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 full nines are always
(00:43):
open at six point two, five oh four eighty four hundred.
Now get your financial questions ready because the Haven Financial
Group Radio Show starts now.
Speaker 2 (00:54):
Good morning, and welcome to the Haven Financial Group Radio Show.
I'm Larry Kolvig, Founder and CEO of the Haven Financial Group. Again,
thanks for listening. I have Kyle Thomas sound with us today,
a certified financial planner on the Haven Investment Team CAM
here to talk about a whole bunch of retirement stuff, inflation,
maybe a little. What was your experience on the fourth
(01:15):
of July? All good stuff this week?
Speaker 3 (01:17):
Right?
Speaker 4 (01:18):
Yes, absolutely, I can tell you something about the Fourth
of July. I had way too many hot dogs and hamburgers.
Speaker 5 (01:26):
I didn't know that was possible.
Speaker 4 (01:29):
It was. I think I'm all set. I've had my
fill for the summer, so that's the good news. I
sort of got it out of my system. But I
certainly took advantage of beautiful weather and lots of family around.
And it sounds like you guys did the.
Speaker 5 (01:41):
Same we did.
Speaker 2 (01:43):
It was hot, but I like hot, and we had
all the girls home and a whole bunch of other
college kids. And let's just say, it's nice to have
my house back.
Speaker 4 (01:54):
There's something to be said for peace and quiet, isn't there?
Speaker 2 (01:57):
As I get older, I'm finding that I'd like a
little bit more piece of quiet.
Speaker 4 (02:01):
I have to tell you very quickly. When my kids
all left, my daughter called and she said, Mom, the
house must seem so quiet. And I kind of sat
there for a and thought, do I tell her the truth?
Or do I say, oh, it's miserably quiet on so and.
Speaker 5 (02:15):
For all listeners.
Speaker 2 (02:15):
By the way, Kyle has younger, younger, younger kids, so
he doesn't get a lot.
Speaker 5 (02:19):
Of quiet, no, no, and not a lot of sleep either.
Speaker 4 (02:23):
So well, these days will come and you'll laugh just
like we do about these experiences. We promise. Well, you guys,
let's talk a little bit today about long term impact
of inflation that we have seen over the past few years,
how that impacts your finances, and certainly how that impacts
those who are either planning and getting close to retirement
(02:45):
or in retirement. So as we begin to discuss this issue,
let's take a look at some of the topics, for example,
the impact of inflation on prices from these past couple
of years. And then we're going to talk about the
Federal Reserve and you know what you guys think they're
doing and how that relates to inflation. We'll talk about
inflation fighting strategies that you can consider, and then we're
(03:08):
going to talk about avoiding key mistakes when adjusting for inflation. So,
you know, a Larry, You've said this many times, but
inflation is something you know, we all think these last
few years have been absolutely horrible and they have been tough,
but it's cyclical. We see inflation pretty many times in
the course of our lives.
Speaker 2 (03:28):
Yeah, we as humans, we just tend to forget the
last time we had it and the time before that.
It's always been around, but not to diminish the fact
it has been really bad in recent years, and for
new retirees, you know, that can pose some serious problems
when it comes to their income. And yeah, inflation has
slowed down a lot, but the prices they tend to
(03:51):
continue to persist. I was at the grocery store with
the holiday and prices are still expensive, so they have
not come down. Yes, eggs have significantly, but many other
stable items are still extremely expensive. And again, how it
relates to our retirees, Well, it affects their money.
Speaker 4 (04:09):
Yeah, absolutely, it certainly does.
Speaker 1 (04:11):
Well.
Speaker 4 (04:12):
Let's talk about Kyle and join us in this conversation.
Let's talk a little bit about some of the effects
of inflation. You just mentioned it prices at the grocery store.
I think that's where all of us really started to
see it in the initial stages. Shortly, you know, after
the COVID hit in twenty twenty, we started to really
(04:33):
see those prices go up. And it doesn't look like
they've come down all that much. Kyle, what do you
anticipate when it comes to that kind of thing.
Speaker 6 (04:41):
Yeah, I don't really anticipate prices to really come down.
That would end up being deflation, which isn't really something
that we see. We don't really see prices come down.
And also deflation can also be kind of bad too.
I mean, that's what led to the Great Depression, you know,
almost one hundred years ago now, So we don't necessarily
(05:03):
want deflation, but it also it would be easier on
our pocket books to have prices go down. But hopefully
we've had measures that can help people to counteract those
increasing prices, you know, like social Security cost of living adjustments,
you know that that type of thing can help. But
(05:24):
you know, there also is problems with that because that
adjustment comes a year later after that inflation had already happened.
So that's where we kind of, you know, come into
some potential problems there and what we would need to
plan for and adjust for and just make sure that
we can sustainably fund our retirement or whatever kind of
(05:47):
stage of life we're in.
Speaker 4 (05:48):
Well, you know, it seems to me that individuals who
are in retirement and maybe are on a fixed income.
This is a strain that they had not anticipated, or
maybe they have, but it's at that's lasting for a
long period of time.
Speaker 2 (06:03):
Yeah, there's certainly prolonged effects here. When it comes to income.
Many people, a high percentage of retirees that are out
there that we work with, are on a fixed income,
which might be Social Security. There may be fortunate to
have a pension. It's fixed income every single month, and
then as inflation comes, wow, that we don't have as
many dollars at the end of the month to increase
(06:24):
our to maintain our long term savings plan, we might
need to revisit the budget. We probably probably should have
revisited the budget quite a few months ago, if not
the last two years and one that I've just had
a detailed conversation with Glenn and Isabella at our office.
Speaker 5 (06:42):
They help a lot of folks.
Speaker 2 (06:43):
We're able to help a lot of folks when it
comes to healthcare, Medicicare all that healthcare discussion. They said
they've seen some projections for the upcoming year with fifteen
to twenty three percent increases in healthcare fifteen to twenty
three percent preases on the horizon for twenty five, twenty six,
(07:03):
that does look like it potentially is going to happen,
and that is a big amount. And that's where a
lot of retirees underestimate healthcare. We budgeted into our plans,
we always have, and that's where a lot of people
miss it. And you want to make sure you're using
some accurate numbers because you might be very much surprised
(07:24):
when you retire and find out that thousand to fifteen
hundred a month maybe each might be needed on a
monthly basis very big number.
Speaker 4 (07:33):
Well, it seems like to me if in fact that's
the case. First off, you these retirees who are on
these fixed incomes have already been dealing with, as we mentioned,
these higher prices at the grocery store. Fortunately at the pump,
things seem to be consistent, but they're consistently high. Certainly,
we did talk about Social Security COLA adjustments, but now
(07:55):
we learn about healthcare possibly going up, so it may
be time to reach not just re evaluate your budget,
but reevaluate maybe your your investments.
Speaker 6 (08:07):
Absolutely, it's always a good time to be doing that
and everyone I urge everyone to do that at least
once per year, and that's something that we do with
our clients here, and everyone should have a plan that
adjusts for the changes on an annual basis. In twenty
twenty two, our inflation was at nine percent, so all
(08:29):
of our meetings were kind of centered around that that aspect,
because nine percent is a big number, especially in one
year if you really feel it.
Speaker 5 (08:38):
And every year it.
Speaker 6 (08:39):
Seems like there's something new that's happening. You know, this
year it's been kind of tariffs and potential rate cuts
and then now the big beautiful bill. So that's a
huge impact on everything that we do with our planning
because taxes are involved, inflations, involved because purchasing power. So
(09:01):
you need to make sure that you have a plan
that can adjust for all these different aspects, and ours
does a Monty Carlo where we can adjust inflation, what
if it's at three percent for the rest of our retirement,
and then what kind of tax laws do we want
to project out there too, because in another four years
(09:22):
we could have a completely different administration that is increasing
taxes rather than you know what, we just cut them.
So it's important to make sure that you have a
plan that can look at all of that while also
looking at your investment allocation, to make sure that that
investment allocation and risk profile is set up for success
to achieve the goals in your plan.
Speaker 4 (09:44):
So, Larry, for those who are listening right now and
they are on a fixed income, and maybe they're not
working with you at Haven Financial Group, but they're very
nervous and they're not getting the kind of feedback that
they think they need to prepare for the next couple
of years, what would you suggest.
Speaker 2 (10:00):
Well, it's why it's important to we say it every
week to have a retirement financial plan now. Now is
of the essence to put it together and to make adjustments.
And yes, it's possible to reduce your expenses and strategize
on how to help you cover some of these costs.
And that's why I encourage the listeners to give us
a call today, come on and and visit with us.
(10:22):
Sixty one two five zero four eighty four hundred. There
is no cost, there's nothing to lose. It's a conversation
over a good cup of coffee and a cookie. And
you know what, we try to have as much fun
with these topics as possible, So come on in. We'd
love to visit with you.
Speaker 4 (10:38):
Absolutely that number again is six one two, five zero
four eighty four hundred. Give them a call at Haven
Financial Group. We're going to take a break, and on
the other side, let's talk about the Federal Reserve when
it comes to inflation and what our two experts here
anticipate they may see, we may all see in the
next few months. This is the Haven Financial Group Radiation.
