
(10:21):
missed out.
Speaker 4 (10:22):
On sure, absolutely well again, and it's understandable why people
miss out on this because this is not their their
area of expertise. This is, however, Lance's area of expertise,
and that's why, as Larry just mentioned, if you are
now ready for the preparation phase of your taxes for
twenty twenty five. Give them a call at Haven Financial Group.
(10:45):
It's six one two five zero four eight four zero zero.
That's six point two five zero four eight four zero zero. Colin,
tell me you'd like to come in and see Lance.
I'm telling you heard us here on the radio. And
while you're there, be sure that you meet with some
of the other experts and make sure that your retirement plan,
not just the taxes, but your entire retirement plan is
(11:07):
in tip top shape. All right, when we come back, gentlemen,
let's talk a little bit more about taxes and retirement accounts,
because obviously all of this ties together. You're listening everyone
to the Haven Financial Group Radio Show.
Speaker 6 (11:20):
Don't go too far.
Speaker 1 (11:21):
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 Kolvig
and Kim Karagan. Now back to the show.
Speaker 2 (11:41):
Good morning, and welcome back to the Haven Financial Group
Radio Show. I'm Larry Kolvig, founder and CEO of the
Haven Financial Group. Feel free to give us a call
at six one two five zero four eight to four
zero zero. Are always visit us online at Havenfinancialgroup dot
com Kim. We've had some great, well attended educational events recently,
(12:02):
and I encourage folks to go to the website and
see the upcoming ones. Medicare made simple wills, trusts and
legacy planning, investment classes, social security classes, and numerous others.
We believe we're firm believers in the education piece, you know,
making educated decisions. And certainly the tax discussions we're going
to have today, they're really relative to everybody, but probably
(12:25):
more to the demographics that we serve that those that
are getting close to retirement and in retirement. And it
can't stress enough, you know, when you're in accumulation mode, younger,
you're just accumulating. That is a different season of life
than when you're getting closer to retirement and retirement where
now you're making distributions. So taxes will affect us probably
(12:46):
more at any stage, probably more in retirement than ever before.
And that's not meant to be pessimistic, it's just it's
the reality. So again, come on and visit with us,
you might be surprised.
Speaker 4 (12:57):
Absolutely. Well, we also have with us today Lance Larson.
He is a CPA there at the Haven Financial Group,
and we're going to talk in this segment a little
bit more about retirement accounts and what we can do
to you know, maximize those dollars and minimize the tax
on them.
Speaker 5 (13:15):
So Lance, let's start with four one K plans.
Speaker 4 (13:19):
You know, obviously people start to draw those and then
we have to start thinking about taxes there. So what's
the best advice the best way for people to go
about starting to draw their four A one K.
Speaker 6 (13:29):
So for one case, just so that we can know
that that is a retirement plan that has been set
up under the code section four one k. Uh, there's
going to be other people that will have four fifty
seven b's or four h three b's. So everything we
talk about what this is going to be also related
(13:49):
to those people who have those type of accounts as well.
We got to want to understand that these accounts are
employer accounts that while you're working you can make contributions
to this. They are pre tax accounts unless they are
specifically defined as a wroth account, which then are funded
with after tax money. And so when we look at
(14:13):
the four one K again, it's while you're as an employee,
you're making the contributions. Once you've separated from service, you
may or may not be able to keep the money
in that four to one K, and then you would
want to roll it over if you can't keep it there,
or you could also have an in service rollover while
(14:33):
you'll stire working to have better options. And when you
do a rollover, you're going to move it over to
an individual retirement account an IRA, which is then set
up under a different code section. And we talk about
these code sections just because each one it's going to
have its own set of contribution limits, and that while
(14:55):
you may be covered under one, you might also be
able to make a contribution to your individual retirement account
as well, depending on what your income level is. So
a lot of preface before getting back to your question
on this one. But when we look at taking distributions
from these pre tax accounts, we want to be cognizant
(15:17):
of what our total income is, and especially if we
have other sources such as a pension or Social Security.
