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 Strategies: Agree or Disagree?

March 28, 2024

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

March 21, 2024

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

March 14, 2024

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

March 7, 2024

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

February 29, 2024

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?

February 22, 2024

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

The Good Old Days

February 15, 2024

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

Mailbag: When Should I Retire?

February 8, 2024

When is the perfect time to retire? One question from the mailbag asks whether retiring now or in two years will make a big difference. Eric explains what you’ll need to consider and what differences you might encounter from a work and lifestyle standpoint. Then, he answers Nancy’s question on how important it is to have a financial advisor in retirement.

Read More

Discussing Dave Ramsey and His Core Beliefs

February 1, 2024

More than likely, you’ve heard about financial commentator, Dave Ramsey. Today, we talk about some of Dave’s core beliefs and how it may differ from those of a licensed financial advisor. While Dave’s tips and baby steps have helped people, it’s worth taking some of his advice with a grain of salt. 

Read More

Mailbag: What Should I Do With My Inheritance?

January 25, 2024

Every day you have to make choices about your money. What to spend it on, when to save, and how to manage it well. We tackle three questions from the mailbag today from people facing a financial decision. From learning how to take care of the household finances after one spouse passes to deciding about helping a child pay for college, Eric can help point clients in the right direction.

Read More

Leave a Comment