Speaker 1 (11:00):
Too far, we're gathering more important insights and retirement ways.
Devinent the Haven Financial Group Radio Show. We'll be right back.
Stick around. You've got questions, We've got answers. Your tune
to the Haven Financial Group Radio Show with your host
Larry Kulvig and Kim Karragan. Now back to the show.
Speaker 5 (11:22):
Welcome back listeners.
Speaker 2 (11:23):
My name is Larry Kolvig, founder and CEO of the
Haven Financial Group. And if you're just tuning in, you
are listening to the Haven Financial Group Radio Show, where
every week we discuss all kinds of crucial retirement and
financial topics that can make make or break the difference
in your retirement years, the golden years as we call it. Again,
it's good to have Kyle Thomas, certified financial Planner on
(11:45):
the investment team with us to talk about next to
the Federal Reserve and continued inflation and what we think
they might do next.
Speaker 4 (11:55):
You know, I think all of us have been watching
really closely the Federal Reserve and obviously the Fed meets
a couple of times a year. We have seen, certainly
interest rates go up and now we are seeing them
start to decline. This has been Jerome Powell, who's the chair.
You know, everyone hangs on every word that he has
(12:17):
to say to make determinations on Wall Street. And this
has been an effort to make a soft landing from
what has been, you know, this inflationary state. Let me
ask both of you first, are we making a soft landing?
There were times in this that it looked like it
could happen, then other times that it looked like it
(12:39):
could not. Where do you think we stand when it
comes to the Federal Reserve and what they've done to
try to curve inflation.
Speaker 5 (12:47):
Yeah, I think I think things look good. You know,
I'll put it.
Speaker 6 (12:51):
It's hard for us to really project out what is
going to happen for the next couple of years. You know,
from a couple of year years ago, everyone wasn't was
anticipating that we would have some kind of recession. Those
recession risks have ebbed and flowed, and now you know
they're they're kind of being cut back.
Speaker 5 (13:11):
A little bit.
Speaker 6 (13:12):
But the real answer is, I mean, we we don't
really know because there's so many unknown factors as well.
And you know, some of that's tariffs, UH, some of
that is inflation, and you know what happens with the
interest rates, and you know what what the policy is
going to be going forward on that. But right now,
(13:33):
you know, are the employment year over year for for
June actually increased, So I mean that's a good thing.
Employment increased, so the unemployment decreased. So that's a positive
aspect right there for our economy, but it's also giving
the Fed UH reasoning for not to lower rates, and
(13:55):
and rates are still fairly high right now, which the
FED is trying to, you limit how much UH spending
there is in the US right now, because when they
start to cut rates, then they're trying to open up
the spending for the country here. And so there's a
lot of unknown factors and that's also part of the
reason why I think that the FED hasn't done anything.
(14:17):
But who knows this this year we're anticipating about two
more cuts September and then either October or December.
Speaker 4 (14:23):
Right, and those would be zero point two five basis
points in total.
Speaker 1 (14:28):
Right?
Speaker 4 (14:29):
Or will that be per each time?
Speaker 5 (14:31):
Iero point two to five each time?
Speaker 4 (14:33):
Yeah, okay each time?
Speaker 2 (14:34):
Yeah right, Yeah, they're projected to yeah, two more a
quarter point each time. And if you watch the news
at all, you can see that Powell and President Trump
don't necessarily are They're not necessarily on the same page.
You know, Trump, the President wants to reduce rates because
the borrowing costs for United States are just out of
you know, are out of control. So we'll see what
(14:56):
the rifttap between them happens. Anything's possible. But I agree
with Kyle. You know, the markets, the markets have been good.
You know, all the volatility we've seen, the markets are
up for the year, they are and actually, you know,
a decent amount. So the economy I still think is strong.
We're still the United States of America, and you know what,
there's all kinds of fear factors out there and all
(15:17):
kinds of negativity, but overall, I think we're still in
a good position.
Speaker 4 (15:21):
So, Kyle, we've talked about the FED now and you know,
all these things that are happening in Washington and kind
of the you know, the rift between the president and
the chair, and these rate cuts that most likely will
still occur this year. I guess the question for most
people who are listening is Okay, yeah, that's all great
and fine, but how does this impact me? So let's
talk a little bit about these rate cuts and how
(15:42):
that impacts someone who is close to retirement or in
retirement right now.
Speaker 2 (15:48):
Uh.
Speaker 6 (15:48):
Well, the interest rates directly impact bonds, and many retirees
are invested in bonds, so right now, especially if they
were purchasing bonds in the last couple of years, they
were yielding a pretty good rate. Or even if you're
in money markets, you know those were at five percent
a year ago.
Speaker 5 (16:08):
Now those are a little below four.
Speaker 6 (16:11):
But that's that's a good interest rate that people were
getting that they won't be getting most likely here in
the future, especially if rates are cut like we are
expecting them to be. And also I'll note that Jerome
Powell's seat is up in May of next year, and
the president appoints that that chair, so he's probably going
(16:35):
to appoint someone who's aligned with him in wanting to
cut rates so that that could you know, make that
transition go a little faster at some point if things
don't change this year yet. But anyway, so the interest
rates on bonds deeply impact the money that that retirees
(16:56):
get into their accounts and they're spending money. So that's
that's something that we want to pay attention to, and
maybe it makes sense to adjust to some other type
of investments because there are other investments.
Speaker 5 (17:08):
Out there that give you yield and higher.
Speaker 6 (17:11):
Yield even and they don't carry as much risks sometimes
as the price fluctuation as bonds do. Because remember when
rates you know, went up, bonds bonds were down like
ten percent or so in twenty twenty two, so that
there is sensitivity with bond pressures in there, and if
(17:32):
rates don't necessarily come down this year, that could even
produce worse performances with bonds themselves still this year. So
it's just important to keep in mind everything that you're
invested into, and bonds do carry some risk, so it's
important for people to know that.
Speaker 4 (17:49):
So in an effort to mitigate maybe some of the
issues that are facing retirees during this recessionary time, and
certainly while the Fed is slowly bringing writes down. You say,
maybe you need to get out of bonds and go
into other areas. What would some of those areas be.
Speaker 6 (18:06):
What would you suggest, Well, that there are there's some
fixed products out there that that give you a fixed
rate no matter what.
Speaker 5 (18:16):
So there's one that.
Speaker 1 (18:17):
That we have.
Speaker 6 (18:18):
It's a with a company here local in Minneapolis, and
they're giving eight percent that that that we're allocating to
in our portfolios. Eight percent in one year, and then
about four and a half percent in the second year,
and so in total after two years, you're getting six
percent annually about from those two years, which is an
(18:41):
incredible return. And then now that that return is generating
a compounding interest for you for the rest of your time.
So there's other products out there like that that can
really enhance your portfolio and provide extra income without having
downside because you can also not lose in those types
(19:02):
of products.
Speaker 2 (19:03):
Kim, there's no doubt it's a balancing act with the
Federal Reserve, and we can speculate this, and we can
speculate what's going to happen with this decision, but in reality,
your overall retirement financial plans should be constructed by appropriately
to weather these risks, whether they're up and down, the
good weather, the bad weather, no matter what the markets
are doing, no matter what happens, your plan should adapt
(19:27):
to these types of things, assuming you have a plan.
If you're listening and don't have a plan, well let's
start by getting a plan. Give us a call if
you don't know what your plan is or have it
looked at it, because I find every week. We find
every week that they work with somebody and then year
passes and they haven't talked to them since. Well, out
of sight, out of mind. You're paying somebody to give
(19:49):
you the attention you deserve. And if you don't feel
you're getting the attention, well, we want to make sure
that people have the confidence. There's no quota as to
how many times we get together with clients, especially in
these volatile times. So if that rings the bell with
you and you're lacking confidence and you're only getting together
to talk retirement once a year, you deserve more attention,
(20:09):
and we can give you more attention.
Speaker 4 (20:11):
Absolutely, especially during these volatile times. You should be meeting
more frequently. If nothing else, Larry just to get a
good night's sleep, right, you know, you just need to
know for that reason, So give the folks at Haven
Financial Group a call. The number is six one two
five zero four eight four zero zero. Maybe you're working
with someone else and you're not getting the kind of
(20:32):
attention you need. Maybe you're thinking about retirement but don't
have a really strong plan in place. You've been doing
it on your own, and you know now during these
volatile times it maybe some expertise and some professional help
would be a great way to go about it. Or
maybe you're looking ten and fifteen years down the road
but you need to get started. Give them a call
(20:52):
at Haven Financial Groups six one two five zero four
eight four zero zero. You can also go to their website,
it's even Financial Group dot com. Be sure you check
out some of their educational classes that are coming up,
and we'll have Larry talk more about that just a
few minutes. But you can also learn more about Haven
Financial Group there at Havenfinancialgroup dot com. We are talking
(21:15):
about inflation and how it affects retirees and it affects
your finances period. And when we come back, we're going
to talk about inflation fighting strategies that you may want
to consider. This is the Haven Financial Group Radio Show.