Is the biggest one that a lot of people will have.
Because again we go back to we have a progressive
tax system. When we pull money from these different sources,
(15:40):
each source kind of does the withholding tables based upon
that the distribution from their own accounts. So what we
end up saying is that, hey, if I take fifty
thousand dollars out of my four oh one K, then
I have a pension that gives me thirty thousand dollars,
and then I have Social Security. We're right there when
(16:01):
we add up all the income that's going to put
us into a twelve or possibly twenty two percent tax bracket.
The problem that we people run into a lot is
that when we do the withholding at each source, it says, hey,
you only pulled out this much money, therefore we need
to only withhold about ten percent. And so when you
have each source that does ten percent, we're going to
(16:25):
be coming short and then they're going to owe money
on April fifteenth.
Speaker 4 (16:29):
Absolutely, So that would be the case with a four
to one K plan or a plan like that employee plan,
because that's all pretext yep.
Speaker 6 (16:39):
So that's going to be on all pre tax accounts,
even the traditional IRA.
Speaker 5 (16:43):
Right right right now. So it's different with the WROTH.
Speaker 6 (16:46):
It is, so the WROTH is going to be funded
with after tax money and so we get no benefit today.
So when we talk about contributing to a traditional IRA
or to the traditional four to one K plans there,
what we're doing is that we are deferring the taxes
on this income until we decide to pull it out
(17:07):
of those accounts. With the WROTH account, we pay the
taxes today and then we let that sit and grow,
and after five years, all the earnings and the amount
that we've put in there is going to be tax free.
So WROTH accounts are perfect for people just starting out
(17:30):
in their careers if they can do this might not
be as applicable to a typical for a retirement person,
but definitely for the twenty to thirty year olds that
are out there there, they are starting their careers out,
they can put the money in the wrath and have
that element of time to watch that thing grow and
(17:51):
then they will be in a great position for their retirements.
Speaker 4 (17:54):
Sure, now there are required minimum distribution times on all
of these. If you have tax issues or you may
be running into them, you may still have to draw
that money.
Speaker 2 (18:05):
Yeah, I'll comment on this because we deal with this
a lot requirementium distributions. All those years of putting money
in pre tax Eventually Uncle Sam gets a little impatient
and says, you got to start drawing this money out
because we want our tax revenues. And for those born
after nineteen fifty nine, the age is seventy three. And
if you're listening, you say, well, I thought it was
(18:26):
seventy and a half. Well it was for years, and
then it was recently changed to seventy two. Now changed
to seventy three, and I believe in seven years it
goes to seventy five if they don't make any additional
changes where you're going to have to start pulling out
of those. It starts at about just over four percent
of your total pre tax dollars. So, as retirement planners,
(18:47):
what we look at oftentimes in the early years of retirement.
Maybe you're delaying Social Security for good reason, maybe you
haven't turned on the pension yet, and your income is
more lean than it ever has been. That creates a
window of opportunity to do the wroth conversions, converting some
of that iratea wrath, Maybe taking advantage of low capital
(19:10):
gains or no capital gains taxes to minimize the amount
of tax effects that it's going to have when you
do have to start turning it on. So if this
sounds complicated, uh, it doesn't have to be complicated. We
map out income and distribution tax plans for retirees all
the time. It's just the system you want to get into.
(19:31):
But if you don't have somebody that's you're meeting with
and discussing these things, you're probably not getting this attention.
And if you're not getting that attention, you're probably missing
the opportunities again, and most people are not getting the
attention they truly deserve.
Speaker 5 (19:47):
Absolutely. What's tax diversification? What does that mean?
Speaker 6 (19:56):
So tax divers diversification is that when we have different
types of accounts. So we've talked a lot about the pretax,
which is our four to one k, the traditional IRA.
