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.
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:
“While financial statements can be confusing, it’s important you understand them as they’re an indicator of your financial health. If you don’t understand the jargon, use your advisor as a resource. Get them to explain your statements to you. – Retirement Ready“
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Do You Have These Blind Spots In Your Retirement Plan?
Many people can have a couple of “blind spots” so to speak when it comes to their retirement plans. Do you worry you may not be accounting for everything you might need for your retirement? Then today’s episode is perfect for you!
Read More
Inside Out: How We Can Look at Finances Through the Characters of Pixar’s Latest Flick
There can be a lot of emotions when it comes to investing and planning for retirement. And what better way to discuss those emotions than through the characters of Pixar’s latest film, Inside Out 2?
Read More
The Importance of Preventative Care
Preventative care isn’t just for your health; it’s essential for your financial well-being too. By consulting a financial advisor early and often, you can avoid financial distress and make informed decisions that lead to a secure and fulfilling retirement. Many people will put it off for fear they will be told something they don’t want to hear or because of the perceived costs of financial advisors.
Read More
Preparing for Retirement like Noah’s Ark
Financial planning involves a lot of planning ahead, much like Noah did when he started building the ark long before the rain began. This metaphor serves as a powerful reminder that proactive planning is essential for weathering financial storms. Eric highlights that while we can’t predict events like market crashes or global pandemics, we can prepare for them by stress-testing our financial plans.
Read More
Retirement Income
When planning for retirement, one of the most critical aspects to consider is your income. But what does this mean, and how can you ensure you have enough income to cover your needs and desires?
Read More
Retirement Checklist
Retirement is a significant milestone that requires careful planning and preparation. In today’s podcast, Eric shares a comprehensive checklist to ensure you’re fully prepared for your golden years.
Read More
Financial Wisdom from Mark Twain
In the latest episode of the Retirement Ready Podcast, Eric invites us to explore the timeless wisdom of Mark Twain and how it applies to modern financial planning. Mark Twain, known for his wit and keen observations, offers quotes that are surprisingly relevant to today’s financial landscape. Eric takes these quotes and translates them into practical advice for those planning their retirement.
Read More
Understanding Bonds in Today’s Market
Are bonds really the safe investment we’ve always been told they are? What percentage of assets should a retiree or pre-retiree hold in bonds? In today’s episode, Eric addresses some of his most frequently asked questions about the world of bonds…
Read More
Understanding Your Financial Statements
Financial statements can often feel like a foreign language, filled with jargon and numbers that seem to have little relevance to your everyday life. However, understanding these documents is crucial for effective retirement planning. In the latest episode of the Retirement Ready Podcast, Eric breaks down the essentials of reading and interpreting your financial statements.
Read More
From Graduation to Retirement
This one goes to the grads! Whether you know someone graduating high school, college, or even preschool, graduation marks a new stage and season in life. Similarly, retirement is a new chapter in life. It’s a time of change, celebration, and sometimes, uncertainty. On today’s show, we talk through the similarities between leaving school and entering retirement.
Read More