Haven Financial Group Radio - 9/28/25

Episode Transcript

Speaker 1 (00:00):
You worked hard for your money, but do you know
how to make it work hard for you. You need
a team with experience, vigilance, and a strategy to help
you live the retirement you deserve. Find your financial safe
haven with Haven Financial Group. Today, you're listening to the
new and improved Haven Financial Group Radio Show, where we
bring you comprehensive weekly financial wisdom from the professionals. It's

(00:23):
all about helping you solve retirement problems so you can
make your nest egg last. Your tune to the Haven
Financial Group Radio Show with your host, Larry Kolvig and
Kim Karrigan your guides to weekly retirement confidence. If you're
interested in protecting and growing what you have, let us
be your financial safe haven. The full nines are always

(00:43):
open at six point two five four eighty four hundred.
Now get your financial questions ready because the Haven Financial
Group Radio Show starts now.

Speaker 2 (00:55):
Good morning, and welcome to the Haven Financial Group Radio Show.
I'm Larry Colvig, founder and CEO of the Haven Financial
Group on today with Kyle Thomas, certified financial Planner on
the Haven Investment Team.

Speaker 3 (01:07):
Kim, good to be with you again this week.

Speaker 4 (01:09):
Thank you, it's good to be with you as well, Kyle.
Great to have you like.

Speaker 5 (01:12):
Always, Yeah, thank you for having me.

Speaker 4 (01:15):
Absolutely. We're going to talk about the economy and your
retirement today, Larry, I understand a lot of things going
on with the economy.

Speaker 2 (01:22):
Yeah, ups and downs and rate cuts and more discussions.
Always something in the news, negative or positive. It's always out.

Speaker 3 (01:30):
There that it is.

Speaker 4 (01:32):
If anything rings a bell with you this morning, as
we begin this conversation and as it continues for the
next hour, give us a call at six one two
five zero four A four zero zero at six one
two five zero four eighty four hundred. We're going to
talk about the Federal Reserves interest rate decision, of course
that being made about two weeks ago. Now, how inflation

(01:54):
and interest rates impact your retirement. We'll talk about investment
management principles for retirees, and we'll wrap the show up
by talking about financial caution before transitioning into retirement. So, Larry,
let's get started with this. We haven't had a chance
to talk about the Federal Reserve interest rate cut. Talk

(02:14):
a little bit about what you guys thought and was
it what you anticipated in the impact that that might have.

Speaker 5 (02:20):
Yes, first off, it was what we were anticipating. We
were thinking that September was going to be the first
cut of the year and ended up being so that
it was, and we are thinking right now that there
will be two more cuts to end the year. So
we got October and then December as well, And the

(02:41):
reasoning for that is we've seen some softening in the
labor market and we've seen some business activity starting to
slow down as well. And if we take a look
at what the Fed wants to help stabilize his inflation
and unemployment, so if the softening labor market continues, then

(03:04):
that's going to support them on into lower rates. And
also if business activity continues to slow down, that's going
to help them want to lower rates as well, because
that means that inflation is cooling. So they want both
of those to be down or they want inflation to
be down at unemployment to be up. I should say

(03:25):
for rates to continue to happen, and since those are
both happening, then we should expect two more cuts this year.

Speaker 4 (03:32):
Cale Thomas is our guest. He's a certified financial planner
with the Haven Financial Group. Cal talk to the people
who are listening about the direct impact a rate cut
like this would have on them.

Speaker 5 (03:46):
The first and foremost impact that this has is going
to be on your investments and specifically bond portfolios. It
will impact stocks as well, but bonds for the most part,
especially for retirees, because well a lot of investments for
retirees are in bonds, right and those interest rates depend

(04:09):
on whatever the Fed does. The interest rates on those
bonds are changes whatever the interest rates do. So, and
the way that it works is when bond yields go down,
the prices of current bonds goes up, and when bond
yields go up, the prices of those current bonds goes down.
It's an inverse relationship. Now when you buy new bonds,

(04:32):
because all bonds mature at some point, when you buy
new bonds, you're going to have a lower rate than
when you did, say last year, because these rates are
now coming down. So that's going to give you a
lower return. And that's something that we need to plan
for because rates have been really strong on these bonds
for the last couple of years because rates have been

(04:53):
high and they didn't come down like we originally thought
they would. So the income from these bonds is going
to change pretty dramatically. If we keep seeing these rate cuts,
and that's something that we really need to plan around
and make sure that we have the income sources that
we need.

Speaker 3 (05:10):
Yeah, Kim.

Speaker 2 (05:10):
On the surface, to the listeners, a quarter point it
may not sound like very much at all, but for
those that are planning for retirement, close to re terrible
in retirement, it certainly has some real consequences to those savings,
the accounts, the returns on those as Kyle said, the
bond market, the cost of borrowing, a variety of different

(05:31):
ways it affects. So you know, the key is, and
we say it every week, is folks just need to
have a plan. This isn't the first rate cut, it
won't be the last rate cut, and then there'll be
interest rate increases. This goes on over time, historically it
always has. It's just how do we line up our portfolios,
how do we create the right balance so when this

(05:53):
does happen, we're prepared for it. We don't push the
panic button like a lot of people do.