Speaker 1 (21:30):
Ready to find your financial safe haven. Your dream retirement
is in reach. Don't go away. The Haven Financial Group
Radio Show will be right back. Are you worried that
your financial strategy might be missing something, Well, you're in
the right place. Larry Kolvig is back and ready to
help you find your financial safe haven.
Speaker 2 (21:52):
Good morning, and welcome back to the Haven Financial Group
Radio Show. I'm Larry Kolvig, founder and CEO of the
Haven Financial Group, with Kyle Thomas, certified Financial Planner on
the Haven Investment Team and Kim. You mentioned the last
segment at the end of the classes that we teach. Yes,
we are very big into education, have been for ten
(22:12):
years because as you know, it is our ten year anniversary,
actually ten years ago. This past in July is when
the door's opened and we're going to be in our
new additional space here within the next two weeks, and
we do classes at the colleges, at the libraries, community centers,
and in our new office space. We're going to have
an education center, Kim, We're going to be able to
(22:35):
do some We actually my wife, the office manager, just
booked our first one in the middle September. We see
that senior fraud is worse every year, and we've booked
the local police department their division to come in and
do a lunch and learn for an hour, hour and
a half about you know, what to do, what to avoid.
Speaker 5 (22:55):
So that's our first one.
Speaker 2 (22:56):
We're excited about it. So go to our website, Haven
Financial Group and you'll see all our classes from social
security and tax to investments to we just booked another
wills and trust to state planning with Carrie and Anna
and Keith, our state planning partners. So again we're big
into education. It's how people learn and it's how we
(23:17):
can make hopefully educated decisions.
Speaker 4 (23:20):
Fantastic. I love it. How exciting to have your own
facility there. That is really going to be great. Kyle Thomas,
a certified financial planner with Haven Financial Group, is our
guest today and we're talking about inflation and how it
relates to your finances and certainly to those who are
planning or in retirement. We want to talk a little
(23:41):
bit about inflation fighting strategies that you may want to consider.
So Kyle, I think one of the first things that
we have to consider when it comes to inflation fighting
strategies is do I have a strategy period, and then
how will it stand up against inflation?
Speaker 3 (23:57):
Right?
Speaker 6 (23:58):
Yeah, yeah, we absolutely the best thing to do is
to have a strategy that's consistent and making sure that
we stay in that strategy throughout market cycles and that
we're not changing that strategy because of our emotional feelings.
And one of the biggest things that happens when people
(24:19):
have those emotional feelings is going to cash or a
cash like investment. And you know, all our clients and
anyone who's attended a class of ours before knows well
that we try to protect from losses more than we're
trying to capture gains and upside because those those losses
(24:41):
have a bigger impact on your portfolio than gains do, right,
So we're really trying to minimize those losses. And if
you're in cash when inflation is higher than normal, you're
actually losing money, even though that dollar value in your
bank account stays the same. You're losing money because of
(25:02):
purchasing power. So your twenty thousand or whatever amount it
is that's there isn't really worth twenty thousand the next year, right,
It's worth maybe nineteen or whatever that amount would be.
So that's one thing to keep in mind right there.
And then yeah, we have many options that are good
tools to fight inflation.
Speaker 5 (25:23):
I know we had mentioned.
Speaker 6 (25:24):
The fixed accounts in the previous segment, but there's also
treasury inflation protected securities that we allocate to Your return
is directly correlated to what inflation's doing. So that's something
that we really like to have in our portfolio at
all times as well.
Speaker 4 (25:41):
So what I'm hearing you say is that first, the
first strategy you need to have is to have a portfolio,
to have a strategy, and then to look at it
to see if it's inflation proof. The second thing I
want to ask you about is where does social security
fall in all of this Inflation's strategic talk.
Speaker 6 (26:03):
Well, social security is that's a big topic too, especially
for people coming in and doing planning with us, because
when you decide to take social security can have a
huge impact on your portfolio, and because if you started
in your first year of retirement, well that supplements you
(26:23):
having to.
Speaker 5 (26:24):
Withdraw from your portfolio.
Speaker 6 (26:25):
So if you're not taking social security, then you're taking
everything that you need to live on. Unless you have
a pension, you're taking everything you need to live on
from your investments and if the markets down again, like
in twenty twenty two Lues for example, you know stocks
were down twenty percent or so depending on what you're in. Well,
now you're realizing those losses. So having social security in
(26:49):
that year would have really helped because now you don't
have to take nearly as much out from your portfolio
to live on as you would have if you didn't
have social Security. So timing that is really impactful, and
one of the biggest things that we want to do
is minimize the stress that you put on your withdrawals
(27:09):
from your portfolio assets.
Speaker 4 (27:13):
I think that a tax efficient portfolio is always recommended, right,
But what are some of the steps that you can
take as you try to protect your portfolio from inflation
when it comes to tax efficient accounts.
Speaker 2 (27:28):
Yeah, Kyle, if you could come in on this, because
you and I in the team, we see all the
time where people come in and they have the wrong
types of investments in the wrong types of accounts, the
wrong types of investments in raw the wrong types of
investments in I rays, and the wrong types of investments
in brokeraage accounts. Tax and efficiency in the portfolio. K
(27:49):
touch on that and how we see that so often.
Speaker 6 (27:51):
Yeah, Yeah, this is a big one that we see,
especially you know from some of the bigger firms where
they just kind of put blankets of portfolio on all
types of accounts. But that's that's not working in your favor.
We customize the portfolio for each type of account. You know,
we're looking at a total household for you. Let's say
(28:12):
you know, client as has three different accounts. It's a
joint account, an IRA, and a WROTH. Okay, great, they're
all going to be invested differently. The IRA is going
to house a lot of the income bearing type of
investments and tax inefficient investments, right because we want to
(28:33):
defer that income and be in control of how much
income we have. Because if you have those types of
investments in that joint account, well, all the activity that
happens in that account is going to be taxable, and
we want to have capital gains inside of that account
when we choose to have those capital gains, not when
not when the investments that we're invested in tell us
(28:53):
we're going to have taxes. And that ROTH piece is
also going to be the most aggressive because that's typically
going to be the last money that we use, so
we have the longest time horizon and it's tax free,
so we want it to be the highest amount possible
out of the three accounts. So it's important to have
different investments in each of those accounts because it creates
(29:14):
more efficiency within them. And we don't want to pay
We want to pay the least amount of tax that
we have to, so it makes sense to invest them differently.
Speaker 4 (29:24):
Sure inflation or no inflation, we want to pay the
least amount of tax that we can and Larry. This
is another reason why you guys there at Haven Financial
Group have such an efficient team because you have people
who can look at your entire portfolio and address all
of these different issues.
Speaker 2 (29:41):
Yeah, it's we call it the retirement puzzle pieces. All
the retirement puzzle pieces. Do you have all the pieces?
Are they coordinated? Is your investments talking to the tax
side of things, to the insurance side, to the estate
planning side, All of those pieces should be coordinated. So
if you're wondering how do you do that, my encouragement
would be find a retirement financial advisory firm or partner
(30:05):
I like to use better who's just as dedicated to
your unique goals and situations as they are intelligent and
aware of financial happenings, what's going on best practices. There
is no.
Speaker 5 (30:17):
One size fits all.
Speaker 2 (30:19):
Yes, there's commonalities between the different things that we see,
but it's not the same for everybody. So are they
catering to your needs? Or they do they have their
best interests in mind rather than your best interests? Do
they have strategies? Are they talking taxes? I can tell
you you know, I get this all the time. We
(30:40):
ask our guy, our gal about social security and we
never get any answers. Well, they probably don't know the
answers because if they're working with younger people, they're not
talking about social security. We are talking social security with
in every conversation because it's a big part of retirement.
So that is the attention you should be getting. Those
(31:00):
are the conversations you should be having. It is part
of our Haven proprietary process and it's what we provide
at Haven Financial Group.
Speaker 4 (31:09):
And you know, I have to say, Larry, the way
that people can mold and put together on one size
does not fit all plan is by knowing the partner
that you are dealing with. And I think in a
lot of these situations people go in, they see them
once a year and they're out and they don't know
one another. I know, you guys talk about the fact
(31:31):
that you know people's kids and their grandkids, and you know,
you get together socially. I mean, this really is a
situation where you put together plans that meet the needs
of individual people who come and see you, individual clients.
Speaker 2 (31:47):
Kim, It's intentional. It's intentional. Ten years ago it started
where we've come a long way. We have multiple personalities
and all these different retirement areas, and it is our goal.
It's not by accident. Yes, we take these topics all
very seriously. We like to have fun with him. And
what do I mean by that, we get we have
a client events, so three or four times a year.
(32:09):
If our next event is that Charlie's on Prior Lake.
If that sounds like fun, maybe you should come out
and kick the tires and see what we're all about
and see if we actually practice what we preach, which
we do.
Speaker 4 (32:21):
Kiss six one two five zero four eight four zero zero.
Give Haven Financial Group a call, tell them that you
heard us here on the radio, or you can visit
them at Havenfinancialgroup dot com. When we come back let's
talk about avoiding key mistakes when adjusting for inflation right
here on the Haven Financial Group Radio Show.
