Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
You've worked hard for your money, but do you know
how to make it work hard for you. You need
a team with experience, vigilance, and a strategy to help
you live the retirement you deserve. Find your financial safe
haven with Haven Financial Group. Today you're listening to the
new and improved Haven Financial Group Radio Show, where we
bring you comprehensive weekly financial wisdom from the professionals. It's
(00:23):
all about helping you solve retirement problems so you can
make your nest egg last. Your tune to the Haven
Financial Group Radio Show with your host Larry Kolvig and
Kim Karrigan your guides to weekly retirement confidence. If you're
interested in protecting and growing what you have, let us
be your financial safe haven. The fuone nines are always
(00:43):
open at six point two five 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 see of the Haven Financial Group.
Thanks for listening this morning. Kyle Thomas, certified Financial Planner,
is with us.
Speaker 3 (01:06):
Kim.
Speaker 2 (01:06):
He's on the investment team at Haven and we're going
to talk about all this fun stuff we do every week,
interest rates, tariffs and taxes and all the things that
could adversely affect retirement. But we're hoping if listeners have
a plan, it won't adversely hurt.
Speaker 3 (01:22):
So good to be with you, Kim.
Speaker 4 (01:23):
It's great to be with you. Great to have Kyle
with us this morning as well. Yeah, I mean a
lot of people are very concerned about what's going on
out there in the big bad world. And you just
named a few of the issues. There's terriff issues, and
you know, we're all waiting to see what kind of
expense that might mean. There's a new big beautiful bill
which is now a new big beautiful law, and the
(01:45):
people aren't exactly sure how that's going to impact them.
So a lot of things out there and it makes people,
I think of all stages in their life nervous. But
certainly people who are getting ready to retire or retire
are feeling a bit insecure. Are you guys finding that
on a regular basis?
Speaker 3 (02:02):
We are. We are.
Speaker 2 (02:03):
You know, if you know, people's heads are spinning because
they hear this, and then they hear this, and then
they don't know about this and I completely get it.
Sometimes as as humans, we can overwhelm ourselves with news,
news and news, and I'm all about being in the know,
but you can't you can't listen, or you can't believe
everything you hear. So our job is really to, you know,
(02:23):
give our clients and folks, we sit down with confidence,
talk through these concerns valid or not valid, uh, and
then the solutions to UH protecting that retirement or what
can they do or what does their plan look like?
Has it been modified, has it been changed? Maybe they've
never had a plan, and having those conversations does put
(02:44):
confidence and reassures people that everything is going to be okay.
Speaker 4 (02:49):
Sure, well s morning, We're going to talk about why
this uncertainty really doesn't have to bother you in your retirement.
And certainly Larry has laid out a few of those
those pointers, but we're going to break it down here.
We're going to start with the Fed jobs, stocks and
news moving the markets, and then we're going to talk
a little bit about why your finances don't have to
(03:09):
care about the way that the markets move, which is
probably a surprise to a lot of people. We'll talk
a little bit about annuities. We have talked about them
in the past, but we're going to talk to them
in this context how they could possibly help your finances
so you don't need to worry. And then finally we'll
talk about long term care and life insurance and how
that can really play a role in your life if
(03:31):
you are on a fixed income in retirement. Again, Kyle
Thomas is with a certified financial planner with Haven Financial.
Always great to have him with us, and we want
to talk about some of these world events, what's been
happening and what's been scaring people. So Kyle, let's start
with you. Why don't you talk a little bit about
some of the events in the world that you know
(03:52):
have had an impact on some of your clients but
maybe don't need to, like, for example, job growth, let's
start there.
Speaker 3 (04:01):
Yeah.
Speaker 5 (04:01):
Yeah, So some of the big events going on right
now in this year twenty twenty five at least, are
the inflation, you know, jobs, interest rates, tariffs, all of
that stuff, and it all is tied together, and so
job growth, you know, jobs have been pretty steady throughout
(04:23):
the year for the most part. Right the FED was
kind of waiting for unemployment to rise up before wanting
to trigger any cuts, and that had been pretty steady
for most of the year, so that was one of
the two things that they look out for. Job growth
or unemployment, i should say, and inflation. Unemployment remained steady,
(04:45):
Inflation was kind of slowly cooling, but it was still
kind of higher. So that's kind of where the FED
has been at for this year.
Speaker 6 (04:55):
Now.
Speaker 5 (04:55):
Job growth has slowed sharply over the last couple of months.
They actually had to go and revise the job growth
numbers from the month prior from from last month's FED meeting,
and that actually caused the market to decline because people
were actually anticipating a good chance of a rate cut,
and then when those numbers got revised, that made the
(05:19):
market drop because then you know, the outlook didn't look
as positive for a rate cut. So there's there's a
lot of information out there. And then you know tariffs,
that's always going to be a speculative thing about does
that drive more inflation because if inflation goes up, then
the chance for rate cut goes down. So there's different
(05:41):
you know, characteristics out there that are causing actions. But
you know, I will say there was there's some recent
news actually this past week that Trump appointed a new
voting member into the into the FED, so someone that
he he's been vocal about wanting rates to come down
and get cut. This person that he appointed, I'm sure
(06:06):
will vote in line with what his beliefs are. And
last month there was already you know, two officials that
you know, were different than what the general consensus was
with the rest of the voting members. So we could
see some more action going on here at the next meeting,
and there actually is three anticipated rate cuts by both
(06:27):
Goldman and JP Morgan for the rest of the year.
Speaker 4 (06:31):
Uncertainty certainly seems to be what's you know, spurring a
lot of these I'm not going to say negative, but
controversial or unsettling different statistics that you've just talked about.
So how do you approach your clients, your retirees, how
do you settle them down to say, listen, I understand
(06:54):
and certainty exists. It does a lot, and there seems
to be a lot of uncertainty right now, and how
do we deal with this.
Speaker 5 (07:02):
The biggest way that we do that is is US
accounting for inflation, and US accounting for inflation that would
be higher than what we would actually think the long
term number is we're pricing in right now and our
retirement planning projections about three percent inflation number. The FED
is targeting about two percent. Now, long term we're not
(07:26):
at that two percent yet, you know, another reason why
we haven't seen those rate cuts. But long term they're
targeting about two guessing it will be slightly higher than
to you know, maybe like two point two somewhere in there,
but we are projecting out three percent.
Speaker 3 (07:42):
So now what that.
Speaker 5 (07:43):
Does Now we are you know, above what that long
standing inflation number would be, and that we're being conservative
and our estimates going forward because that inflation number impacts
our purchasing power. And if our inflation orth you know,
fifty percent higher than what the actual number will be
(08:04):
for the next twenty years, then we're going to make
sure that we're in a good spot ourselves for our projections,
because we don't want to plan for a two percent
inflation number and it actually ends up being two and
a half because that's where we can run into problems.
So we just want to make.
Speaker 4 (08:19):
Yeah, planning for the worst but hoping for the better exactly.
Speaker 3 (08:24):
Yep.
Speaker 4 (08:24):
Yeah, Now, is that a strategy Kyle, that we would
have seen six years ago. I mean, are you always
sort of planning for the worst or is that a
result of maybe what we've seen over the last five years.
Speaker 5 (08:38):
You know, it might have been something that's kind of
evolved just you know, as time goes on, we know
more and more just based on history, and we really
had a moment from these last few years that we
haven't seen before, necessarily with the interest rate changes, you know,
with the massive cuts from the COVID era and then
(09:01):
the interest rate rising you know in twenty twenty two
and then twenty three in that time period, so that
was a time that we hadn't really seen before, and
inflation got out of control in those couple of years.
But we're always wanting to plan conservatively, so that's something
that we're always doing. But the inflation number, I guess,
(09:24):
you know, that's something that we're maybe keeping a little
closer tabs on going forward and making sure that we
don't underestimate that in the future.
Speaker 2 (09:35):
The conversation, if I could add six or seven years ago,
you know, per your question, Kim, it may have been
a little bit different, But consistency is extremely important. We've
always factored in inflation, Yeah, that the conversation maybe in
a little different but it would have been very very
similar because all the variables that affect retirement, from interest
(09:57):
rates to inflation and all of these things, they've always
been around, maybe a different level of seriousness, but in
all our conversations with those that have very very little
to a lot of money assets, et cetera, et cetera, complexities,
we're going to have a consistent conversation talk through the
same questions, and by doing that again, it brings peace
(10:21):
of mind to people that man, nobody's ever explained it
to me, and nobody's ever given me the time. Because
we only get maybe one meeting a year or two
meetings a year, We're going to give you the time
to know that we're actually paying attention individually, because it's
not one gluff, it's all sure.
Speaker 4 (10:39):
So I think what we're taking away from this, and
we certainly hope that our listeners are taking away from it,
is that, yes, these can be uncertain times, but steps
can be taken. If you have a plan and you
have a partner, steps can be taken to alleviate some
of the stress that these times bring.
Speaker 2 (10:55):
On one hundred percent accurate couldn't have said it better myself, Kim.
Speaker 4 (10:58):
So if you'd like to come in and meet the
folks there at Haven Financial Group and talk about a plan.
You need a plan. You got to have a plan.
You know, a plan helps you from staying awake at
night and being so stressed and worrying about these times
that are uncertain. Give the folks that Haven Financial Group
a call. Six one two five zero four eight four
zero zero. That's six one two five zero four eight
(11:21):
four zero zero. When we come back, we want to
continue our conversation with Kyle and Larry. We're going to
talk coming up next, why your finances don't have to
care about all of these moves in the markets. This
is the Haven Financial Group Radio Show.
Speaker 1 (11:35):
Don't go too far. We're gathering more important insights and
retirement pays devinent the Haven Financial Group Radio Show. We'll
be right back. Stick around. You've got questions, We've got answers.
Your tune to the Haven Financial Group Radio Show with
your host Larry Kulvig and Kim Karragan. No back to
(11:55):
the show.
Speaker 2 (11:57):
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. Kyle Thomas on with us this morning,
certified financial planner on the Haven Investment Team, and Kim,
I've said it in recent weeks at Haven Financial Group.