Speaker 3 (05:59):
Have a lot of.

Speaker 4 (05:59):
People have been calling and are they concerned. I mean
people who have a lot of money in CDs and
that kind of thing have to be a little concerned
about this.

Speaker 2 (06:07):
They are looking for alternatives because, let's face it, with
CDs and high yield savings, we're paying five plus percent.
It was a nice breath of fresh air because for
over you know, two or three years, we couldn't make
even pennies on those accounts. And now these CDs are
renewing and they are calling and say, well, what other
options do we have? You know, what is your money market,
what is it that paying? What are some other alternatives

(06:30):
to get some higher rate returns, whether it be again
money market or multi year guaranteed accounts or fixed annuities,
And you know, we're going to look and explore all options.
You know, there's no perfect investment option, but the key
is looking at all the options and weighing does it
make sense in your situation or does it not make sense?

Speaker 4 (06:50):
Sure, So, Kyle, let's do talk though about a few
of those options, because you've already stated that not not
just this cut to this quarter point, but we're going
to see a probably two more. So in the end
we could be you know, by by years end, we
could be three quarters of a point down from where
we were as we stepped into September. So what would

(07:11):
be some options for people, especially those who are already
in retirement, if they were to protect against these rate cuts.

Speaker 5 (07:19):
Yeah's a that's a great question and something that a
lot of people are probably thinking about. And the thing
where it always comes back to is our asset allocation
and making sure that we're in a risk profile that
works for us. But maybe maybe we're going to be
adjusting our portfolios because of these interest rate cuts because

(07:40):
we need we need to find an alternative here, because
we're not going to have that same yield on our bond,
So maybe we maybe we allocate to some more stocks
to try and make up for that decrease in bond
yield because those bonds are going to be less attractive
with a lower rate. But on the converse side of that,

(08:02):
you know, bonds being less attractive, stocks can actually be
more attractive because when rates are cut, it increases the
money supply, which increases people investing into the stock market,
which increases the stock market valuations. So typically and historically,
when when rates are cut, the stock market also reacts

(08:24):
in a positive way. So maybe maybe that's the solution
that we go for, and changing the asset class at
a high level from stocks to bonds in that ratio
and changing that because we need to figure out what
your goals are, and the best way to do that
is going to be an analysis of your investments and

(08:47):
figure out where we need to go to and how
we need to achieve that.

Speaker 4 (08:51):
If your portfolio is well diversified, do you really need
to do anything at all?

Speaker 5 (08:57):
Yes, you always You always need to do something, and
even if that's just checking in on it and deciding
to not change anything. We need to always be prudent
investors and make sure that our current situation fits our.

Speaker 3 (09:11):
Desired needs and goals.

Speaker 5 (09:15):
So if that's working with someone like us as an
advisor or by yourself, it always needs to be looked
at and people like us, well, at least our team.
I should say, we look at these portfolios on a
daily basis, And if your advisor isn't looking at them
on a daily basis, that might not be the best solution.
Because the market changes every day. I don't know if

(09:37):
everyone knows that, but the market changes every single day
and we need to be able to react accordingly to that.

Speaker 2 (09:44):
Give the question I would ask listeners, Kim. The question
I would ask is what season or phase of life
are they in? Are they in the savings accumulation phase
where the element of time they have more time to
handle these dips. Maybe that is a great opportunity for
somebody in that phase or season of life. If you're
really close to retirement, you're in the transitional period where

(10:06):
you're just right at the cusp of retirement. You're close
to retirement or in retirement, now this can deplete your
savings a little bit faster than you made it, like
so sequence of return risk becomes more relevant than ever.
Or maybe you're well into your retirement years and this
volatility could disrupt your income streams and that can cause

(10:27):
some problems in retirement as well. So again, what season
of life, how does it affect you? What types of
alterations or modifications need to be done, if any, or
if you're already well positioned, you should always take a
close look at the close look at this always to
make sure that something doesn't need to be tweaked.

Speaker 4 (10:47):
So have you had an opportunity to tweak your portfolio
or are you looking for someone to help you do
just that? The folks that have in financial group can
certainly help you look over your portfolio, or maybe you
don't have one one yet and you need one, this
is the perfect time to give them a call, tell
them that you hurt us. Here on the radio, it's
six one two five zero four eighty four hundred. That's

(11:10):
six one two five zero four eight four zero zero.
We've seen our first rate cut this year, and we're
most likely going to see two more before we get
to twenty six. So this is the time that if
you're questioning whether you're in the right place, and you're
concerned about your investments, this is the time to make

(11:30):
that call. Six one two five zero four eighty four hundred. Now,
a lot of people, I think gentlemen, think that all
of this talk of interest rates and inflation and so
on and so forth is for economists and that they
don't have to worry with it. But coming up next,
we're going to talk about how inflation and interest rates
can impact you. That's right here on they Haven Financial
Group Radio Show.