Then we have after tax accounts, which is our wrath.
These are all qualified accounts, meaning that all the growth
that's happening that we don't really care about until we
(20:19):
actually take the distributions from these accounts. There are also
non qualified accounts, which is funded with again after tax money,
but you're going to be paying the taxes on the
interest dividends and any type of growth of social capital
gains when we realize those gains, and those happen every year.
(20:43):
So the tax diversification is saying that we want to
have money in kind of each of these buckets. So
when we map out those income plants right there, we
take money out of the iras and we pay the
taxes on that, but let's take it. Let's keep that
money that we're taking out of those in these lower
(21:03):
tax brackets. So when we max out at twelve percent
tax bracket and we still need to have more income, well,
now we can look at possibly getting money out of
those non qualified accounts or we tap into the WROTH
accounts instead. If somebody goes through and says all they
have is an IRA, okay, well there's not a lot
(21:24):
that we can do. If you need to have two
hundred thousand dollars, you have two hundred thousand dollars and
it's all going to be taxable versus the other person,
we can say, oh, let's only pull out ninety five
thousand from the IRA. Let's pull out thirty thousand out
of the ROTH, and then we can take the rest
of it that we need out of our non qualified
accounts and the tax bills are going to be significantly different.
Speaker 4 (21:48):
Well, a tax diversification sounds like a very complicated, but
very strategic sort of plan, and Larry has said, and
of course Lance has said, these kinds of plans most
of the time we all need little help putting together.
And this is the time to start that kind of
a planning. If you're, you know, approaching retirement. Now, if
(22:10):
you're in retirement, there's some other steps that can be taken,
and we're going to talk a little bit more about
that as well. But if you're someone who's looking to
diversify in this way, give the folks at Haven Financial
Group a call six one two five zero four A
four zero zero. That's six one two five zero four
eight four zero zero. Tell them you heard us here
(22:31):
on the radio. Set up an appointment and get in
there Sea Lands immediately so you can sit down and
begin planning and begin.
Speaker 5 (22:39):
Working toward diversification.
Speaker 4 (22:41):
When we come back, we're going to talk about taxes
and investments and how that affects your retirement.
Speaker 5 (22:46):
This is the Haven Financial Group Bringer Show.
Speaker 1 (22:50):
Ready to find your financial safe haven. Your dream retirement
is in reach. Don't go away. The Haven Financial Group
Radio show.
Speaker 6 (22:57):
Will be right back.
Speaker 1 (23:00):
Are you worried that your financial strategy might be missing something, Well,
you're in the right place. Larry Colvig is back and
ready to help you find your financial safe Haven.
Speaker 2 (23:12):
Good morning again and welcome to the Haven Financial Group
Radio Show. I'm Larry Colvig, founder and CEO of the
Haven Financial Group. Thanks for listening talking about taxes and
tax strategies today. Give us a call at six one
two five four eighty four hundred or visit us online
come to our classes. I just wanted to note Kim,
we're celebrating our ten year anniversary when we started Haven
(23:35):
Financial Group, so we're.
Speaker 3 (23:36):
Excited about that.
Speaker 2 (23:38):
We just had a great annual Shred client appreciation event
this past week, very well attended. We took over the
local restaurant and we just in appreciation to all the
folks that we've been able to help over these ten years,
which man, ten years has gone by really really quick.
So again, good to be talking about these things because
(23:58):
people want to know, and it's evident by the amount
of attendees we had this past week at our social
security class, so we always encourage people to come out.
Speaker 4 (24:06):
Absolutely, we do want to remind everyone. Those educational classes
are available to anyone. You go to Havenfinancialgroup dot com
and you'll see the classes that are coming up and
where they are going to be held. Be sure you
sign up. It costs nothing, but they do like to
get a head count if at all possible. Again, that's
Haven Financialgroup dot com.
Speaker 5 (24:28):
Let's talk a little bit about taxes and investments.