Speaker 3 (12:13):
It is our ten year anniversary.
Speaker 2 (12:15):
We are celebrating it and we like to have fun
with a lot of these serious topics that maybe aren't
so fun, like money and insurance and medicare and healthcare
and all these things. But we like to have a
little fun and we're going to have our annual Charlie's
Client Appreciation event on Charlie's on Prior Lake.
Speaker 3 (12:34):
We like to give back to our clients and their friends.
Speaker 2 (12:37):
And again, if you're listing and you don't have client events,
maybe it is something you want to seek out and
kick the tires. We'd love to have you so again,
ten year anniversary. Retirement is not exactly always the funnest
thing to talk about, but if you haven't talked about it,
it may be more concerning than if you have talked
about it, because if you have discussions ongoing with whoever
(12:59):
you're partnering with, assuming you have somebody that's working in
your on your behalf and a partner, it can give
you much more confidence. So again, we're very happy with
the ten years and we love to do our Charlie's
Client event coming up September fourth.
Speaker 4 (13:13):
Well, congratulations on ten years. It's amazing and thank you.
It really it really is, Larry, It's a terrific thing.
Kyle Thomas is with us this morning. He's a certified
financial planner at Haven Financial Group, and we're talking about
why you don't have to worry about these uncertain times
when it comes to your retirement. There are steps that
you can take meeting with the folks at Haven Financial
(13:35):
Group to really alleviate some of that stress and to
put you on a road and a path that is
not bumpy but instead just sales right into retirement. And
what we want to talk about is just why it
is that you don't necessarily have to worry about your
your finances rather while we watch this market bump up
and down in different directions. So Kyle, let's start and
(13:57):
just tell us why is it that fluctuation in the
market should not be you know, something that makes you
panic stricken if you're in retirement.
Speaker 5 (14:05):
Well, this is a fun topic, especially when I'm telling
people for the first time that we're meeting with. And
that's when when you work with us, volatility is actually
your friend. We don't want necessarily a static return of
five percent each year because that eliminates the benefit that
(14:25):
we can provide as investment advisors. So when when volatility goes,
you know, on within the accounts, it allows us to
act proactively and provide extra return for your accounts because
we're going to be rebalancing, and that rebalancing works like this.
(14:46):
So when let's say you have fund A and fun
B and we're targeting fifty to fifty percent in each
of those, right, well, if fun A does really well
and fun B doesn't do so well, now FUNDAY is
going to be, say, sixty percent of the portfolio and
FUNB is going to be forty. What we're going to
do is we're going to sell ten percent of funday
(15:07):
and then buy ten percent of fun be to get
it back to fifty to fifty. And the reason that
works out is because different asset classes interact differently all
the time throughout the year. If we take twenty twenty
five into consideration, the year started out you know, kind
of good, I guess, and then it started to downtrend
at least for US stocks. In April, US stocks were down,
(15:30):
international stocks were up, Bonds were about flat to slightly up.
So what we did is we rebalanced. We sold some international,
bought US stocks, and did a little bit with bonds
as well. Now since then US stocks are up, they've
outdone international since April, and so that's where we provide
the benefit, and we're constantly doing that to make sure
(15:53):
that we're always buying low and selling high.
Speaker 4 (15:57):
You know, this sounds a bit confusing to me as
a lay person who doesn't do this on a regular basis,
and Larry, it seems like that's all the more reason
why you want to have professionals like you guys taking
care of this, because you're watching this every single day.
Speaker 2 (16:10):
We are, we are, and you know there's so many
If anybody says they're watching it twenty four hours a day,
that they're not. But there's so many computer iterations and
so many programs and out there where if something goes haywire,
we're the team is pinged right away, so we're able
to respond. So what Kyle describes is extremely important. And
for many folks that are an employer for O one case,
(16:33):
they maybe aren't rebalancing like they should. Maybe they don't
have the knowledge, or they just don't have the investment options.
Or the listener that said, well, I don't want to
work for somebody and then end up paying a management fee.
It just doesn't make any sense. Well, there's numerous studies
out there. Jack Bogel for the inventor of Vanguard of
if you work with somebody, yes there might be a
(16:56):
management fee. By the way, if you're listening and don't
know what you're paying, I think you shouldn't know what
you're paying because you might be paying too much.
Speaker 3 (17:02):
We find that all the time. But there's nothing free.
Speaker 2 (17:05):
So when you work with somebody that is a wealth manager,
you're going to pay them something while you should be
getting the value more than the value out of that
to do exactly what Kyle said, by rebalancing the portfolio,
maybe tax loss harvesting, making sure you're diversified in that
you have the right asset class mix. And for many folks,
(17:25):
they don't have that knowledge or they don't know what
to do. And there's a lot of folks flat out
that don't know how much risk they're taking in their portfolio.
You know, Kyle mentioned a fifty to fifty split. Many
people have no idea how much risk they're taking, and
that can be a real problem too, because then all
of a sudden they push the panic button as soon
as the markets get volatile. Oh my goodness, I can't
(17:46):
believe I lost twenty five percent of my portfolio. Well,
had you known how much risk you were accepting in
your portfolio, whether you knew it or not, we could
avoid some of these pitfalls and downward spikes. That really
causes a lot of alarm with people.
Speaker 4 (18:02):
Sure, absolutely, what if I'm somebody in these times who
just doesn't want to face any risk, what do you
guys do about that?
Speaker 5 (18:09):
Well, there is alternatives to not be in the stock
market and face risk, right. So we have people who
are just in a bond portfolio, or we have you know,
diversified bonds right or a bond ladder, you know, stuff
like that, and you're still taking some risk, right because
(18:30):
you're at the mercy of the credit quality for whatever
bond you're in. But we do want to urge people
to have some diversification in stocks as well, because that
creates the most optimal outcome. Now, there are some people
who just want to be in cash, right, and they
(18:50):
see the markets at a high, they don't want to
be in it anymore. And then they saw what bonds
did in twenty twenty two and twenty three and they
just don't want to do any of that either. But
I will say, if you go to cash, yes you
could time things out perfectly, but that's a very low chance.
You're going to be more subject to that purchasing power
(19:10):
risk they were talking about, right, because that inflation is
still there. That inflation is still going to be there,
probably at least that that two percent mark every year,
and so you're really actually losing two percent, even though
your dollar value may be the same, you're losing two
percent in that. So just be mindful of all the
different avenues and what types of risk you have, because
(19:30):
no matter what you do, there is always a risk.
It's just what risk are you taking?
Speaker 4 (19:35):
And Larry, I think this is the time in the
show where we want to just mention to everyone. If
you're listening and we're talking about stocks and bonds and
you know, taking risks, and you think none of that
is for me. I don't have enough money. This is
not a conversation for me. This just doesn't have any
effect on me whatsoever.
Speaker 2 (19:52):
Well, whether you're listening and don't have hardly anything or
you have a lot, I don't know how it can't
affect you because it's going to take some or some
sort of money in retirement to produce an income, which
is really the name of the game. So we're gonna
talk more about how do you generate income? But to
piggyback off of Kyle's response, it's about having a good
(20:12):
balance getting close to retirement or in retirement, a good
bucket full of liquidity, cash checking savings, money market, high
yield savings, whatever it might be. And I can tell
you a lot of folks don't have nearly enough. You know,
there's benchmarks that we like to use fifty to one
hundred grand for a retired couple liquid Maybe that sounds high,
maybe that's too much for you, but most people don't
(20:34):
have enough. And then the bucket full of risk investments
stock market investments to whatever degree, have a good understanding
of how much that you have in your portfolio, and
we like to look at all the options, you know,
investments that have more principal preservation you always give up
maybe the high side.
Speaker 3 (20:53):
And in return.
Speaker 2 (20:53):
Maybe you don't have the downside market risk, and maybe
you have principle that is preserved. Maybe you should have
some bucket and most people don't. So we're not against
looking at you know, maybe you want a little bit safe.
For just this past week, I had a couple in
They fit that we don't want the risk of the
market all the respect in the world. We put them
into money market funds or treasuries or treasuries, T bills,
(21:18):
et cetera. So there's nothing that we don't have on
the menu. We just want to make sure we're looking
at all the items on the menu that are offered
to investors.
Speaker 4 (21:28):
Absolutely. So if you're someone out there who's listening right
now and you're thinking, I don't know what my risk is,
or I don't know that I'm diversified, and I am
nervous during these you know, somewhat unsettling times. Give the
folks that have in financial group a call. They're number
six one two five zero four eight four zero zero.
Set up an appointment. It is free. Go in, sit down,
(21:51):
talk with them about what it is you're concerned about.
Let them take a look at your portfolio. Or maybe
you don't have a portfolio and you'd like to put
one together. They can certainly help you with that. Six
one two five zero four eight four zero zero. Kyle,
thank you very much. It was great to chat with
you on this lovely morning.
Speaker 3 (22:10):
Still come in your way, Thank you so much.
Speaker 4 (22:11):
You bet still come in your way. We're going to
talk about income generation during these uncirttling times, and we'll
talk about annuities. That's coming up next right here on
the Haven Financial Group Radio Show.
Speaker 1 (22:25):
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 Colvig is back and ready to
help you find your financial safe haven.
Speaker 2 (22:47):
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. Every week, Kim and I come
to you and talk to you about the economy and investments,
all these retirement topics, which if you're listening and you
feel like they're getting overwhelming, that is not the purpose.
Our job is to really to simplify things, so it's
(23:11):
not overwhelming, so you're not worried about all the different
things that you here, you know, at church, at the
at the water cooler, wherever you're getting your information, because
you know everybody's experts out there, but really are they
the experts, So you always got to be cautious about
where you're getting your information, which, Kim as you know why.
We teach a lot of educational classes here at Haven
(23:32):
Financial Group in community centers and libraries at Dakota County
Tech and colleges, and we're excited to get into our
new education room here at the office where we already
have the police department lined up for a fraud prevention
lunch and learn for clients and friends of clients. So
we'll be doing these classes throughout. You can go to
(23:54):
our website Havenfinancialgroup dot com see all the classes that
we're offering internally here and to the public where we
provide all the textbooks, all the materials. Learning is how
you make good educational decisions, and that's what we think
a retirement is really all about in all these retirement areas.