Speaker 1 (11:50):
Don't go too far, we're gathering more important insights and
retirement pays. The Haven Financial Group Radio Show will.

Speaker 3 (11:57):
Be right back.

Speaker 1 (11:58):
Stick around. You've got questions, We've got answers. Your tune
to the Haven Financial Group Radio Show with your host
Larry Kulvig and Kim Karrigan. Now back to the show.

Speaker 3 (12:13):
Welcome back listeners.

Speaker 2 (12:14):
My name is Larry Kolviig, founder and CEO of the
Haven Financial Group. And if you're just tuning in, you're
listening to the Haven Financial Group Radio show, where weekly
we discuss crucial retirement and financial topics. Today interest rate cuts.
How does it affect you? Kyle Thomas is on with
US certified financial planner on the Haven Investment Team. If
you have questions or you're hearing something that rings a bell,

(12:37):
feel free to give us a call at six one
two five zero four eighty four hundred, or visit us
online at Havenfinancialgroup dot com. All kinds of retirement tools,
our calendar of educational events, which we continue to have
throughout the rest of the year. We believe education is
extremely important and it's how we meet and it's how
we help a lot of people through that educational process.

Speaker 4 (13:00):
We're talking about the Federal Reserve and how they cut
interest rates about a week and a half two weeks ago.
It was the first cut that we've seen in twenty
twenty five, but most likely will not be the last.
There is anticipation that there will be two more cuts.
Before twenty six it was a quarter of a point
and Kyle Thomas has said to us that he's anticipating

(13:22):
two more quarter of a point great cuts.

Speaker 5 (13:25):
Correct, Yes, that's correct. And right now the federal funds
target rate is about four percent to four point twenty five.

Speaker 3 (13:33):
They always have a.

Speaker 5 (13:36):
Variation there, and we would expect that to go down
another half percent or so since this last September one
by the end of the year.

Speaker 4 (13:46):
Well, we're talking about how that impacts retirees. And we
said in the last segment, you know, a lot of
people think that this is just you know, fodder for economists,
but that's not necessarily the case. This can have an
impact on It can have an impact on everyone, but
certainly those who are already or very close to a retirement.

(14:06):
So let's talk about some of those impacts. First, Kyle,
maybe you'd want to address this maintaining purchasing power. This
can affect your every day living.

Speaker 5 (14:16):
Yes, and it's affecting every single person that is living here.
I looked up, you know, what are the biggest things
that have been impacted by inflation these last few years,
and it's housing costs, groceries, and gas. So I think
every single person that is living right now is affected

(14:37):
by at least one of those and probably all of them.
So everyday life is going to be hugely impacted by inflation,
especially because those prices never typically come back down. They
always tend to stay, you know, where they were at.
Gas is a little different, right, But groceries are probably

(14:57):
not going to come back down in price. Vent's probably
never going to come back down in price. Utilities are
probably never going to So it's a huge impact. And
those costs will continue to receive inflation each year. Even
though that inflation number maybe isn't to the amount that
it was these last few years, they will still increase

(15:18):
in price annually.

Speaker 4 (15:20):
And how is it that someone who's in retirement can
protect against the idea that grocery prices are never going
to come back down.

Speaker 5 (15:27):
Well, with that, we just we have to try and
manage what our returns are and our investments are the
best we can and to try and hedge for those
types of inflation measures. And some of the best way
to do that is to try and find investments that
hedge against those directly. You know, we have an investment

(15:50):
within our portfolio called Treasury inflation protected securities. Your return
on those bonds issued by the Treasury is directly related
to inflation. Then we also have some fixed index annuities.
Those are great for hedges against inflation because you have
no downside risk, but you also have a guaranteed return.

(16:13):
Right now we're seeing about seven and three quarters of
a percent, so that's a great way to hedge against
that inflation and potentially you know, negative market returns. You
just have to have the conversation with someone who's who's
able to present these options and someone like us who
were an independent we're not you know, proprietary to anything.

(16:36):
We can open it our investment options up to pretty
much anything that's out there.

Speaker 2 (16:41):
Absolutely, but it really it always comes down to your
income sources, you know, maintaining the income necessary for the
things that we all need, like Kyle mentioned groceries and
utilities and the housing and all those things we need.
But then our retirees that want the very time, they
probably want a lifestyle also in retirement kind of important.

(17:04):
Maybe it's do I have to scale back the number
of vacations? Can I not play as many rounds of golf?
What are the trade offs? You know, these are the
discussions that we're going to have. But it's all been
part of our proprietary planning process throughout the whole and
the whole time, so it's not like this is surprising.
It just takes some current reflection to talk through the

(17:26):
things that we've already talked about, reminding our clients that
we adjusted for this, we knew this was eventually coming. Yes,
it may be times that seem a little uncertain because
a lot of retirees are on a fixed income and
those pensions or fixed annuities or maybe even Social Security
doesn't necessarily keep up with how the.

