Episode #15: Understanding Your Statements

Today’s Prep:

Your financial statements are confusing. They contain all sorts of jargon and puzzling graphics. On this edition of the podcast, Eric enters the fray and helps to clear up the confusion.

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

Equipping Points:

00:47 – Financial Statements Are Confusing.

  • Financial statements are confusing. They contain all sorts of buzzwords and jargon, and in reality, we really just want to know how much money we have and what it’s doing. One of the things we strive to do is help our clients to understand their finances. This means when you come in for a visit, we’re going to sit down with you and take a look at those confusing statements to determine exactly what’s happening with your wealth.

4:28 – Defining Income Projections. 

  • Income projections predict what level of return you can expect to generate from your investments. They look at your current investing rate and make an assumption of return. You really should take those assumptions with a grain of salt as they are based off of your age as well as your projected levels of income and returns on investment.

6:00 – Pretty Charts And Graphs. 

  • Your asset allocation summary can quickly get confusing as it’s usually depicted through a thoroughly confusing chart or graph. However, it’s basic function is to show you where your money is being invested. Asset allocation summaries tell you what types of stocks you’re invested in. They also illustrate different asset classes like international stocks, real estate investments, and mutual funds. Asset allocation is important as you want your money to be diversified amongst different asset classes and even within asset classes.

Other Preparation:

  • 9:27  – Understanding Fees.
  • 12:28 – Beware Of The Fine Print.

Today’s Takeaway:

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

Misconceptions With Annuities

April 11, 2019

Sometimes annuities are misused or misunderstood, but annuities can be powerful tools if you know how to use them properly.

Read More

Excuses, Excuses, Excuses – Stop Making Them

April 4, 2019

What’s your excuse for doing one thing over another when it comes to finances? Sometimes you want to justify your actions instead of thinking through what is actually best for you and your money. Here are three common decisions people make and why the excuses just don’t add up.

Read More

Technology For Retirement Planning

March 28, 2019

There are all sorts of online tools out there for financial planning. We’ll talk about some of the various technologies and tools to choose from as you prepare for retirement.

Read More

4 Things March Madness and Retirement Planning Have in Common

March 21, 2019

What does your March Madness bracket have to do with financial planning? More than you might think!

Read More

Why Retirement Planning Ain’t What It Used To Be

March 14, 2019

You’ve heard your parents discussing how difficult things used to be. We’ve all heard the adage about walking uphill both ways in the snow to get to school. However, reality suggests retirement planning actually used to be easier than it is today. Find out why.

Read More

3 Questions You Should Ask A Potential Advisor

March 7, 2019

When shopping for a potential advisor, you want to find the right fit for your needs. Ask each candidate these three important questions.

Read More

The Financial Water Wheel

February 28, 2019

On this podcast, we love a good analogy. Join us as we discover what we can learn from retirement by observing a water wheel.

Read More

Episode #27: It’s Time To Talk About RMDs

February 21, 2019

Required minimum distributions can easily slip through the cracks of your retirement plan. As tax day 2019 is approaching, understand the impact RMDs will have on your finances.

Read More

Episode #26: Taking Care Of Family

February 14, 2019

Part of retirement planning includes taking care of family. After all, you’ll want to make sure your loved ones have what they need after you’re gone.

Read More

Episode #25: Retirement On The Golf Course

February 7, 2019

Learn how retirement planning is a bit like golf. Grab your sticks, and join us on the proverbial golf course.

Read More

Leave a Comment