(24:16):
As I discussed all the retirement puzzle pieces from a
state planning, you know, Carrie Anna and Keith are state
planning attorneys to Lance, our CPA, our tax prepare Glenn
and Isabella, all the insurance, medicare, long term care and
annual romans not too far away, and all the other
things specific to retirement overwhelming.
Speaker 3 (24:38):
Maybe it doesn't have to be.
Speaker 4 (24:40):
Right well, with the help of experts like all of you,
it does certainly does not have to be. Could I
just back up for a second and just say, I
think having that class about fraud is just spectacular. I
think that is so great, Larry, congratulations to all of
you for coming up with that idea and for having
that class coming up, because it is it's really a problem,
(25:01):
and you don't have to be you know, Unknowing it
can happen to anyone in everyone, and education about it
is certainly a great thing. So congratulations to the you.
Speaker 3 (25:13):
Yeah, well, you know, fraud is.
Speaker 2 (25:16):
It affects everybody, but I think senior fraud obviously is
even higher and even worse. So unfortunately, we hear about
where people's money have been taken, and let's face it,
in the investment world, we know the names that you
know have uh, you know, really ripped people investors off,
and all that so we're very concerned. We get conversations,
(25:38):
we have conversations, well you're you're not, You're not the fraudster,
like you know, the Ponzi scheme, all that. You have
to be cautious and it can happen to anybody not
long It almost happened to me if my wife actually
went to put a foot down and said, don't push
that button.
Speaker 3 (25:53):
They're really really clever.
Speaker 2 (25:55):
And this lunch and learned with the local police department
is if their fraud apartment is going to give people
ideas and hints and what to be aware of and
what you know, just so they have an idea, it's
a real serious problem. Unfortunately it gets worse every single year.
Speaker 4 (26:11):
Well, they use more and more technology, meaning fraudsters to
take advantage of innocent individuals and it's crushing when they
have that opportunity to do so. So that's coming up.
We'll continue to talk about that here on the show
so that people know more about that date and can
maybe attend. Let's talk about annuities, shall we, because what
(26:31):
we've been talking about here is, you know, just being
comfortable in these times and not having to be affected
necessarily by uncertainty and One of the things to avoid
being affected by uncertainty is to generate income in some
way that maybe is not so volatile. And one of
(26:51):
those ways might be annuities. Correct, well, you.
Speaker 3 (26:55):
Use the right word, might be annuities.
Speaker 2 (26:57):
And any listeners listening, Oh, now we're going to talk
about annuities. I've heard all the good, bad, and the
indifferent about annuities, and believe me, I have as well,
which is why a couple times a year I teach
a class the truth about annuities. We'll keep this light
but and fundamental. But there's four types of annuities. Seventy
(27:17):
five percent of the time, most people don't know which one.
If they have an annuity, they don't know which one
of the four they have. Well, that's a problem, potential
problem too. There's immediate annuities, there's variable annuities, there's fixed annuities,
and there's fixed indexed annuities. Two of them are very
different than the other four. You should know which one
(27:38):
you have. If you're listening, Oh, I don't know which
one I have. Come on and them do an annuity
review or an annuity exam. We'll give you the feedback,
whether you like it or not. At least then you'll
actually know and there's no cost for that. I think
that you'd be valuable serve to have somebody explain it
to you, truly explain it to you, because oftentimes they're sold,
(28:01):
oftentimes sold rather than explained, and that in itself can
be a problem. They can be used for a variety
of reasons. Number One, nobody has to have an annuity.
Can they be part of a good portfolio. They certainly can't,
not for everybody, and not for all of your monies,
for sure. This past week I had a couple in
(28:21):
and they had almost all of their investments in variable annuities.
One they didn't know was a variable annuity. Once we
explained it, they wish they didn't have them. And they
had like all their investments, which I don't know how
that passed the smell test to begin with, because that's
not what it is designed for. And that we were
talking about income and you know, surviving these tough times,
(28:42):
you know, stability. They can be used to generate guaranteed income.
Speaker 3 (28:46):
For the rest of your life.
Speaker 2 (28:48):
A different way to put it is you could create
your own self directed pension. And really, any of the
four that I'm mentioning. Except again two are very different
the other four. They don't have to be used for income.
But for the many of the public that is not
going to have a pension, like my wife and I,
they can be a very effective way to guarantee fifteen
(29:09):
to twenty years from now, whatever timeline is your timeline,
what a certain amount of money could produce guaranteed in
the form of an individual pension, especially since we won't
have it. They also can ask some cost of living adjustments.
Some some annuities can have an enhanced or an increased
income to accommodate some of the cost of living inflationary
(29:32):
things that we're running into. It can work very similar
to Social Security, however it is different.
Speaker 3 (29:42):
I want to back up just a little bit.
Speaker 2 (29:44):
All annuities, and I said, all all annuities are through
insurance companies, all of them, all four all annuities are
through insurance companies. Ironically, only insurance companies. Whether we like
or dislike, you know, we all have our opinions. We
may not like them, but they are forced to have
the money so they can guarantee. Where other investments your
(30:07):
statement says not guaranteed, not FDIC ensured. These companies have
to guarantee they have to have the money. I would
still only work with A rated companies strong rated companies
for a variety of good.
Speaker 3 (30:20):
Reason, which we do at Haven. But again, are they
appropriate for you? Not sure?
Speaker 2 (30:27):
Are you looking for safety? As we've talked about, they
can offer principal protection. Now, not all of the four
offer principal protection. Some of them carry much higher fees
than others. Again, I'm of the mindset you should know
what you're paying. And there's one of the four that
is about two to five percent in annual fees. Again,
(30:50):
you probably will never notice that by doing your own research.
But I and the staff we've been in the industry
a long time, right, wrong or indifferent? Are they appropriate
it for you? If you don't. If you're not doing
it for income, you could also do it for long
term care planning, You could do it for accumulation purposes.
And again, make sure that your beneficiaries are going to
(31:13):
get the money if you don't use it. There's some
that potentially annuitize and then the beneficiaries won't get it, surprise, surprise,
So understand annuities. Are they appropriate?
Speaker 3 (31:26):
I don't know? Can they be? Absolutely?
Speaker 2 (31:29):
But again, don't listen to every mark financial marketing piece
that you read. I know in the back of the
Star Triven I hate annuities, and you should hate annuities. Well,
an annuity payment. Social Security is an annuity payment. Okay,
I don't know many people that are setting their Social
Security checks back. A pension is a form of an
(31:49):
annuity payment. I don't know many people that have pensions
that are sending their pension checks back. But are they appropriate?
I have no idea, but I guess starts with education.
If you listening and have one of these annuities, come
on in and get an a innuit exam. At least
then you'll know which one you have. And in some
cases people get stuck. We can't help them. They're stuck,
(32:11):
we can't fix it, and they go, well, why can't
you help me? Because the surrender charge is just way
too big. You're going to have to wait it out.
And that's no fun either.
Speaker 4 (32:21):
No, it's not. And I'm sure that's heartbreaking for you
when people come in and realize that they've made a
mistake and it was just because they just didn't know
any better or someone didn't educate them about it. So
are you someone who's thinking about annuities, or maybe you
have an annuity and as Larry just said, and you
need an annuity test. You need to find out exactly
what your annuity is all about. You can make an
(32:43):
appointment here at Even Financial Group and chat with the
folks about annuities and maybe you know, they can talk
to you about whether an annuity would be something that
would be beneficial to you and your loved ones, or
maybe it would not. Six one two five zero four
eight four zero zero is the tell him you heard
Larry and me on the radio. I get at six
(33:03):
one two five zero four eighty four zero zero. When
we come back, we're going to talk about long term
care and life insurance and how that can play a
role in a fixed and income retirement. Long term care.
That is a subject that a lot of people don't want
to talk to talk about, but HiT's an important one
and we hope you won't miss it. This is the
Haven Financial Group Radio Show.
Speaker 1 (33:25):
Don't go 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 Kolvig and Kim Karragan. Now back to
(33:45):
the show.
Speaker 2 (33:46):
Good morning, and once again welcome 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 eighty four
hundred or visit us line at Haanfinancial Group dot com.
Speaker 3 (34:03):
Kim.
Speaker 2 (34:03):
This segment, we're going to talk long term care and
life insurance topics that nobody wants to talk about, and
I figured it would only be proper to bring our
expert here at Ham and Financial Group, Glenn Ramie in
This is right up his wheelhouse. He has the knowledge
and at HAN he's able and we're able to help
a lot of people in these topics really explain it
(34:26):
like they've never had it explained before, to see if
it's appropriateor to not, because this is going to affect
many of us, many of our lives, our families, and
again probably our parents, our grandparents. And if you're dealing
with the nursing home right now in any capacity, you're
going to know exactly what we're talking about. And if
you're listening and your plan is that your kids are
(34:49):
always going to take care of you. We joke, how's
that going for you right now?
Speaker 3 (34:53):
Probably not so good. So this is a good segment.
Speaker 4 (34:57):
It is a good segment, and it's always great to
have Glenn this. Glenn is one of the people who
love to talk about insurance. You know, you were saying, Larry,
and not everybody wants to talk about long term care,
but Glenn certainly does and he knows all about it. So, Glenn,
we've been talking about annuities as a form of income
stream or protection, but insurance certainly, and I recognize that
(35:19):
annuities are a form of insurance, but insurance, like long
term care and life insurance, can also be something that
can really protect for long term and in these sort
of uncertain times.
Speaker 6 (35:32):
Yeah, absolutely, So I'll say there's a couple of strategies
I could talk about related to annuities with income potential
and long term care.
Speaker 1 (35:40):
Right.
Speaker 6 (35:40):
So, one strategy out there today is using an annuity
with a self funded pension an income provision to cover
the cost of the insurance. So now, if I want
to purchase a long term care insurance policy, I don't
know to take money out of my budget to do it.
