7 Deadly Sins of Financial Planning

Today’s Prep:

Like in all areas of life, it’s important to be cognizant of your blind spots and sinful tendencies. When it comes to the seven deadly sins, how do those apply in your financial plans?

 

Equipping Points:

The seven deadly sins are ones you want to avoid in many areas of your life. How about in your finances? What do these look like and how can you actively resist them?

From a retirement planning standpoint, you need to be careful to not let your pride get in the way. You may be able to do plenty on your own, but don’t ignore or overlook the value that an advisor may bring. Also ask, would you rather spend time going over spreadsheets and watching your retirement or letting someone else worry about it?

Be cautious about keeping up with the Joneses and don’t let envy rule your financial decisions. The thing about being in retirement is, once you’ve spent money, it’s very hard to replace when you are no longer working. Work your plan and make sure it works for you.

A lot of people think retirement planning is insurmountable, but once you take that first step, it becomes easier. You have to work against the tendency to feel overwhelmed or fall into a sloth-like state, but once it’s established, retirement planning is often just minor updates.

Are you lusting after a certain retirement lifestyle that is well beyond your savings? The 4% rule is an easy one to use to help judge whether your goals are realistic or lofty. Set realistic expectations in order to avoid being lustful about your retirement plans.

In addition to these deadly sins, what does wrath, gluttony, and greed look like in a retirement plan?

Listen to the full episode to hear all seven financial sins to avoid or click on one of the timestamps below to hear about a particular deadly sin in your retirement plan.

1:07 – How pride gets in the way of your finances.

3:48 – Envy

6:12 – Wrath against your job, the market, or your financial situation can cause long-term consequences.

7:11 – Greed may cause you to look for a big payday…but then lose it.

9:40 – Sloth behavior can make establishing a retirement plan feel insurmountable.

11:13 – Gluttony is too much of one thing when you need to diversify.

13:37 – Lust may look like lofty goals, but it’s important to have realistic goals.

 

Related Resources:

Watch Out For These Red Flags When Working With A Financial Advisor

Can Financial Planning Be A DIY Job?

 

Today’s Takeaway:

[spp-tweet tweet=”Stress-test your portfolio. If your portfolio doesn’t make it, then you need to make some changes.  –Eric Peterson“]

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Financial Wisdom from Mark Twain

June 13, 2024

In the latest episode of the Retirement Ready Podcast, Eric invites us to explore the timeless wisdom of Mark Twain and how it applies to modern financial planning. Mark Twain, known for his wit and keen observations, offers quotes that are surprisingly relevant to today’s financial landscape. Eric takes these quotes and translates them into practical advice for those planning their retirement.

Read More

Understanding Bonds in Today’s Market

June 6, 2024

Are bonds really the safe investment we’ve always been told they are? What percentage of assets should a retiree or pre-retiree hold in bonds? In today’s episode, Eric addresses some of his most frequently asked questions about the world of bonds…

Read More

Understanding Your Financial Statements

May 30, 2024

Financial statements can often feel like a foreign language, filled with jargon and numbers that seem to have little relevance to your everyday life. However, understanding these documents is crucial for effective retirement planning. In the latest episode of the Retirement Ready Podcast, Eric breaks down the essentials of reading and interpreting your financial statements.

Read More

From Graduation to Retirement

May 23, 2024

This one goes to the grads! Whether you know someone graduating high school, college, or even preschool, graduation marks a new stage and season in life. Similarly, retirement is a new chapter in life. It’s a time of change, celebration, and sometimes, uncertainty. On today’s show, we talk through the similarities between leaving school and entering retirement.

Read More

401(k) Mistakes

May 16, 2024

Your 401(k) likely plays a major role in your retirement savings. That’s why it’s important that it’s set up and functions in the way that’s most beneficial to you. Following our last podcast about beneficiary mistakes, now we focus on common mistakes people make with their 401(k).

Read More

Beneficiary Mistakes

May 9, 2024

In this episode of the Retirement Ready Podcast, Eric guides us through the critical yet often overlooked details of beneficiary designations. Learn the simple yet vital steps to prevent beneficiary blunders that could lead to unnecessary headaches for your heirs. Eric calls these errors “low hanging fruit” because they’re easy to fix yet can save your family from future heartache.

Read More

How Emotions Can Impact Your Retirement Plan

May 2, 2024

Dive into the world of financial emotions in this episode with Eric Peterson. Discover how greed, fear, hope, and pride can make or break your investment strategy. Eric unravels the complexities of managing emotions to ensure a secure and enjoyable retirement.

Read More

Retirement Planning Statistics

April 25, 2024

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?

April 18, 2024

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

April 11, 2024

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

Leave a Comment