Are These Things Overrated or Underrated

Today’s Prep:

Let’s play a little game of overrated or underrated to see how Eric feels about a number of financial topics (and some silly ones) in today’s podcast! Which of these do you agree with?

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

Equipping Points:

Which of these things in the financial realm (and beyond) are overrated or underrated? We talk through a few common things to see what your level of hype and appreciation for them should be or how you should make changes.

To start, are you looking for a big tax refund in April? This is overrated because if you’re getting a big tax refund from the government, that means you are missing out on that money all year. You want to have either a small refund or owe a small amount of money. This can be done by adjusting your withholdings.

What about paying off your house early? Is this actually a good idea? When you enter retirement, you may want less debt. But don’t let having a mortgage payment be the one thing that will prevent you from retirement. It will get paid off at some point. Avoid taking money out of your IRA just to pay off the house early.

Look out for variable annuities because Eric calls them overrated. They sell you on a promise of “sizzle” for income opportunities and benefits. What they don’t tell you is what it costs to get that.

Finally, are Roth IRAs as good as people say? Anytime you control your tax rate in retirement is great. You pay your tax now so that you don’t have to pay your tax on that money later. Understand what you’re doing with any investment or assets. Reach out to Eric to do the retirement readiness review to analyze your future tax burden into retirement to see if you should do a Roth conversion or keep your plans on the trajectory that they are currently on.

Listen to the entire episode or skip ahead using the timestamps below.

[1:09] Over or under: getting a big tax refund?

[3:23]Is Star Wars overrated?

[5:38] Should you pay off your house early?

[7:21] Are variable annuities over or underrated?

[9:39] Who is a fan of mac and cheese?

[10:49] How do you rate Roth IRAs?

Today’s Takeaway:

Don’t let having a mortgage payment be the one thing that’s going to prevent you from retirement. If you can retire and you can afford it, the mortgage is going to be paid off at some point.

-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

Mailbag: Should I Move my Mom’s Money into Investments?

May 26, 2022

Where’s the best place for your money to go? Several people are considering where their money should be, so Eric answers three questions from the mailbag for today’s show.

Read More

A Perfect Match: Tennis and Retirement Planning

May 19, 2022

Ready to ace your retirement plans? Let’s talk tennis and see how much it relates to your financial plans on today’s show.

Read More

Mailbag: Money Management Tips For Younger Couples

May 12, 2022

What financial advice does Eric have for younger couples? What can you do to reduce next year’s taxes? Eric answers these questions and more from the mailbag.

Read More

Building a Plan for the Long Haul

May 5, 2022

What do you need to get you through the long haul of life? Eric talks us through what this looks like in your financial plan and how to build it with an eye on a distant horizon.

Read More

What Do You Need to Know About Today’s Inflation?

April 28, 2022

Everywhere you turn there’s a headline about inflation but what do you need to know about what’s going on? Eric weighs in on the recent numbers and what you can do about it.

Read More

Mailbag: Should I Save Elsewhere Besides My 401(k)?

April 21, 2022

What kind of savings do you really need for retirement? Are you working with the right advisor to get you there? Eric answers three questions from listeners.

Read More

Playing the Retirement Game Show

April 14, 2022

Come on down! We talk about our favorite TV game shows and how it relates to our financial plan (and when it should look different).

Read More

Tax Season

April 7, 2022

What do you need to know when it comes to tax planning? Eric outlines the ways a tax strategy can make a big difference in your retirement plan.

Read More

Asking the Wrong Questions

March 31, 2022

What do I really spend? What does it take to maintain this standard of living? And what changes in retirement from when I am working from an expense side?

Read More

Mailbag: Should I Combine My Old 401(k) Accounts?

March 24, 2022

What should you do about 401(k) accounts from old jobs? How can you find out what your Social Security benefits would be? Eric answers these questions on today’s show.

Read More

Leave a Comment