I can create a self funded pension that creates guaranteed
income for life. That can now be the thing paying
(36:02):
the premiums on this insurance policy over my lifetime, not
fearing that I'm draining resources more heavily trying to keep
up with these premiums as I go. And that works
for both life insurance and long term care, right covering
those ongoing premiums that your face. And we talk about
long term care. I thought it was really important to
bring this part up. Just just all the numbers this week.
(36:22):
Cost of care surveys just came out recently and Minnesota
saw forty percent increases in long term care costs from
last year, not over the last thirty years, from one
year ago. And this is being driven by new regulations
on facilities. During the COVID pandemic, we kind of saw
some facilities maybe didn't have enough staff, didn't have enough
(36:45):
people taking care of them. New regulations are coming in
saying you got to have more nurses to patients, and
that's translating to higher costs in these categories of care too.
Speaker 4 (36:54):
Wow wow, wow wow. That's a shocking statistic. And I
know that you have told us in the past the
statistic related to how many people are going to need
long term care.
Speaker 6 (37:04):
Yeah, seventy percent of us will need some form of help.
Fifty percent of us will spend time in a nursing home,
with the average stay being about three years for our
male or female.
Speaker 4 (37:13):
Let's go back to what you started with talking about
an annuity that could help to fund this kind of insurance.
That sounds very confusing to me and something that I
would know nothing about. So it really is important for
people who are thinking about long term care and they're
concerned about costs to come in because there are ways
to get around those. Really you know what you just said,
(37:36):
those really high costs. Yeah.
Speaker 6 (37:38):
Absolutely, So if our fear is how do we afford
this right using the annuity provisions of an income rider
to create that self funded monthly income that doesn't matter
how much money you set aside, will never turn off
no matter how long you live. So that fear of
longevity being there and these ongoing premiums not being just
something that we pay for fifty to twenty years, maybe
(38:01):
twenty five to thirty years, right, that creating the self
under pension means that I set aside this fixed amount
of my savings to create this guaranteed income, and if
I live longer than what that money would have lasted,
the paychecks don't stop right making sure that my insurance
premiums are fully funded throughout my entire retirement years.
Speaker 4 (38:22):
With that provision, Glenn, talk to us about some other
ways in which you can fund long term care.
Speaker 6 (38:30):
Yeah, So obviously there's the regular premiums that we're talking about,
and using the annuities to fund that. If client's a
good saver, I would say there's also a unique opportunity
our market today that are long term care specific annuities
that aren't creating a guaranteed income for life, but are
just protection against long term care, giving us more benefits
(38:50):
from that category for long term care needs without the
sacrifice of that money. We're not giving it up. If
we don't get sick. The money plus interest we accumulate
will back to our family if we never need the
insurance in the first place. But if we do need it,
we've leveraged our money, and right now companies are usually
offering three times the balance of our account in long
term care benefits. So a couple today setting aside one
(39:13):
hundred thousand for long term care. Would day one have
three hundred thousand in long term care benefits to help
pay for care?
Speaker 4 (39:20):
Then, how far in advance of using that money do
you need to begin to fund that kind of insurance?
Speaker 6 (39:27):
Well, I say the sooner the better, because numbers are
always better the younger that we are. But in reality,
I think our health is a bigger barrier than anything else,
and making sure we haven't had a significant health condition,
it's going to limit our ability to qualify for those
types of coverage. I'd say most individuals approaching this topic
are going to be in their sixties. I think they
should do it in their fifties. But my door isn't
again having a line knocking of fifty year old saying hey,
(39:49):
I want to plan for this care now. So doing
this in our early to mid sixties is still a
very good smart strategy.
Speaker 4 (39:56):
Let's talk about life insurance. How can that play a
role in this kind of thing?
Speaker 6 (40:02):
Well, so again, life insurance, I come back to reasons
why we have it, and a lot of in retirement
might not know what reasons we might not need life
insurance right outside of simple final expense insurance and that's
going to be showing up the loss of a Social
Security check for a surviving spouse. It could be legacy
planning leaving behind money for our family. And last they
could be connected to long term care costs as well,
(40:24):
and how we're helping pay for long term care costs
with provisions connected to a life insurance and if life
insurance has a need or a fit again, going back
to what Larry's been discussing earlier in your call today,
is that ability to create a self funded income stream
that pays those premiums as well. And the annuity could
be used in that fashion just as easily as it
could be used to cover those long term care costs too.
Speaker 4 (40:45):
I think what I hear you saying, and I think
a lot of people are probably surprised by this, but
life insurance can do more for you while you're alive,
and that used to not be the case.
Speaker 6 (40:56):
Yeah, I'd say, this isn't something that's been around for
twenty to thirty years, or this is a newer feature
and life insurance policies. That says that you can have
a provision a writer they call it, that says that
you can tap a certain percentage of your death benefit
typically four percent, so that means one hundred thousand dollars
life insurance policy could create a four thousand per month
(41:17):
income stream for two years to help fund care costs.
Speaker 4 (41:20):
Wow, that's a good thing. I think it probably music
to a lot of people's ears.
Speaker 6 (41:25):
Yeah, we're not working for now. It's not just a
benefit for someone else upon our passing, but we might
receive that money instead to help our costs.
Speaker 4 (41:33):
Sure, absolutely, Caim.
Speaker 2 (41:34):
I think a key takeaway at this segment with the
long term care, life insurance, or a call to action
for listeners if you will, would be to get more information.
Number one. If you're listening and have long term care,
get it reviewed. If you have life insurance, get a
life insurance reviewed. For a whole bunch of reasons, we
don't have time to get into, so get whatever you
(41:55):
have reviewed, or come on in and get educated from Glenn.
By the way I tell you, he's very knowledgeable. We
have access to all the companies to see all the
different viable options that could be out there or solutions,
if you will. When it comes to the nursing home,
first of all, I hope none of us ever have
to go there, but the statistics are staggering, and there's
(42:17):
much better options than there used to be. Get the information,
come out and visit with Glenn, and I think that'd
be very very helpful and there's no cost to do it.
Speaker 4 (42:26):
And Glenn, is there a way that people can change?
I mean, obviously, if they come in and they have
some kind of long term care or life insurance policy
and you take a look at it and you test
it and you say this isn't this isn't what you're
looking for, can you help people?
Speaker 3 (42:44):
Yes?
Speaker 6 (42:44):
Absolutely so. I just had a client, as an example,
that came in with a long term care policy and
a letter from that insurance company because she was having
a sixty four percent premium.
Speaker 3 (42:55):
Hike on her long term care.
Speaker 6 (42:57):
It was a three hundred dollars a month policy that
was now going to be over five hundred dollars per
month to maintain if she didn't want to change her benefits.
So for her, it was do I keep putting more
and more money into this insurance policy, who likely is
just going to keep asking for more and more money
over my lifetime? Or can I supplement it with something
different outside of my existing policy which would now allow
(43:19):
me to accept one of those policy decreases to keep
my premium back in line, and for her, that annuity
option would work perfect for that she can set aside
a small amount, cover a few thousand dollars per month
and long term carecafts with that amount, and now she
can willingly accept that policy decrease to keep her long
term care insurance premiums more in check on her other policy.
Speaker 4 (43:40):
You know, Glenn, you gave the perfect example, because that's
exactly what I was trying to get at there. You know,
I think people are finding out they're spending more money,
maybe they can't do it, and they think they're stuck,
and they're not necessarily stuck if they come in and
they chat and learn more about the insurance policies they.
Speaker 6 (43:56):
Have, and not just that. We're getting to a point
where replacement it might actually be a viable strategy. I'd say, five, ten,
fifteen years ago, the idea of replacing a policy that's
already been in place for someone for a ten year
period was almost unrealistic. It was never going to be
a better deal for them. With these rate increases that
keep happening, it's pushing it now to where someone actually
(44:17):
might get a better deal applying with a new company
and starting all over again with the long term care policy.
Speaker 4 (44:22):
Glenn Raimi, you are always so full of information and
it's really terrific. And if you listening, would like to
sit down with Glenn or some of the other experts.
They're in the Haven Financial Group offices, call six one
two five zero four eighty four hundred, set up an appointment.
Tell them you heard Glenn here on the radio. You'd
like to come in. You'd like to talk to him
about your your existing policy, or maybe you'd like to
(44:44):
talk to him about another policy. Again, that number is
six one two five zero four eighty four hundred. This
has been really informative and gone so quickly today, Larry.
Speaker 2 (44:54):
It has a lot of information and a short amount
of time. But it doesn't have to stop there. Come
on in aget more information. That's our job description is
to explain things. Do you have a partner that's paying
attention and that you can spend quality time with and
have them explain or are you just getting together once
or twice a year on many or none of these topics.
(45:17):
You're probably not getting the attention you deserve. Because I
see it and witness it from folks that come in
and visit all the time. So do you have all
the retirement puzzle pieces? I hope so him. It's always
good to be with you and I look forward to
next week.
Speaker 3 (45:31):
Me too, have a great week you as well.
Speaker 1 (45:35):
Investment advisory service is offered through Guardian Well Strategies LLC.
Speaker 5 (45:39):
Haven Financial Group and Guardian Well Strategies LLC are not
affiliated companies, and investments involve risk, and, unless otherwise stated,
are not guaranteed.
Speaker 4 (45:47):
Please consult with the qualified financial advisor and or tax
professional before implementing any strategy discussed herein, and comments regarding
as safe and secure investments and guaranteed income streams only
refer to fixed insurance products.
Speaker 1 (46:00):
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've worked hard for your money, but do you know
how to make it work hard for you. You need
a team with experience, vigilance, and a strategy to help
you live the retirement you deserve. Find your financial safe
haven with Haven Financial Group. Today you're listening to the
new and improved Haven Financial Group Radio Show, where we
bring you comprehensive weekly financial wisdom from the professionals. It's
(00:23):
all about helping you solve retirement problems so you can
make your nest egg last. Your tune to the Haven
Financial Group Radio Show with your host Larry Kolvig and
Kim Karrigan your guides to weekly retirement confidence. If you're
interested in protecting and growing what you have, let us
be your financial safe haven. The fuone nines are always
(00:43):
open at six point two five 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 see of the Haven Financial Group.
