Today’s Prep:
What kind of costs are you paying that you might not even realize? Eric identifies some hidden fees to look out for when planning for retirement.
Equipping Points:
Are your investments as efficient as possible? A lot of times there are hidden fees in things we might not expect. Even if you can’t see it plainly, that doesn’t mean it isn’t there. On today’s show we talk about a few categories where you might be paying more than you realize.
Mutual funds have a prospectus with an expense ratio. This shows how much it takes to operate the fund, but it does not show you how much the expenses are as they do the trading. Buying and selling the stocks costs money that you might not even realize you are paying.
Variable annuities are notorious for expenses. The only reason to go into a variable annuity is for the riders they can provide. Eric talks through a metaphor to help us better think through how a variable annuity works.
Up until recently, inflation is something that often got overlooked. In retirement it hits especially hard when you only have so much income. In order to combat inflation, you have to pull more money out of your retirement accounts. What you do have in retirement is time, which might allow you to look for deals and find creative solutions to fulfill your needs.
Finally, taxes have a huge impact on your net income. If they raise, do you realize the difference it could make from one tax bracket to the next? Being tax conscious as you approach retirement and understand how taxes are going to affect you in retirement is huge. Every dollar you save in taxes is another dollar you get to spend and enjoy.
Listen to the entire episode or skip ahead using the timestamps below.
1:47 – Mutual funds often have hidden fees.
4:42 – What are variable annuity fees like?
7:42 – Inflation is typically overlooked.
9:18 – Taxes impact your overall net income.
Today’s Takeaway:
“Being tax conscious as you approach retirement and understand how taxes are going to affect you in retirement is huge.”
-Eric Peterson
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
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 MoreHow 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 MoreEarly 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 MoreWhat 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 MoreBracket 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 MoreAre 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 MoreWhat 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 MoreMailbag – 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 MorePlanning for Kids, Grandkids, & Your Future
As many nearing retirement age are discovering, adult children and grandchildren can significantly influence financial strategies, making it crucial to understand how to navigate these relationships effectively.
Read More