Today’s Prep:
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.
Equipping Points:
1:09 – Retirement Checklist: Examine Your Income Needs.
- Before you walk away from a paycheck, you need to know how much income you’re going to need in retirement. It’s not enough to know how many assets you have. Your success in retirement is much more dependent on income than it is total net worth. Grab a pen and paper, and calculate exactly what you’re going to be spending in retirement.
2:57 – Retirement Checklist: Determine Where To Withdraw?
- Examine your retirement accounts, and develop a plan for taking withdrawals from them. Consider the tax burden that’s associated with each account. Different accounts are taxed differently, and there are ways to withdraw from them so that you’re not overwhelmed by your tax bill. You want to get the maximum amount of income for the least amount of taxes as possible.
5:03 – Retirement Checklist: When Is The Ideal Time To Take Social Security?
- Determining when to take Social Security is a crucial conversation to have as it will impact your level of income in retirement. Many folks get excited and want to turn on Social Security as soon as possible, but it’s not always the best strategy, and once you’ve elected to withdraw your benefit, you only have one year to reconsider your decision. Conversely, many folks want to wait as long as possible to withdraw Social Security, knowing the longer you wait the larger the monthly benefit you can withdraw. However, depending on other elements of your financial life, you might be better served to take your benefit at an earlier time.
Other Preparation:
- 6:20 – The Tax Ramifications Of Social Security.
- 6:54 – The Question Of Longevity.
Today’s Takeaway:
“In retirement, you want to play defense. It’s all about income. You do want some growth, but you don’t want to be taking income from your growth assets. You want to take those from safer places. – Eric Peterson“
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.