Speaker 4 (24:31):
Of course, we have Lance Larsen here CPA with Haven
Financial Group and.
Speaker 5 (24:37):
Capital gains tax.
Speaker 4 (24:38):
That seems to be the one that people, you know,
obviously are the most concerned about. I think that's the
one that people think about the most, Lance when they're
thinking about taxes in retirement. So let's talk about capital games,
gains tax and just sort of an overview and how
you sometimes suggest people deal with that issue.
Speaker 6 (24:58):
So again, capital game is going to be the difference
between what you sell the asset for and what you
kind of bought it for. It's really easy when we
look at stocks that hey, we bought it at ten
bucks a share, it now went up to twenty bucks
a share. So that growth right there is we're going
to be paying a capital gain of ten bucks a share.
(25:21):
The other big one we talked a lot about is
going to be your primary residence. You've lived there, you
bought it many years ago and you paid a smaller amount,
and now today it's worth a lot more, and so
there's going to be a capital gain on there. Fortunately,
for primary residents, there is an exclusion that we can
exclude up to five hundred thousand dollars of that capital
(25:43):
gain for married couples there, and so most of the
time we actually don't really pay anything on the primary
residence there, but the principle of calculating that gain is
always going to be there. When we also look at
capital gains, you need to know is it a short
term or is it long term? And the definition on
(26:05):
that one is that long term is anything over a year.
And the reason why that is very important is because
there are different tax rates for short term gains versus
long term gains. Our short term gains are treated just
like ordinary income. So people who do a lot of
day trading where they say, oh, this one's going to
go up by a quarter of points, so I'm going
(26:25):
to invest my fifty thousand here, watch the stock go
up by three quarters a point and they're over the
moon and they sell it immediately. Well, that's going to
be a very short term and that's going to be
ordinary income for them versus most people. We're in it
for the long haul. We were told to invest there
(26:45):
and ride the market out there and then wait until retirement.
And so now we have long term capital gains. And
why that's going to be important is because depending upon
which marginal tax bracket that you're in, those long term
capital gains could be taxed at zero, fifteen, or twenty
if we have a lot of income that's coming in.
(27:06):
I do remember a client that we helped out a
few years ago that had very little income because he'd retired,
but he had a nice, big portfolio of things that
he'd invested in. We liquidated a whole bunch of his
holdings and he had about one hundred thousand dollars of
capital gains and he had cash. Wise, I want to
(27:28):
stay closer to about one hundred and fifty to two
hundred thousand of cash that came in. So it's not
important to note that the cash that you receive from
selling this does not equal your capital gain all the time.
But in his situation, with that one hundred thousand dollars
of capital gains, and no other income. He actually paid
(27:48):
no federal tax at all because were he was in
the twelve percent marginal tax bracket, wherefore his long term
capital gains were taxed at zero.
Speaker 4 (28:00):
Well, Lenz, let me ask you, are there are there
plans that you can make? Are there ways to get
around or minimize capital gains?
Speaker 6 (28:09):
There are, and it's going to be more taking advantage
of what income brackets that you're in. So at a
bare minimum, long term capital gains are always going to
be at a preferential treatment. So we're not going to
necessarily get around paying them unless we keep them in
the lower tax brackets and then we can actually use
(28:31):
that zero percent for our capital gains. It's the only
true way of getting around that one. But I will
also note that even if you are in the twenty
two or twenty four percent tax bracket, it is better
to pay on the long term capital gains at fifteen
percent rather than that twenty two and twenty four percent.
Speaker 4 (28:51):
So that's the kind of advice that you can give people.
And and maybe also I'm thinking, well, I'm going back
to primary sense. What you say is tax at a
very different rate. But just there maybe are some of
these capital gains that need to be strategically. You gain
them strategically so that they're not all at one time exactly.
Speaker 6 (29:14):
So people who have these non qualified accounts that they
look in they call investment accounts that it kind of
depends on what you're invested in there. One of the
things that we also want to look at is there's
tax efficient funds that are going to be in there.
