Do You Agree or Disagree with this Retirement Advice?

Today’s Prep:

Which of these statements is worth paying attention to and which ones should you take with a grain of salt? Eric shares whether he agrees or disagrees with five retirement planning statements.

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

Equipping Points:

We all hear retirement plans and opinions but does Eric agree with these? On this episode of the podcast we play a game of “agree or disagree?” with some commonly thought retirement planning statements. What do you think?

Some people say to pay off the house as fast as you can, but is this really sound advice? Eric agrees that it’s good to be debt-free if you can, but not at the cost of your retirement savings. Don’t take money out of your IRA early to pay it off either. The more money you can have in your control for your retirement, the better off you are.

Which is better, individual bonds or bond funds? What’s the difference? People think they are the same thing, but they aren’t. Eric shares the main differentiators and why you may want to invest in one over the other.

Nobody needs life insurance once you retire, right? Wrong. While the needs are different when you’re younger and have kids living at home, life insurance still helps provide your family tax-free assets. Taxes are probably going to go up in the future. You still need life insurance in retirement, but not for the same reasons you originally got it.

Are annuities a rip-off? Variable annuities might be, but remember that there are different types of annuities. Fixed annuities however could be a great tool, depending on if it fits your plan. Annuities can be tools, but the key is to use the right tool for the job.

Is it safe to assume you’ll be in a lower tax bracket in retirement? If so, is it best to defer taxes now? For most people, they will likely be in the same if not a higher tax bracket. The best thing you can be in retirement is to be in tax control. You want to be able to pull from different buckets of money to pull from at different times.

Want to go a little deeper with one of these? Eric and his team are always ready and willing to answer your questions and make sure your retirement plan and tax strategy fits your situation.

Listen to the entire episode or click on the timestamps below to skip ahead to a particular topic.

[0:58] – Should you pay off the house ASAP?

[2:26] – Are individual bonds better than bond funds?

[4:17] – Do you need life insurance once you retire?

[6:00] – Are annuities a rip-off?

[7:39] Will you be in a lower tax bracket in retirement?

 

Today’s Takeaway:

The more money you can have in your control for your retirement, the better off you are.

-Eric Peterson

Related Resources:

Mailbag: Can I Sell My Home and Just Rent in Retirement?

What Creates A Sense of Urgency With Your Financial Plan?

Can You DIY Financial Planning?

More From Eric:

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

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Mailbag: Can I Sell My Home and Just Rent in Retirement?

April 1, 2021

Ever consider a retirement plan that seems a little unorthodox? There’s no one-size-fits-all when it comes to financial planning, so Eric answers three questions in the mailbag from people considering a less traditional decision to make their plan work for them.

Read More

What Creates A Sense of Urgency With Your Financial Plan?

March 25, 2021

Have you been procrastinating putting together a financial plan or do you have a sense of urgency? What events may prompt you to act quickly?

Read More

Should You Follow Dave Ramsey’s Financial Advice?

March 18, 2021

Is the baby step program and financial advice from Dave Ramsey for everyone? What does a registered financial consultant have to say about it?

Read More

Financial Wisdom from Calvin and Hobbes

March 11, 2021

Perhaps a bit unexpected, the comic strip Calvin and Hobbes had a lot of great life and financial advice to dole out. Which of these apply to your financial situation?

Read More

Can You DIY Financial Planning?

March 4, 2021

What reasons might someone debate going DIY when it comes to a financial plan? Is it better to go to an advisor or is sometimes DIY right for you?

Read More

Translating Financial Jargon

February 25, 2021

Do you know the difference between large cap and small cap funds? What are basis points? This episode will discuss various financial jargon to help translate what these really mean.

Read More

Financial Fill in the Blank

February 18, 2021

What’s the best way to not run out of money in retirement? What are most people worried about when retirement planning? Eric fills in these blanks in today’s episode.

Read More

What to Know About Biden’s Initial Executive Orders

February 11, 2021

Let’s take a look at some of Biden’s executive orders so far in his first few weeks. How could they alter your financial plan?

Read More

Mailbag: Retirement Planning With Separate Bank Accounts

February 4, 2021

From managing your income as a contract employee to managing your income in retirement, Eric answers three questions from the mailbag in today’s episode of the podcast.

Read More

Estate & Legacy Planning FAQs

January 28, 2021

When receiving an inheritance, a lot of interesting or unexpected scenarios can occur. We discuss four different situations to hear Eric’s advice on how to handle them on today’s episode of the Retirement Ready podcast.

Read More

Leave a Comment