Speaker 1 (32:40):
Don't go too far. We're gathering more important insights and
retirement pays Devinent the Haven Financial Group Radio Show. We'll
be right back. Stick around. You've got questions, We've got answers.
Your tune to the Haven Financial Group Radio Show with
your host Larry Kolvig and Kim Karagan. No back to
(33:00):
the show.
Speaker 2 (33:02):
Good morning once again, and welcome to the Haven Financial
Group Radio Show. Thanks for listening. Feel free to give
us a call at six one two five zero four
eighty four hundred or Havenfinancialgroup dot com. All kinds of
retirement tools on their a calendar educational events. Feel free
to join us at any of those events. We're talking
(33:25):
a lot of inflation, all the stuff we see on
the news, But how do we avoid mistakes? Those are
the things we wanted. How do we avoid what other
people's mistakes have been so it does not happen to
us exactly.
Speaker 4 (33:39):
Kyle Thomas is with us this morning. He is a
certified financial planner with Haven Financial Group. It's been great
and he's always great to have his input and We've
talked about the fact that you have to have a plan,
and that plan really should be inflation proof, but you
can maybe overdo a bit in those inflationary, those inflation
(34:04):
proof rather strategies. And so let's talk about some of
the ways that you can sort of overdo, and Kyle,
one of those would be having too many inflation proof investments.
What are some of those investments and how do you
avoid that?
Speaker 6 (34:18):
Yeah, some of those really common ones that people like
to invest in or ask us about, is gold and silver,
all those precious metals, real estate, you know, those are
common hedges for inflation. You know, one thing that I'll
(34:38):
look at is the last five years. I just I
looked at this from ending last night. So five years
from last night, the S and P five hundred is
up one hundred and two percent and gold is up
about eighty two percent. So these are some of the
highest inflation years that we've seen in you know, quite
(34:59):
a while for our history. And the S and P
five hundred still outperformed gold by a pretty good margin. So, yes,
there is years, especially like this year and last year,
gold was doing great, but the S and P also
did great. And we just want to make sure that
we have a balanced portfolio and that we don't overextend
(35:21):
ourselves into something like gold and silver and real estate,
because those are really volatile themselves, and they do have
years where they go down quite a bit, and gold's
had many years where it's down, you know, twenty percent.
So we just want to be mindful of that and
make sure that we're spread across many different types of
(35:44):
asset classes because we don't know how the market's going
to perform, and we don't want to try and guess that.
Speaker 5 (35:50):
We just want to remain diversified.
Speaker 4 (35:53):
You know, Larry, it seems like history really is our
best teacher. Though if you look at, you know, what
has happened in the past, trends do seem to repeat themselves,
and if you ignore that, sometimes that could be a mistake.
Speaker 5 (36:07):
History does repeat itself.
Speaker 2 (36:09):
What happens in between is we all get a little
bit older and it has a different effect on us,
our money, our families, our retirement plans, which why comes
back to need to have a plan, you know. Neglecting
tax implications, that's a big one. People just draw from
the wrong accounts because they don't have a distribution income
slash tax plan. I mentioned earlier in the show that
(36:32):
forgetting about healthcare costs, underestimating them major mistake. I see
it all the time, you know, poor timing investments.
Speaker 5 (36:43):
We see this.
Speaker 2 (36:43):
The market's up and down, you're jumping off the cliff,
you get out at the wrong time. Timing the market
is impossible. Yeah, you might get lucky, your advisor might
get lucky, You might get lucky, but timing it is
virtually impossible. And not only timing to get out of
the market, but timing to get back into the market.
We see portfolios all the time, Kyle and the team
(37:05):
where somebody got out and they never got back in
because they didn't know when they got scared, and they
missed a whole bunch of opportunity because of poor timing.
Beware of that, stay away from that. It just doesn't work.
Could you get lucky, Yes, but maybe not next time.
And most of those that were sitting down with are
(37:25):
five years to retirement, in retirement, or maybe five to
ten years already retired. The element of time becomes that
much more important. And I always say, yes, we want offense,
we want the best returns, but defense wins championships.
Speaker 4 (37:43):
I would assume too. One of the big mistakes people
make is get panic stricken, you know again, not paying
attention to you know, history, and get you make these
short term decisions because you just don't sleep at night,
and then this becomes a big problem. We have a partner,
like even financial group, there's somebody there to talk to
(38:03):
you about that, right.
Speaker 5 (38:04):
Kyle, Yeah, yeah, And.
Speaker 6 (38:08):
We go through these conversations with people who get a
little worried about the.
Speaker 3 (38:13):
Market and understandably yeah, yeah, yeah, because there's a lot
of commotion out there, right, and there's people on both
sides of the aisle that like or dislike what the
administration's doing.
Speaker 6 (38:26):
So people there's always you know, some one type of
side that can be nervous with things. But we have
conversations about that and making sure that we are comfortable
with the portfolio that we're in. That's what we do
from the very beginning, and that actually makes those conversations
really easy because we just go back to the plan
that we had created and we see, Okay, this was
(38:48):
a successful plan even with all these different factors that
can happen inside of it, and you're still good. You're
still going to be successful at the end of your plan,
and so that's what we ultimately come back to. And
most of the time, people just want the conversation. They
want to feel comfortable in what we set forth previously,
and it just makes them feel good to emotionally know
(39:11):
that someone is out there helping them and guiding them
along this path and journey.
Speaker 3 (39:16):
Sure.
Speaker 4 (39:17):
Absolutely, so, as we step away from this topic of
inflation today, Kyle, what is it that you hope people
walk away from this knowing.
Speaker 6 (39:26):
We just need people to understand that inflation is going
to have high years and it's going to have low years.
But the important part is that you have consistency even
when inflation does not, and as long as you have consistency,
you should see good results at the end of your plan.
And then making sure that your portfolio is consistent along
(39:49):
with that, and that you have someone who who's watching
that for you and can implement strategies for taxes and
also to create with draws for you for your retirement,
and that it's all being put together in one holistic plan.
Speaker 4 (40:07):
Sure, and Larry, it's important that people understand they do
have options, because there's a lot of them out there.
Speaker 2 (40:12):
Right, There's a lot of options out there. Some that
may pertain to you, some that may not. But how
do you know if you're not having the conversations. We
encourage the conversations. If there's doubt out there, we encourage
our clients to give us a call, come on in
to have a discussion. By doing that, it instills confidence.
That's for number one, your partner's paying attention. Number two
(40:33):
that you're going to be okay because remember we talked
through this plan and it reminds them of why they
did and why they're doing what they're doing. So my
encouragement would be have a partner, obviously, have a plan.
Do you have all the retirement puzzle pieces on your
estate plan?
Speaker 5 (40:51):
Is it done?
Speaker 2 (40:51):
Long term care, life insurance taxes? Do you have a
good CPA, all the healthcare insurance, Medicare supplements, all those
retirement puzzle pieces. Although seemingly can be overwhelming, we try
to simplify it and make it so it's understandable and
tie it all together for those retirement years.
Speaker 4 (41:12):
Absolutely, And the way that begins is with a phone
call to the Haven Financial Group. It's six one two
five zero four eight four zero zero. You call them,
tell them that you heard us here on the radio
and that you'd like to come in there. There's no obligation,
it costs you nothing. You go in, you sit down
with some of the experts there at Haven Financial Group,
(41:33):
Kyle Thomas being one of them, a certified financial planner.
You talk through what your concerns are, what your goals are.
Maybe you're coming in and you're looking to retire in
the next fifteen twenty years, you know, when you just
want to start a plan now. Maybe you're in retirement
and you're not comfortable with the plan that you have.
You're maybe not comfortable with the partners that you've been
(41:56):
working with and you'd like to change gears. Certainly that
can be done as well. It's six one two five
zero four eight four zero zero, or you can go
to Havenfinancialgroup dot com check out their website. It's gonna
give you lots of insight to the company. It's also
going to tell you about those educational programs that are
coming up. You can sign up for those educational programs,
(42:17):
whether you're a client or not. They are free, but
they like to know who's coming, so be sure you
do that. But they do they do fill up very quickly,
so be sure you check it out. Gentlemen, this has
been fun and very informative.
Speaker 5 (42:30):
Thanks Kim, always good to be with you. Jick, thank you,
it's great to be with you.
Speaker 3 (42:36):
Investment advisory service is offered through Guardian Well Strategies LLC.
Haven Financial Group and Guardian Well Strategies LLC are not
affiliated companies, and investments involve risk, and, unless otherwise stated,
are not guaranteed. Please consult with the qualified financial advisor
and or tax professional before implementing any strategy discussed herein,
and comments regarding as safe and secure investments and guaranteed
(42:58):
income streams only refer to fixed and 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 painability of the issuing company.