So typically mutual funds are funds that are going to
(29:38):
cause us to have a lot of income because it's
someone else that's controlling and they are going to make
a whole bunch of sales and then the capital gains
that they create in their fund are going to be
passed upon to the investor. And we have clients that
are invested into many of these funds, and we look
at their statements throughout the year, no capital gains, no
(30:00):
capital gains, no capital gains, and then we finally get
to the December statement, which is now too late for
us to really do much. And this the hedge fund
manager sold a bunch of US stock to get a
whole bunch of capital gains. And now our investor he
has a thirty thousand dollars capital gain distribution. It makes
(30:21):
for a nightmare for tax planning purposes there whereas if
instead of being into that mutual fund, you could be
invested into an ETF which will give you the exact
same risk portfolio that you're looking for, can give you
the exact same type of growth, but it's not going
to produce all those tax problems for us at the end.
(30:41):
And this is one of those things that we want
to have clients come in and talk with Larry and
with Kyle and that we can look at what are
you actually invested in with these things and does this
make sense in one for their risk portfolio and two
from a tax perspective.
Speaker 3 (30:57):
Sure, Kim all the time we as we we look
at portfolios.
Speaker 2 (31:01):
And again at HAN we do wealth management. We're not small.
We manage with Charles Swab and Fidelity Investments. We have
an investment team of twelve. You know, I'm sure listeners
have noticed the market had been very volatile in the
last couple of months, like very volatile up and down.
Speaker 3 (31:16):
Yet that creates.
Speaker 2 (31:17):
Opportunities and when I mean opportunities tax loss harvesting. With
more volatility becomes more activity for that opportunity to harvest
some of these losses, although we don't like them.
Speaker 3 (31:31):
We can sell investments.
Speaker 2 (31:32):
That have lost value to offset capital gains tax and
that really reduces the tax burden.
Speaker 3 (31:38):
I can tell you.
Speaker 2 (31:39):
I can think of numerous clients where we've saved them
thousands and thousands of dollars in taxes and they were
extremely happy. Now they maybe didn't know why, and they say,
why are you doing this now? And when we explain
it to him, it makes perfect sense. However, if you're not,
don't have a relationship or a partner where you're having
these discussions, or many times they're not even paying attention
(32:01):
to your investments. They just set it and leave it
and don't pay any attention. You're probably not utilizing these
tax strategies which are available to many people, and it
just doesn't apply to those that are wealthy. It can
affect those that actually have very minimal to those that
have a lot of wealth. So don't back yourself in
a corner, but have a partner get it looked at.
(32:25):
Let you lance mention the right recipe in the right portfolios.
There's certain types of investments that should go and non
qualified that shouldn't go into IRA's and that may be
different to go into rots. There's the right recipe in
the right mix for the right types of accounts, and
we see them all mixed up all the time, and
we have the luxury. Lance has the luxury I know
(32:46):
numerous times this tax season whereas he's doing their taxes
and looking what they made an interest, Why did you
do it this way? Why did your advisors sell these off?
It just caused you this much in a tax burden?
Did you know that? And they don't usually have any explanation,
they have no idea. Right, we want to avoid those mistakes.
Speaker 4 (33:05):
Rebalancing your portfolio to make sure that it's that keeps
you away from those high taxes. Absolutely, rebalancing and diversification.
These are our two big words today, right.
Speaker 2 (33:17):
Yeah, these are the two big words takeaways. Rebalancing and
tax diversification. And if you if you're not having those conversations,
come on in and visit. We can have those conversations.
It might be well worth your while.
Speaker 4 (33:28):
Absolutely, six one two five zero four eight four zero
zero at six one two five zero four eighty four hundred,
that's how you set up the appointment. Go on in
and talk a little bit about rebalancing and diversification. When
we come back, let's talk about estate taxes and how
that affects your retirement.