Thanks for listening this morning. Kyle Thomas, certified Financial Planner,
is with us.
Speaker 3 (01:06):
Kim.
Speaker 2 (01:06):
He's on the investment team at Haven and we're going
to talk about all this fun stuff we do every week,
interest rates, tariffs and taxes and all the things that
could adversely affect retirement. But we're hoping if listeners have
a plan, it won't adversely hurt.
Speaker 3 (01:22):
So good to be with you, Kim.
Speaker 4 (01:23):
It's great to be with you. Great to have Kyle
with us this morning as well. Yeah, I mean a
lot of people are very concerned about what's going on
out there in the big bad world. And you just
named a few of the issues. There's terriff issues, and
you know, we're all waiting to see what kind of
expense that might mean. There's a new big beautiful bill
which is now a new big beautiful law, and the
(01:45):
people aren't exactly sure how that's going to impact them.
So a lot of things out there and it makes people,
I think of all stages in their life nervous. But
certainly people who are getting ready to retire or retire
are feeling a bit insecure. Are you guys finding that
on a regular basis?
Speaker 3 (02:02):
We are. We are.
Speaker 2 (02:03):
You know, if you know, people's heads are spinning because
they hear this, and then they hear this, and then
they don't know about this and I completely get it.
Sometimes as as humans, we can overwhelm ourselves with news,
news and news, and I'm all about being in the know,
but you can't you can't listen, or you can't believe
everything you hear. So our job is really to, you know,
(02:23):
give our clients and folks, we sit down with confidence,
talk through these concerns valid or not valid, uh, and
then the solutions to UH protecting that retirement or what
can they do or what does their plan look like?
Has it been modified, has it been changed? Maybe they've
never had a plan, and having those conversations does put
(02:44):
confidence and reassures people that everything is going to be okay.
Speaker 4 (02:49):
Sure, well s morning, We're going to talk about why
this uncertainty really doesn't have to bother you in your retirement.
And certainly Larry has laid out a few of those
those pointers, but we're going to break it down here.
We're going to start with the Fed jobs, stocks and
news moving the markets, and then we're going to talk
a little bit about why your finances don't have to
(03:09):
care about the way that the markets move, which is
probably a surprise to a lot of people. We'll talk
a little bit about annuities. We have talked about them
in the past, but we're going to talk to them
in this context how they could possibly help your finances
so you don't need to worry. And then finally we'll
talk about long term care and life insurance and how
that can really play a role in your life if
(03:31):
you are on a fixed income in retirement. Again, Kyle
Thomas is with a certified financial planner with Haven Financial.
Always great to have him with us, and we want
to talk about some of these world events, what's been
happening and what's been scaring people. So Kyle, let's start
with you. Why don't you talk a little bit about
some of the events in the world that you know
(03:52):
have had an impact on some of your clients but
maybe don't need to, like, for example, job growth, let's
start there.
Speaker 3 (04:01):
Yeah.
Speaker 5 (04:01):
Yeah, So some of the big events going on right
now in this year twenty twenty five at least, are
the inflation, you know, jobs, interest rates, tariffs, all of
that stuff, and it all is tied together, and so
job growth, you know, jobs have been pretty steady throughout
(04:23):
the year for the most part. Right the FED was
kind of waiting for unemployment to rise up before wanting
to trigger any cuts, and that had been pretty steady
for most of the year, so that was one of
the two things that they look out for. Job growth
or unemployment, i should say, and inflation. Unemployment remained steady,
(04:45):
Inflation was kind of slowly cooling, but it was still
kind of higher. So that's kind of where the FED
has been at for this year.
Speaker 6 (04:55):
Now.
Speaker 5 (04:55):
Job growth has slowed sharply over the last couple of months.
They actually had to go and revise the job growth
numbers from the month prior from from last month's FED meeting,
and that actually caused the market to decline because people
were actually anticipating a good chance of a rate cut,
and then when those numbers got revised, that made the
(05:19):
market drop because then you know, the outlook didn't look
as positive for a rate cut. So there's there's a
lot of information out there. And then you know tariffs,
that's always going to be a speculative thing about does
that drive more inflation because if inflation goes up, then
the chance for rate cut goes down. So there's different
(05:41):
you know, characteristics out there that are causing actions. But
you know, I will say there was there's some recent
news actually this past week that Trump appointed a new
voting member into the into the FED, so someone that
he he's been vocal about wanting rates to come down
and get cut. This person that he appointed, I'm sure
(06:06):
will vote in line with what his beliefs are. And
last month there was already you know, two officials that
you know, were different than what the general consensus was
with the rest of the voting members. So we could
see some more action going on here at the next meeting,
and there actually is three anticipated rate cuts by both
(06:27):
Goldman and JP Morgan for the rest of the year.
Speaker 4 (06:31):
Uncertainty certainly seems to be what's you know, spurring a
lot of these I'm not going to say negative, but
controversial or unsettling different statistics that you've just talked about.
So how do you approach your clients, your retirees, how
do you settle them down to say, listen, I understand
(06:54):
and certainty exists. It does a lot, and there seems
to be a lot of uncertainty right now, and how
do we deal with this.
Speaker 5 (07:02):
The biggest way that we do that is is US
accounting for inflation, and US accounting for inflation that would
be higher than what we would actually think the long
term number is we're pricing in right now and our
retirement planning projections about three percent inflation number. The FED
is targeting about two percent. Now, long term we're not
(07:26):
at that two percent yet, you know, another reason why
we haven't seen those rate cuts. But long term they're
targeting about two guessing it will be slightly higher than
to you know, maybe like two point two somewhere in there,
but we are projecting out three percent.
Speaker 3 (07:42):
So now what that.
Speaker 5 (07:43):
Does Now we are you know, above what that long
standing inflation number would be, and that we're being conservative
and our estimates going forward because that inflation number impacts
our purchasing power. And if our inflation orth you know,
fifty percent higher than what the actual number will be
(08:04):
for the next twenty years, then we're going to make
sure that we're in a good spot ourselves for our projections,
because we don't want to plan for a two percent
inflation number and it actually ends up being two and
a half because that's where we can run into problems.
So we just want to make.
Speaker 4 (08:19):
Yeah, planning for the worst but hoping for the better exactly.
Speaker 3 (08:24):
Yep.
Speaker 4 (08:24):
Yeah, Now, is that a strategy Kyle, that we would
have seen six years ago. I mean, are you always
sort of planning for the worst or is that a
result of maybe what we've seen over the last five years.
Speaker 5 (08:38):
You know, it might have been something that's kind of
evolved just you know, as time goes on, we know
more and more just based on history, and we really
had a moment from these last few years that we
haven't seen before, necessarily with the interest rate changes, you know,
with the massive cuts from the COVID era and then
(09:01):
the interest rate rising you know in twenty twenty two
and then twenty three in that time period, so that
was a time that we hadn't really seen before, and
inflation got out of control in those couple of years.
But we're always wanting to plan conservatively, so that's something
that we're always doing. But the inflation number, I guess,
(09:24):
you know, that's something that we're maybe keeping a little
closer tabs on going forward and making sure that we
don't underestimate that in the future.
Speaker 2 (09:35):
The conversation, if I could add six or seven years ago,
you know, per your question, Kim, it may have been
a little bit different, But consistency is extremely important. We've
always factored in inflation, Yeah, that the conversation maybe in
a little different but it would have been very very
similar because all the variables that affect retirement, from interest
(09:57):
rates to inflation and all of these things, they've always
been around, maybe a different level of seriousness, but in
all our conversations with those that have very very little
to a lot of money assets, et cetera, et cetera, complexities,
we're going to have a consistent conversation talk through the
same questions, and by doing that again, it brings peace
(10:21):
of mind to people that man, nobody's ever explained it
to me, and nobody's ever given me the time. Because
we only get maybe one meeting a year or two
meetings a year, We're going to give you the time
to know that we're actually paying attention individually, because it's
not one gluff, it's all sure.
Speaker 4 (10:39):
So I think what we're taking away from this, and
we certainly hope that our listeners are taking away from it,
is that, yes, these can be uncertain times, but steps
can be taken. If you have a plan and you
have a partner, steps can be taken to alleviate some
of the stress that these times bring.
Speaker 2 (10:55):
On one hundred percent accurate couldn't have said it better myself, Kim.
Speaker 4 (10:58):
So if you'd like to come in and meet the
folks there at Haven Financial Group and talk about a plan.
You need a plan. You got to have a plan.
You know, a plan helps you from staying awake at
night and being so stressed and worrying about these times
that are uncertain. Give the folks that Haven Financial Group
a call. Six one two five zero four eight four
zero zero. That's six one two five zero four eight
(11:21):
four zero zero. When we come back, we want to
continue our conversation with Kyle and Larry. We're going to
talk coming up next, why your finances don't have to
care about all of these moves in the markets. This
is the Haven Financial Group Radio Show.
Speaker 1 (11:35):
Don't go too far. We're gathering more important insights and
retirement pays devinent the Haven Financial Group Radio Show. We'll
be right back. Stick around. You've got questions, We've got answers.
Your tune to the Haven Financial Group Radio Show with
your host Larry Kulvig and Kim Karragan. No back to
(11:55):
the show.
Speaker 2 (11:57):
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. Kyle Thomas on with us this morning,
certified financial planner on the Haven Investment Team, and Kim,
I've said it in recent weeks at Haven Financial Group.
Speaker 3 (12:13):
It is our ten year anniversary.
Speaker 2 (12:15):
We are celebrating it and we like to have fun
with a lot of these serious topics that maybe aren't
so fun, like money and insurance and medicare and healthcare
and all these things. But we like to have a
little fun and we're going to have our annual Charlie's
Client Appreciation event on Charlie's on Prior Lake.
Speaker 3 (12:34):
We like to give back to our clients and their friends.