Speaker 3 (17:48):
Inflation and what that is.

Speaker 2 (17:50):
And one that I almost say weekly is health care costs.
Inflation in the medical sector always outpaces the general inflation number,
and it makes it very difficult call for long term
care discussions rising insurance medical premiums which they're not going down,
and annual ROMAN.

Speaker 3 (18:09):
Is going to be coming up shortly.

Speaker 2 (18:10):
I encourage people to have a partner that can assist
you in that area. Isabella and Glenn at our office
do that just to make sure you're in the right
types of plans. Because healthcare is a major major expenditure
in retirement.

Speaker 4 (18:25):
So can the two of you, between the two of you,
give us maybe some examples of misconceptions about inflation and
interest rates that people have.

Speaker 5 (18:34):
Yeah, well, inflation has a misconception that it's all inherently bad,
which it's not. We actually do want inflation within our economy.
It's healthy for the economy. It drives growth within our country,
and we just don't want it to be at eight
or nine percent like it was back in twenty twenty two.

Speaker 3 (18:55):
We want it to be well.

Speaker 5 (18:57):
The target right now is about two percent, that's what
the is targeting, but you know, anywhere from from two
to three is probably an ideal target for that because
historically it's been hovering closer to three, especially over these
last ten years. So that is a huge misconception about inflation.

(19:18):
And inflation also does tend to help drive the stock
market too, So when inflation's higher, the stock market tends
to do better as well. So the inflation is good
to a degree. We just want to make sure that
we manage that, and that's what the Fed's job is
there for, to make sure that it doesn't get out

(19:38):
of hand.

Speaker 4 (19:39):
And so what about some misconceptions about interest rate cuts
and what do people, you know, sort of think they're
going to automatically see and they frequently do not.

Speaker 5 (19:51):
Well with interest rate cuts. You know, it's it's important
to make sure that our interest rates aren't aren't too
high as well, because what what the Fed is doing
with with the higher interest rates, they were trying to
slow down the economy.

Speaker 3 (20:06):
We don't.

Speaker 5 (20:06):
We don't want our economy to have to be slowed down.
So when when those cuts are coming in, yeah, maybe
it's less income for you on your bond portfolio, but
it's going to be better overall for for stimulating the
economy because there's going to be less borrowing costs. It's
going to throw more money into circulation and people are

(20:27):
going to be able to you know, not have to
to pay as much for for certain things. And you know,
the stock market, like we said earlier, is going to
have a positive reaction to lower interest rates, so that
the trade off is there, Yes, less income, but better
benefits with with lower interest rates.

Speaker 4 (20:46):
For sure, I think a lot of people believe that
the minute that the interest rates are dropped, they'll see
a drop in mortgage rates and that maybe this is
the time now sell your house or go out and
buy a house. What do you tell people about that.

Speaker 5 (21:01):
Well, the mortgage interest rates, they kind of they act
sort of independently, but they also act dependently on what
the Fed's doing. So those rates are changing all the
time as well without any FED action, but they will

(21:21):
kind of follow the trend of whatever the FED is doing. So,
you know, there's always adverse reactions to everything that happens.
When when rates go down for mortgages, the home values increase.
So you know, you could get a better rate if
you're going to buy your house right now, but the

(21:44):
price of that home could increase as well. So there's
a trade off for everything that happens, and if you're
going to be selling or buying your home. I wouldn't
try to play the game all that much on when
the best time would be to do that. Obviously, if
we have anaight nine, you know, maybe that's not the
best time to be doing that kind of thing. But

(22:06):
it seems like we have a stable economy right now,
so I wouldn't really be trying to play games with that.
But what I would do is just make sure that
you have a financial plan for everything that you're wanting
to do, and make sure that you stress test it
for different inflation metrics, and make sure that your asset
allocations are in line with your needs. And make sure

(22:26):
especially that you have a good bond diversification with all
these interest rate changes.

Speaker 4 (22:31):
Now, if this sounds overwhelming to you, and if it does,
it would certainly be understanding. Maybe it's because you need
a partner who understands this, follows this each and every day,
and can help to guide you in a direction that
is most.

Speaker 3 (22:44):
Beneficial to you.

Speaker 4 (22:46):
Why don't you give the folks that have in financial
group a call. It's six one two five zero four
eight four zero zero. They would love to have you
come in, sit down, talk to them about your portfolio,
whether you have one or you don't. If you do,
maybe it needs to be stress test tested. And if
you don't, then now is the time to put one together.

(23:07):
It's six one two five zero four eighty four hundred.
When we come back, we're going to talk about investment
management principles, principles for retirees right here on the Haven
Financial Radio Show.

Speaker 1 (23:20):
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 (23:43):
Good morning once again, and welcome to the Haven Financial
Group Radio Show. I'm Larry Kalvig, founder and CEO of
the Haven Financial Group. Kyle Thomas on with us today,
certified financial planner on the Haven Investment Team, proudly celebrating
our tenure anniversary this year, Kim, as we've talked about years.
By the way, we had some great educational classes from

(24:03):
the local police department this past week, full classes on
fraud and scammers and what to look for. And we
continue to have those types of classes to assist the
public and our clients and all those that can be
negatively affected by this fraud that only seems to get worse.
So again, thanks thanks to the local police for coming

(24:25):
in and teaching us on what we could expect out
there and how to avoid some of these issues.

