Today’s Prep:
What safety measures do you use when you own a gun? Are you implementing similar tactics with your financial plan?
Equipping Points:
We like to use different analogies to relate financial planning with different aspects of life. From planning a vacation to playing chess, various topics will connect with different people and what they are most familiar with. So, today, we will compare financial planning to gun safety. What common safety measures apply to both?
Why take the risk when you do not need to? Even when playing, you never point a gun at someone because it’s a risk. What kind of investment risks are you taking that aren’t worthwhile? Have you had a risk assessment on your investments to find out just how exposed you are? It’s crucial to practice safety.
If you own guns, it’s important to keep your ammunition separate from your guns. Likewise, with your investments, you don’t want them all in the same place. Are yours properly spread out?
Sometimes we get a distorted view of what is entertainment and what is real. From video games to movies, you may think you are familiar with guns without any real experience or understanding. Similarly, financial shows or online tools may make things look simple or only share the success stories. Make sure you know the difference between education and entertainment.
Finally, is everything locked away as it should be? With a gun, you have a gun safe to keep it safe and out of the wrong hands. What about your assets and investments? What kind of safety net and emergency funds do you have set up? Don’t blur the lines between saving and investing. Make sure you have a plan in order to achieve your financial goals.
Listen to the full episode or click on the timestamps below to skip ahead.
1:15 – How does gun safety relate to financial planning?
2:03 – Why take unnecessary risk?
4:00 – Keep your ammunition separate from your guns.
5:48 – Understanding education vs. entertainment.
9:20 – Use a safe.
Today’s Takeaway:
“Investing money will fluctuate; saving money shouldn’t. Saving money and income money needs to be a lot safer than what a lot of people have right now.“
-Eric Peterson
Related Resources:
Facing the Villains in the Financial World
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Retirement Planning Statistics
Retirement is closer than you think, but are you ready? With a staggering number of people lacking confidence in their retirement savings, Eric shares the misconceptions people have and what mistakes can derail someone’s financial future. Many people feel inadequate when it comes to what they have saved in their nest egg, uninformed about the pitfalls of target date funds, and unprepared about the reality of leaving the workforce earlier than expected.
Read More
Mailbag: Should I Fire My Broker?
Navigating life’s financial crossroads can be tricky, especially when it involves your financial future. In this episode of Retirement Ready, Eric addresses these complex issues head-on. How do you best evaluate your broker and your investment performance against the S&P 500? Eric says a lot of that comes down to setting expectations and understanding the risks. Then, Holly wants to know what to consider before making a midlife career change.
Read More
Putting It Off
We are all guilty of procrastinating from time to time. Financially speaking, though, this can get you into a lot of trouble. Let’s talk about the areas where it might feel better to kick the can down the road.
Read More
Common Scams to Avoid
Americans over 60 have lost more than $3.1 billion in various forms of fraud and scams in the last 12 months! Today we talk through some of the common scams people unfortunately fall for and how you can stay vigilant against it.
Read More
Financial Strategies: Agree or Disagree?
There are a number of financial ideas that people have differing opinions on. Eric shares today which of these he agrees with or disagrees and why.
Read More
Divorce Mistakes
Unfortunately, divorce happens. When it does, no one wants to make costly financial mistakes amidst an already stressful time. Today, we talk about the mistakes that can happen and how to avoid them when it comes to dividing up your assets with a spouse.
Read More
Villains of the Financial World
Just like some of these cinematic villains, some of these financial elements may have a bit of nuance and history that can make it hard to label them all good or all bad.
Read More
Uses for Life Insurance
When you’re younger, life insurance is often thought of as an income replacement as needed. But as you get older and into retirement, you might find other uses for life insurance. When thinking ahead for your estate and how it passes to beneficiaries, life insurance can prove to be a useful tool. Currently, the proceeds from life insurance are tax-free. How does that change how you include it in your financial plan? Eric outlines some of the options and benefits life insurance can provide.
Read More
Understanding Financial Risk
What kind of risks do you take in your financial life? As you get less comfortable with things like climbing up ladders and riding on skateboards, you might also become less financially risky. When you enter retirement, how you view your money in the market changes significantly from your working years. It’s important to look at your portfolio to ensure your investments match your risk tolerance.
Read More
Mailbag: What Financial Advice Should I Share with My Grandchild?
Why is retirement planning different than the “good old days” that our parents and grandparents experienced? Things like pensions, Social Security, and even RMD age have changed. Is your financial plan set up accordingly or is it in need of some changes to match?
Read More