You worked hard for your money, but do you know
how to make it work hard for you. You need
a team with experience, vigilance, and a strategy to help
you live the retirement you deserve. Find your financial safe
haven with Haven Financial Group. Today, you're listening to the
new and improved Haven Financial Group Radio Show, where we
bring you comprehensive weekly financial wisdom from the professionals. It's
(00:23):
all about helping you solve retirement problems so you can
make your nest egg last. Your tune to the Haven
Financial Group Radio Show with your host Larry Kolvig and
Kim Karrigan your guides to weekly retirement confidence. If you're
interested in protecting and growing what you have, let us
be your financial safe haven. The full nines are always
(00:43):
open at six point two, five oh four eighty four hundred.
Now get your financial questions ready because the Haven Financial
Group Radio Show starts now.
Speaker 2 (00:54):
Good morning, and welcome to the Haven Financial Group Radio Show.
I'm Larry Kolvig, Founder and CEO of the Haven Financial Group. Again,
thanks for listening. I have Kyle Thomas sound with us today,
a certified financial planner on the Haven Investment Team CAM
here to talk about a whole bunch of retirement stuff, inflation,
maybe a little. What was your experience on the fourth
(01:15):
of July? All good stuff this week?
Speaker 3 (01:17):
Right?
Speaker 4 (01:18):
Yes, absolutely, I can tell you something about the Fourth
of July. I had way too many hot dogs and hamburgers.
Speaker 5 (01:26):
I didn't know that was possible.
Speaker 4 (01:29):
It was. I think I'm all set. I've had my
fill for the summer, so that's the good news. I
sort of got it out of my system. But I
certainly took advantage of beautiful weather and lots of family around.
And it sounds like you guys did the.
Speaker 5 (01:41):
Same we did.
Speaker 2 (01:43):
It was hot, but I like hot, and we had
all the girls home and a whole bunch of other
college kids. And let's just say, it's nice to have
my house back.
Speaker 4 (01:54):
There's something to be said for peace and quiet, isn't there?
Speaker 2 (01:57):
As I get older, I'm finding that I'd like a
little bit more piece of quiet.
Speaker 4 (02:01):
I have to tell you very quickly. When my kids
all left, my daughter called and she said, Mom, the
house must seem so quiet. And I kind of sat
there for a and thought, do I tell her the truth?
Or do I say, oh, it's miserably quiet on so and.
Speaker 5 (02:15):
For all listeners.
Speaker 2 (02:15):
By the way, Kyle has younger, younger, younger kids, so
he doesn't get a lot.
Speaker 5 (02:19):
Of quiet, no, no, and not a lot of sleep either.
Speaker 4 (02:23):
So well, these days will come and you'll laugh just
like we do about these experiences. We promise. Well, you guys,
let's talk a little bit today about long term impact
of inflation that we have seen over the past few years,
how that impacts your finances, and certainly how that impacts
those who are either planning and getting close to retirement
(02:45):
or in retirement. So as we begin to discuss this issue,
let's take a look at some of the topics, for example,
the impact of inflation on prices from these past couple
of years. And then we're going to talk about the
Federal Reserve and you know what you guys think they're
doing and how that relates to inflation. We'll talk about
inflation fighting strategies that you can consider, and then we're
(03:08):
going to talk about avoiding key mistakes when adjusting for inflation. So,
you know, a Larry, You've said this many times, but
inflation is something you know, we all think these last
few years have been absolutely horrible and they have been tough,
but it's cyclical. We see inflation pretty many times in
the course of our lives.
Speaker 2 (03:28):
Yeah, we as humans, we just tend to forget the
last time we had it and the time before that.
It's always been around, but not to diminish the fact
it has been really bad in recent years, and for
new retirees, you know, that can pose some serious problems
when it comes to their income. And yeah, inflation has
slowed down a lot, but the prices they tend to
(03:51):
continue to persist. I was at the grocery store with
the holiday and prices are still expensive, so they have
not come down. Yes, eggs have significantly, but many other
stable items are still extremely expensive. And again, how it
relates to our retirees, Well, it affects their money.
Speaker 4 (04:09):
Yeah, absolutely, it certainly does.
Speaker 1 (04:11):
Well.
Speaker 4 (04:12):
Let's talk about Kyle and join us in this conversation.
Let's talk a little bit about some of the effects
of inflation. You just mentioned it prices at the grocery store.
I think that's where all of us really started to
see it in the initial stages. Shortly, you know, after
the COVID hit in twenty twenty, we started to really
(04:33):
see those prices go up. And it doesn't look like
they've come down all that much. Kyle, what do you
anticipate when it comes to that kind of thing.
Speaker 6 (04:41):
Yeah, I don't really anticipate prices to really come down.
That would end up being deflation, which isn't really something
that we see. We don't really see prices come down.
And also deflation can also be kind of bad too.
I mean, that's what led to the Great Depression, you know,
almost one hundred years ago now, So we don't necessarily
(05:03):
want deflation, but it also it would be easier on
our pocket books to have prices go down. But hopefully
we've had measures that can help people to counteract those
increasing prices, you know, like social Security cost of living adjustments,
you know that that type of thing can help. But
(05:24):
you know, there also is problems with that because that
adjustment comes a year later after that inflation had already happened.
So that's where we kind of, you know, come into
some potential problems there and what we would need to
plan for and adjust for and just make sure that
we can sustainably fund our retirement or whatever kind of
(05:47):
stage of life we're in.
Speaker 4 (05:48):
Well, you know, it seems to me that individuals who
are in retirement and maybe are on a fixed income.
This is a strain that they had not anticipated, or
maybe they have, but it's at that's lasting for a
long period of time.
Speaker 2 (06:03):
Yeah, there's certainly prolonged effects here. When it comes to income.
Many people, a high percentage of retirees that are out
there that we work with, are on a fixed income,
which might be Social Security. There may be fortunate to
have a pension. It's fixed income every single month, and
then as inflation comes, wow, that we don't have as
many dollars at the end of the month to increase
(06:24):
our to maintain our long term savings plan, we might
need to revisit the budget. We probably probably should have
revisited the budget quite a few months ago, if not
the last two years and one that I've just had
a detailed conversation with Glenn and Isabella at our office.
Speaker 5 (06:42):
They help a lot of folks.
Speaker 2 (06:43):
We're able to help a lot of folks when it
comes to healthcare, Medicicare all that healthcare discussion. They said
they've seen some projections for the upcoming year with fifteen
to twenty three percent increases in healthcare fifteen to twenty
three percent preases on the horizon for twenty five, twenty six,
(07:03):
that does look like it potentially is going to happen,
and that is a big amount. And that's where a
lot of retirees underestimate healthcare. We budgeted into our plans,
we always have, and that's where a lot of people
miss it. And you want to make sure you're using
some accurate numbers because you might be very much surprised
(07:24):
when you retire and find out that thousand to fifteen
hundred a month maybe each might be needed on a
monthly basis very big number.
Speaker 4 (07:33):
Well, it seems like to me if in fact that's
the case. First off, you these retirees who are on
these fixed incomes have already been dealing with, as we mentioned,
these higher prices at the grocery store. Fortunately at the pump,
things seem to be consistent, but they're consistently high. Certainly,
we did talk about Social Security COLA adjustments, but now
(07:55):
we learn about healthcare possibly going up, so it may
be time to reach not just re evaluate your budget,
but reevaluate maybe your your investments.
Speaker 6 (08:07):
Absolutely, it's always a good time to be doing that
and everyone I urge everyone to do that at least
once per year, and that's something that we do with
our clients here, and everyone should have a plan that
adjusts for the changes on an annual basis. In twenty
twenty two, our inflation was at nine percent, so all
(08:29):
of our meetings were kind of centered around that that aspect,
because nine percent is a big number, especially in one
year if you really feel it.
Speaker 5 (08:38):
And every year it.
Speaker 6 (08:39):
Seems like there's something new that's happening. You know, this
year it's been kind of tariffs and potential rate cuts
and then now the big beautiful bill. So that's a
huge impact on everything that we do with our planning
because taxes are involved, inflations, involved because purchasing power. So
(09:01):
you need to make sure that you have a plan
that can adjust for all these different aspects, and ours
does a Monty Carlo where we can adjust inflation, what
if it's at three percent for the rest of our retirement,
and then what kind of tax laws do we want
to project out there too, because in another four years
(09:22):
we could have a completely different administration that is increasing
taxes rather than you know what, we just cut them.
So it's important to make sure that you have a
plan that can look at all of that while also
looking at your investment allocation, to make sure that that
investment allocation and risk profile is set up for success
to achieve the goals in your plan.
Speaker 4 (09:44):
So, Larry, for those who are listening right now and
they are on a fixed income, and maybe they're not
working with you at Haven Financial Group, but they're very
nervous and they're not getting the kind of feedback that
they think they need to prepare for the next couple
of years, what would you suggest.
Speaker 2 (10:00):
Well, it's why it's important to we say it every
week to have a retirement financial plan now. Now is
of the essence to put it together and to make adjustments.
And yes, it's possible to reduce your expenses and strategize
on how to help you cover some of these costs.
And that's why I encourage the listeners to give us
a call today, come on and and visit with us.
(10:22):
Sixty one two five zero four eighty four hundred. There
is no cost, there's nothing to lose. It's a conversation
over a good cup of coffee and a cookie. And
you know what, we try to have as much fun
with these topics as possible, So come on in. We'd
love to visit with you.