Speaker 4 (24:30):
That's fantastic. Six one two, five zero four eighty four hundred.
That is the number for Haven Financial Group. If anything
we're talking about today rings a bell and you'd like
to get some questions answered, be sure you give them
a call again, it's six one two five zero four
eight four zero zero. We're talking about inflation and the

(24:53):
effeds interest rate hikes. We want to talk about investment
management principles for retirees. I think there's a lot of
folks out there who are wondering, with inflation being high
and interest rates being cut, you know, what are the guidelines?

Speaker 1 (25:08):
What should I be doing?

Speaker 4 (25:09):
So maybe you guys could walk us through some of
the principles that you invest with and that maybe our
listeners should be aware of, starting with balancing growth and protection.

Speaker 3 (25:22):
Yeah.

Speaker 2 (25:22):
I think when most people think of investing, they you know,
they picture the stock market, chasing returns, how to outsmart
the market, timing the market, which all can be very dangerous.
But when you're getting close to retirement or in retirement,
you know, I always say, you know, offense is important,
but defense wins championships, you know, coming up with a
plan that has some stability, maybe some security, which doesn't

(25:45):
mean becoming over conservative. But what we see in observation
over many, many years is most people don't know how
much risk they're taking. And again it's not the same
for everybody. It's not one glove fits all, but helping
people understand, here's how much risk you have? Is that comfortable?
What's your willingness for risk? Do you need to take
a bunch of risk? You may have the ability to,

(26:07):
But how do you answer those questions? Is protection principal protection?
Is that more important to you?

Speaker 1 (26:13):
You know?

Speaker 2 (26:14):
I can think of a I had a lady again
this past week and she was referred to us by
a client. She's in the healthcare field. She's ran a
variety of different nursing homes over many, many years, and
she's a single, she's had no kids, very few beneficiaries.

(26:34):
But she goes, you know, Larry, at this stage of
the game, I don't want to be taking a bunch
of risk anymore. And it's not for us to tell
her she should. She flat out said she didn't want
to and she didn't need to. And whether it was
an intentional or not, she's done a great job saving
for retirement to the degree that she could retire today
and it wouldn't make one bit of difference. So again,

(26:55):
it's really listing to the folks that we're sitting with
having an unders standing of what they're trying to accomplish.
Are they looking to double their portfolio. Are they looking
to maintain their portfolio? And we want to be reasonable.
You know, I always say a lot of financial people
like to puff up numbers, and that's to me just
a waste of time. Let's be reasonable, Let's be practical,

(27:18):
and there are types of returns that we're projecting. Of course,
we all want the highest returns, but again, the market
goes up and it goes down. So these are the
conversations that we continue, we continually have throughout all the
years of retirement, which we hope are many, many many years.

Speaker 4 (27:36):
Absolutely, we're talking about investment management principles for retirees. Larry
just talking about balancing growth and protection, not being too
conservative and yet not being too aggressive and being realistic.
Diversification is another term that you guys use all the time,
and this has gone to be an investment principle. You
have to have a diversified portfolio in order or to

(28:00):
overcome the things that we're talking about, inflation, rate cuts,
these kinds of things.

Speaker 5 (28:07):
Absolutely, diversification is one of the best ways that we
mitigate risk. And like Larry mentioned, as we get into
that retirement phase, we want to make sure that we
aren't overstretching ourselves. We don't want to be too aggressive,
but we also don't want to be too conservative, So
we want to have a nice mix there of stocks

(28:29):
to bonds. But within each of those stocks and bonds categories,
there's diversification that happens. So within the stocks, we want
to make sure that we have large caps covered in
different types of large caps, and we want to make sure
we have small caps covered in different types of small caps.
And we want to make sure we have international exposure
and emerging markets and then real estate, and those are

(28:52):
all important because they all act differently, especially at different times.
This year, internationals outpacing the unit the state's stocks, so
we want to make sure that we have some exposure
to that as well. And we don't know when these
different asset classes are going to be at the top,

(29:13):
were the best performers or the worst performers, So that's
why we allocate to them all and actively rebalance. On
the bond side, we have different types of bonds. We
have short term bonds, we have intermediate term bonds, we
have global bonds, we have tips. We mentioned treasury inflation
protected securities earlier, so we have these investments spread across

(29:35):
different industries, different regions, and what that does is it
reduces your overall risk because there's hundreds of investments inside
each of these funds, and we're trying to not have
any of these funds overlap with each other. That way,
you get a peer play in whatever whatever kind of
way we're trying to invest for each of those different

(29:56):
styles of investments.

