Today’s Prep:
Are you letting emotions sway your investing decisions? We talk about what emotions should you look out for and how can you invest based on logic.
Equipping Points:
What emotions are you prone to fall for when investing? How can you overcome the emotional grip? Making investment decisions based on emotions can cause your plan to not be successful. Today we’ll find out primary emotions to look out for and what to do about them.
When it comes to greed, it stops you from making intelligent and wise decisions. You might be tempted to time the market. Instead, what do you need to make your plan work? It’s good to keep some money set aside and not always chasing gains.
Fear might be whispering in your ear, especially when the market goes down. Talk to your financial advisor and keep working your plan so that you don’t let your emotions get the best of you when investing. Both fear and greed can be overwhelming.
Is pride causing you to do-it-yourself when it comes to retirement planning? You can access a lot of investing independent of an advisor. But what an advisor brings is helping you with behavior modification. They help keep your emotions in check and coordinate your plan. Don’t let guilt keep you down if you’ve been tripped up by your emotions in the past. We’ve all made mistakes and you have to get past it.
When an advisor presents a plan, they are not focused on emotions but on facts, truth, and logic. Your decisions are often based more in emotions, so having a third party to see things from an outside perspective can help you achieve your financial goals.
Listen to the entire episode or skip ahead using the timestamps below.
1:00 – Fun Fact: Apple has enough money to buy every major sports team in the world.
2:27 – Is greed good when investing?
3:58 – Are you investing with fear?
5:43 – Pride may cause you to do it yourself.
7:49 – Don’t dwell on guilt.
9:03 – Advisors are more detached from the personal emotions.
Today’s Takeaway:
“Making emotional decisions as opposed to rational and logical decisions: you don’t want to make emotional decisions, especially with something as important as retirement.“
-Eric Peterson
Related Resources:
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.