Speaker 4 (10:38):
Absolutely that number again is six one two, five zero
four eighty four hundred. Give them a call at Haven
Financial Group. We're going to take a break, and on
the other side, let's talk about the Federal Reserve when
it comes to inflation and what our two experts here
anticipate they may see, we may all see in the
next few months. This is the Haven Financial Group Radiation.
Speaker 1 (11:00):
Too far, we're gathering more important insights and retirement ways.
Devinent the Haven Financial Group Radio Show. We'll be right back.
Stick around. You've got questions, We've got answers. Your tune
to the Haven Financial Group Radio Show with your host
Larry Kulvig and Kim Karragan. Now back to the show.
Speaker 5 (11:22):
Welcome back listeners.
Speaker 2 (11:23):
My name is Larry Kolvig, founder and CEO of the
Haven Financial Group. And if you're just tuning in, you
are listening to the Haven Financial Group Radio Show, where
every week we discuss all kinds of crucial retirement and
financial topics that can make make or break the difference
in your retirement years, the golden years as we call it. Again,
it's good to have Kyle Thomas, certified financial Planner on
(11:45):
the investment team with us to talk about next to
the Federal Reserve and continued inflation and what we think
they might do next.
Speaker 4 (11:55):
You know, I think all of us have been watching
really closely the Federal Reserve and obviously the Fed meets
a couple of times a year. We have seen, certainly
interest rates go up and now we are seeing them
start to decline. This has been Jerome Powell, who's the chair.
You know, everyone hangs on every word that he has
(12:17):
to say to make determinations on Wall Street. And this
has been an effort to make a soft landing from
what has been, you know, this inflationary state. Let me
ask both of you first, are we making a soft landing?
There were times in this that it looked like it
could happen, then other times that it looked like it
(12:39):
could not. Where do you think we stand when it
comes to the Federal Reserve and what they've done to
try to curve inflation.
Speaker 5 (12:47):
Yeah, I think I think things look good. You know,
I'll put it.
Speaker 6 (12:51):
It's hard for us to really project out what is
going to happen for the next couple of years. You know,
from a couple of year years ago, everyone wasn't was
anticipating that we would have some kind of recession. Those
recession risks have ebbed and flowed, and now you know
they're they're kind of being cut back.
Speaker 5 (13:11):
A little bit.
Speaker 6 (13:12):
But the real answer is, I mean, we we don't
really know because there's so many unknown factors as well.
And you know, some of that's tariffs, UH, some of
that is inflation, and you know what happens with the
interest rates, and you know what what the policy is
going to be going forward on that. But right now,
(13:33):
you know, are the employment year over year for for
June actually increased, So I mean that's a good thing.
Employment increased, so the unemployment decreased. So that's a positive
aspect right there for our economy, but it's also giving
the Fed UH reasoning for not to lower rates, and
(13:55):
and rates are still fairly high right now, which the
FED is trying to, you limit how much UH spending
there is in the US right now, because when they
start to cut rates, then they're trying to open up
the spending for the country here. And so there's a
lot of unknown factors and that's also part of the
reason why I think that the FED hasn't done anything.
(14:17):
But who knows this this year we're anticipating about two
more cuts September and then either October or December.
Speaker 4 (14:23):
Right, and those would be zero point two five basis
points in total.
Speaker 1 (14:28):
Right?
Speaker 4 (14:29):
Or will that be per each time?
Speaker 5 (14:31):
Iero point two to five each time?
Speaker 4 (14:33):
Yeah, okay each time?
Speaker 2 (14:34):
Yeah right, Yeah, they're projected to yeah, two more a
quarter point each time. And if you watch the news
at all, you can see that Powell and President Trump
don't necessarily are They're not necessarily on the same page.
You know, Trump, the President wants to reduce rates because
the borrowing costs for United States are just out of
you know, are out of control. So we'll see what
(14:56):
the rifttap between them happens. Anything's possible. But I agree
with Kyle. You know, the markets, the markets have been good.
You know, all the volatility we've seen, the markets are
up for the year, they are and actually, you know,
a decent amount. So the economy I still think is strong.
We're still the United States of America, and you know what,
there's all kinds of fear factors out there and all
(15:17):
kinds of negativity, but overall, I think we're still in
a good position.
Speaker 4 (15:21):
So, Kyle, we've talked about the FED now and you know,
all these things that are happening in Washington and kind
of the you know, the rift between the president and
the chair, and these rate cuts that most likely will
still occur this year. I guess the question for most
people who are listening is Okay, yeah, that's all great
and fine, but how does this impact me? So let's
talk a little bit about these rate cuts and how
(15:42):
that impacts someone who is close to retirement or in
retirement right now.
Speaker 2 (15:48):
Uh.
Speaker 6 (15:48):
Well, the interest rates directly impact bonds, and many retirees
are invested in bonds, so right now, especially if they
were purchasing bonds in the last couple of years, they
were yielding a pretty good rate. Or even if you're
in money markets, you know those were at five percent
a year ago.
Speaker 5 (16:08):
Now those are a little below four.
Speaker 6 (16:11):
But that's that's a good interest rate that people were
getting that they won't be getting most likely here in
the future, especially if rates are cut like we are
expecting them to be. And also I'll note that Jerome
Powell's seat is up in May of next year, and
the president appoints that that chair, so he's probably going
(16:35):
to appoint someone who's aligned with him in wanting to
cut rates so that that could you know, make that
transition go a little faster at some point if things
don't change this year yet. But anyway, so the interest
rates on bonds deeply impact the money that that retirees
(16:56):
get into their accounts and they're spending money. So that's
that's something that we want to pay attention to, and
maybe it makes sense to adjust to some other type
of investments because there are other investments.
Speaker 5 (17:08):
Out there that give you yield and higher.
Speaker 6 (17:11):
Yield even and they don't carry as much risks sometimes
as the price fluctuation as bonds do. Because remember when
rates you know, went up, bonds bonds were down like
ten percent or so in twenty twenty two, so that
there is sensitivity with bond pressures in there, and if
(17:32):
rates don't necessarily come down this year, that could even
produce worse performances with bonds themselves still this year. So
it's just important to keep in mind everything that you're
invested into, and bonds do carry some risk, so it's
important for people to know that.
Speaker 4 (17:49):
So in an effort to mitigate maybe some of the
issues that are facing retirees during this recessionary time, and
certainly while the Fed is slowly bringing writes down. You say,
maybe you need to get out of bonds and go
into other areas. What would some of those areas be.
Speaker 6 (18:06):
What would you suggest, Well, that there are there's some
fixed products out there that that give you a fixed
rate no matter what.
Speaker 5 (18:16):
So there's one that.
Speaker 1 (18:17):
That we have.
Speaker 6 (18:18):
It's a with a company here local in Minneapolis, and
they're giving eight percent that that that we're allocating to
in our portfolios. Eight percent in one year, and then
about four and a half percent in the second year,
and so in total after two years, you're getting six
percent annually about from those two years, which is an
(18:41):
incredible return. And then now that that return is generating
a compounding interest for you for the rest of your time.
So there's other products out there like that that can
really enhance your portfolio and provide extra income without having
downside because you can also not lose in those types
(19:02):
of products.
Speaker 2 (19:03):
Kim, there's no doubt it's a balancing act with the
Federal Reserve, and we can speculate this, and we can
speculate what's going to happen with this decision, but in reality,
your overall retirement financial plans should be constructed by appropriately
to weather these risks, whether they're up and down, the
good weather, the bad weather, no matter what the markets
are doing, no matter what happens, your plan should adapt
(19:27):
to these types of things, assuming you have a plan.
If you're listening and don't have a plan, well let's
start by getting a plan. Give us a call if
you don't know what your plan is or have it
looked at it, because I find every week. We find
every week that they work with somebody and then year
passes and they haven't talked to them since. Well, out
of sight, out of mind. You're paying somebody to give
(19:49):
you the attention you deserve. And if you don't feel
you're getting the attention, well, we want to make sure
that people have the confidence. There's no quota as to
how many times we get together with clients, especially in
these volatile times. So if that rings the bell with
you and you're lacking confidence and you're only getting together
to talk retirement once a year, you deserve more attention,
(20:09):
and we can give you more attention.
Speaker 4 (20:11):
Absolutely, especially during these volatile times. You should be meeting
more frequently. If nothing else, Larry just to get a
good night's sleep, right, you know, you just need to
know for that reason, So give the folks at Haven
Financial Group a call. The number is six one two
five zero four eight four zero zero. Maybe you're working
with someone else and you're not getting the kind of
(20:32):
attention you need. Maybe you're thinking about retirement but don't
have a really strong plan in place. You've been doing
it on your own, and you know now during these
volatile times it maybe some expertise and some professional help
would be a great way to go about it. Or
maybe you're looking ten and fifteen years down the road
but you need to get started. Give them a call
(20:52):
at Haven Financial Groups six one two five zero four
eight four zero zero. You can also go to their website,
it's even Financial Group dot com. Be sure you check
out some of their educational classes that are coming up,
and we'll have Larry talk more about that just a
few minutes. But you can also learn more about Haven
Financial Group there at Havenfinancialgroup dot com. We are talking
(21:15):
about inflation and how it affects retirees and it affects
your finances period. And when we come back, we're going
to talk about inflation fighting strategies that you may want
to consider. This is the Haven Financial Group Radio Show.