Speaker 4 (29:59):
Of course, we're all that when we were in retirement,
all of these investments will eventually bring us some kind
of income, so you have to manage those withdrawals. Though
you have to do that in a way, I feel
confident that you're hitting the market at the right time,
and you're hitting these tools at the right time. You're
also keeping in mind tax ramifications.

Speaker 2 (30:21):
Taxes are a big discussion and we talk about it
every week. Of course, Lance and Melissa, our CPA's in
our office. We're having We're big into forward thinking tax planning.
Where to draw from what investments in the most tax
efficient way possible. You know, we all worked hard for
every dollar that we've saved, and we just don't want
to give it to Uncle Sam unless you're very, very generous,

(30:42):
and I find most don't want to be.

Speaker 3 (30:44):
Because they'll take it.

Speaker 2 (30:46):
Of course they'll take it, but again, taxes drives a
lot of the discussion. Just this past week, I had
a couple that was in and they drew off the
wrong account and it caused major capital gains tax implications.
And recently we also had somebody come a couple of
years ago that the person they're working with thought it
would be a great idea to do a very large

(31:07):
IRA to wroth conversion, which we're big, major advocates of
wroth conversions. Fourth quarter, we're going to have these discussions,
but only if it makes tax sense. And they went
through with it two years ago, and because they converted
so much and income showed up higher, it affected their
Medicare and IRMA because there's a two year look back

(31:27):
and it have cost to them significant money. Those are
the errors and the mistakes we want to help people avoid.
And the problem these mistakes happen for many folks is
they're not getting the attention they deserve, they're not getting
the conversations, they're not getting the planning process. And that's
really what our focus is and we think it's extremely
important and I won't let it stop there. The other

(31:49):
part was managing fees. You know, nothing is free. I
don't expect to have anything free, but I think listeners
should owe it to themselves to know what they're paying
and what value they're getting. Because I've said it before.
When I ask folks on a weekly basis, what are
they paying their guy or gal to manage their money?
The answer I get seventy five to eighty percent of

(32:10):
the time is that's a really good question, Larry, we
have no idea, which I find pretty amazing. You should
know what you're paying and what value are you getting.
And do you truly have a partner that's looking out
for your interests or I hate to say it, are
they looking out just for their own interests?

Speaker 4 (32:26):
Sure? Absolutely, And as we continue to talk about investment
management principles, one of the things that we talk about
pretty regularly here is behavioral principles and behavioral discipline. And
this is the perfect time to talk about that because
something major has happened in the economy, and that was

(32:46):
a rate cut. There's been a lot of talk about inflation.
People get emotional, and they get payanic stricken, and sometimes
they make decisions that they shouldn't make.

Speaker 5 (32:55):
Kyle, Yeah, Emotional decision making is something that almost every
single person has, and we just get so attached to
the dollars that we've saved and worked our whole lives
for that. I can't really blame anyone for getting emotional
around that, but we need to make sure that we're
not making any decisions based on that. And that's something

(33:17):
that advisors can really help with is behavioral coaching. And
one thing that we do to avoid ourselves from even
doing that is just having a disciplined approach and strategy
going into every relationship we have with our clients. And
the way that we do that is we set that
risk profile from the very beginning. We find out what

(33:37):
was suitable, but then we stay within that risk profile,
but we actively manage it. And when we do that,
we're rebalancing at strategic times. When the portfolio gets out
of balance by a certain variation, well then that tells
us that we need to rebalance, and we're not getting
emotional from it. We're not going in there and seeing

(34:00):
the SMPS up two percent today. We're going to do
this and if on the vice versa, if it's down
five percent today, we're going to rebalance. We're doing it
when the variation tells us that we need to so
that we're using technology to help us with that, because
there's all these different asset classes like we were talking
about that are acting independently and we just need to

(34:22):
make sure that we have a disciplined approach that helps
us to not have any type of behavioral decisions going on.
It's purely a strategic decision that we were aligned with
at the beginning.

Speaker 4 (34:35):
We've run through these principles pretty quickly, and they are
really important for retirees when it comes to managing their investments.
If you would like to sit down and talk more
about investment management principles and the things that you should
be looking out for and you should be doing to
make sure that your investments are safe and are working
for you in a positive way. Give the folks that

(34:56):
have in Financial Group a call. They're number is six
one two so five zero four eight four zero zero.
If you're looking for a partner, someone who will work
with you to make sure that your retirement is exactly
what you wanted to be, give the folks at Haven
Financial Group a call. They would love to be your partner.
It's six one two five zero four eighty four hundred up. Next,

(35:19):
take financial caution before transitioning into retirement. Are you just
about to retire, Well, let's make sure that you've got
all your ducks in a row. This is the Haven
Financial Group Radio Show.

Speaker 1 (35:30):
Don't go too far. We're gathering more important insights and
retirement ways Devin The Haven Financial Group Radio Show.

Speaker 3 (35:36):
We'll be right back.

Speaker 1 (35:38):
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 the show.

