Today’s Prep:
How do you get the answers you need? A lot of it comes down to asking the right questions. We talk through some of the wrong questions people often ask and what you should be asking instead.
Equipping Points:
Sometimes we ask the wrong question when looking for financial answers. Pursuing the right questions will probably lead to better answers and a better financial plan. Have you been asking these questions? Eric talks through some better questions to ask to get the right answers.
A lot of people ask, “How much money do I need to save for retirement?” This is the wrong question because it really comes down to how much you need to maintain your lifestyle. How much money do you need? How much money do you spend and what will it take to maintain your standard of living?
Should you get long-term care insurance? The default is to self-insure, but you might want to consider what other options you have. Ask how you can protect against those costs and offset the potential devastation long-term care costs can have. Do you have other options available?
Instead of asking how to get the highest possible return rate, ask how you can make your plan work. What is your risk tolerance and what do you need to accomplish your financial goals? Answering that first will change what you really need and what kind of return and risk you need in your plan.
Are you looking for the cheapest option? If you want the lowest fees, you can do it yourself. But if you want the best value, you want to work with someone who is going to know you and your real needs in order to help you make the best financial decisions. It’s not about the asset allocation or taxes, more than anything, a good advisor is there for behavior modification.
Finally, during tax time, you might be asking how you can pay less in taxes this year. Instead, you want to consider how to pay less tax all years in the future. This year it is too late, but how much you pay in the future could make a big difference in your financial plan.
Listen to the entire episode or skip ahead using the timestamps below.
0:46 – How much money do I need saved for retirement?
2:25 – Should I get long-term care insurance?
3:51 – How can you get the highest possible return rate?
7:07 – Where can I pay the lowest fees?
9:21 – How can I pay less in taxes this year?
Today’s Takeaway:
“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?”
-Eric Peterson
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
The National Park Guide to Retirement Planning
Whether you’re visiting one of the 63 national parks this summer or just hitting a local trail, a lot of the best practices for a great hike apply just as well to your retirement plan. Today, Eric “walks” through a few.
Mailbag: Military Pension Mistakes & Retirement Decision Paralysis
What happens if you make a retirement decision you can’t undo? And how do you know when you’ve done enough research before making an important financial move? In this mailbag episode, Eric answers two listener questions—one from a military retiree looking to protect his spouse after declining a survivor pension benefit, and another from a listener who struggles with overthinking every financial decision.
Movie Quotes That Reveal the Truth About Retirement
Can classic movie quotes actually teach valuable retirement lessons? In this episode, Eric takes memorable lines from films like The Terminator, When Harry Met Sally, and The Wizard of Oz and uses them to explain key retirement-planning concepts. From preparing for inevitable market downturns to understanding why every retirement plan should be personalized, these famous quotes provide surprisingly practical financial insights.
Mailbag: Simplify Your Retirement Accounts
Sometimes, the most valuable retirement lessons come from the questions people are asking every day. In this mailbag episode, Eric tackles listener questions covering investment organization, diversification, and pursuing new opportunities later in life.
Where Does Guaranteed Income in Retirement Really Come From?
What does “guaranteed income” really mean in retirement, and is it actually possible to create a paycheck you can count on for life? In this episode, Eric breaks down the different sources of retirement income, including Social Security, pensions, investments, rental properties, and insurance-based solutions. He explains the risks many retirees overlook when relying solely on portfolios, dividends, bonds, or rental income and discusses why predictable income streams can play an important role in a well-designed retirement strategy.
Mailbag: IRA Withdrawals, Whole Life Insurance & Cash on the Sidelines
In this mailbag episode, Eric tackles a variety of listener questions about retirement and financial planning.
He breaks down complex topics into clear, practical guidance to help you make more confident money decisions.
Retirement Lessons Hidden in Walt Disney Quotes
Sometimes the best financial lessons come from the most unexpected places. Walt Disney built one of the most recognizable brands in history, but some of his most memorable quotes offer lessons that extend far beyond theme parks and animated characters.
Mailbag: Working Forever, Safety Nets, and Target Date Funds
A lot of people think they’ll work forever, until life changes the plan. In this special mailbag episode, Eric answers listener questions about retirement timing, backup planning, target date funds, and how to think about risk as retirement gets closer.
The Financial Impact of Losing a Spouse
Losing a spouse is one of the hardest realities anyone can face, and it can create major financial changes that you may not see coming. In this episode, Eric walks through the potential financial impact of becoming suddenly single in retirement, including Social Security changes, tax surprises, IRA rules, beneficiary updates, and income planning challenges.
Old Accounts Could Be Costing You
Today, Eric discusses why old financial accounts deserve a second look. He explains how reviewing these accounts can uncover missed opportunities, improve efficiency, and help create a more coordinated financial plan.