Today’s Prep:
Wondering whether or not you really need a financial advisor or if you could just figure it out on your own? Why do people choose to approach financial planning like a DIY project, and why do some of those DIYers later change their mind?
Equipping Points:
We all love a bit of do-it-yourself (or DIY), when it comes to home improvement projects or arts and crafts. There are entire tv shows and websites dedicated to the art of DIY. But what about when it comes to financial stuff? Should planning for retirement be a DIY job?
There are a number of reasons that people decide to do retirement planning on their own. A big one is often about the cost. Some people want to save the money and feel like they can save for retirement without the fees. Are they right to think that?
Many of Eric’s clients were also former financial DIYers. So, what causes someone to switch to working with an advisor? For starters, sometimes the DIY mistakes can look bigger when you are dealing with a bigger account after years of saving.
Two things that often get overlooked when it comes to DIY financial planning is factoring in taxes and inflation. As nice as your DIY spreadsheet may look, does it have room in the plan for both of those? How about the rate of return, is that aligned with the potential volatility of the market?
Listen to the entire episode to see if DIY financial planning is the right thing for you or click the timestamps below for a specific segment.
1:04 – Why don’t some people choose to work with a financial advisor?
2:49 – What triggers someone to go from DIY to working with a financial advisor?
4:38 – What is a big mistake that happens with those who decide to DIY their financial plans?
6:34 – Is risk factored into a DIY financial plan?
Related Resources:
What’s in Your Financial Junk Drawer
Tending to Your Retirement Garden
Today’s Takeaway:
[spp-tweet tweet=”Retirement is all about the income you can get from your assets. –Eric Peterson“]
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Laid Off Near Retirement? What to Do Next
A layoff close to retirement can feel like a financial emergency, but it may not be as damaging as it first appears. Eric explains why layoffs are happening and walks through the key financial decisions that follow. He also shares a practical checklist for evaluating whether returning to work is necessary, or whether retirement may already be possible.
Mailbag: HELOCs, Trusts, and Family Money
In this mailbag episode, Eric answers listener questions about borrowing after retirement, avoiding unnecessary taxes on large IRA withdrawals, simplifying an estate, and setting healthy financial boundaries with loved ones.
Easy Ways to Ruin Retirement
Retirement can be exciting, but it can also come with new challenges. In this episode, Eric discusses some of the most common ways people can accidentally ruin retirement.
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.