Speaker 2 (35:52):
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. Please to have Kyle Thomas on
the Investment team, Certified Financial Planner with us today. I
take away from Kim from that last segment where we
talked about emotions. You know, are you in the right
place if you're listening and every time the market has

(36:15):
an up or down and you panic, you're ready to
jump off the cliff, you can't sleep at night. I'm
guessing that you might not be in the right place
at the right time, or you're not getting the attention
or the conversations, or you may not have the partner
that you should have to give you the confidence and
can talk through these things so you don't have to

(36:37):
live like that. It's really about financial confidence, having a plan.
And if that's you, if I just described you, give
us a call at six' one two five zero four
to eighty four. Hundred come on in and visit with,
us have a, conversation if nothing, else a conversation you
might find out something you didn't know and that might
help you.

Speaker 4 (36:57):
Absolutely six one two zero four eighty four hundred is the.
Number we've been talking about The fed's rate, cut which
happened about a week and a half, ago, inflation and
the impact that all of this has on. Retirees in
this last, semement we want to talk a little bit
about those who are transitioning into retirement and some of

(37:18):
the financial steps that you would need to take to
make sure that you make that transition smoothly and that
you are able to stay. Retired let's talk a little
bit if we could guys about saving to spending that.
Transition let's talk a little bit about how you go
about doing that all your. Life you know you're, saving, saving,

(37:39):
saving and then suddenly you realize when you get to, retirement,
well NOW i have to have. MONEY i have to start.
Spending and that's not so easy for.

Speaker 5 (37:47):
Me, no it's not, easy and it's actually a worry
that we see on a weekly daily basis from the
folks that we meet. With and one of the best
ways to do that is just go through a sustainability
test and, analysis, because like you, said for forty, years

(38:10):
you're saving up and you're being told to save because
you're going to need this down the. Road and then
you're at retirement and then you're looking at thirty years
of retirement and this is all you have and if
you're going to spend it down that might cause some.
Concern but the REASON i say you should do a
sustainability test is because we. Can we can input all

(38:31):
of this, information all of your, assets all of your
desired goals from, spending incorporate inflation into, it and then
come up to A Monti carlo simulation of a thousand different.
Trials and these thousand different trials have different market assumptions
for every single, one and once we go through, that
we get a score of what our sustainability is and

(38:54):
maybe that number is good and we don't have to adjust,
anything but maybe it's slightly lower than we want to,
be and maybe we have to adjust. Something but it all.
Depends that's why you need to go through that to
make sure that your situation is. Good BUT i want
to actually give a story of someone from last, Week
paul And. Claire they came in and we ran through

(39:15):
the analysis with, them and they were extremely shocked that
by the end of their, plan they actually were estimated
to have more money than they started. With this was
going to the mid, nineties and this is in current
dollars as, well because you, know thirty forty years from
now that dollar value is going to be, inflated so

(39:36):
we always tie it back to what that means in today's.
Dollars their current dollars were valued higher than what they
are right now thirty years from. Now so that's something
that's really shocking to people when they go through this,
analysis that they actually end up with more at the
end of their plan than they started, with even though
they're spending this money and living their retirement exactly how

(39:58):
they want.

Speaker 4 (39:58):
To, yeah nobody's, dream isn't. It everybody hopes that's how
it turns. Out we're talking about transitioning into retirement and
making sure that you have the correct. Tools that's something
THAT i think a lot of people. Don't as you
plan for, retirement you may have your money in one,
place but when retirement rolls, around maybe your retirement tools are,

(40:21):
Different your investment locations are. Different is that?

Speaker 2 (40:24):
Correct it can, be you, know when we're talking about
transitioning saving to, spending for some people it is really.

Speaker 3 (40:30):
Difficult some people have no problems.

Speaker 2 (40:33):
SPENDING i won't mention any names on, air of, course
but some people really have a. CHALLENGE i get a
kick out of some folks that, say, Well i'm going
to spend it all in my. Retirement the kids are
going to get. Nothing i'm going to spend it. All
YET i know their, BUDGET i know they're. Disciplined they
are not going to spend it all because they couldn't
spend hardly any money even if they tried. To so

(40:55):
we're all wired a little bit. Differently but there are
tools that we want to explore potentially in, retirement depending
upon do you have a, pension what will your social security,
be what does.

Speaker 3 (41:07):
That income look?

Speaker 2 (41:08):
Like do we need to generate some additional income from
some other investment. Options maybe it's, annuities maybe it's from your,
bonds whatever it may, be is and explore those options
because income is the name of the. Game mailbox money,
AGAIN i mentioned it many. Times we have clients that
have super large portfolios that potentially are going to run

(41:29):
out of, money and those that have smaller portfolios that
have all kinds of monthly income and they're happy as
can be and they're not going to run out of.
Money so circumstances are different for many many. People so
it's never one glove fits. All it's really a discussion
that we need to have with everybody to determine what

(41:51):
makes the most.

Speaker 3 (41:51):
Sense and it's not the same for.

