A Message For The Good Savers

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“]

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

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

Common Scams to Avoid

April 4, 2024

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?

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

Leave a Comment