Speaker 5 (33:47):
This is the Haven Financial Group Radio Show.
Speaker 6 (33:50):
Don't go too far.
Speaker 1 (33:51):
We're gathering more important insights and retirement poice government. The
Haven Financial Group Radio Show will.
Speaker 6 (33:56):
Be right back.
Speaker 1 (33:57):
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 the show.
Speaker 2 (34:11):
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. Nice to have Lance Larson, our
CPA and tax preparer at at Haven on with us
today to talk about this wonderful discussion on taxes, which
right away listeners are going, oh my goodness, I thought
we were done talking about taxes. We're never done talking
(34:33):
about taxes, and maybe you should be talking about it more.
To avoid some of the mistakes and pitfalls that you
may be grumbled about come April fifteenth, we can avoid
some of these things you complain about every tax season.
So at Haven we're big into forward thinking tax planning
to minimize some of those tax implications that could have
(34:54):
maybe been avoided. And if you're listening and all you
do is get your taxes prepared and you're not doing
tax planning, you may want to think again, because we
find the tax planning throughout the year can avoid a
lot of those negative surprises.
Speaker 4 (35:10):
Lance can make April fifteenth the holiday for you folks,
as opposed to maybe a day that you dread.
Speaker 6 (35:17):
Let's talk a little bit more.
Speaker 5 (35:18):
About a state taxes.
Speaker 4 (35:20):
Now, this is I think people are a little more
cognizant of this, you know, and recognize this as something
they maybe need to plan for. But let's just start
from the very beginning. What's the number one thing people
need to know or prepare for when it comes to
a state planning and a state taxes.
Speaker 6 (35:39):
So with the state taxes, what that is is that
there is going to be an excise tax based upon
the value of your estate. So we look at what
all the value of all the assets that you own
when you pass away, and when that total comes up
(35:59):
for the federal purpose, as long as we're under thirteen
point nine to nine million this year and someone passes away,
then there's not going to be anything any state taxes
do for that. However, Minnesota is not quite as generous
as the Feds are Minnesota, their threshold is three million dollars.
And so when we look at people and saying, hey,
(36:22):
if you're going to be worth more than three million dollars,
you know what your state is going to be cutting
a check to Minnesota before the beneficiaries can get their cut.
And when people start hearing that, they're like, oh, my gosh,
I don't want my hard work to go to the
state of Minnesota. Well, now that's when we start need
to do some planning where if you're still alive, then
(36:44):
we can do gifting. Right now, we can get money
out of your estate, we can put things into irrevocable trust.
There's a lot of different plans out there to help
reduce your estate value. But once you pass away, that
opportunity has now gone and your executor or trustee they're
the ones that are going to have to figure out
(37:05):
what the value of all your assets are. And then
they might come up and say, oh, yep, we're worth
more than three million dollars. Here's the check that we
have to cut to Minnesota.
Speaker 4 (37:14):
Sure, so let's start with some of these steps that
people can consider when doing their state planning. And let's
start with irrevocable trusts. I'm not sure everybody understands what
that means.
Speaker 6 (37:26):
So typically trusts are going to be defined as either
irrevocable or revocable. Irrevocable means that it is set in
stone you can no longer change that. Revocable means that
you can change it. So if you have children there
and all of them are doing great, and everything is kosher,
(37:48):
and you want to split it all between the kids, great,
and then one day little Johnny, who's grown up now,
decides to go do some silly things in life that
you don't agree with, and now you're going to die
and give him money. Maybe you're not so sure about
that anymore, and so you want to make changes. Well,
if you had an irrevocable trust, that's no longer an opportunity.
(38:10):
But with that revocable trust, well you can still make changes.
So then when we look at taxes for your estate,
the irrevocable is good for us because it's now out
of your control. The revocable ones that is going to
still be a part of your estate. So just be
(38:30):
careful when you're looking at trust out there and when
you're talking to a lawyer about setting one of these
things up, or if you're doing it on your own,
what you're really setting up there because there are different
tax implications for each one that you're doing.
