Asking the Wrong Questions

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.

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

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

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The host: Eric Peterson - Contact - Call: (515) 226-1500

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