Episode Transcript
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Speaker 1 (00:00):
You worked hard for your money, but do you know
how to make it work hard for you. You need
a team with experience, vigilance, and a strategy to help
you live the retirement you deserve. Find your financial safe
haven with Haven Financial Group. Today you're listening to the
new and improved Haven Financial Group Radio Show, where we
bring you comprehensive weekly financial wisdom from the professionals. It's
(00:23):
all about helping you solve retirement problems so you can
make your nest egg last. Your tune to the Haven
Financial Group Radio Show with your host, Larry Kolvig and
Kim Karrigan your guides to weekly retirement confidence. If you're
interested in protecting and growing what you have, let us
be your financial safe haven. The phone nines are always
(00:43):
open at six point two five four eighty four hundred.
Now get your financial questions ready because the Haven Financial
Group Radio Show starts now.
Speaker 2 (00:54):
Good morning, and welcome to the Haven Financial Group Radio Show.
I'm Larry Kolvig, founder and CEO of the Haven Financial Group,
on with Kyle Thomas, a certified financial planner on the
investment and team at Haven. Kim good to be with you,
and I just want to let the listeners know that
they can give us a call at six one two
five zero four eighty four hundred or Havenfinancialgroup dot com.
(01:17):
Ask us questions, challenge us on if you think something
is not right. We're always interested to hear other opinions,
because we're all entitled to these opinions.
Speaker 3 (01:26):
But great to have you and Kim. Good to be
with you as well.
Speaker 4 (01:28):
Well, it's great to be with both of you. It's
so nice to see you. Kyle, thanks for joining us
this week.
Speaker 3 (01:33):
Yeah, thank you so much for having me.
Speaker 4 (01:35):
Well, it's great to have you. My understanding is that
we're going to talk about what it takes to retire,
and I think that's probably a question you guys get
so frequently from so many people. We're going to start
by talking about consistency and stability and why that's required
when it comes to retirement. Then we'll talk about retirement
beyond social security. A lot of people depending on their
(01:58):
Social Security for their retirement income, but it takes more
than just social security. A brief history of social security,
and then eight mistakes to avoid when you are transitioning
into retirement. Would I be correct if I say that
that's probably the number one question. Maybe that be and
then the number in addition to the idea of what
(02:19):
does it take to retire? And do I have enough?
That must be the two questions you guys get the most.
Speaker 2 (02:24):
Yeah, it is can I retire? When can I retire?
Do I have enough to retire? Am I going to
run out at ninety five? Is it seventy five? Is
it never? Those are the biggest questions we get. And
again those are valid questions and probably important questions that
you should have some pretty concise answers to as you're
entering retirement. You know, when you're young, it seems like
(02:45):
you get all these years. I got all these years
to save for retirement, twenty thirty years, and the timeframe
is just so long, and the next thing, you know,
five years or less, and oh my goodness, I can't
believe we're already to this stage. So you can never
start to we're going to talk about some of these things.
Better to start now small rather than that start at all.
(03:06):
Can you play ketchup if you're actually listening and you've
delayed and that been a good saver, Yes, you can
play ketchup, but it would start by having a plan,
and of course Kim, that's what you and I talk
about every single week.
Speaker 4 (03:17):
Absolutely well. One of the things that I think we
want to talk about, I know you guys would like
to is consistency and stability when it comes to retirement
and how important those two are to make for a comfortable,
you know, retirement, great golden years. But how do you
achieve consistency and stability? So, Kyle, I'm going to throw
(03:38):
that right at you.
Speaker 5 (03:39):
Yeah, that's a great question because well, we all know
one of the biggest places to invest money is into
the stock market, and that is consistently unconsistent, right, so
that it's important to make sure that we can plan
around that and making sure that we can come to
the table and put a plan together that can plan
(04:00):
for all these things. That's that's one of the most
important things to do and one of the first things
to do as you're you know, getting close to these
retirement years and throughout retirement as well. So we want
to make sure we have a plan for sustainability and
make sure we have that financial security for us. And
then once we have that, then we can look at
our investments and see what kind of controlled volatility portfolio,
(04:22):
you know, we can make because we want to limit
that volatility as much as possible. Although you know, we
may target five or six percent whatever that percentage is
for returns every single year, we know that it's not
going to just be a static five or six percent.
There's going to be variations. You know, we could be
up fifteen, we could be down fifty. You know, there's
there's a wide range of what can happen. So that's
(04:44):
why we want to try and make sure that we
have that plan that lets us be able to handle
the inconsistencies. Although we do want to try and be
as consistent as possible with our returns and our withdrawals,
are spending all those things. So that's it's super important
to make sure that we have that because that's how
we have the best measure of what our longevity and
(05:05):
sustainability planning is going to be in the future.
Speaker 4 (05:08):
Sure, and of course when you're planning, you're planning for
the long term.
Speaker 3 (05:14):
Yeah, you definitely are. You should be.
Speaker 2 (05:17):
You should be because God willing, we hope we have
long term in our recipe.
Speaker 4 (05:21):
Right.
Speaker 2 (05:22):
The reality is, you know, at Haven Financial Group, we're
not limited in scope, but we are focused on retirement planning.
Whether you're ten, twenty, or thirty years out, that's fine.
But a lot of our clients, a lot of folks
that come out to our classes, you know, our five
years or less or they're in retirement, and we do
tend to be a little more conservative here because the
element of time with folks that we sit down is shorter.
(05:46):
And wealth protection is so important because many that we
visit with that come in and who sit down with,
they've accumulated some sort of wealth. Now, when I say wealth,
don't think only the rich people, only the rich people.
Larry's not talking to me right now. Yes, actually I am,
because wealth means different things to different people, and whether
(06:07):
it's small, medium, or large, this is you. But protecting
those moneies, the investments that you you know you've saved
for all those years. I always say defense wins championship
did great to have offense, but in money management and investments,
you know, your offense is probably in those ten you know,
the twenties, the thirty year olds, the forty year olds,
and then as you get close to retirement on the defense,
(06:30):
protect that wealth that you've secured long term will provide
much more sufficient funds and longer longer financial goals will
be reached by having that consistency, protecting from market volatility,
creating the diversification and mitigate that con mitigates some of
these ups and downs with the market. Again, doesn't mean
(06:53):
you have to put all of it in the mattress
of your house, but having good liquidity principle protected investments
and then a good balance on the stock market investments
that makes up a good recipe.
Speaker 4 (07:09):
Well, let's talk about some of the consistency.
Speaker 1 (07:11):
Now.
Speaker 4 (07:11):
Obviously, social security is an income source that is pretty consistent.
We're going to talk more about that in a few minutes.
But I know that innuities are something that you guys
talk about and that can be a very consistent source
when it comes to income in retirement. Let's talk about
accumulation annuities, what they are and why they could be
so good for someone in retirement.
Speaker 2 (07:31):
Yeah, if you're listening and you hear the word annuity,
and now you're putting up the caution signs, Oh, I
don't like annuities because somebody told me I'm not supposed
to like him.
Speaker 3 (07:39):
I get it. I've seen all the marketing.
Speaker 2 (07:40):
We've seen all the marketing and for many that there
is some truth through that. Now, if you're ever interested
in a class that I teach the Truth about annuities,
I'd only teach it a couple times a year.
Speaker 3 (07:51):
Go to our Haven website. See when I offer that.
Speaker 2 (07:55):
It's it's really called the truth about annuities because there's
a lot of miscons you know, right, you asked the
question about, you know, accumulation annuities. That isn't what people
think of when they think annuities because that the word
annuity usually over the years.
Speaker 3 (08:11):
Has meant payments.
Speaker 2 (08:12):
Now you can use annuities, I think next segment we're
going to talk about that for payments. But maybe you
have a pension, social security suffice. Maybe you just want
some principal protection without the exposure of the stock market.
You can get that with an annuity. Now, the important
part is to understand which one of the four annuities
can you do that with. Is it better served by
(08:35):
a fixed annuity with a set rate. Is it a
variable annuity that goes up and down with the market,
be cautious. Is it a fixed index annuity which can
give you some great upside without any downside? Again, if
it sounds too good to be true, ask more questions,
or do I turn my money over to an insurance
company and they just send me paychecks, which we'll talk
(08:57):
about in the next segment. So understand the concept of annuity.
Is it appropriate for you and your plan or is
it not appropriate? For some it's not appropriate others. It
can be a great puzzle piece to your investable assets.
Speaker 4 (09:15):
Do you find that a lot of people come in
and don't know much about annuities and they ask a
lot of questions?
Speaker 3 (09:21):
One hundred percent, seventy five percent, I would.
Speaker 2 (09:23):
Say, yeah, well, we read it I hate annuities and
you should hate annuities because that was an ad in
the paper in the back of the Star Trip on
their MSN homepage.
Speaker 3 (09:32):
Whatever it may be, there's.
Speaker 2 (09:34):
A lack of education, and you also have to be
careful there are folks out there that just sell annuities.
Annuities aren't for everybody. You don't have to like them,
you don't even have to use them, but they can
be an effective part of your portfolio if done properly.
It starts like we always talk, Kim with the education
piece about what we're talking about.
Speaker 4 (09:54):
Sure, absolutely, Well, we're going to talk a little bit
more about annuities and how that can relate to your
social security and certainly how that can enhance your retirement.
As we continue on here, we're talking about what it
takes to retire today. If we've talked about something here
that might be of interest to you, you'd like to
get together with the folks there at Haven Financial Group
(10:16):
and talk over Maybe it's annuities, Maybe it's just a
plan that you need first and foremost, and you want
to discuss annuities as well. Give them a call. It's
six one two five zero four eight four zero zero.
Again that number is six one two five zero four
eighty four hundred. You can also check out their website
it's Havenfinancialgroup dot com and learn more about the firm there.
(10:40):
All right, gentlemen, when we come back, we're going to
talk a little bit about retirement beyond social security. You're
listening to the Haven Financial Group Radio Show.
Speaker 1 (10:50):
Don't go too far. We're gathering more important insights and
retirement pays 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 Karrigan. Now back to
(11:11):
the show.