Speaker 1 (21:30):
Ready to find your financial safe haven. Your dream retirement
is in reach. Don't go away. The Haven Financial Group
Radio Show will be right back. Are you worried that
your financial strategy might be missing something, Well, you're in
the right place. Larry Kolvig is back and ready to
help you find your financial safe haven.
Speaker 2 (21:52):
Good morning, and welcome back to the Haven Financial Group
Radio Show. I'm Larry Kolvig, founder and CEO of the
Haven Financial Group, with Kyle Thomas, certified Financial Planner on
the Haven Investment Team and Kim. You mentioned the last
segment at the end of the classes that we teach. Yes,
we are very big into education, have been for ten
(22:12):
years because as you know, it is our ten year anniversary,
actually ten years ago. This past in July is when
the door's opened and we're going to be in our
new additional space here within the next two weeks, and
we do classes at the colleges, at the libraries, community centers,
and in our new office space. We're going to have
an education center, Kim, We're going to be able to
(22:35):
do some We actually my wife, the office manager, just
booked our first one in the middle September. We see
that senior fraud is worse every year, and we've booked
the local police department their division to come in and
do a lunch and learn for an hour, hour and
a half about you know, what to do, what to avoid.
Speaker 5 (22:55):
So that's our first one.
Speaker 2 (22:56):
We're excited about it. So go to our website, Haven
Financial Group and you'll see all our classes from social
security and tax to investments to we just booked another
wills and trust to state planning with Carrie and Anna
and Keith, our state planning partners. So again we're big
into education. It's how people learn and it's how we
(23:17):
can make hopefully educated decisions.
Speaker 4 (23:20):
Fantastic. I love it. How exciting to have your own
facility there. That is really going to be great. Kyle Thomas,
a certified financial planner with Haven Financial Group, is our
guest today and we're talking about inflation and how it
relates to your finances and certainly to those who are
planning or in retirement. We want to talk a little
(23:41):
bit about inflation fighting strategies that you may want to consider.
So Kyle, I think one of the first things that
we have to consider when it comes to inflation fighting
strategies is do I have a strategy period, and then
how will it stand up against inflation?
Speaker 3 (23:57):
Right?
Speaker 6 (23:58):
Yeah, yeah, we absolutely the best thing to do is
to have a strategy that's consistent and making sure that
we stay in that strategy throughout market cycles and that
we're not changing that strategy because of our emotional feelings.
And one of the biggest things that happens when people
(24:19):
have those emotional feelings is going to cash or a
cash like investment. And you know, all our clients and
anyone who's attended a class of ours before knows well
that we try to protect from losses more than we're
trying to capture gains and upside because those those losses
(24:41):
have a bigger impact on your portfolio than gains do, right,
So we're really trying to minimize those losses. And if
you're in cash when inflation is higher than normal, you're
actually losing money, even though that dollar value in your
bank account stays the same. You're losing money because of
(25:02):
purchasing power. So your twenty thousand or whatever amount it
is that's there isn't really worth twenty thousand the next year, right,
It's worth maybe nineteen or whatever that amount would be.
So that's one thing to keep in mind right there.
And then yeah, we have many options that are good
tools to fight inflation.
Speaker 5 (25:23):
I know we had mentioned.
Speaker 6 (25:24):
The fixed accounts in the previous segment, but there's also
treasury inflation protected securities that we allocate to Your return
is directly correlated to what inflation's doing. So that's something
that we really like to have in our portfolio at
all times as well.
Speaker 4 (25:41):
So what I'm hearing you say is that first, the
first strategy you need to have is to have a portfolio,
to have a strategy, and then to look at it
to see if it's inflation proof. The second thing I
want to ask you about is where does social security
fall in all of this Inflation's strategic talk.
Speaker 6 (26:03):
Well, social security is that's a big topic too, especially
for people coming in and doing planning with us, because
when you decide to take social security can have a
huge impact on your portfolio, and because if you started
in your first year of retirement, well that supplements you
(26:23):
having to.
Speaker 5 (26:24):
Withdraw from your portfolio.
Speaker 6 (26:25):
So if you're not taking social security, then you're taking
everything that you need to live on. Unless you have
a pension, you're taking everything you need to live on
from your investments and if the markets down again, like
in twenty twenty two Lues for example, you know stocks
were down twenty percent or so depending on what you're in. Well,
now you're realizing those losses. So having social security in
(26:49):
that year would have really helped because now you don't
have to take nearly as much out from your portfolio
to live on as you would have if you didn't
have social Security. So timing that is really impactful, and
one of the biggest things that we want to do
is minimize the stress that you put on your withdrawals
(27:09):
from your portfolio assets.
Speaker 4 (27:13):
I think that a tax efficient portfolio is always recommended, right,
But what are some of the steps that you can
take as you try to protect your portfolio from inflation
when it comes to tax efficient accounts.
Speaker 2 (27:28):
Yeah, Kyle, if you could come in on this, because
you and I in the team, we see all the
time where people come in and they have the wrong
types of investments in the wrong types of accounts, the
wrong types of investments in raw the wrong types of
investments in I rays, and the wrong types of investments
in brokeraage accounts. Tax and efficiency in the portfolio. K
(27:49):
touch on that and how we see that so often.
Speaker 6 (27:51):
Yeah, Yeah, this is a big one that we see,
especially you know from some of the bigger firms where
they just kind of put blankets of portfolio on all
types of accounts. But that's that's not working in your favor.
We customize the portfolio for each type of account. You know,
we're looking at a total household for you. Let's say
(28:12):
you know, client as has three different accounts. It's a
joint account, an IRA, and a WROTH. Okay, great, they're
all going to be invested differently. The IRA is going
to house a lot of the income bearing type of
investments and tax inefficient investments, right because we want to
(28:33):
defer that income and be in control of how much
income we have. Because if you have those types of
investments in that joint account, well, all the activity that
happens in that account is going to be taxable, and
we want to have capital gains inside of that account
when we choose to have those capital gains, not when
not when the investments that we're invested in tell us
(28:53):
we're going to have taxes. And that ROTH piece is
also going to be the most aggressive because that's typically
going to be the last money that we use, so
we have the longest time horizon and it's tax free,
so we want it to be the highest amount possible
out of the three accounts. So it's important to have
different investments in each of those accounts because it creates
(29:14):
more efficiency within them. And we don't want to pay
We want to pay the least amount of tax that
we have to, so it makes sense to invest them differently.
Speaker 4 (29:24):
Sure inflation or no inflation, we want to pay the
least amount of tax that we can and Larry. This
is another reason why you guys there at Haven Financial
Group have such an efficient team because you have people
who can look at your entire portfolio and address all
of these different issues.
Speaker 2 (29:41):
Yeah, it's we call it the retirement puzzle pieces. All
the retirement puzzle pieces. Do you have all the pieces?
Are they coordinated? Is your investments talking to the tax
side of things, to the insurance side, to the estate
planning side, All of those pieces should be coordinated. So
if you're wondering how do you do that, my encouragement
would be find a retirement financial advisory firm or partner
(30:05):
I like to use better who's just as dedicated to
your unique goals and situations as they are intelligent and
aware of financial happenings, what's going on best practices. There
is no.
Speaker 5 (30:17):
One size fits all.
Speaker 2 (30:19):
Yes, there's commonalities between the different things that we see,
but it's not the same for everybody. So are they
catering to your needs? Or they do they have their
best interests in mind rather than your best interests? Do
they have strategies? Are they talking taxes? I can tell
you you know, I get this all the time. We
(30:40):
ask our guy, our gal about social security and we
never get any answers. Well, they probably don't know the
answers because if they're working with younger people, they're not
talking about social security. We are talking social security with
in every conversation because it's a big part of retirement.
So that is the attention you should be getting. Those
(31:00):
are the conversations you should be having. It is part
of our Haven proprietary process and it's what we provide
at Haven Financial Group.
Speaker 4 (31:09):
And you know, I have to say, Larry, the way
that people can mold and put together on one size
does not fit all plan is by knowing the partner
that you are dealing with. And I think in a
lot of these situations people go in, they see them
once a year and they're out and they don't know
one another. I know, you guys talk about the fact
(31:31):
that you know people's kids and their grandkids, and you know,
you get together socially. I mean, this really is a
situation where you put together plans that meet the needs
of individual people who come and see you, individual clients.
Speaker 2 (31:47):
Kim, It's intentional. It's intentional. Ten years ago it started
where we've come a long way. We have multiple personalities
and all these different retirement areas, and it is our goal.
It's not by accident. Yes, we take these topics all
very seriously. We like to have fun with him. And
what do I mean by that, we get we have
a client events, so three or four times a year.
(32:09):
If our next event is that Charlie's on Prior Lake.
If that sounds like fun, maybe you should come out
and kick the tires and see what we're all about
and see if we actually practice what we preach, which
we do.
