Episode #24: Breaking Bad Financial Habits

Today’s Prep:

While it’s easy to slip into a routine, some of the habits you’re developing might do more harm than good. Eric offers tips for breaking bad financial habits.

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

Equipping Points:

[00:51] –  You Can’t Ignore Your Account Statements.

  • It’s easy to do, but you shouldn’t fall into the bad habit of ignoring your account statements. You need to know what’s happening in your portfolio, and when you do, your statements can actually be a helpful tool. They can show you how your money is performing against the market.

[1:54] – People Don’t Like To See Negatives In Their Accounts. 

  • Unfortunately, markets don’t always go up. Volatility is a fact of life, but you can’t ignore your statements. If you’re uncomfortable with the amount of risk in your portfolio, don’t stick your head in the sand. Have a conversation with your advisor about risk tolerance.

[4:30] – Are You Addicted To The Bull Run?

  • Many investors have become addicted to the long bull run we’ve seen on Wall Street. They’ve taken on too much risk, and they’ve forgotten what happened in 2008. While we don’t know what will become of the recent volatility, many bullish investors will be in for a shock should they let this bad habit continue to dictate their investing strategy.

[5:00] – Don’t Forget To Take Your Chips Off The Table.

  • People always talk about “paper losses,” but the same thing could be said of your gains. Your gains aren’t actually gains until you sell, so if you’re heavily invested in a risky portfolio, you need to think about removing some of the volatility.

[6:00] – Don’t Procrastinate.  

  • Procrastination is a choice. It’s a choice to do nothing, and it’s actually one of the worst things you can do. We tend to procrastinate making financial decisions for a number of reasons. Maybe you’re afraid of making a change, or maybe you just don’t know what to do. Regardless, procrastination is a bad habit that could lead you to serious trouble in the long-term. You don’t have to know every step of your path to financial freedom. You just need to take the first step of reaching out to a financial professional.

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

Why Eric Loves Working as a Financial Advisor

October 22, 2020

Why does Eric do what he does? What’s his history and what are his passions? Find out on today’s episode of the podcast.

Read More

What Goes Into a Customized Financial Plan?

October 15, 2020

Why should you have a customized financial plan? What do you need to consider and what goals help you build an outline for your plan? Join us as we talk about what goes into the process of setting someone up for a secure future.

Read More

Things That Don’t Matter…Until They Do

October 8, 2020

Certain financial documents might seem like they can be put off for now. But when you need them, it’s important to be prepared ahead of time! Do you have all of these things in place?

Read More

Uncommon Sense in Financial Planning

October 1, 2020

When common sense isn’t followed, what does that look like? What common sense should we adhere to when it comes to financial planning?

Read More

Visiting the Financial Doctor

September 24, 2020

We’ve all been to the doctor at some point, so how is it like working with a financial advisor? We compare the similarities on today’s podcast!

Read More

Mailbag: Should I Withdraw from an Old Annuity?

September 17, 2020

When is a good time to withdraw from an annuity and what should you know ahead of time? Eric answers this and two other questions from the mailbag in this week’s podcast.

Read More

Heard It Through The Grapevine?

September 10, 2020

From million-dollar retirement benchmarks to presidential election fears or predictions, have you heard these through the grapevine? Eric shares what he thinks about these three financial rumors.

Read More

Is This Retirement Fact or Fiction?

September 3, 2020

Ever hear something and think, could that be true? Some of these financial concepts are fact and some are fiction–do you know which is which?

Read More

Are You Flirting with Financial Disaster?

August 27, 2020

You might feel great about where you stand financially but there’s a chance you could be flirting with disaster. We’ll tell you about three key areas where people make mistakes in their planning that can end up causing major financial problems in retirement.

Read More

How To Pack Your Financial Suitcase

August 20, 2020

When you go on a trip, a lot of times it helps to refer to a packing list to make sure you have everything. When putting together a financial plan, do you have everything in order? Let’s talk about what you need to put into your financial suitcase.

Read More

Leave a Comment