Speaker 3 (11:13):
Welcome back listeners.
Speaker 2 (11:14):
My name is Larry Kalvig, founder and CEO of the
Haven Financial Group. I'm with Kyle Thomas, drutified financial planner
on the Haven Investment Team.
Speaker 3 (11:22):
Yes said Haven.
Speaker 2 (11:23):
We are celebrating our ten year anniversary and very proud
of it here in the metro metro location of Burnsville,
serving all the metro and not limited to that as well.
So if you're listening and you have questions, worries, reservations,
questions about your retirement, feel free to give us a
call at sixt's one two five four eighty four hundred,
(11:44):
Havenfinancialgroup dot com. All kinds of retirement tools or better yet,
just come on set a time, come on in and
visit with us. There's nothing to lose, only information to gain.
And the good news is you're not going to be
tried to sold anything, because I always say sales to
sell you something you don't need, and maybe you need something,
Maybe you don't need anything. But if you're wondering, do
(12:06):
I have a plan that's really valid? Is it outdated?
It's been avoided and not talked about in months, months, weeks, years,
or never. That may be appealing, and that may be
appropriate for you to start somewhere to get somewhere.
Speaker 3 (12:21):
So again, thanks for listening.
Speaker 4 (12:24):
Kyle. Let me ask you a question. We're going to
talk about social Security, and then maybe there's a gap
and you need you need more money to fill in,
and then maybe we'll fill that with some annuity talk.
But social Security, a lot of people are very concerned
that it's going to go away. Give us a sense
of what you think about social Security.
Speaker 5 (12:43):
Well, social Security certainly has its problems, and that has
been an ongoing thing for years and it will continue
to be an ongoing discussion for many years to come
in my opinion. But I don't think it's going to
go away, and I don't think it can go away.
So we have to keep in mind here how many
Americans rely on this on a monthly basis, and if
(13:04):
it were to just go away, what kind of position
it would put them in? And that could be a
pretty dangerous one. Then also we have to think about, Okay,
who are the people who would have to vote that
social Security gets cut? Well, it would be the House,
the Senate, and the President. All of those people are
trying to buy for votes for their next election, and
(13:26):
you know, if we think about them running on that
and having that be a part of their stance, it's
probably not going to go over well with voters. So
to think about that going away, I just don't think
it's very likely at all. Even though there definitely are
some proponents of, you know, getting rid of it, I
just don't think there's enough people for that to actually happen.
But I do think there are many things that can
(13:48):
be done going forward to solve this solvency problem that
social Security has, because we absolutely do have a problem.
Speaker 4 (13:56):
So I think what I'm hearing you say is that
in the future, you do anticipate I think social Security
might look a little bit different. And I think, Larry,
you've said that before I have.
Speaker 2 (14:06):
We have to have some reform and some changes, and
none of us are going to like the changes, because
by twenty thirty five or sooner, we have a shortage
and we're not going to be able to satisfy all
the obligations. So reform is going to have to come
sometime because it is a broken system. I firm believe
it's not going anywhere, and it's been highly politicized for many,
many many years. Change has to come. You know, we
(14:30):
mentioned income, social security. It's why we teach a lot
of classes. They're very well attended again this past week
in the Burnsville location at the library. A lot of
people want to learn. It's a big income stream. Income
is the name of the game, whether it's social security,
whether it's you're fortunate to have a pension, which not
(14:50):
nearly as many do, or how do you make your
own pension? And that's where annuities can be used to
build your own pension.
Speaker 3 (14:58):
Now what annuities are.
Speaker 2 (15:00):
They're not the same as social security, but they emulate
social security quite a bit, to the tune of a
guaranteed monthly amount postive possibly a cost of living adjustment,
increasing income.
Speaker 3 (15:14):
A lot of income annuities can do that.
Speaker 2 (15:17):
It can create long term guarantees, meaning lifetime income. So
as long as you're still living and breathing, you're going
to get that monthly paycheck or I call it mailbox money,
every single so it gives longevity protection. And you know,
all annuities are through insurance companies. All annuities are guess
what companies are the only companies that can guarantee what
we call life credits or insurance credits, and guarantees that
(15:41):
you can't lose your money to the stock market. They're
the only companies now. We may not like big insurance
companies for whatever reason because maybe because they have all
the money, but they can they can actually guarantee, and
no other companies can. If you look at your in
our case, our Schwab statements, fidelity statements which we investment
team manages with, or any of your market Boro creachs,
(16:03):
it says not guaranteed, not FDI see ensured. There's going
to be fluctuations. Insurance companies can give these guarantees, but
be cautious. One of those four annuities it's called variable,
and that is not guaranteed, or what you think may
be guaranteed isn't guaranteed.
Speaker 4 (16:23):
So Kyle, let's let's talk a little bit. You know,
if I'm sitting down with you and I'm saying, Okay,
I've got a gap, and I've got these dollars and
I don't want to put them in the market because
I don't like the volatility. I'm looking for an annuity
someplace that my money is safe and that I can
draw money each month, So walk through you know what
(16:46):
some of the some of the rules or some of
the downfalls of that might be. For example, what I'm
looking for here is if I put my money into
this annuity, can I then pass it on to my kids?
Can I pass it on to my bows? What happens
if something happens to me? You know what happens when
we're talking about annuities.
Speaker 5 (17:06):
Yeah, So when you purchase an annuity to provide income,
you're you're kind of purchasing a pension or social security.
You're purchasing that type of thing. Right Now you're provided
income for the rest of your life, and now you're
not worrying about, you know, having a paycheck. However, you
know there is there's downsides to almost every option that
(17:27):
you have. Now you're fixed to that amount of income.
You can't earn more, whereas if you were invested in
the stock market, you could potentially have made more money,
but you have that protection. So it's a trade off there.
But then you know, also at the end of your life,
at the end of the year time, the amount that
(17:48):
you invested gets decreased by the withdrawals every single year,
so there may not be any left over for your beneficiaries, right,
So that's that's one thing also, and then with an
annuity that's in a non retirement account, there's no step
up in basis if there is leftovers in the annuity.
(18:12):
So if you have a non retirement account that's held
in your name or it's jointly owned or in a
trust a, there's a step up in basis, so there's
less tax that's paid for those beneficiaries. So that's another thing.
Whenever we do annuities, we always have it in an
IRA if possible, or that's just the most optimal way.
So there's others other things to keep in mind. But yes,
(18:34):
that income can be nice because it's a guarantee and
it can make you feel comfortable. You're just trading that
off for less potential gains going forward in the future.
And then also your tax situation is pretty much set
for the rest of your life as well, so that
you get a little less wiggle room and able to
do some further tax planning there.
Speaker 2 (18:55):
Kim, if I may add to that, because you asked
a really good question for people that you know, if
I have an annuity and something happens to me and
I passed away, does my spouse if I married, or
do my beneficiaries get it? And the answer should be well,
absolutely they should get it. But oftentimes if you don't
know which one you have, it may not go there.
I'll give you an example. I just had a lady
(19:17):
in the a couple of weeks ago. She was divorced
for years. She's basically raised the kids. She's done a
great job, by the way, it's a great saver, worked hard,
and she had an adequate amount for retirement. But she
I looked at her two of her statements and I said,
do you understand these? And she goes, no, I really don't.
I said, well, you do know that you're going to
(19:38):
have to live to about ninety two to ninety three
years old for you to get your money back out
of it.
Speaker 3 (19:42):
Were you aware of that? And she said?
Speaker 2 (19:44):
I quote her, she says, I knew I should have
never signed that. What had happened was the two annuities
she had had annuitized in this case meant she gave
up control of the cash value and in order to
get her money back, she had to live that long.
News is she had other investments that could offset that.
(20:04):
Was those two annuities that she had inappropriate. My opinion
absolutely was she wrong by somebody. I'm not going to
say that, but it wasn't the right mix. Now it
was over, it's over and said and done. You want
to avoid those mistakes by asking the right questions.
Speaker 3 (20:19):
Knowing which one do.
Speaker 2 (20:20):
I have some cases it might not go where you
wanted to the immediate annuities. If that happens, it could
go right to the insurance company. So important questions that. Again,
most people, legacy is important. Whatever money's left over should
go exactly where it should be going. So that's a
really good question, Kim, you asked.
Speaker 4 (20:41):
Well, I'll tell you the toughest part I think about
annuities is that you don't know what you don't know.
So I'm not sure that you know, like the example
that you just used, maybe she even knew to ask
these questions. And I think that's why you know, you
keep saying over and over, Larry, the education piece when
you're thinking about annuities is so important. It's not that
(21:02):
someone you know is uneducated. It's just that we don't
know what we don't know, and the best bet is
to get educated about it. So if this is something
that you're interested in. The folks that Haven Financial Groups
certainly know the answers and they know exactly what to ask.
And you don't want to be in a situation where
maybe you've signed up for something that you regret in
the years to come. Give them a call six one
(21:24):
two five zero four eight four zero zero six one
two five zero four eighty four hundred, tell them that
you've heard us here on the radio. You'd like to
set up an appointment and just go in and sit
down with the experts there. Talk to them about what
it is that you are thinking about when you think
of retirement and the kind of plan that you'd like
to put together. Maybe you have some questions about annuity,
(21:45):
social security. Maybe it's about, you know, some of your
planning for your state. All of these questions can be
answered there at Haven Financial Groups six one two five
zero four eight four zero zero. When we come back,
we're going to talk about social security. Well, we've you know,
chatted a little bit about what the future might be,
but let's talk about the past and where this all
(22:07):
comes from. This is the Heaven Financial Group Radio Show.
Speaker 1 (22:10):
Ready to find your financial safe haven. Your dream retirement
is in reach, don't go away. The Haven Financial Group
Radio Show will be right back. Are you worried that
your financial strategy might be missing something, Well, you're in
the right place. Larry Kolvig is back and ready to
help you find your financial safe Haven.
