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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

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