Today’s Prep:
What financial rewards are worth waiting for? We talk through three sets of options to determine whether delayed or instant gratification is better in retirement.
Equipping Points:
We all like fast and now when it comes to getting what we want. When you’re making financial decisions, are you making the best choices or just whatever gives you instant gratification?
It may be tempting to put off saving in your 401(k) and having more take-home pay. Are you leaving the 401(k) match on the table? A lot of people are woefully unprepared for retirement. Having a scheduled and automatic withdrawal toward retirement is investing in your future.
How do you balance the tax deductions now as opposed to the tax benefits in the future? Should you contribute to a Roth 401(k) if given the option? Tax rates are lower than they have ever been right now. If you pay the tax now, you don’t ever have to pay that again. If needed, you can ease into it. You can’t have too much tax-free money in the future.
Retirees often wonder when they should take out Social Security. Should you do it as soon as possible or delay it in order to get an increase? Believe it or not, delaying it might not always be the right answer. It may come down to your retirement income plan in order to determine which money to pull first. Having a plan really helps understand the risk and the tax issues you may encounter.
Listen to the entire episode or skip ahead using the timestamps below.
1:12 – Relief with the household budget vs. the getting 401(k) match.
3:30 – Tax deduction now vs. better tax planning for the future.
7:41 – Take Social Security at 62 or delay it?
Today’s Takeaway:
“You need to count your future self as a debt that you need to pay. “
-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.