Speaker 2 (22:33):
Good morning, and welcome back to the Haven Financial Group
Radio Show. I'm Larry Kolvig, founder and CEO of the
Haven Financial Group, on with Kyle Thomas, our certified financial planner,
one of the certified financial players on the investment team. Again,
thanks for listening. Feel free to give us a call
six one two five zero four eighty four hundred or
(22:53):
Havenfinancialgroup dot com.
Speaker 3 (22:55):
Cam.
Speaker 2 (22:55):
I just want to go back to that briefly, to
that last segment. If you were listening and you hear
the word annuity and you're confused, like seventy five percent
of the folks that have annuities, and I'm not joking,
it's that high, feel free to come on in and
we call it an annuity exam. An annuity exam, there's
no cost for it. We sit down, we'll dissect whatever
(23:16):
kind of annuity you have. You'll leave knowing, oh, I
do have this one, I like that one. I don't
like it for whatever reason, and at the end of
the day you'll know exactly how it works. It's called
an annuity exam. Bring it on in and again we'd
love to chat more with you about that.
Speaker 4 (23:34):
Six one two five zero four eight four zero zero.
That's how you go about doing that. We've been talking
about social security and how important it is to so
many people's lives, and we've talked briefly with both Kyle
and Larry about the future of social security, both of
whom believe that social Security is not going anywhere. We
may see reform, we may see some changes, but social
Security will be a part of our lives for a
(23:56):
long time. Let's look back though a little bit and
talk about the history of social Security, because I think
it's really important that people understand why it was formed.
To begin with. It was not necessarily meant for people
to live on as their income in retirement, correct, gentlemen.
Speaker 5 (24:16):
Yes, correct, It was meant to be a supplement to
retirement for folks. And when it first came into effect,
the average life expectancy was probably just a couple of
years after when you would first start receiving your Social Security.
So when it first came out, the government was expecting
(24:37):
maybe you know, four or five years or so of
actual payments. Now, medicine kept getting better, people started making
better decisions, and you know, they started living longer. So
now that social Security payment has to catch up to
people living longer and the funding needs to change. And actually,
(25:00):
there's many civilizations who have used a form of welfare
like social security, like like we have right now, and
you know, ancient Greeks used it with olive oil, Romans
used it with an early type of annuity. Actually, so
we're not the first ones.
Speaker 3 (25:16):
To be doing that.
Speaker 5 (25:18):
You know, Colonial America had had poverty relief measures and
then civil war pensions that was actually kind of like
the the first you know formulation of the social security
program that we see here today. And you know, on paper,
this is this is a great idea, but then there's
(25:38):
questions that go into it of like, well, how do
we fund this and you know, where does it come from?
And that's where it becomes a difficult topic of debate,
right because you know, people don't want to pay for
something that they don't see for many years and you know,
cut down their own paychecks. So that's that's where it
just becomes a little more difficult. But there's there's definitely
(26:00):
a deep history of Social Security and it's something that
again we don't see going away here.
Speaker 4 (26:06):
Yeah, I guess I've just always certainly when I was
younger and I get my paycheck and there'd be a
big chunk of money that was gone, that had gone
into Social Security, I just assumed, well, I'm paying for myself.
But that's not necessarily the case.
Speaker 5 (26:22):
No, it's not. So you're you're actually paying six point
two percent for Social Security yourself, but then employers also
pay another six point two So you know, there's a
Social Security tax, there's Medicare tax that that's you know,
part of that fik a piece that you see on
your on your income paychecks. And so you're you're paying
(26:43):
a big chunk and your employer is also paying a
big chunk. And if you add that up, you know
that that ends up being you know, a big payment
into the system that you're not getting right now. You're
you're delaying that and you know, I also like to
think of it as you know, my employer is funding
some of that as well too. So that's kind of
a benefit that people forget because that does a big
(27:04):
expense for employers.
Speaker 4 (27:06):
Sure, absolutely, So let's talk a little bit guys about
social security and drawing. You know, we've talked about this before,
but you can certainly start to draw your social security
at sixty two. But drawing at sixty two is not
always advised. If that's not you know, if that's not
absolutely imperative for people, holding off a bit sometimes is
(27:28):
a better idea.
Speaker 3 (27:30):
Circumstances obviously come up in life. I get it.
Speaker 2 (27:33):
But yes, the earliest you can draw sixty two. Almost
seventy percent of Americans turn it on right at sixty two,
which is amazing to me. That tells me there's a
lack of education for some night that might be appropriate
if they need the money, or if there's not a
good life span in their family, perhaps that would be
a good reason, or a variety of others. The latest
you're going to take it at seventy, Only one to
(27:54):
two percent of Americans wait till seventy. Our job is
never to tell steer people to wait till set That
might be the right decision, wrong decision based upon if
you're still working, married, spouse working. There's a lot of
variables that should go into when you turn on social Security,
it shouldn't be well, I just thought everybody turned it
on at sixty two. In my class, I cite a
(28:15):
bunch of a variety of studies which just came out
the average American, by claiming at the suboptimal time, will
give up in a normal life expectancy, about one hundred
and eighty two thousand dollars of social Security benefits.
Speaker 3 (28:30):
If I offer to put.
Speaker 2 (28:32):
One hundred and eighty two thousand in your IRA, I
think the no brainer answer.
Speaker 3 (28:35):
Would be, of course, please do.
Speaker 2 (28:36):
But by making the wrong decision on social Security, they
give up the average one hundred and eighty two thousand.
Social Security is a big part of people's income, often
taken lightly, oftentimes the bigger than their portfolio all put together.
For a married couple, and I put this illustration in
my class, the average American couple normal life expectancy and
(28:58):
I know life isn't necessarily normal, will almost make about
almost a million dollars off of Social Security. See that's
a big part of the portfolio. So when Kyle and
you were talking about, social Security was never designed to
be a ten twenty thirty year income stream. Thankfully, through
(29:19):
medical advancements to doctrine it has been. It was designed
to be maybe a one year two window of collecting.
Many people never got to social Security age, but over
time it's just what's transpired. It's an outdated system. It
needs to be fixed. There things that need to be fixed.
But doing away with absolutely not. It'd be a calamity
change it has to my opinion, I think many Americans
(29:44):
have become too reliant on it or dependent on it.
And I'm not speaking to the person or the listener
that has had, you know, life's challenges, because life happens,
and life doesn't cooperate with our calendar, and I know
circumstances do come up. But I think it's given some
Americans a comfort level and therefore they've done a poor
(30:05):
job of saving on their own when really social Security
was just supposed to be a supplement. And for many
Americans they rely solely on Social Security, which is scary
because I don't think I and any other listeners want
to live just on Social Security. I'm not so sure
that would be the golden years that we were looking for.
Speaker 4 (30:26):
Sure, Absolutely Now, if someone comes in sits down with you,
says I'm sixty years old, and I'm trying to decide
if I want to draw it sixty two or if
I should wait. Tell me the steps that you might
walk through with a couple, for example, and what you
can actually tell I mean, you guys can actually predict
out what waiting might mean for a couple.
Speaker 5 (30:49):
Yeah, we do have the benefit you know, calculations on waiting,
so we're able to incorporate that into our planning software
that we use. So we're able to use that plus
a projected cost of a living adjustment that gets attributed
each year as well, so then we're able to analyze
(31:10):
what our total lifetime payments are. Again, we're planning to
the mid nineties here, so we want to make sure
that we have longevity planning that we don't run out
of money, because that's that's a huge risk there too,
if we're planning to those mid nineties. So that all
gets played into it. And you know, there's different strategies
of you know, one spouse starting and then one spouse waiting,
(31:32):
because remember if one spouse passes away, the surviving spouse
gets the higher benefit of the two. So we run
all of this through our calculations, and we can run
our income analysis and see where we may have gaps
and maybe we try to eliminate or minimize our portfolio
(31:54):
withdrawals and keep our withdrawal rate, you know, under four
percent versus and ability purposes and find that sweet spot
of when we start social security for each spouse. But yeah,
we do that by looking specifically at our income analysis
page and it's really a good tool for us to
(32:15):
visualize and for the clients to visualize it and see
different scenarios and outcomes for that.
Speaker 4 (32:21):
Well, there's no doubt that social security is a portion
of the fabric of a good retirement. And if you
have questions about social security, you're wondering maybe when you
should start to draw what the difference might be waiting
a year, two three years, then you should stop in
and chat with the folks here at Haven Financial Group.
You need to make an appointment. Let me give you
(32:42):
the number at six one two five zero four eighty
four hundred again. That's six one two five zero four
eight four zero zero again. Tell them that you heard
us here in the radio and you'd like to come
in for some information about social security. Larry is certainly
an advocate for education. Education. We talked about education for annuities,
(33:04):
education for social security equally as important, so be sure
that you call them at six one two five zero
four eight four zero zero or check out their's website,
Havenfinancialgroup dot com. Coming up, we're going to talk about
mistakes that you want to avoid as you transition into
those golden years right here on the Haven Financial Group
Radio Show.
Speaker 1 (33:25):
Don't go too far. We're gathering more important insights and
retirement pays Devin. The Haven Financial Group Radio Show will
be right back. Stick around. You've got questions, We've got answers.
Your tune to the Haven Financial Group Radio Show with
your host Larry Kolvig and Kim Karragan. Now back to
(33:45):
the show.
Speaker 2 (33:47):
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. Got Kyle Thomas, certified Financial Planner
on the Haven Investment Team today talking about a variety
of retirement topics like we do every week. The last
segment about social security. Yes, education is very big in
(34:08):
all these retirement areas, so important. And if you were
listening to that last segment about social security and you're
wondering when should I turn it on.
Speaker 3 (34:16):
Should I turn it on now? Should I wait?
Speaker 2 (34:19):
If you're listening, or if you come to our class,
we offer extension to come on in. There's no cost.
Let me walk you through that process briefly. We'll sit
down with you, we'll ask questions. You'll ask questions, but
have you bring your social security report in. We'll run
you a good, better, best social security maximization report, a
roadmap for what makes sense. Because naturally we get a
(34:40):
lot of folks to come in and they have this idea,
Well I'm just going to turn it on at sixty
two and sock it to the government.