Speaker 3 (38:45):
So I encourage you.
Speaker 2 (38:46):
As you know, Kim, Carrie, Anna and Keith are our
estate planning attorneys here at Haven. If you're listening and
you don't know if you haven't a state plan or
it's maybe it's way outdated, or you've been putting it
off like many people for thirty four years, give us
a call and set up a no cost consultation with
them to go over whatever you have or the questions
(39:07):
you have. And eighty five percent of Americans do not
have a competent CE state plan and that can post
some big problems if you're no longer here, so we
strongly encourage it. And of course data state plan also
has to do with minimizing and reducing these taxes, so
important to get that done. There's always a sense of
(39:28):
peace of mind and a smile on people's face when
they finally get it done and they say we've finally
got something done We've been putting on for all these years.
Speaker 3 (39:37):
And it's really about peace of mind.
Speaker 4 (39:39):
It's a hard thing to have to broach, but in
the end, I think you're probably right. You walk out
a feeling like a weight has been lifted. I want
to ask you about gift taxes. So gifting your state away,
how much can you do and can you actually gift
it away tax free?
Speaker 6 (39:57):
So every year there is an exclusi an amount that
we can give to other individuals without having to report
on a gift tax return. And so right now, the
gift taxes at nineteen thousand dollars, So mom and dad
can give nineteen thousand dollars each to each of their children.
(40:21):
They can also give nineteen thousand dollars each to their
in lack children as well. So if you look at
it and you have mom and dad who have three
kids who are all married, they can turn around and
gift out about sixty one hundred amost one hundred twenty
(40:42):
thousand dollars out of their state without having to report
a single thing to the irs. Once you go above
that nineteen thousand dollars limit, though you are required to
fill out a gift tax return. People freak out about
that one because they're saying oh, now I have to
report something. Now I have to pay it. No, As
(41:05):
we talked about in the beginning, the Feds have a
thirteen point ninety nine million threshold when you go over
that nineteen thousand dollars of gifting. Now we're just going
to start using up that thirteen point ninety nine million
of your exclusion. That is a lifetime exclusion there. We
(41:28):
just had this year a client come in who was
looking at some farmland that she wanted to get out
of her estate. It was valued at over one and
a half million, I believe. Yep. We fill out the
gift tax return and says we gave one point five
million dollars of land out of her estate over to
(41:49):
her daughter. And now we have that record on file. Now,
if she passes away, her estate does not include that
one point five million of that farmland right there.
Speaker 4 (42:01):
Sure, absolutely, let's talk about it before we run out
of time here. About charitable contributions, you can also give
money to charity and that has tax implications.
Speaker 6 (42:13):
So as part of your state, if your will or
trust there has a specific exclusion that part of your
money is going to go to a charity, church, a
wildlife fund. That one will become a deduction for your state.
So again to put some numbers out there for our listeners. There,
(42:35):
if you're at three point five million dollars in your
estate and we put into our trust or our will
that says we want one million dollars to go to
our church, what will work is that Minnesota says, here's
your grossest state of three point five the charitable deduction
(42:55):
is going to be one million. So now we're left
with that two and a half million dollar taxibleist date. Well,
that two and a half million dollars is now below
our three million dollar threshold. Therefore we're not going to
need to cut a check to Minnesota.
Speaker 5 (43:08):
Sure.
Speaker 4 (43:09):
Wow, Again, these are the kinds of things that people
probably don't know, you know, because this isn't what you
do for a living. And these are the kinds of
things that can save your airs and so much money
and can also keep your hard earned money going in
the directions that you want it to go in. All
things that need to People need to strategize.
Speaker 5 (43:29):
Right now, right lance, you need.