Speaker 2 (12:37):
And again, if you're listing and you don't have client events,
maybe it is something you want to seek out and
kick the tires. We'd love to have you so again,
ten year anniversary. Retirement is not exactly always the funnest
thing to talk about, but if you haven't talked about it,
it may be more concerning than if you have talked
about it, because if you have discussions ongoing with whoever
(12:59):
you're partnering with, assuming you have somebody that's working in
your on your behalf and a partner, it can give
you much more confidence. So again, we're very happy with
the ten years and we love to do our Charlie's
Client event coming up September fourth.
Speaker 4 (13:13):
Well, congratulations on ten years. It's amazing and thank you.
It really it really is, Larry, It's a terrific thing.
Kyle Thomas is with us this morning. He's a certified
financial planner at Haven Financial Group, and we're talking about
why you don't have to worry about these uncertain times
when it comes to your retirement. There are steps that
you can take meeting with the folks at Haven Financial
(13:35):
Group to really alleviate some of that stress and to
put you on a road and a path that is
not bumpy but instead just sales right into retirement. And
what we want to talk about is just why it
is that you don't necessarily have to worry about your
your finances rather while we watch this market bump up
and down in different directions. So Kyle, let's start and
(13:57):
just tell us why is it that fluctuation in the
market should not be you know, something that makes you
panic stricken if you're in retirement.
Speaker 5 (14:05):
Well, this is a fun topic, especially when I'm telling
people for the first time that we're meeting with. And
that's when when you work with us, volatility is actually
your friend. We don't want necessarily a static return of
five percent each year because that eliminates the benefit that
(14:25):
we can provide as investment advisors. So when when volatility goes,
you know, on within the accounts, it allows us to
act proactively and provide extra return for your accounts because
we're going to be rebalancing, and that rebalancing works like this.
(14:46):
So when let's say you have fund A and fun
B and we're targeting fifty to fifty percent in each
of those, right, well, if fun A does really well
and fun B doesn't do so well, now FUNDAY is
going to be, say, sixty percent of the portfolio and
FUNB is going to be forty. What we're going to
do is we're going to sell ten percent of funday
(15:07):
and then buy ten percent of fun be to get
it back to fifty to fifty. And the reason that
works out is because different asset classes interact differently all
the time throughout the year. If we take twenty twenty
five into consideration, the year started out you know, kind
of good, I guess, and then it started to downtrend
at least for US stocks. In April, US stocks were down,
(15:30):
international stocks were up, Bonds were about flat to slightly up.
So what we did is we rebalanced. We sold some international,
bought US stocks, and did a little bit with bonds
as well. Now since then US stocks are up, they've
outdone international since April, and so that's where we provide
the benefit, and we're constantly doing that to make sure
(15:53):
that we're always buying low and selling high.
Speaker 4 (15:57):
You know, this sounds a bit confusing to me as
a lay person who doesn't do this on a regular basis,
and Larry, it seems like that's all the more reason
why you want to have professionals like you guys taking
care of this, because you're watching this every single day.
Speaker 2 (16:10):
We are, we are, and you know there's so many
If anybody says they're watching it twenty four hours a day,
that they're not. But there's so many computer iterations and
so many programs and out there where if something goes haywire,
we're the team is pinged right away, so we're able
to respond. So what Kyle describes is extremely important. And
for many folks that are an employer for O one case,
(16:33):
they maybe aren't rebalancing like they should. Maybe they don't
have the knowledge, or they just don't have the investment options.
Or the listener that said, well, I don't want to
work for somebody and then end up paying a management fee.
It just doesn't make any sense. Well, there's numerous studies
out there. Jack Bogel for the inventor of Vanguard of
if you work with somebody, yes there might be a
(16:56):
management fee. By the way, if you're listening and don't
know what you're paying, I think you shouldn't know what
you're paying because you might be paying too much.
Speaker 3 (17:02):
We find that all the time. But there's nothing free.
Speaker 2 (17:05):
So when you work with somebody that is a wealth manager,
you're going to pay them something while you should be
getting the value more than the value out of that
to do exactly what Kyle said, by rebalancing the portfolio,
maybe tax loss harvesting, making sure you're diversified in that
you have the right asset class mix. And for many folks,
(17:25):
they don't have that knowledge or they don't know what
to do. And there's a lot of folks flat out
that don't know how much risk they're taking in their portfolio.
You know, Kyle mentioned a fifty to fifty split. Many
people have no idea how much risk they're taking, and
that can be a real problem too, because then all
of a sudden they push the panic button as soon
as the markets get volatile. Oh my goodness, I can't
(17:46):
believe I lost twenty five percent of my portfolio. Well,
had you known how much risk you were accepting in
your portfolio, whether you knew it or not, we could
avoid some of these pitfalls and downward spikes. That really
causes a lot of alarm with people.
Speaker 4 (18:02):
Sure, absolutely, what if I'm somebody in these times who
just doesn't want to face any risk, what do you
guys do about that?
Speaker 5 (18:09):
Well, there is alternatives to not be in the stock
market and face risk, right. So we have people who
are just in a bond portfolio, or we have you know,
diversified bonds right or a bond ladder, you know, stuff
like that, and you're still taking some risk, right because
(18:30):
you're at the mercy of the credit quality for whatever
bond you're in. But we do want to urge people
to have some diversification in stocks as well, because that
creates the most optimal outcome. Now, there are some people
who just want to be in cash, right, and they
(18:50):
see the markets at a high, they don't want to
be in it anymore. And then they saw what bonds
did in twenty twenty two and twenty three and they
just don't want to do any of that either. But
I will say, if you go to cash, yes you
could time things out perfectly, but that's a very low chance.
You're going to be more subject to that purchasing power
(19:10):
risk they were talking about, right, because that inflation is
still there. That inflation is still going to be there,
probably at least that that two percent mark every year,
and so you're really actually losing two percent, even though
your dollar value may be the same, you're losing two
percent in that. So just be mindful of all the
different avenues and what types of risk you have, because
(19:30):
no matter what you do, there is always a risk.
It's just what risk are you taking?
Speaker 4 (19:35):
And Larry, I think this is the time in the
show where we want to just mention to everyone. If
you're listening and we're talking about stocks and bonds and
you know, taking risks, and you think none of that
is for me. I don't have enough money. This is
not a conversation for me. This just doesn't have any
effect on me whatsoever.
Speaker 2 (19:52):
Well, whether you're listening and don't have hardly anything or
you have a lot, I don't know how it can't
affect you because it's going to take some or some
sort of money in retirement to produce an income, which
is really the name of the game. So we're gonna
talk more about how do you generate income? But to
piggyback off of Kyle's response, it's about having a good
(20:12):
balance getting close to retirement or in retirement, a good
bucket full of liquidity, cash checking savings, money market, high
yield savings, whatever it might be. And I can tell
you a lot of folks don't have nearly enough. You know,
there's benchmarks that we like to use fifty to one
hundred grand for a retired couple liquid Maybe that sounds high,
maybe that's too much for you, but most people don't
(20:34):
have enough. And then the bucket full of risk investments
stock market investments to whatever degree, have a good understanding
of how much that you have in your portfolio, and
we like to look at all the options, you know,
investments that have more principal preservation you always give up
maybe the high side.
Speaker 3 (20:53):
And in return.
Speaker 2 (20:53):
Maybe you don't have the downside market risk, and maybe
you have principle that is preserved. Maybe you should have
some bucket and most people don't. So we're not against
looking at you know, maybe you want a little bit safe.
For just this past week, I had a couple in
They fit that we don't want the risk of the
market all the respect in the world. We put them
into money market funds or treasuries or treasuries, T bills,
(21:18):
et cetera. So there's nothing that we don't have on
the menu. We just want to make sure we're looking
at all the items on the menu that are offered
to investors.
Speaker 4 (21:28):
Absolutely. So if you're someone out there who's listening right
now and you're thinking, I don't know what my risk is,
or I don't know that I'm diversified, and I am
nervous during these you know, somewhat unsettling times. Give the
folks that have in financial group a call. They're number
six one two five zero four eight four zero zero.
Set up an appointment. It is free. Go in, sit down,
(21:51):
talk with them about what it is you're concerned about.
Let them take a look at your portfolio. Or maybe
you don't have a portfolio and you'd like to put
one together. They can certainly help you with that. Six
one two five zero four eight four zero zero. Kyle,
thank you very much. It was great to chat with
you on this lovely morning.
Speaker 3 (22:10):
Still come in your way, Thank you so much.
Speaker 4 (22:11):
You bet still come in your way. We're going to
talk about income generation during these uncirttling times, and we'll
talk about annuities. That's coming up next right here on
the Haven Financial Group Radio Show.
Speaker 1 (22:25):
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 Colvig is back and ready to
help you find your financial safe haven.
Speaker 2 (22:47):
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. Every week, Kim and I come
to you and talk to you about the economy and investments,
all these retirement topics, which if you're listening and you
feel like they're getting overwhelming, that is not the purpose.
Our job is to really to simplify things, so it's
(23:11):
not overwhelming, so you're not worried about all the different
things that you here, you know, at church, at the
at the water cooler, wherever you're getting your information, because
you know everybody's experts out there, but really are they
the experts, So you always got to be cautious about
where you're getting your information, which, Kim as you know why.
We teach a lot of educational classes here at Haven
(23:32):
Financial Group in community centers and libraries at Dakota County
Tech and colleges, and we're excited to get into our
new education room here at the office where we already
have the police department lined up for a fraud prevention
lunch and learn for clients and friends of clients. So
we'll be doing these classes throughout. You can go to
(23:54):
our website Havenfinancialgroup dot com see all the classes that
we're offering internally here and to the public where we
provide all the textbooks, all the materials. Learning is how
you make good educational decisions, and that's what we think
a retirement is really all about in all these retirement areas.
(24:16):
As I discussed all the retirement puzzle pieces from a
state planning, you know, Carrie Anna and Keith are state
planning attorneys to Lance, our CPA, our tax prepare Glenn
and Isabella, all the insurance, medicare, long term care and
annual romans not too far away, and all the other
things specific to retirement overwhelming.
Speaker 3 (24:38):
Maybe it doesn't have to be.