Speaker 3 (34:46):
Probably not a good way to make decisions.
Speaker 2 (34:48):
Or I've made up my mind, I'm turning it on
at sixty four or sixty five. Well, maybe that's the
right idea. But if we talk through this, We're not
here to tell you when to take it. But by
asking a lot of questions, talking through things, maybe you're
still working, maybe you're not full retirement age, maybe it
doesn't make any sense. Oftentimes people will leave that meeting going, wow,
(35:09):
I thought it made sense, but after this meeting, it
doesn't make sense at all to do it. That's the
kind of insight we want to bring to you. So
again I just wanted to comment on the end of
that last segment.
Speaker 4 (35:19):
Absolutely, we want to talk about the eight mistakes that
you want to try to avoid as you get ready
to transition into retirement. And Kyle, I thought this was
just so interesting. Planning to work indefinitely, I guess that
would be a mistake because the best laid plans really
don't necessarily work.
Speaker 5 (35:39):
Yeah, planning to work, and definitely we definitely we don't
want to plan for that. We want to plan to
enjoy our retirement and not have to work unless that's
something that you're just opting to do because you really
want to. But we don't want to have to rely
on that, because what if something happens and we're not
able to work anymore, Well, now our plan is just
(36:00):
completely you know, torn up and out the window. We
have to come back to the drawing board and figure
something else out. So we want to make work optional.
So that that's what I like to call it, is
making work optional, not mandatory. You can always work if
you want to, and you know, enjoy yourself doing that,
but we want to make sure that we're not having
to depend on that so that's that's a big, big
(36:21):
piece right there for planning absolutely. You know.
Speaker 4 (36:24):
It's also seems, Kyle, that a lot of people believe
that once you get into retirement you absolutely should not
be in the stock market at all. That's not necessarily
the case. There's ways to get into that game but
still be safe.
Speaker 5 (36:36):
Yes, yeah, we want to have a balanced portfolio. You know,
you hear us talk about this a lot and probably
a lot of other people, But balance portfolio. We want
to have some stocks. Now, you know, maybe that's thirty percent,
maybe it's sixty percent, maybe somewhere in the middle, but
we want to have exposure to some stocks because you know,
(36:57):
that will allow us to have some potential growth there
and maybe you know, beat what inflation is, because we
don't want to try to just match inflation. We want
to try to make some more money along with our withdrawals, right,
because maybe we can preserve our principle throughout retirement, you know,
even though we're taking money out right. So, but another
thing that goes with, you know, the idea of people
(37:18):
not wanting any stocks and retirement is well, we also
have to adjust our portfolio if we're if it's on
the opposite side of the spectrum, people coming into retirement, uh,
you know, rolling over from a four to one K
or you know, whatever it is, you could be in
a much different vote and exposed to a lot of
stocks because you were in the accumulation phase of your life.
(37:41):
So now we need to change our mindset and go to,
you know, the withdrawal stage of our life and adjust
downwards from the volatility that we're probably taking in some
of these accounts and make sure that again we're balanced there.
Speaker 4 (37:57):
It seems another major mistake that people might make is
ignoring long term care needs. And I understand why people
make that mistake, because that's just not something that's pleasant
to think about. But I think we've quoted many times
here that seventy five percent of us are going to
need some kind of long term care.
Speaker 2 (38:15):
You are correct, it's easier to avoid the discussion than
to have the discussion. But as we're living longer, yees,
seventy seventy five percent are going to go into a
nursing home with some sort of care. How are you
going to pay for it? I know those costs are
very large, and they continue to go up faster than
regular inflation, So that's a big one.
Speaker 3 (38:34):
Glennon Isabelle.
Speaker 2 (38:34):
In our office, we offer all the different long term
care that's out there, and by the way, listeners, there's
much better viable options than there used to be compared
to the long traditional long term care.
Speaker 3 (38:47):
Much better options. Come on in.
Speaker 2 (38:49):
Get educated about those options to see if they're right
or if they're not right for you. That is a
big one, underestimating health care costs. I continue to say that,
you know, Kyle Man, you know, planning to work indefinitely,
there's this thing called health, which is a game changer.
Health is a game to oh my knees give out,
you're not mobile anymore. The back doesn't do not use that. Hey,
(39:12):
work as long as you possibly can. You know, my
parents are living proof at eighty and seventy seven, they're
still farming in Candyo High because they still can. But
don't rely on that as again, that's not a backup
plan because life's calendar doesn't always cooperate with our calendar
big time. One other one I want to mention because
Kyle and I and the investment team we see this
(39:34):
is when you retire, you figure out your income, you
start drawing off your investments. People draw off the wrong
investments at the wrong time, tax and efficiencies, using the
wrong accounts.
Speaker 3 (39:46):
At the right time.
Speaker 2 (39:47):
And you got to remember, you worked hard for every
one of those dollars. Don't draw from the wrong because
you didn't have a partner that could help you map
out a plan. That's all part of the retirement plan
that you should have. That people should be spending time
those folks that you're paying, your CPA, your investment advisor,
your investment team, your insurance people, et cetera, et cetera.
(40:10):
Those are the folks you should be leaning on to
help make the right decisions, the most efficient decisions. And
I'll tell you most people are not getting the attention
they deserve and they should.
Speaker 3 (40:21):
They really should.
Speaker 4 (40:22):
Yeah, you know, in the same vein also just it
seems miscalculating the expenses that you will have in retirement.
I think a lot of people believe that when I
go into retirement, I'm not going to spend nearly as
much money as I did during those working years. And
that's not necessarily the case.
Speaker 3 (40:39):
No, it's it's not.
Speaker 5 (40:42):
You know, people get accustomed to a lifestyle that they've
been living from their working years, and I get it.
You know, that's hard to that's hard to adjust downwards
and cut by fifty or sixty percent you or whatever,
you know the number is that you know they think
it would be. So, uh, just want to make sure
that we're making planning for the amount that we're actually
(41:04):
going to spend. And typically we try to keep the
same number that they are living on currently for their
retirement expenses. If they if they don't really know, you know,
what it is, then we just try to calculate, Okay,
what's the income after taxes and all that stuff, and
then you know, we'll use that for our default in there.
But we also have a secondary goal that's you know,
(41:28):
in anything else category just in case, you know what,
what if stuff happens and you know, we have to
replace the roof, we have to get a new car,
or otherwise. There's just flexibility in there if you want
to do another trip or you know, gifting and stuff
like that. So definitely don't underestimate the expenses because that's
one of the biggest key components for your plan and
(41:49):
making sure you don't run out of money.
Speaker 2 (41:51):
And for married couples, the misconception Kim, well, if my
spouse dies my expenses are going to get cut in half.
Rarely do the expenses ever get cut in half. You
lose one of the social securities. Your income goes down
and your expenses don't get cut in half. So that
that is a fallacy that I've seen over and over
and over again again expenses. We want to make sure
(42:12):
we're as accurate as possible. We want accurate numbers because
expenses that's going to erode your your money's And then
it comes down to well when is my money gonna
run out?
Speaker 3 (42:23):
Back to that core question.
Speaker 4 (42:25):
Yeah, where we started this whole thing right, all right,
So as we run out of time here, I just
roll quickly want to ask each one of you. So
the number one you think mistake that you see people
make that you just really want to steer people away from.
Speaker 5 (42:41):
The biggest mistake I would say is definitely the asset
allocation and making sure that it's an asset allocation that
is suited for you, you know, for each individual person,
rather than just having you know, the traditional of subtract
your age from a hunt and that's your risk profile. No,
(43:02):
we need to figure out what your goals are and
find out what we're trying to achieve here because then
we have a set you know, destination.
Speaker 2 (43:10):
And I would say that that's a really tough question.
But I would say claiming social Security too early without
putting the thought into it. A lot of these others
are big, but that is a very big one. So,
you know, as we close up the show this week,
you know at Haven Financier Group celebrating our tenure anniversary.
You know, I want to note that we do all
things specific to retirement planning. It's not just in investments
(43:31):
and wealth management, which is all very very important, very important.
Speaker 3 (43:35):
But have you put together a will or trust?
Speaker 2 (43:38):
Our State Planning Attorneys Partners Kirie Ann Keith Provisional Law.
Speaker 3 (43:43):
Go to our website.
Speaker 2 (43:44):
We're going to be teaching will's trust and legacy planning
at the Prior Lake Library coming up in a couple
of weeks. Maybe we just mentioned long term care, getting
the information on what's out there that you maybe did
not even know about. Maybe you're holding on to life's
insurance policies. When is the life last time you had
a life insurance review? I mentioned earlier in the show,
a newity exam. Maybe it's time annual enrollment for Medicare
(44:07):
is coming up. Maybe you're bridging the gap for healthcare
with all of those areas. We have all the companies
to choose from, Isabella Glenn and others in the office. Taxes, Hey,
we didn't talk much about taxes this that's unusual, unusual
as our CPA and also Melissa. So all the retirement
(44:28):
puzzle pieces, they should be coordinated, more in retirement than ever.
For many they're not. I say, they don't have to
be all under the same roof. But I'll tell you this,
it's probably the number one compliment at Haven Financial Group
we get is Wow, all of you guys work together,
multiple personalities and making sure that things are clicking and coordinated.
(44:49):
And that is so important, Kim. We say it every week,
especially in retirement and probably more important than ever.
Speaker 4 (44:57):
You bet six one two, five, zero four eight twenty
four hundred. That's how you get hold of the folks.
They're at Haven Financial Group. Be sure that you give
them a call.
Speaker 2 (45:05):
Gentlemen, Thank you so much, Thanks Caam, look forward to
next to you already.
Speaker 4 (45:10):
Investment advisory service is offered through Guardian Well Strategies LLC.
Speaker 1 (45:14):
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 (45:23):
Please consult with the qualified financial advisor and or tax
professional before implementing any strategy discussed herein, and comments regarding
it safe and secure.
Speaker 1 (45:31):
Investments and guaranteed income streams only refer to fixed insurance products.
They do not refer in any way to securities or
investment advisory products. Fixed insurance and annuity product guarantees are
subject to the claims paying ability of the issuing company.