Speaker 4 (32:21):
Kiss six one two five zero four eight four zero zero.
Give Haven Financial Group a call, tell them that you
heard us here on the radio, or you can visit
them at Havenfinancialgroup dot com. When we come back let's
talk about avoiding key mistakes when adjusting for inflation right
here on the Haven Financial Group Radio Show.
Speaker 1 (32:40):
Don't go too far. We're gathering more important insights and
retirement pays Devinent the Haven Financial Group Radio Show. We'll
be right back. Stick around. You've got questions, We've got answers.
Your tune to the Haven Financial Group Radio Show with
your host Larry Kolvig and Kim Karagan. No back to
(33:00):
the show.
Speaker 2 (33:02):
Good morning once again, and welcome to the Haven Financial
Group Radio Show. Thanks for listening. Feel free to give
us a call at six one two five zero four
eighty four hundred or Havenfinancialgroup dot com. All kinds of
retirement tools on their a calendar educational events. Feel free
to join us at any of those events. We're talking
(33:25):
a lot of inflation, all the stuff we see on
the news, But how do we avoid mistakes? Those are
the things we wanted. How do we avoid what other
people's mistakes have been so it does not happen to
us exactly.
Speaker 4 (33:39):
Kyle Thomas is with us this morning. He is a
certified financial planner with Haven Financial Group. It's been great
and he's always great to have his input and We've
talked about the fact that you have to have a plan,
and that plan really should be inflation proof, but you
can maybe overdo a bit in those inflationary, those inflation
(34:04):
proof rather strategies. And so let's talk about some of
the ways that you can sort of overdo, and Kyle,
one of those would be having too many inflation proof investments.
What are some of those investments and how do you
avoid that?
Speaker 6 (34:18):
Yeah, some of those really common ones that people like
to invest in or ask us about, is gold and silver,
all those precious metals, real estate, you know, those are
common hedges for inflation. You know, one thing that I'll
(34:38):
look at is the last five years. I just I
looked at this from ending last night. So five years
from last night, the S and P five hundred is
up one hundred and two percent and gold is up
about eighty two percent. So these are some of the
highest inflation years that we've seen in you know, quite
(34:59):
a while for our history. And the S and P
five hundred still outperformed gold by a pretty good margin. So, yes,
there is years, especially like this year and last year,
gold was doing great, but the S and P also
did great. And we just want to make sure that
we have a balanced portfolio and that we don't overextend
(35:21):
ourselves into something like gold and silver and real estate,
because those are really volatile themselves, and they do have
years where they go down quite a bit, and gold's
had many years where it's down, you know, twenty percent.
So we just want to be mindful of that and
make sure that we're spread across many different types of
(35:44):
asset classes because we don't know how the market's going
to perform, and we don't want to try and guess that.
Speaker 5 (35:50):
We just want to remain diversified.
Speaker 4 (35:53):
You know, Larry, it seems like history really is our
best teacher. Though if you look at, you know, what
has happened in the past, trends do seem to repeat themselves,
and if you ignore that, sometimes that could be a mistake.
Speaker 5 (36:07):
History does repeat itself.
Speaker 2 (36:09):
What happens in between is we all get a little
bit older and it has a different effect on us,
our money, our families, our retirement plans, which why comes
back to need to have a plan, you know. Neglecting
tax implications, that's a big one. People just draw from
the wrong accounts because they don't have a distribution income
slash tax plan. I mentioned earlier in the show that
(36:32):
forgetting about healthcare costs, underestimating them major mistake. I see
it all the time, you know, poor timing investments.
Speaker 5 (36:43):
We see this.
Speaker 2 (36:43):
The market's up and down, you're jumping off the cliff,
you get out at the wrong time. Timing the market
is impossible. Yeah, you might get lucky, your advisor might
get lucky, You might get lucky, but timing it is
virtually impossible. And not only timing to get out of
the market, but timing to get back into the market.
We see portfolios all the time, Kyle and the team
(37:05):
where somebody got out and they never got back in
because they didn't know when they got scared, and they
missed a whole bunch of opportunity because of poor timing.
Beware of that, stay away from that. It just doesn't work.
Could you get lucky, Yes, but maybe not next time.
And most of those that were sitting down with are
(37:25):
five years to retirement, in retirement, or maybe five to
ten years already retired. The element of time becomes that
much more important. And I always say, yes, we want offense,
we want the best returns, but defense wins championships.
Speaker 4 (37:43):
I would assume too. One of the big mistakes people
make is get panic stricken, you know again, not paying
attention to you know, history, and get you make these
short term decisions because you just don't sleep at night,
and then this becomes a big problem. We have a partner,
like even financial group, there's somebody there to talk to
(38:03):
you about that, right.
Speaker 5 (38:04):
Kyle, Yeah, yeah, And.
Speaker 6 (38:08):
We go through these conversations with people who get a
little worried about the.
Speaker 3 (38:13):
Market and understandably yeah, yeah, yeah, because there's a lot
of commotion out there, right, and there's people on both
sides of the aisle that like or dislike what the
administration's doing.
Speaker 6 (38:26):
So people there's always you know, some one type of
side that can be nervous with things. But we have
conversations about that and making sure that we are comfortable
with the portfolio that we're in. That's what we do
from the very beginning, and that actually makes those conversations
really easy because we just go back to the plan
that we had created and we see, Okay, this was
(38:48):
a successful plan even with all these different factors that
can happen inside of it, and you're still good. You're
still going to be successful at the end of your plan,
and so that's what we ultimately come back to. And
most of the time, people just want the conversation. They
want to feel comfortable in what we set forth previously,
and it just makes them feel good to emotionally know
(39:11):
that someone is out there helping them and guiding them
along this path and journey.
Speaker 3 (39:16):
Sure.
Speaker 4 (39:17):
Absolutely, so, as we step away from this topic of
inflation today, Kyle, what is it that you hope people
walk away from this knowing.
Speaker 6 (39:26):
We just need people to understand that inflation is going
to have high years and it's going to have low years.
But the important part is that you have consistency even
when inflation does not, and as long as you have consistency,
you should see good results at the end of your plan.
And then making sure that your portfolio is consistent along
(39:49):
with that, and that you have someone who who's watching
that for you and can implement strategies for taxes and
also to create with draws for you for your retirement,
and that it's all being put together in one holistic plan.
Speaker 4 (40:07):
Sure, and Larry, it's important that people understand they do
have options, because there's a lot of them out there.
Speaker 2 (40:12):
Right, There's a lot of options out there. Some that
may pertain to you, some that may not. But how
do you know if you're not having the conversations. We
encourage the conversations. If there's doubt out there, we encourage
our clients to give us a call, come on in
to have a discussion. By doing that, it instills confidence.
That's for number one, your partner's paying attention. Number two
(40:33):
that you're going to be okay because remember we talked
through this plan and it reminds them of why they
did and why they're doing what they're doing. So my
encouragement would be have a partner, obviously, have a plan.
Do you have all the retirement puzzle pieces on your
estate plan?
Speaker 5 (40:51):
Is it done?
Speaker 2 (40:51):
Long term care, life insurance taxes? Do you have a
good CPA, all the healthcare insurance, Medicare supplements, all those
retirement puzzle pieces. Although seemingly can be overwhelming, we try
to simplify it and make it so it's understandable and
tie it all together for those retirement years.
Speaker 4 (41:12):
Absolutely, And the way that begins is with a phone
call to the Haven Financial Group. It's six one two
five zero four eight four zero zero. You call them,
tell them that you heard us here on the radio
and that you'd like to come in there. There's no obligation,
it costs you nothing. You go in, you sit down
with some of the experts there at Haven Financial Group,
(41:33):
Kyle Thomas being one of them, a certified financial planner.
You talk through what your concerns are, what your goals are.
Maybe you're coming in and you're looking to retire in
the next fifteen twenty years, you know, when you just
want to start a plan now. Maybe you're in retirement
and you're not comfortable with the plan that you have.
You're maybe not comfortable with the partners that you've been
(41:56):
working with and you'd like to change gears. Certainly that
can be done as well. It's six one two five
zero four eight four zero zero, or you can go
to Havenfinancialgroup dot com check out their website. It's gonna
give you lots of insight to the company. It's also
going to tell you about those educational programs that are
coming up. You can sign up for those educational programs,
(42:17):
whether you're a client or not. They are free, but
they like to know who's coming, so be sure you
do that. But they do they do fill up very quickly,
so be sure you check it out. Gentlemen, this has
been fun and very informative.
Speaker 5 (42:30):
Thanks Kim, always good to be with you. Jick, thank you,
it's great to be with you.
Speaker 3 (42:36):
Investment advisory service is offered through Guardian Well Strategies LLC.
Haven Financial Group and Guardian Well Strategies LLC are not
affiliated companies, and investments involve risk, and, unless otherwise stated,
are not guaranteed. Please consult with the qualified financial advisor
and or tax professional before implementing any strategy discussed herein,
and comments regarding as safe and secure investments and guaranteed
(42:58):
income streams only refer to fixed and 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 painability of the issuing company.
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Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.