Skip to content

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.

(Click the featured times below to jump forward in the episode)

 

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:

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

Understanding The SECURE Act, Part 1

January 23, 2020

What is the SECURE Act? And how does it impact your retirement plans? We’ll outline some of the major changes you need to be aware of in this two-part series.

Read More

Retirement Savings Options: IRA Contributions & Roth Conversions

January 16, 2020

What happens if you’ve maxed out your 401(k) contribution limit? When is a good time to make a Roth conversion? Eric answers three questions from the mailbag this week all pertaining to the options you have when it comes to saving for retirement.

Read More

Making The Right Decisions When It Comes To Real Estate

January 9, 2020

Are you considering making a move this year? When it comes to home buying or selling decisions, there are a lot of factors to consider. Eric answers a few questions from the mailbag related to real estate.

Read More

Fortune Cookie Proverbs For Your Financial Plan

January 2, 2020

The message inside a fortune cookie may bring you more fortune than you think if you apply those proverbs in your financial plan. Let’s look at four fortunes and how it applies with your financial decisions.

Read More

Facing The Final Decade Before Retirement

December 26, 2019

The last few years leading up to retirement can have a significant impact on what your retirement actually looks like. This is when you start making the decisions and plans you’ll actually implement in a few years. Are you ready?

Read More

What Flying Can Teach Us About Retirement

December 12, 2019

Any time you fly in a plane, there’s a lot going on as you travel to your destination. How does this relate to your financial plan? We compare the experience of flying to preparing for retirement in today’s episode.

Read More

What Holds You Back From Breaking Up With A Financial Advisor?

December 5, 2019

Breaking up is hard, but sometimes you stay in a relationship too long for the wrong reasons. Is your relationship with your financial advisor working as it should? Or are you using some of these common excuses to stay with the wrong advisor?

Read More

7 Deadly Sins of Financial Planning

November 26, 2019

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?

Read More

Let’s Play Financial Jeopardy

November 21, 2019

Financial for 200! Financial for 400! Are you ready to match the questions with the statements like in Jeopardy when it comes to your knowledge of financial terms? Which of these currently impact your retirement plan?

Read More

Getting Your Health And Wealth In Shape

November 14, 2019

Are you feeling yourself slide into a bit of a rut? Need more tone and discipline in your life? Getting your body in shape can look a lot like getting your finances in shape.

Read More

Leave a Comment