You worked hard for your money, but do you know
how to make it work hard for you. You need
a team with experience, vigilance, and a strategy to help
you live the retirement you deserve. Find your financial safe
haven with Haven Financial Group. Today you're listening to the
new and improved Haven Financial Group Radio Show, where we
bring you comprehensive weekly financial wisdom from the professionals. It's
(00:23):
all about helping you solve retirement problems so you can
make your nest egg last. Your tune to the Haven
Financial Group Radio Show with your host, Larry Kolvig and
Kim Karrigan your guides to weekly retirement confidence. If you're
interested in protecting and growing what you have, let us
be your financial safe haven. The phone nines are always
(00:43):
open at six point two five four eighty four hundred.
Now get your financial questions ready because the Haven Financial
Group Radio Show starts now.
Speaker 2 (00:54):
Good morning, and welcome to the Haven Financial Group Radio Show.
I'm Larry Kolvig, founder and CEO of the Haven Financial Group,
on with Kyle Thomas, a certified financial planner on the
investment and team at Haven. Kim good to be with you,
and I just want to let the listeners know that
they can give us a call at six one two
five zero four eighty four hundred or Havenfinancialgroup dot com.
(01:17):
Ask us questions, challenge us on if you think something
is not right. We're always interested to hear other opinions,
because we're all entitled to these opinions.
Speaker 3 (01:26):
But great to have you and Kim. Good to be
with you as well.
Speaker 4 (01:28):
Well, it's great to be with both of you. It's
so nice to see you. Kyle, thanks for joining us
this week.
Speaker 3 (01:33):
Yeah, thank you so much for having me.
Speaker 4 (01:35):
Well, it's great to have you. My understanding is that
we're going to talk about what it takes to retire,
and I think that's probably a question you guys get
so frequently from so many people. We're going to start
by talking about consistency and stability and why that's required
when it comes to retirement. Then we'll talk about retirement
beyond social security. A lot of people depending on their
(01:58):
Social Security for their retirement income, but it takes more
than just social security. A brief history of social security,
and then eight mistakes to avoid when you are transitioning
into retirement. Would I be correct if I say that
that's probably the number one question. Maybe that be and
then the number in addition to the idea of what
(02:19):
does it take to retire? And do I have enough?
That must be the two questions you guys get the most.
Speaker 2 (02:24):
Yeah, it is can I retire? When can I retire?
Do I have enough to retire? Am I going to
run out at ninety five? Is it seventy five? Is
it never? Those are the biggest questions we get. And
again those are valid questions and probably important questions that
you should have some pretty concise answers to as you're
entering retirement. You know, when you're young, it seems like
(02:45):
you get all these years. I got all these years
to save for retirement, twenty thirty years, and the timeframe
is just so long, and the next thing, you know,
five years or less, and oh my goodness, I can't
believe we're already to this stage. So you can never
start to we're going to talk about some of these things.
Better to start now small rather than that start at all.
(03:06):
Can you play ketchup if you're actually listening and you've
delayed and that been a good saver, Yes, you can
play ketchup, but it would start by having a plan,
and of course Kim, that's what you and I talk
about every single week.
Speaker 4 (03:17):
Absolutely well. One of the things that I think we
want to talk about, I know you guys would like
to is consistency and stability when it comes to retirement
and how important those two are to make for a comfortable,
you know, retirement, great golden years. But how do you
achieve consistency and stability? So, Kyle, I'm going to throw
(03:38):
that right at you.
Speaker 5 (03:39):
Yeah, that's a great question because well, we all know
one of the biggest places to invest money is into
the stock market, and that is consistently unconsistent, right, so
that it's important to make sure that we can plan
around that and making sure that we can come to
the table and put a plan together that can plan
(04:00):
for all these things. That's that's one of the most
important things to do and one of the first things
to do as you're you know, getting close to these
retirement years and throughout retirement as well. So we want
to make sure we have a plan for sustainability and
make sure we have that financial security for us. And
then once we have that, then we can look at
our investments and see what kind of controlled volatility portfolio,
(04:22):
you know, we can make because we want to limit
that volatility as much as possible. Although you know, we
may target five or six percent whatever that percentage is
for returns every single year, we know that it's not
going to just be a static five or six percent.
There's going to be variations. You know, we could be
up fifteen, we could be down fifty. You know, there's
there's a wide range of what can happen. So that's
(04:44):
why we want to try and make sure that we
have that plan that lets us be able to handle
the inconsistencies. Although we do want to try and be
as consistent as possible with our returns and our withdrawals,
are spending all those things. So that's it's super important
to make sure that we have that because that's how
we have the best measure of what our longevity and
(05:05):
sustainability planning is going to be in the future.
Speaker 4 (05:08):
Sure, and of course when you're planning, you're planning for
the long term.
Speaker 3 (05:14):
Yeah, you definitely are. You should be.
Speaker 2 (05:17):
You should be because God willing, we hope we have
long term in our recipe.
Speaker 4 (05:21):
Right.
Speaker 2 (05:22):
The reality is, you know, at Haven Financial Group, we're
not limited in scope, but we are focused on retirement planning.
Whether you're ten, twenty, or thirty years out, that's fine.
But a lot of our clients, a lot of folks
that come out to our classes, you know, our five
years or less or they're in retirement, and we do
tend to be a little more conservative here because the
element of time with folks that we sit down is shorter.
(05:46):
And wealth protection is so important because many that we
visit with that come in and who sit down with,
they've accumulated some sort of wealth. Now, when I say wealth,
don't think only the rich people, only the rich people.
Larry's not talking to me right now. Yes, actually I am,
because wealth means different things to different people, and whether
(06:07):
it's small, medium, or large, this is you. But protecting
those moneies, the investments that you you know you've saved
for all those years. I always say defense wins championship
did great to have offense, but in money management and investments,
you know, your offense is probably in those ten you know,
the twenties, the thirty year olds, the forty year olds,
and then as you get close to retirement on the defense,
(06:30):
protect that wealth that you've secured long term will provide
much more sufficient funds and longer longer financial goals will
be reached by having that consistency, protecting from market volatility,
creating the diversification and mitigate that con mitigates some of
these ups and downs with the market. Again, doesn't mean
(06:53):
you have to put all of it in the mattress
of your house, but having good liquidity principle protected investments
and then a good balance on the stock market investments
that makes up a good recipe.
Speaker 4 (07:09):
Well, let's talk about some of the consistency.
Speaker 1 (07:11):
Now.
Speaker 4 (07:11):
Obviously, social security is an income source that is pretty consistent.
We're going to talk more about that in a few minutes.
But I know that innuities are something that you guys
talk about and that can be a very consistent source
when it comes to income in retirement. Let's talk about
accumulation annuities, what they are and why they could be
so good for someone in retirement.
Speaker 2 (07:31):
Yeah, if you're listening and you hear the word annuity,
and now you're putting up the caution signs, Oh, I
don't like annuities because somebody told me I'm not supposed
to like him.
Speaker 3 (07:39):
I get it. I've seen all the marketing.
Speaker 2 (07:40):
We've seen all the marketing and for many that there
is some truth through that. Now, if you're ever interested
in a class that I teach the Truth about annuities,
I'd only teach it a couple times a year.
Speaker 3 (07:51):
Go to our Haven website. See when I offer that.
Speaker 2 (07:55):
It's it's really called the truth about annuities because there's
a lot of miscons you know, right, you asked the
question about, you know, accumulation annuities. That isn't what people
think of when they think annuities because that the word
annuity usually over the years.
Speaker 3 (08:11):
Has meant payments.
Speaker 2 (08:12):
Now you can use annuities, I think next segment we're
going to talk about that for payments. But maybe you
have a pension, social security suffice. Maybe you just want
some principal protection without the exposure of the stock market.
You can get that with an annuity. Now, the important
part is to understand which one of the four annuities
can you do that with. Is it better served by
(08:35):
a fixed annuity with a set rate. Is it a
variable annuity that goes up and down with the market,
be cautious. Is it a fixed index annuity which can
give you some great upside without any downside? Again, if
it sounds too good to be true, ask more questions,
or do I turn my money over to an insurance
company and they just send me paychecks, which we'll talk
(08:57):
about in the next segment. So understand the concept of annuity.
Is it appropriate for you and your plan or is
it not appropriate? For some it's not appropriate others. It
can be a great puzzle piece to your investable assets.
Speaker 4 (09:15):
Do you find that a lot of people come in
and don't know much about annuities and they ask a
lot of questions?
Speaker 3 (09:21):
One hundred percent, seventy five percent, I would.
Speaker 2 (09:23):
Say, yeah, well, we read it I hate annuities and
you should hate annuities because that was an ad in
the paper in the back of the Star Trip on
their MSN homepage.
Speaker 3 (09:32):
Whatever it may be, there's.
Speaker 2 (09:34):
A lack of education, and you also have to be
careful there are folks out there that just sell annuities.
Annuities aren't for everybody. You don't have to like them,
you don't even have to use them, but they can
be an effective part of your portfolio if done properly.
It starts like we always talk, Kim with the education
piece about what we're talking about.
Speaker 4 (09:54):
Sure, absolutely, Well, we're going to talk a little bit
more about annuities and how that can relate to your
social security and certainly how that can enhance your retirement.
As we continue on here, we're talking about what it
takes to retire today. If we've talked about something here
that might be of interest to you, you'd like to
get together with the folks there at Haven Financial Group
(10:16):
and talk over Maybe it's annuities, Maybe it's just a
plan that you need first and foremost, and you want
to discuss annuities as well. Give them a call. It's
six one two five zero four eight four zero zero.
Again that number is six one two five zero four
eighty four hundred. You can also check out their website
it's Havenfinancialgroup dot com and learn more about the firm there.
(10:40):
All right, gentlemen, when we come back, we're going to
talk a little bit about retirement beyond social security. You're
listening to the Haven Financial Group Radio Show.
Speaker 1 (10:50):
Don't go too far. We're gathering more important insights and
retirement pays 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 Karrigan. Now back to
(11:11):
the show.
