Today’s Prep:
Maybe you are great at saving and putting away money toward retirement. Is that enough? Find out three areas where a bit more strategy and behavior modification may come into play with your savings and investments as you enter into retirement.
Equipping Points:
Let’s say you’ve done a good job saving, kept out of debt, and your investments have done decently. Your retirement should be good, right? Even if you’ve done well by saving, there may still be some pitfalls that can trip up even the best savers. On today’s episode of the Retirement Ready podcast, we talk through three primary areas you’ll want to make sure to keep in mind when it comes to how you save.
The closer you get to retirement, your need for money in savings diminishes. Why? Your accounts all end up being relatively liquid in retirement since you can now access your 401(k) and IRAs without penalty. After years of wanting to have money in your savings account, you may want to reassess where your money can best serve you.
Are you taking too much risk in the market? The closer you get to retirement, the more you may want to consider what kind of risk you can handle. One way Eric helps his clients keep this in check is by reviewing three things: capacity, attitude, and need (CAN).
Taxes might be a headache now, but in retirement they will actually have a bigger impact than when you are working. There are a few options on how to pay them (since they won’t be automatically coming out of your paycheck), and it’s important to make a plan on how you want to address taxes strategically.
Is your saving strategy serving you well in retirement? Make sure you go over your plan with an advisor to address your needs and direction, because those may change as you enter into retirement.
Listen to the full episode to hear more or click on the timestamps below for a specific concept.
1:26 – Be careful about keeping too much cash in savings.
2:52 – Why you need to implement behavior modification when it comes to a rainy day fund in retirement.
5:24 – Don’t overlook the risk of your investments.
6:38 – The math behind how much risk you’re willing to take.
8:21 – Taxes are going to impact you more in retirement than when you are working.
Related Resources:
7 Deadly Sins of Financial Planning
Can Financial Planning Be A DIY Job?
Today’s Takeaway:
[spp-tweet tweet=”Markets will correct, they always do. Why are you risking it if you don’t have to in retirement? How much risk or what return do you need to make your plan work? –Eric Peterson“]
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Mailbag: 4% Rule, Life Insurance, and Early Retirement Questions
In this episode, Eric opens the mailbag to answer three listener questions that hit on some of the most common—and often misunderstood—retirement topics.
Read More
Beyond Stocks: The Problem-Solving Power of Financial Advisors
Most people think a financial advisor’s primary job is picking investments, but that’s just a small piece of the puzzle. In today’s episode, Eric explains that the real work happens in solving the complex, emotional, and unexpected problems that come with retirement: early job loss, tax challenges, the loss of a spouse, or even recovering from bad advice.
Read More
Mailbag – Roth IRA, Emergency Funds & Tax-Deferred vs. Tax-Free
Making more money is great, but what happens when it becomes a roadblock for contributing to a Roth IRA? And how can you make your emergency fund work smarter for you? In today’s episode, we pull from the mailbag and answer a mix of listener questions. Eric addresses concerns that reflect the real-life hurdles many face on the road to retirement.
Read More
How 2025 Tax Updates Can Impact Your Financial Plan
Although tax season has come to a close, the time for smart tax planning has just begun! In this episode, we unpack the upcoming tax updates that could affect your planning for the next few years, including changes to 401(k) contribution limits, tax deductions, and the potential benefits of using tax-advantaged accounts like HSAs.
Read More
Early Retirement: Dream Come True or Financial Trap?
Ever fantasize about leaving your 9-to-5 before traditional retirement age? You’re not alone, but is early retirement even possible? In today’s episode, Eric explores what it really takes to retire early including how to tackle healthcare costs, how to make money last longer and the importance of shifting your mindset from spender to saver.
Read More
What 400+ Advisors Say Really Keeps Retirees Up at Night
What are Americans really concerned about when it comes to retirement? In this episode, we unpack the results of an insightful survey from Financial Advisor Magazine, which was completed by over 400 financial advisors. We’ll also compare these answers with the real-world concerns we hear every day from the clients in our own practice.
Read More
Bracket Busters and Stock Flops: The Risky Game of Picking Winners
March Madness is here, and just like filling out a bracket, picking individual stocks can feel like a thrilling gamble. But the odds of winning big are slim. In fact, history shows that most stock picks, like most brackets, end up busted.
Read More
Are Hidden Fees Draining Your Retirement Savings?
In this episode, Eric reveals the true cost of investing and how to protect yourself from unnecessary financial drains.
Read More
What Game Night Can Teach Us About Financial Planning
In this episode, Eric breaks down the surprising financial lessons hidden in classic board games, offering valuable insights to help you navigate your retirement strategy.
Read More
Mailbag – Upsizing, Financial Advisors & Business Owner Planning
Join us as we answer questions about the challenges of downsizing, the emotional aspects of planning for family gatherings, and the realities of transitioning into a financial advisory career.
Read More