Speaker 4 (24:40):
Right well, with the help of experts like all of you,
it does certainly does not have to be. Could I
just back up for a second and just say, I
think having that class about fraud is just spectacular. I
think that is so great, Larry, congratulations to all of
you for coming up with that idea and for having
that class coming up, because it is it's really a problem,
(25:01):
and you don't have to be you know, Unknowing it
can happen to anyone in everyone, and education about it
is certainly a great thing. So congratulations to the you.
Speaker 3 (25:13):
Yeah, well, you know, fraud is.
Speaker 2 (25:16):
It affects everybody, but I think senior fraud obviously is
even higher and even worse. So unfortunately, we hear about
where people's money have been taken, and let's face it,
in the investment world, we know the names that you
know have uh, you know, really ripped people investors off,
and all that so we're very concerned. We get conversations,
(25:38):
we have conversations, well you're you're not, You're not the fraudster,
like you know, the Ponzi scheme, all that. You have
to be cautious and it can happen to anybody not
long It almost happened to me if my wife actually
went to put a foot down and said, don't push
that button.
Speaker 3 (25:53):
They're really really clever.
Speaker 2 (25:55):
And this lunch and learned with the local police department
is if their fraud apartment is going to give people
ideas and hints and what to be aware of and
what you know, just so they have an idea, it's
a real serious problem. Unfortunately it gets worse every single year.
Speaker 4 (26:11):
Well, they use more and more technology, meaning fraudsters to
take advantage of innocent individuals and it's crushing when they
have that opportunity to do so. So that's coming up.
We'll continue to talk about that here on the show
so that people know more about that date and can
maybe attend. Let's talk about annuities, shall we, because what
(26:31):
we've been talking about here is, you know, just being
comfortable in these times and not having to be affected
necessarily by uncertainty and One of the things to avoid
being affected by uncertainty is to generate income in some
way that maybe is not so volatile. And one of
(26:51):
those ways might be annuities. Correct, well, you.
Speaker 3 (26:55):
Use the right word, might be annuities.
Speaker 2 (26:57):
And any listeners listening, Oh, now we're going to talk
about annuities. I've heard all the good, bad, and the
indifferent about annuities, and believe me, I have as well,
which is why a couple times a year I teach
a class the truth about annuities. We'll keep this light
but and fundamental. But there's four types of annuities. Seventy
(27:17):
five percent of the time, most people don't know which one.
If they have an annuity, they don't know which one
of the four they have. Well, that's a problem, potential
problem too. There's immediate annuities, there's variable annuities, there's fixed annuities,
and there's fixed indexed annuities. Two of them are very
different than the other four. You should know which one
(27:38):
you have. If you're listening, Oh, I don't know which
one I have. Come on and them do an annuity
review or an annuity exam. We'll give you the feedback,
whether you like it or not. At least then you'll
actually know and there's no cost for that. I think
that you'd be valuable serve to have somebody explain it
to you, truly explain it to you, because oftentimes they're sold,
(28:01):
oftentimes sold rather than explained, and that in itself can
be a problem. They can be used for a variety
of reasons. Number One, nobody has to have an annuity.
Can they be part of a good portfolio. They certainly can't,
not for everybody, and not for all of your monies,
for sure. This past week I had a couple in
(28:21):
and they had almost all of their investments in variable annuities.
One they didn't know was a variable annuity. Once we
explained it, they wish they didn't have them. And they
had like all their investments, which I don't know how
that passed the smell test to begin with, because that's
not what it is designed for. And that we were
talking about income and you know, surviving these tough times,
(28:42):
you know, stability. They can be used to generate guaranteed income.
Speaker 3 (28:46):
For the rest of your life.
Speaker 2 (28:48):
A different way to put it is you could create
your own self directed pension. And really, any of the
four that I'm mentioning. Except again two are very different
the other four. They don't have to be used for income.
But for the many of the public that is not
going to have a pension, like my wife and I,
they can be a very effective way to guarantee fifteen
(29:09):
to twenty years from now, whatever timeline is your timeline,
what a certain amount of money could produce guaranteed in
the form of an individual pension, especially since we won't
have it. They also can ask some cost of living adjustments.
Some some annuities can have an enhanced or an increased
income to accommodate some of the cost of living inflationary
(29:32):
things that we're running into. It can work very similar
to Social Security, however it is different.
Speaker 3 (29:42):
I want to back up just a little bit.
Speaker 2 (29:44):
All annuities, and I said, all all annuities are through
insurance companies, all of them, all four all annuities are
through insurance companies. Ironically, only insurance companies. Whether we like
or dislike, you know, we all have our opinions. We
may not like them, but they are forced to have
the money so they can guarantee. Where other investments your
(30:07):
statement says not guaranteed, not FDIC ensured. These companies have
to guarantee they have to have the money. I would
still only work with A rated companies strong rated companies
for a variety of good.
Speaker 3 (30:20):
Reason, which we do at Haven. But again, are they
appropriate for you? Not sure?
Speaker 2 (30:27):
Are you looking for safety? As we've talked about, they
can offer principal protection. Now, not all of the four
offer principal protection. Some of them carry much higher fees
than others. Again, I'm of the mindset you should know
what you're paying. And there's one of the four that
is about two to five percent in annual fees. Again,
(30:50):
you probably will never notice that by doing your own research.
But I and the staff we've been in the industry
a long time, right, wrong or indifferent? Are they appropriate
it for you? If you don't. If you're not doing
it for income, you could also do it for long
term care planning, You could do it for accumulation purposes.
And again, make sure that your beneficiaries are going to
(31:13):
get the money if you don't use it. There's some
that potentially annuitize and then the beneficiaries won't get it, surprise, surprise,
So understand annuities. Are they appropriate?
Speaker 3 (31:26):
I don't know? Can they be? Absolutely?
Speaker 2 (31:29):
But again, don't listen to every mark financial marketing piece
that you read. I know in the back of the
Star Triven I hate annuities, and you should hate annuities. Well,
an annuity payment. Social Security is an annuity payment. Okay,
I don't know many people that are setting their Social
Security checks back. A pension is a form of an
(31:49):
annuity payment. I don't know many people that have pensions
that are sending their pension checks back. But are they appropriate?
I have no idea, but I guess starts with education.
If you listening and have one of these annuities, come
on in and get an a innuit exam. At least
then you'll know which one you have. And in some
cases people get stuck. We can't help them. They're stuck,
(32:11):
we can't fix it, and they go, well, why can't
you help me? Because the surrender charge is just way
too big. You're going to have to wait it out.
And that's no fun either.
Speaker 4 (32:21):
No, it's not. And I'm sure that's heartbreaking for you
when people come in and realize that they've made a
mistake and it was just because they just didn't know
any better or someone didn't educate them about it. So
are you someone who's thinking about annuities, or maybe you
have an annuity and as Larry just said, and you
need an annuity test. You need to find out exactly
what your annuity is all about. You can make an
(32:43):
appointment here at Even Financial Group and chat with the
folks about annuities and maybe you know, they can talk
to you about whether an annuity would be something that
would be beneficial to you and your loved ones, or
maybe it would not. Six one two five zero four
eight four zero zero is the tell him you heard
Larry and me on the radio. I get at six
(33:03):
one two five zero four eighty four zero zero. When
we come back, we're going to talk about long term
care and life insurance and how that can play a
role in a fixed and income retirement. Long term care.
That is a subject that a lot of people don't want
to talk to talk about, but HiT's an important one
and we hope you won't miss it. This is the
Haven Financial Group Radio Show.
Speaker 1 (33:25):
Don't go 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 Kolvig and Kim Karragan. Now back to
(33:45):
the show.
Speaker 2 (33:46):
Good morning, and once again welcome 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 eighty four
hundred or visit us line at Haanfinancial Group dot com.
Speaker 3 (34:03):
Kim.
Speaker 2 (34:03):
This segment, we're going to talk long term care and
life insurance topics that nobody wants to talk about, and
I figured it would only be proper to bring our
expert here at Ham and Financial Group, Glenn Ramie in
This is right up his wheelhouse. He has the knowledge
and at HAN he's able and we're able to help
a lot of people in these topics really explain it
(34:26):
like they've never had it explained before, to see if
it's appropriateor to not, because this is going to affect
many of us, many of our lives, our families, and
again probably our parents, our grandparents. And if you're dealing
with the nursing home right now in any capacity, you're
going to know exactly what we're talking about. And if
you're listening and your plan is that your kids are
(34:49):
always going to take care of you. We joke, how's
that going for you right now?
Speaker 3 (34:53):
Probably not so good. So this is a good segment.
Speaker 4 (34:57):
It is a good segment, and it's always great to
have Glenn this. Glenn is one of the people who
love to talk about insurance. You know, you were saying, Larry,
and not everybody wants to talk about long term care,
but Glenn certainly does and he knows all about it. So, Glenn,
we've been talking about annuities as a form of income
stream or protection, but insurance certainly, and I recognize that
(35:19):
annuities are a form of insurance, but insurance, like long
term care and life insurance, can also be something that
can really protect for long term and in these sort
of uncertain times.
Speaker 6 (35:32):
Yeah, absolutely, So I'll say there's a couple of strategies
I could talk about related to annuities with income potential
and long term care.
Speaker 1 (35:40):
Right.
Speaker 6 (35:40):
So, one strategy out there today is using an annuity
with a self funded pension an income provision to cover
the cost of the insurance. So now, if I want
to purchase a long term care insurance policy, I don't
know to take money out of my budget to do it.
I can create a self funded pension that creates guaranteed
income for life. That can now be the thing paying
(36:02):
the premiums on this insurance policy over my lifetime, not
fearing that I'm draining resources more heavily trying to keep
up with these premiums as I go. And that works
for both life insurance and long term care, right covering
those ongoing premiums that your face. And we talk about
long term care. I thought it was really important to
bring this part up. Just just all the numbers this week.