Speaker 3 (11:13):
Welcome back listeners.
Speaker 2 (11:14):
My name is Larry Kalvig, founder and CEO of the
Haven Financial Group. I'm with Kyle Thomas, drutified financial planner
on the Haven Investment Team.
Speaker 3 (11:22):
Yes said Haven.
Speaker 2 (11:23):
We are celebrating our ten year anniversary and very proud
of it here in the metro metro location of Burnsville,
serving all the metro and not limited to that as well.
So if you're listening and you have questions, worries, reservations,
questions about your retirement, feel free to give us a
call at sixt's one two five four eighty four hundred,
(11:44):
Havenfinancialgroup dot com. All kinds of retirement tools or better yet,
just come on set a time, come on in and
visit with us. There's nothing to lose, only information to gain.
And the good news is you're not going to be
tried to sold anything, because I always say sales to
sell you something you don't need, and maybe you need something,
Maybe you don't need anything. But if you're wondering, do
(12:06):
I have a plan that's really valid? Is it outdated?
It's been avoided and not talked about in months, months, weeks, years,
or never. That may be appealing, and that may be
appropriate for you to start somewhere to get somewhere.
Speaker 3 (12:21):
So again, thanks for listening.
Speaker 4 (12:24):
Kyle. Let me ask you a question. We're going to
talk about social Security, and then maybe there's a gap
and you need you need more money to fill in,
and then maybe we'll fill that with some annuity talk.
But social Security, a lot of people are very concerned
that it's going to go away. Give us a sense
of what you think about social Security.
Speaker 5 (12:43):
Well, social Security certainly has its problems, and that has
been an ongoing thing for years and it will continue
to be an ongoing discussion for many years to come
in my opinion. But I don't think it's going to
go away, and I don't think it can go away.
So we have to keep in mind here how many
Americans rely on this on a monthly basis, and if
(13:04):
it were to just go away, what kind of position
it would put them in? And that could be a
pretty dangerous one. Then also we have to think about, Okay,
who are the people who would have to vote that
social Security gets cut? Well, it would be the House,
the Senate, and the President. All of those people are
trying to buy for votes for their next election, and
(13:26):
you know, if we think about them running on that
and having that be a part of their stance, it's
probably not going to go over well with voters. So
to think about that going away, I just don't think
it's very likely at all. Even though there definitely are
some proponents of, you know, getting rid of it, I
just don't think there's enough people for that to actually happen.
But I do think there are many things that can
(13:48):
be done going forward to solve this solvency problem that
social Security has, because we absolutely do have a problem.
Speaker 4 (13:56):
So I think what I'm hearing you say is that
in the future, you do anticipate I think social Security
might look a little bit different. And I think, Larry,
you've said that before I have.
Speaker 2 (14:06):
We have to have some reform and some changes, and
none of us are going to like the changes, because
by twenty thirty five or sooner, we have a shortage
and we're not going to be able to satisfy all
the obligations. So reform is going to have to come
sometime because it is a broken system. I firm believe
it's not going anywhere, and it's been highly politicized for many,
many many years. Change has to come. You know, we
(14:30):
mentioned income, social security. It's why we teach a lot
of classes. They're very well attended again this past week
in the Burnsville location at the library. A lot of
people want to learn. It's a big income stream. Income
is the name of the game, whether it's social security,
whether it's you're fortunate to have a pension, which not
(14:50):
nearly as many do, or how do you make your
own pension? And that's where annuities can be used to
build your own pension.
Speaker 3 (14:58):
Now what annuities are.
Speaker 2 (15:00):
They're not the same as social security, but they emulate
social security quite a bit, to the tune of a
guaranteed monthly amount postive possibly a cost of living adjustment,
increasing income.
Speaker 3 (15:14):
A lot of income annuities can do that.
Speaker 2 (15:17):
It can create long term guarantees, meaning lifetime income. So
as long as you're still living and breathing, you're going
to get that monthly paycheck or I call it mailbox money,
every single so it gives longevity protection. And you know,
all annuities are through insurance companies. All annuities are guess
what companies are the only companies that can guarantee what
we call life credits or insurance credits, and guarantees that
(15:41):
you can't lose your money to the stock market. They're
the only companies now. We may not like big insurance
companies for whatever reason because maybe because they have all
the money, but they can they can actually guarantee, and
no other companies can. If you look at your in
our case, our Schwab statements, fidelity statements which we investment
team manages with, or any of your market Boro creachs,
(16:03):
it says not guaranteed, not FDI see ensured. There's going
to be fluctuations. Insurance companies can give these guarantees, but
be cautious. One of those four annuities it's called variable,
and that is not guaranteed, or what you think may
be guaranteed isn't guaranteed.
Speaker 4 (16:23):
So Kyle, let's let's talk a little bit. You know,
if I'm sitting down with you and I'm saying, Okay,
I've got a gap, and I've got these dollars and
I don't want to put them in the market because
I don't like the volatility. I'm looking for an annuity
someplace that my money is safe and that I can
draw money each month, So walk through you know what
(16:46):
some of the some of the rules or some of
the downfalls of that might be. For example, what I'm
looking for here is if I put my money into
this annuity, can I then pass it on to my kids?
Can I pass it on to my bows? What happens
if something happens to me? You know what happens when
we're talking about annuities.
Speaker 5 (17:06):
Yeah, So when you purchase an annuity to provide income,
you're you're kind of purchasing a pension or social security.
You're purchasing that type of thing. Right Now you're provided
income for the rest of your life, and now you're
not worrying about, you know, having a paycheck. However, you
know there is there's downsides to almost every option that
(17:27):
you have. Now you're fixed to that amount of income.
You can't earn more, whereas if you were invested in
the stock market, you could potentially have made more money,
but you have that protection. So it's a trade off there.
But then you know, also at the end of your life,
at the end of the year time, the amount that
(17:48):
you invested gets decreased by the withdrawals every single year,
so there may not be any left over for your beneficiaries, right,
So that's that's one thing also, and then with an
annuity that's in a non retirement account, there's no step
up in basis if there is leftovers in the annuity.
(18:12):
So if you have a non retirement account that's held
in your name or it's jointly owned or in a
trust a, there's a step up in basis, so there's
less tax that's paid for those beneficiaries. So that's another thing.
Whenever we do annuities, we always have it in an
IRA if possible, or that's just the most optimal way.
So there's others other things to keep in mind. But yes,
(18:34):
that income can be nice because it's a guarantee and
it can make you feel comfortable. You're just trading that
off for less potential gains going forward in the future.
And then also your tax situation is pretty much set
for the rest of your life as well, so that
you get a little less wiggle room and able to
do some further tax planning there.
Speaker 2 (18:55):
Kim, if I may add to that, because you asked
a really good question for people that you know, if
I have an annuity and something happens to me and
I passed away, does my spouse if I married, or
do my beneficiaries get it? And the answer should be well,
absolutely they should get it. But oftentimes if you don't
know which one you have, it may not go there.
I'll give you an example. I just had a lady
(19:17):
in the a couple of weeks ago. She was divorced
for years. She's basically raised the kids. She's done a
great job, by the way, it's a great saver, worked hard,
and she had an adequate amount for retirement. But she
I looked at her two of her statements and I said,
do you understand these? And she goes, no, I really don't.
I said, well, you do know that you're going to
(19:38):
have to live to about ninety two to ninety three
years old for you to get your money back out
of it.
Speaker 3 (19:42):
Were you aware of that? And she said?
Speaker 2 (19:44):
I quote her, she says, I knew I should have
never signed that. What had happened was the two annuities
she had had annuitized in this case meant she gave
up control of the cash value and in order to
get her money back, she had to live that long.
News is she had other investments that could offset that.
(20:04):
Was those two annuities that she had inappropriate. My opinion
absolutely was she wrong by somebody. I'm not going to
say that, but it wasn't the right mix. Now it
was over, it's over and said and done. You want
to avoid those mistakes by asking the right questions.
Speaker 3 (20:19):
Knowing which one do.
Speaker 2 (20:20):
I have some cases it might not go where you
wanted to the immediate annuities. If that happens, it could
go right to the insurance company. So important questions that. Again,
most people, legacy is important. Whatever money's left over should
go exactly where it should be going. So that's a
really good question, Kim, you asked.
Speaker 4 (20:41):
Well, I'll tell you the toughest part I think about
annuities is that you don't know what you don't know.
So I'm not sure that you know, like the example
that you just used, maybe she even knew to ask
these questions. And I think that's why you know, you
keep saying over and over, Larry, the education piece when
you're thinking about annuities is so important. It's not that
(21:02):
someone you know is uneducated. It's just that we don't
know what we don't know, and the best bet is
to get educated about it. So if this is something
that you're interested in. The folks that Haven Financial Groups
certainly know the answers and they know exactly what to ask.
And you don't want to be in a situation where
maybe you've signed up for something that you regret in
the years to come. Give them a call six one
(21:24):
two five zero four eight four zero zero six one
two five zero four eighty four hundred, tell them that
you've heard us here on the radio. You'd like to
set up an appointment and just go in and sit
down with the experts there. Talk to them about what
it is that you are thinking about when you think
of retirement and the kind of plan that you'd like
to put together. Maybe you have some questions about annuity,
(21:45):
social security. Maybe it's about, you know, some of your
planning for your state. All of these questions can be
answered there at Haven Financial Groups six one two five
zero four eight four zero zero. When we come back,
we're going to talk about social security. Well, we've you know,
chatted a little bit about what the future might be,
but let's talk about the past and where this all
(22:07):
comes from. This is the Heaven Financial Group Radio Show.
Speaker 1 (22:10):
Ready to find your financial safe haven. Your dream retirement
is in reach, don't go away. The Haven Financial Group
Radio Show will be right back. Are you worried that
your financial strategy might be missing something, Well, you're in
the right place. Larry Kolvig is back and ready to
help you find your financial safe Haven.