Speaker 2 (41:53):
Everybody you, know, Eventually God, william we're going to get
to the age of seventy three or seventy five and
require minium distributs are going to be part of the.
Discussion for many, retirees that means more taxes than they
really want to even talk. About the conversation goes, from,
oh my, GOODNESS i make more money now THAN i
did WHEN i was. Working great problem to, have but

(42:15):
perhaps there could have been some tax planning early on
in retirement to minimize those tax ramifications. Later and AS
i mentioned it is coming into fourth, quarter we're going
to have these conversations so we don't miss tax.

Speaker 3 (42:30):
OPPORTUNITIES i call.

Speaker 2 (42:32):
Them unforced errors that many people have missed over the
last several years because they're not having the tax. Discussions
they're only getting taxes, prepared and they might be getting
them ill, prepared and they're missing the whole tax planning.
Process for, retirees it becomes ever more.

Speaker 4 (42:49):
IMPORTANT i would think when you're talking about transitioning to
you need to talk about, healthcare and you need to
talk about when it is you plan to take Your Social.

Speaker 2 (42:58):
Security, well as you, know we teach any classes social
security timing and, taxes they're very well. Attended when should
you take it sixty two at the, earliest seventy at the,
latest or anytime in.

Speaker 3 (43:10):
Between there there's all kinds of.

Speaker 2 (43:12):
Variables are you going to, work are you? Married what
is your? Plan and, again for some waiting till seventy
is the right. Decision for many it's. Not but the
problem is many people make the decision based on, WELL
i just thought everybody turned it on at sixty. Two
that's what all my friends. Did but your circumstances certainly
might be very. Different and oftentimes people come in with

(43:33):
this idea that we're going to sock it to the
government And i'm going to turn it on at sixty
two And i'm just going to stick it to. Them
probably not a good decision making. Process and in those, conversations,
oftentimes through the thorough conversations that we, have they walk out, going,
yeah that might my idea of turning on at sixty

(43:54):
two is really not a smart. Idea not that we're
trying to make them not look, smart it's, oh this
doesn't make, sense and this is why it doesn't make.

Speaker 4 (44:03):
Sense and the issue of, medicare let's talk about. That
people as they transition need to really start thinking about.
That if they're still, working obviously they maybe have, insurance
but if, not at sixty, five it's time to start
that process.

Speaker 5 (44:21):
Absolutely and first, Off i'm just going to mention if
you have any medicare, questions please make sure you Consult
glenn in our. Office he is the smartest Person i've
ever met when it comes To medicare and everything that
goes along with.

Speaker 4 (44:35):
That but, yeah and a lot goes along with, it doesn't.

Speaker 5 (44:39):
It, yeah a lot goes along with. It, Yeah so
it's important to make sure that you have that in line,
too because there's deadlines for that and with the cost
of it that inflation In medicare inflation tends to go
up more so than the base, inflation so that's also

(45:00):
something that you need to plan for and make sure
that that's going to be sustainable for you because it's
typically a couple percent higher than the standard. Inflation but,
choosing you, know what kind of program that you go
into has a huge impact based on you, know your
premiums and what kind of coverage you're going to, have

(45:21):
and just making sure that it's coordinated with the rest
of your plan and that you're covered from an insurance
perspective if, anything you, Know god forbid happens to.

Speaker 4 (45:30):
You, well we've been talking about transitioning into retirement And
LARRY i would say that probably one of the biggest
tips THAT i would think that we could give our
listeners is that if you're getting ready to transition and
you're not working with a, partner now is the.

Speaker 2 (45:47):
Time, Yes And i'll add one, thing liquidity is so.
Important don't go into retirement with very little liquid there's
benchmarks we like to see for, liquidity principal protected investments
and the managing the risk the stock.

Speaker 3 (46:00):
Market but, yeah comprehensive.

Speaker 2 (46:02):
Planning we talk about it every week At Han Financial.
Group we offer all these things you would expect from
accounting for your, income tax, planning, medicare, healthcare managing, debt
legacy and estate. Planning all of these retirement puzzle pieces
are so extremely important and they should be. Coordinated they

(46:23):
should be working, together and we're very successful at doing
that because we have very good communication. Here and it's
a big compliment we get IS i like having everything
under the same, Roof not that you have, to but
they're working together and they're not working against each. Other
they're working, together and that's so extremely. Important so if

(46:45):
you have questions in any of these retirement, areas if
you're not getting the attention you, deserve you don't know
what you're, paying feel free to give us a call
at sixty one twenty five four eighty four.

Speaker 3 (46:56):
Hundred we'd love to visit with.

Speaker 4 (46:57):
You all, right, gentlemen another great informative. Show oh thank
you so.

Speaker 3 (47:00):
Much Thanks kim.

Speaker 6 (47:03):
Mmy investment advisory service is offered Through Guardian Well STRATEGIES.
Llc Haven Financial group And Guardian Well STRATEGIES llc are
not affiliated, companies and investments involve, risk, and unless otherwise,
stated are not. Guaranteed please consult with the qualified financial
advisor and or tax professional before implementing any strategy discussed

(47:23):
herein and comments regarding it safe and. Secure 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.

Speaker 1 (47:38):
Company