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

Check out some other recent episodes

Episode #16: Retirement Checklist

December 6, 2018

Much like a pilot going through his pre-flight checklist before takeoff, it’s important you examine your pre-retirement checklist before walking away from a paycheck. Eric explains the items on that list.

Read More

Episode #14: Grandma’s Financial Wisdom

November 22, 2018

There are probably lots of sayings you remember your grandmother using as you grew up. Find out how her musings might be applied as financial wisdom. 

Read More

Episode #13: The Retirement Gridiron

November 15, 2018

This time of year, you can find football on TV almost every night. Let’s see what we can learn about retirement from the gridiron. 

Read More

Episode #12: To Agree Or Disagree

November 8, 2018

Join us for a game of Agree or Disagree. Discover whether Eric agrees with popular statements about finances and retirement planning.

Read More

Episode #11: Financial Warning Lights

November 1, 2018

Much like the lights on your dashboard that indicate issues with your car, there are indicators in your financial life that highlight problems in your portfolio. Join us as Eric serves as our financial mechanic.

Read More

Episode #10: Reading The Fine Print

October 25, 2018

Many investments promise enticing perks and large returns. They’re usually too good to be true and inundate you with fees. Avoid a headache by reading the fine print. 

Read More

Episode #9: Retirement Procrastination

October 18, 2018

Procrastination is dangerous as it pertains to your retirement. Don’t let these lines of thought keep you from planning your financial future. 

Read More

Episode #8: Being Between Jobs

October 11, 2018

Finding yourself between jobs can be frustrating, but it presents opportunities. Consider the challenges and opportunities that accompany an employment gap.

Read More

Episode #7: Financial Pop Quiz

October 4, 2018

Today’s Prep: Eric takes a multiple choice pop quiz about retirement planning. See how his answers stack up with your own. (Click the featured times below to jump forward in the episode) Equipping Points: 1:29 – At What Age Should You Start Saving For Retirement?  The answer we’re really looking for is, “As soon as…

Read More

Episode #6: Investor Beware

September 27, 2018

As you search for a financial advisor, you need to beware of certain characteristics. Some traits could raise red flags toward an advisor.

Read More

Leave a Comment