Speaker 2 (22:33):
Good morning, and welcome back to the Haven Financial Group
Radio Show. I'm Larry Kolvig, founder and CEO of the
Haven Financial Group, on with Kyle Thomas, our certified financial planner,
one of the certified financial players on the investment team. Again,
thanks for listening. Feel free to give us a call
six one two five zero four eighty four hundred or
(22:53):
Havenfinancialgroup dot com.
Speaker 3 (22:55):
Cam.
Speaker 2 (22:55):
I just want to go back to that briefly, to
that last segment. If you were listening and you hear
the word annuity and you're confused, like seventy five percent
of the folks that have annuities, and I'm not joking,
it's that high, feel free to come on in and
we call it an annuity exam. An annuity exam, there's
no cost for it. We sit down, we'll dissect whatever
(23:16):
kind of annuity you have. You'll leave knowing, oh, I
do have this one, I like that one. I don't
like it for whatever reason, and at the end of
the day you'll know exactly how it works. It's called
an annuity exam. Bring it on in and again we'd
love to chat more with you about that.
Speaker 4 (23:34):
Six one two five zero four eight four zero zero.
That's how you go about doing that. We've been talking
about social security and how important it is to so
many people's lives, and we've talked briefly with both Kyle
and Larry about the future of social security, both of
whom believe that social Security is not going anywhere. We
may see reform, we may see some changes, but social
Security will be a part of our lives for a
(23:56):
long time. Let's look back though a little bit and
talk about the history of social Security, because I think
it's really important that people understand why it was formed.
To begin with. It was not necessarily meant for people
to live on as their income in retirement, correct, gentlemen.
Speaker 5 (24:16):
Yes, correct, It was meant to be a supplement to
retirement for folks. And when it first came into effect,
the average life expectancy was probably just a couple of
years after when you would first start receiving your Social Security.
So when it first came out, the government was expecting
(24:37):
maybe you know, four or five years or so of
actual payments. Now, medicine kept getting better, people started making
better decisions, and you know, they started living longer. So
now that social Security payment has to catch up to
people living longer and the funding needs to change. And actually,
(25:00):
there's many civilizations who have used a form of welfare
like social security, like like we have right now, and
you know, ancient Greeks used it with olive oil, Romans
used it with an early type of annuity. Actually, so
we're not the first ones.
Speaker 3 (25:16):
To be doing that.
Speaker 5 (25:18):
You know, Colonial America had had poverty relief measures and
then civil war pensions that was actually kind of like
the the first you know formulation of the social security
program that we see here today. And you know, on paper,
this is this is a great idea, but then there's
(25:38):
questions that go into it of like, well, how do
we fund this and you know, where does it come from?
And that's where it becomes a difficult topic of debate,
right because you know, people don't want to pay for
something that they don't see for many years and you know,
cut down their own paychecks. So that's that's where it
just becomes a little more difficult. But there's there's definitely
(26:00):
a deep history of Social Security and it's something that
again we don't see going away here.
Speaker 4 (26:06):
Yeah, I guess I've just always certainly when I was
younger and I get my paycheck and there'd be a
big chunk of money that was gone, that had gone
into Social Security, I just assumed, well, I'm paying for myself.
But that's not necessarily the case.
Speaker 5 (26:22):
No, it's not. So you're you're actually paying six point
two percent for Social Security yourself, but then employers also
pay another six point two So you know, there's a
Social Security tax, there's Medicare tax that that's you know,
part of that fik a piece that you see on
your on your income paychecks. And so you're you're paying
(26:43):
a big chunk and your employer is also paying a
big chunk. And if you add that up, you know
that that ends up being you know, a big payment
into the system that you're not getting right now. You're
you're delaying that and you know, I also like to
think of it as you know, my employer is funding
some of that as well too. So that's kind of
a benefit that people forget because that does a big
(27:04):
expense for employers.
Speaker 4 (27:06):
Sure, absolutely, So let's talk a little bit guys about
social security and drawing. You know, we've talked about this before,
but you can certainly start to draw your social security
at sixty two. But drawing at sixty two is not
always advised. If that's not you know, if that's not
absolutely imperative for people, holding off a bit sometimes is
(27:28):
a better idea.
Speaker 3 (27:30):
Circumstances obviously come up in life. I get it.
Speaker 2 (27:33):
But yes, the earliest you can draw sixty two. Almost
seventy percent of Americans turn it on right at sixty two,
which is amazing to me. That tells me there's a
lack of education for some night that might be appropriate
if they need the money, or if there's not a
good life span in their family, perhaps that would be
a good reason, or a variety of others. The latest
you're going to take it at seventy, Only one to
(27:54):
two percent of Americans wait till seventy. Our job is
never to tell steer people to wait till set That
might be the right decision, wrong decision based upon if
you're still working, married, spouse working. There's a lot of
variables that should go into when you turn on social Security,
it shouldn't be well, I just thought everybody turned it
on at sixty two. In my class, I cite a
(28:15):
bunch of a variety of studies which just came out
the average American, by claiming at the suboptimal time, will
give up in a normal life expectancy, about one hundred
and eighty two thousand dollars of social Security benefits.
Speaker 3 (28:30):
If I offer to put.
Speaker 2 (28:32):
One hundred and eighty two thousand in your IRA, I
think the no brainer answer.
Speaker 3 (28:35):
Would be, of course, please do.
Speaker 2 (28:36):
But by making the wrong decision on social Security, they
give up the average one hundred and eighty two thousand.
Social Security is a big part of people's income, often
taken lightly, oftentimes the bigger than their portfolio all put together.
For a married couple, and I put this illustration in
my class, the average American couple normal life expectancy and
(28:58):
I know life isn't necessarily normal, will almost make about
almost a million dollars off of Social Security. See that's
a big part of the portfolio. So when Kyle and
you were talking about, social Security was never designed to
be a ten twenty thirty year income stream. Thankfully, through
(29:19):
medical advancements to doctrine it has been. It was designed
to be maybe a one year two window of collecting.
Many people never got to social Security age, but over
time it's just what's transpired. It's an outdated system. It
needs to be fixed. There things that need to be fixed.
But doing away with absolutely not. It'd be a calamity
change it has to my opinion, I think many Americans
(29:44):
have become too reliant on it or dependent on it.
And I'm not speaking to the person or the listener
that has had, you know, life's challenges, because life happens,
and life doesn't cooperate with our calendar, and I know
circumstances do come up. But I think it's given some
Americans a comfort level and therefore they've done a poor
(30:05):
job of saving on their own when really social Security
was just supposed to be a supplement. And for many
Americans they rely solely on Social Security, which is scary
because I don't think I and any other listeners want
to live just on Social Security. I'm not so sure
that would be the golden years that we were looking for.
Speaker 4 (30:26):
Sure, Absolutely Now, if someone comes in sits down with you,
says I'm sixty years old, and I'm trying to decide
if I want to draw it sixty two or if
I should wait. Tell me the steps that you might
walk through with a couple, for example, and what you
can actually tell I mean, you guys can actually predict
out what waiting might mean for a couple.
Speaker 5 (30:49):
Yeah, we do have the benefit you know, calculations on waiting,
so we're able to incorporate that into our planning software
that we use. So we're able to use that plus
a projected cost of a living adjustment that gets attributed
each year as well, so then we're able to analyze
(31:10):
what our total lifetime payments are. Again, we're planning to
the mid nineties here, so we want to make sure
that we have longevity planning that we don't run out
of money, because that's that's a huge risk there too,
if we're planning to those mid nineties. So that all
gets played into it. And you know, there's different strategies
of you know, one spouse starting and then one spouse waiting,
(31:32):
because remember if one spouse passes away, the surviving spouse
gets the higher benefit of the two. So we run
all of this through our calculations, and we can run
our income analysis and see where we may have gaps
and maybe we try to eliminate or minimize our portfolio
(31:54):
withdrawals and keep our withdrawal rate, you know, under four
percent versus and ability purposes and find that sweet spot
of when we start social security for each spouse. But yeah,
we do that by looking specifically at our income analysis
page and it's really a good tool for us to
(32:15):
visualize and for the clients to visualize it and see
different scenarios and outcomes for that.
Speaker 4 (32:21):
Well, there's no doubt that social security is a portion
of the fabric of a good retirement. And if you
have questions about social security, you're wondering maybe when you
should start to draw what the difference might be waiting
a year, two three years, then you should stop in
and chat with the folks here at Haven Financial Group.
You need to make an appointment. Let me give you
(32:42):
the number at six one two five zero four eighty
four hundred again. That's six one two five zero four
eight four zero zero again. Tell them that you heard
us here in the radio and you'd like to come
in for some information about social security. Larry is certainly
an advocate for education. Education. We talked about education for annuities,
(33:04):
education for social security equally as important, so be sure
that you call them at six one two five zero
four eight four zero zero or check out their's website,
Havenfinancialgroup dot com. Coming up, we're going to talk about
mistakes that you want to avoid as you transition into
those golden years right here on the Haven Financial Group
Radio Show.
Speaker 1 (33:25):
Don't go too far. We're gathering more important insights and
retirement pays Devin. The Haven Financial Group Radio Show will
be right back. Stick around. You've got questions, We've got answers.
Your tune to the Haven Financial Group Radio Show with
your host Larry Kolvig and Kim Karragan. Now back to
(33:45):
the show.
Speaker 2 (33:47):
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. Got Kyle Thomas, certified Financial Planner
on the Haven Investment Team today talking about a variety
of retirement topics like we do every week. The last
segment about social security. Yes, education is very big in
(34:08):
all these retirement areas, so important. And if you were
listening to that last segment about social security and you're
wondering when should I turn it on.
Speaker 3 (34:16):
Should I turn it on now? Should I wait?
Speaker 2 (34:19):
If you're listening, or if you come to our class,
we offer extension to come on in. There's no cost.
Let me walk you through that process briefly. We'll sit
down with you, we'll ask questions. You'll ask questions, but
have you bring your social security report in. We'll run
you a good, better, best social security maximization report, a
roadmap for what makes sense. Because naturally we get a
(34:40):
lot of folks to come in and they have this idea,
Well I'm just going to turn it on at sixty
two and sock it to the government.
Speaker 3 (34:46):
Probably not a good way to make decisions.