(36:22):
Cost of care surveys just came out recently and Minnesota
saw forty percent increases in long term care costs from
last year, not over the last thirty years, from one
year ago. And this is being driven by new regulations
on facilities. During the COVID pandemic, we kind of saw
some facilities maybe didn't have enough staff, didn't have enough
(36:45):
people taking care of them. New regulations are coming in
saying you got to have more nurses to patients, and
that's translating to higher costs in these categories of care too.
Speaker 4 (36:54):
Wow wow, wow wow. That's a shocking statistic. And I
know that you have told us in the past the
statistic related to how many people are going to need
long term care.
Speaker 6 (37:04):
Yeah, seventy percent of us will need some form of help.
Fifty percent of us will spend time in a nursing home,
with the average stay being about three years for our
male or female.
Speaker 4 (37:13):
Let's go back to what you started with talking about
an annuity that could help to fund this kind of insurance.
That sounds very confusing to me and something that I
would know nothing about. So it really is important for
people who are thinking about long term care and they're
concerned about costs to come in because there are ways
to get around those. Really you know what you just said,
(37:36):
those really high costs. Yeah.
Speaker 6 (37:38):
Absolutely, So if our fear is how do we afford
this right using the annuity provisions of an income rider
to create that self funded monthly income that doesn't matter
how much money you set aside, will never turn off
no matter how long you live. So that fear of
longevity being there and these ongoing premiums not being just
something that we pay for fifty to twenty years, maybe
(38:01):
twenty five to thirty years, right, that creating the self
under pension means that I set aside this fixed amount
of my savings to create this guaranteed income, and if
I live longer than what that money would have lasted,
the paychecks don't stop right making sure that my insurance
premiums are fully funded throughout my entire retirement years.
Speaker 4 (38:22):
With that provision, Glenn, talk to us about some other
ways in which you can fund long term care.
Speaker 6 (38:30):
Yeah, So obviously there's the regular premiums that we're talking about,
and using the annuities to fund that. If client's a
good saver, I would say there's also a unique opportunity
our market today that are long term care specific annuities
that aren't creating a guaranteed income for life, but are
just protection against long term care, giving us more benefits
(38:50):
from that category for long term care needs without the
sacrifice of that money. We're not giving it up. If
we don't get sick. The money plus interest we accumulate
will back to our family if we never need the
insurance in the first place. But if we do need it,
we've leveraged our money, and right now companies are usually
offering three times the balance of our account in long
term care benefits. So a couple today setting aside one
(39:13):
hundred thousand for long term care. Would day one have
three hundred thousand in long term care benefits to help
pay for care?
Speaker 4 (39:20):
Then, how far in advance of using that money do
you need to begin to fund that kind of insurance?
Speaker 6 (39:27):
Well, I say the sooner the better, because numbers are
always better the younger that we are. But in reality,
I think our health is a bigger barrier than anything else,
and making sure we haven't had a significant health condition,
it's going to limit our ability to qualify for those
types of coverage. I'd say most individuals approaching this topic
are going to be in their sixties. I think they
should do it in their fifties. But my door isn't
again having a line knocking of fifty year old saying hey,
(39:49):
I want to plan for this care now. So doing
this in our early to mid sixties is still a
very good smart strategy.
Speaker 4 (39:56):
Let's talk about life insurance. How can that play a
role in this kind of thing?
Speaker 6 (40:02):
Well, so again, life insurance, I come back to reasons
why we have it, and a lot of in retirement
might not know what reasons we might not need life
insurance right outside of simple final expense insurance and that's
going to be showing up the loss of a Social
Security check for a surviving spouse. It could be legacy
planning leaving behind money for our family. And last they
could be connected to long term care costs as well,
(40:24):
and how we're helping pay for long term care costs
with provisions connected to a life insurance and if life
insurance has a need or a fit again, going back
to what Larry's been discussing earlier in your call today,
is that ability to create a self funded income stream
that pays those premiums as well. And the annuity could
be used in that fashion just as easily as it
could be used to cover those long term care costs too.
Speaker 4 (40:45):
I think what I hear you saying, and I think
a lot of people are probably surprised by this, but
life insurance can do more for you while you're alive,
and that used to not be the case.
Speaker 6 (40:56):
Yeah, I'd say, this isn't something that's been around for
twenty to thirty years, or this is a newer feature
and life insurance policies. That says that you can have
a provision a writer they call it, that says that
you can tap a certain percentage of your death benefit
typically four percent, so that means one hundred thousand dollars
life insurance policy could create a four thousand per month
(41:17):
income stream for two years to help fund care costs.
Speaker 4 (41:20):
Wow, that's a good thing. I think it probably music
to a lot of people's ears.
Speaker 6 (41:25):
Yeah, we're not working for now. It's not just a
benefit for someone else upon our passing, but we might
receive that money instead to help our costs.
Speaker 4 (41:33):
Sure, absolutely, Caim.
Speaker 2 (41:34):
I think a key takeaway at this segment with the
long term care, life insurance, or a call to action
for listeners if you will, would be to get more information.
Number one. If you're listening and have long term care,
get it reviewed. If you have life insurance, get a
life insurance reviewed. For a whole bunch of reasons, we
don't have time to get into, so get whatever you
(41:55):
have reviewed, or come on in and get educated from Glenn.
By the way I tell you, he's very knowledgeable. We
have access to all the companies to see all the
different viable options that could be out there or solutions,
if you will. When it comes to the nursing home,
first of all, I hope none of us ever have
to go there, but the statistics are staggering, and there's
(42:17):
much better options than there used to be. Get the information,
come out and visit with Glenn, and I think that'd
be very very helpful and there's no cost to do it.
Speaker 4 (42:26):
And Glenn, is there a way that people can change?
I mean, obviously, if they come in and they have
some kind of long term care or life insurance policy
and you take a look at it and you test
it and you say this isn't this isn't what you're
looking for, can you help people?
Speaker 3 (42:44):
Yes?
Speaker 6 (42:44):
Absolutely so. I just had a client, as an example,
that came in with a long term care policy and
a letter from that insurance company because she was having
a sixty four percent premium.
Speaker 3 (42:55):
Hike on her long term care.
Speaker 6 (42:57):
It was a three hundred dollars a month policy that
was now going to be over five hundred dollars per
month to maintain if she didn't want to change her benefits.
So for her, it was do I keep putting more
and more money into this insurance policy, who likely is
just going to keep asking for more and more money
over my lifetime? Or can I supplement it with something
different outside of my existing policy which would now allow
(43:19):
me to accept one of those policy decreases to keep
my premium back in line, and for her, that annuity
option would work perfect for that she can set aside
a small amount, cover a few thousand dollars per month
and long term carecafts with that amount, and now she
can willingly accept that policy decrease to keep her long
term care insurance premiums more in check on her other policy.
Speaker 4 (43:40):
You know, Glenn, you gave the perfect example, because that's
exactly what I was trying to get at there. You know,
I think people are finding out they're spending more money,
maybe they can't do it, and they think they're stuck,
and they're not necessarily stuck if they come in and
they chat and learn more about the insurance policies they.
Speaker 6 (43:56):
Have, and not just that. We're getting to a point
where replacement it might actually be a viable strategy. I'd say, five, ten,
fifteen years ago, the idea of replacing a policy that's
already been in place for someone for a ten year
period was almost unrealistic. It was never going to be
a better deal for them. With these rate increases that
keep happening, it's pushing it now to where someone actually
(44:17):
might get a better deal applying with a new company
and starting all over again with the long term care policy.
Speaker 4 (44:22):
Glenn Raimi, you are always so full of information and
it's really terrific. And if you listening, would like to
sit down with Glenn or some of the other experts.
They're in the Haven Financial Group offices, call six one
two five zero four eighty four hundred, set up an appointment.
Tell them you heard Glenn here on the radio. You'd
like to come in. You'd like to talk to him
about your your existing policy, or maybe you'd like to
(44:44):
talk to him about another policy. Again, that number is
six one two five zero four eighty four hundred. This
has been really informative and gone so quickly today, Larry.
Speaker 2 (44:54):
It has a lot of information and a short amount
of time. But it doesn't have to stop there. Come
on in aget more information. That's our job description is
to explain things. Do you have a partner that's paying
attention and that you can spend quality time with and
have them explain or are you just getting together once
or twice a year on many or none of these topics.
(45:17):
You're probably not getting the attention you deserve. Because I
see it and witness it from folks that come in
and visit all the time. So do you have all
the retirement puzzle pieces? I hope so him. It's always
good to be with you and I look forward to
next week.
Speaker 3 (45:31):
Me too, have a great week you as well.
Speaker 1 (45:35):
Investment advisory service is offered through Guardian Well Strategies LLC.
Speaker 5 (45:39):
Haven Financial Group and Guardian Well Strategies LLC are not
affiliated companies, and investments involve risk, and, unless otherwise stated,
are not guaranteed.
Speaker 4 (45:47):
Please consult with the qualified financial advisor and or tax
professional before implementing any strategy discussed herein, and comments regarding
as safe and secure investments and guaranteed income streams only
refer to fixed insurance products.
Speaker 1 (46:00):
They do not refer in any way to securities or
investment advisory products. Fixed insurance and annuity product guarantees are
subject to the claims paying ability of the issuing company
Popular Podcasts
My Favorite Murder with Karen Kilgariff and Georgia Hardstark
My Favorite Murder is a true crime comedy podcast hosted by Karen Kilgariff and Georgia Hardstark. Each week, Karen and Georgia share compelling true crimes and hometown stories from friends and listeners. Since MFM launched in January of 2016, Karen and Georgia have shared their lifelong interest in true crime and have covered stories of infamous serial killers like the Night Stalker, mysterious cold cases, captivating cults, incredible survivor stories and important events from history like the Tulsa race massacre of 1921. My Favorite Murder is part of the Exactly Right podcast network that provides a platform for bold, creative voices to bring to life provocative, entertaining and relatable stories for audiences everywhere. The Exactly Right roster of podcasts covers a variety of topics including historic true crime, comedic interviews and news, science, pop culture and more. Podcasts on the network include Buried Bones with Kate Winkler Dawson and Paul Holes, That's Messed Up: An SVU Podcast, This Podcast Will Kill You, Bananas and more.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com