Speaker 6 (43:31):
To strip this process. So as we talked to the beginning,
right now between April sixteenth and December thirty. First, this
is the planning season. This is where we can make
the changes. We can get everything planned out for twenty
twenty five so that when we get to tax prep
season starting January first, there's not going to be any surprises,
and then April fifteenth is not going to be that
(43:53):
much of a burden for you.
Speaker 4 (43:54):
Yeah, big mistake to start that planning on December first.
Speaker 6 (43:57):
Correct, it is because we've run out of a lot
of time.
Speaker 2 (44:01):
Big mistake, Kim, But we see it all the time.
Try to avoid those. And you know, if I could
just add, you know, at Hamen Financial Group again our
ten year anniversary, we do everything specific to retirement planning.
Numerous times over the years, I've said that, you know
the retirement puzzle pieces.
Speaker 3 (44:17):
Do you have all the puzzle pieces?
Speaker 2 (44:19):
The estate planned, the investment plan, the tax plan, Medicare, healthcare,
long term care. Many people completely forget about that amongst
all the other different things, all the puzzle pieces.
Speaker 3 (44:32):
Look at all of them.
Speaker 2 (44:33):
And if you're not getting the attention, if you're not
visiting several times a year, Again, retirement is more than
getting together with your guy or gal once or twice
a year for forty five minutes to an hour. That
just is not enough tension attention that you should be getting,
especially for what you're paying, and you should know what
you're paying. By the way, there's nothing free, and you
(44:54):
may be paying a lot.
Speaker 3 (44:55):
More than you should have.
Speaker 2 (44:56):
And in closing, if I could just point out something
that I've really seen weight too often this year, and
I don't know why. Is a lot of individuals coming in.
If you're a married couple, and this affects both of you,
and if you're single, obviously you need to have a
plan too. But I just recently had a lady come
in and she goes, Larry Glenn took care of my Medicare.
(45:19):
Thank goodness, Lance helped me with the taxes. And she goes,
this is our investments. I have no idea what I'm doing.
I lost my husband seven months ago, unexpectedly, and I
was the wife who did want to be participated any
of this stuff, and he passed away and I've spent
seven months trying to figure it out on my own.
(45:42):
And she goes, if you can encourage anybody else, please
do so. And that's not saying this out of fear
or making people fearful. It's real. It affects both of you.
Have a backup plan. Maybe you're an investor, maybe you
do all your investing. Your spouse doesn't pay attention. Have
a relationship with somebody ahead of time, because if you
(46:02):
lose a loved one, that is not the time to
start figuring it out. So again, I've just seen too
much of it and I can encourage get the attention
you deserve. And at Haven Financial Group we love that opportunity.
There's no cost to visit with us. We'll walk you
through our process and at the end of the day,
if we're a good fit, great. At least we help
you out in some way, shape or form.
Speaker 4 (46:23):
Absolutely six one two five zero four eighty four hundred.
Speaker 5 (46:26):
That's how you start the process.
Speaker 4 (46:28):
Give them a call, tell them you heard us here
on the radio and you'd like to set up an appointment.
Six one two five zero four eighty four hundred. Gentlemen,
Great to be with you, Lance, thanks so much for
being a part of the show today.
Speaker 6 (46:41):
Thanks for having me again, Ken Keim, Great to be
with you.
Speaker 3 (46:43):
We'll see you next week.
Speaker 4 (46:46):
Investment advisory service is offered through Guardian Well Strategies LLC,
Haven Financial Group and Guardian Well Strategies LLC. Are not
affiliated companies and investments involve risk, and, unless otherwise stated,
are not guaranteed. Please consult with the qualified findcial advisor,
and or tax professional before implementing any strategy discussed herein,
and comments regarding it safe and secure.
Speaker 1 (47:06):
Investments and guaranteed income streams only refer to fixed insurance products.
They do not refer in any way to securities or
investment advisory products. Fixed insurance and annuity product guarantees are
subject to the claims paying ability of the issuing company.
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