Speaker 2 (34:48):
Or I've made up my mind, I'm turning it on
at sixty four or sixty five. Well, maybe that's the
right idea. But if we talk through this, We're not
here to tell you when to take it. But by
asking a lot of questions, talking through things, maybe you're
still working, maybe you're not full retirement age, maybe it
doesn't make any sense. Oftentimes people will leave that meeting going, wow,
(35:09):
I thought it made sense, but after this meeting, it
doesn't make sense at all to do it. That's the
kind of insight we want to bring to you. So
again I just wanted to comment on the end of
that last segment.
Speaker 4 (35:19):
Absolutely, we want to talk about the eight mistakes that
you want to try to avoid as you get ready
to transition into retirement. And Kyle, I thought this was
just so interesting. Planning to work indefinitely, I guess that
would be a mistake because the best laid plans really
don't necessarily work.
Speaker 5 (35:39):
Yeah, planning to work, and definitely we definitely we don't
want to plan for that. We want to plan to
enjoy our retirement and not have to work unless that's
something that you're just opting to do because you really
want to. But we don't want to have to rely
on that, because what if something happens and we're not
able to work anymore, Well, now our plan is just
(36:00):
completely you know, torn up and out the window. We
have to come back to the drawing board and figure
something else out. So we want to make work optional.
So that that's what I like to call it, is
making work optional, not mandatory. You can always work if
you want to, and you know, enjoy yourself doing that,
but we want to make sure that we're not having
to depend on that so that's that's a big, big
(36:21):
piece right there for planning absolutely. You know.
Speaker 4 (36:24):
It's also seems, Kyle, that a lot of people believe
that once you get into retirement you absolutely should not
be in the stock market at all. That's not necessarily
the case. There's ways to get into that game but
still be safe.
Speaker 5 (36:36):
Yes, yeah, we want to have a balanced portfolio. You know,
you hear us talk about this a lot and probably
a lot of other people, But balance portfolio. We want
to have some stocks. Now, you know, maybe that's thirty percent,
maybe it's sixty percent, maybe somewhere in the middle, but
we want to have exposure to some stocks because you know,
(36:57):
that will allow us to have some potential growth there
and maybe you know, beat what inflation is, because we
don't want to try to just match inflation. We want
to try to make some more money along with our withdrawals, right,
because maybe we can preserve our principle throughout retirement, you know,
even though we're taking money out right. So, but another
thing that goes with, you know, the idea of people
(37:18):
not wanting any stocks and retirement is well, we also
have to adjust our portfolio if we're if it's on
the opposite side of the spectrum, people coming into retirement, uh,
you know, rolling over from a four to one K
or you know, whatever it is, you could be in
a much different vote and exposed to a lot of
stocks because you were in the accumulation phase of your life.
(37:41):
So now we need to change our mindset and go to,
you know, the withdrawal stage of our life and adjust
downwards from the volatility that we're probably taking in some
of these accounts and make sure that again we're balanced there.
Speaker 4 (37:57):
It seems another major mistake that people might make is
ignoring long term care needs. And I understand why people
make that mistake, because that's just not something that's pleasant
to think about. But I think we've quoted many times
here that seventy five percent of us are going to
need some kind of long term care.
Speaker 2 (38:15):
You are correct, it's easier to avoid the discussion than
to have the discussion. But as we're living longer, yees,
seventy seventy five percent are going to go into a
nursing home with some sort of care. How are you
going to pay for it? I know those costs are
very large, and they continue to go up faster than
regular inflation, So that's a big one.
Speaker 3 (38:34):
Glennon Isabelle.
Speaker 2 (38:34):
In our office, we offer all the different long term
care that's out there, and by the way, listeners, there's
much better viable options than there used to be compared
to the long traditional long term care.
Speaker 3 (38:47):
Much better options. Come on in.
Speaker 2 (38:49):
Get educated about those options to see if they're right
or if they're not right for you. That is a
big one, underestimating health care costs. I continue to say that,
you know, Kyle Man, you know, planning to work indefinitely,
there's this thing called health, which is a game changer.
Health is a game to oh my knees give out,
you're not mobile anymore. The back doesn't do not use that. Hey,
(39:12):
work as long as you possibly can. You know, my
parents are living proof at eighty and seventy seven, they're
still farming in Candyo High because they still can. But
don't rely on that as again, that's not a backup
plan because life's calendar doesn't always cooperate with our calendar
big time. One other one I want to mention because
Kyle and I and the investment team we see this
(39:34):
is when you retire, you figure out your income, you
start drawing off your investments. People draw off the wrong
investments at the wrong time, tax and efficiencies, using the
wrong accounts.
Speaker 3 (39:46):
At the right time.
Speaker 2 (39:47):
And you got to remember, you worked hard for every
one of those dollars. Don't draw from the wrong because
you didn't have a partner that could help you map
out a plan. That's all part of the retirement plan
that you should have. That people should be spending time
those folks that you're paying, your CPA, your investment advisor,
your investment team, your insurance people, et cetera, et cetera.
(40:10):
Those are the folks you should be leaning on to
help make the right decisions, the most efficient decisions. And
I'll tell you most people are not getting the attention
they deserve and they should.
Speaker 3 (40:21):
They really should.
Speaker 4 (40:22):
Yeah, you know, in the same vein also just it
seems miscalculating the expenses that you will have in retirement.
I think a lot of people believe that when I
go into retirement, I'm not going to spend nearly as
much money as I did during those working years. And
that's not necessarily the case.
Speaker 3 (40:39):
No, it's it's not.
Speaker 5 (40:42):
You know, people get accustomed to a lifestyle that they've
been living from their working years, and I get it.
You know, that's hard to that's hard to adjust downwards
and cut by fifty or sixty percent you or whatever,
you know the number is that you know they think
it would be. So, uh, just want to make sure
that we're making planning for the amount that we're actually
(41:04):
going to spend. And typically we try to keep the
same number that they are living on currently for their
retirement expenses. If they if they don't really know, you know,
what it is, then we just try to calculate, Okay,
what's the income after taxes and all that stuff, and
then you know, we'll use that for our default in there.
But we also have a secondary goal that's you know,
(41:28):
in anything else category just in case, you know what,
what if stuff happens and you know, we have to
replace the roof, we have to get a new car,
or otherwise. There's just flexibility in there if you want
to do another trip or you know, gifting and stuff
like that. So definitely don't underestimate the expenses because that's
one of the biggest key components for your plan and
(41:49):
making sure you don't run out of money.
Speaker 2 (41:51):
And for married couples, the misconception Kim, well, if my
spouse dies my expenses are going to get cut in half.
Rarely do the expenses ever get cut in half. You
lose one of the social securities. Your income goes down
and your expenses don't get cut in half. So that
that is a fallacy that I've seen over and over
and over again again expenses. We want to make sure
(42:12):
we're as accurate as possible. We want accurate numbers because
expenses that's going to erode your your money's And then
it comes down to well when is my money gonna
run out?
Speaker 3 (42:23):
Back to that core question.
Speaker 4 (42:25):
Yeah, where we started this whole thing right, all right,
So as we run out of time here, I just
roll quickly want to ask each one of you. So
the number one you think mistake that you see people
make that you just really want to steer people away from.
Speaker 5 (42:41):
The biggest mistake I would say is definitely the asset
allocation and making sure that it's an asset allocation that
is suited for you, you know, for each individual person,
rather than just having you know, the traditional of subtract
your age from a hunt and that's your risk profile. No,
(43:02):
we need to figure out what your goals are and
find out what we're trying to achieve here because then
we have a set you know, destination.
Speaker 2 (43:10):
And I would say that that's a really tough question.
But I would say claiming social Security too early without
putting the thought into it. A lot of these others
are big, but that is a very big one. So,
you know, as we close up the show this week,
you know at Haven Financier Group celebrating our tenure anniversary.
You know, I want to note that we do all
things specific to retirement planning. It's not just in investments
(43:31):
and wealth management, which is all very very important, very important.
Speaker 3 (43:35):
But have you put together a will or trust?
Speaker 2 (43:38):
Our State Planning Attorneys Partners Kirie Ann Keith Provisional Law.
Speaker 3 (43:43):
Go to our website.
Speaker 2 (43:44):
We're going to be teaching will's trust and legacy planning
at the Prior Lake Library coming up in a couple
of weeks. Maybe we just mentioned long term care, getting
the information on what's out there that you maybe did
not even know about. Maybe you're holding on to life's
insurance policies. When is the life last time you had
a life insurance review? I mentioned earlier in the show,
a newity exam. Maybe it's time annual enrollment for Medicare
(44:07):
is coming up. Maybe you're bridging the gap for healthcare
with all of those areas. We have all the companies
to choose from, Isabella Glenn and others in the office. Taxes, Hey,
we didn't talk much about taxes this that's unusual, unusual
as our CPA and also Melissa. So all the retirement
(44:28):
puzzle pieces, they should be coordinated, more in retirement than ever.
For many they're not. I say, they don't have to
be all under the same roof. But I'll tell you this,
it's probably the number one compliment at Haven Financial Group
we get is Wow, all of you guys work together,
multiple personalities and making sure that things are clicking and coordinated.
(44:49):
And that is so important, Kim. We say it every week,
especially in retirement and probably more important than ever.
Speaker 4 (44:57):
You bet six one two, five, zero four eight twenty
four hundred. That's how you get hold of the folks.
They're at Haven Financial Group. Be sure that you give
them a call.
Speaker 2 (45:05):
Gentlemen, Thank you so much, Thanks Caam, look forward to
next to you already.
Speaker 4 (45:10):
Investment advisory service is offered through Guardian Well Strategies LLC.
Speaker 1 (45:14):
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 (45:23):
Please consult with the qualified financial advisor and or tax
professional before implementing any strategy discussed herein, and comments regarding
it safe and secure.
Speaker 1 (45:31):
Investments and guaranteed income streams only refer to fixed insurance products.
They do not refer in any way to securities or
investment advisory products. Fixed insurance and annuity product guarantees are
subject to the claims paying ability of the issuing company.
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