Episode #5: Get Out Of Your Own Way

Today’s Prep:

Are you doing more harm than good to your financial life? If so, listen up. It’s time to get out of your own way.

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

Equipping Points:

[1:08] – Allowing Fear And Greed To Dictate Your Investing Habits. 

  • If you’re allowing fear and greed to dictate how and when you invest your money, you need to get out of your own way. What you’re doing is less of an investing strategy and more of a reactive behavior. Operating on emotion can get you in trouble. It’s impossible to time the market, and trying to do so can hurt your portfolio. Rather than being greedy when the market is up and fearful when it’s down, understand the structure of your portfolio. Determine how much risk exposure you should have in the market, and develop an investing strategy that’s rooted in fact, not emotion.

[3:06] – Making Decisions To Save In Taxes. 

  • We talk a lot on this show about tax planning, and it’s important to do so. After all, nobody wants to pay more to the IRS than is required. However, if you’re investing solely to save in taxes, you could be missing out on bigger gains in the market. Sure less gains mean less taxes, but they also mean less money in your accounts, right? Sometimes it’s better to bite the bullet, and take the pain to recognize the gain.

[5:50] – Leaving Too Much Money In Cash.

  • Get out of your own way when it comes to leaving money in cash. Whether you’re scared to get back in the market after 2008, or you just haven’t gotten around to investing, your inaction is still a decision. If all of your money continues to sit in the bank, it will eventually lose value as it lags behind the level of inflation. Fear shouldn’t be a factor in keeping you completely out of the market. If it is, see point number one. Of course we want you to keep some money in cash. An emergency fund is a necessary tool. However, too much liquidity is inefficient. Put a plan in place, and be prudent with your money.

Other Preparation:

  • [8:45] – The Problem With Indecision.
  • [11:42] – The Problem With Well-Meaning Friends And Family.

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

Financial Debates – Debt, Mortgages, Life Insurance & Mutual Funds

July 18, 2019

Inside of a mutual funds, the actions of others can impact you. If a lot of people are trying to sell that mutual fund, the manager has to sell some stuff to meet the redemptions and that can negatively impact you.

Read More

Retiring Early: Is It Possible and Is It Right For You?

July 11, 2019

Some may think that retiring early is just a dream, but can you turn this dream into a reality? In this episode, Eric talks about the ins and outs of taking an early retirement. Find out when you can retire and whether you will actually want to stay retired.

Read More

Tending To Your Retirement Garden

July 3, 2019

What does retirement planning have in common with growing a garden? Both need patience, vision, determination, and the proper tools to succeed. Eric Peterson explores all the comparisons on this week’s podcast.

Read More

Retirement Decisions: More Than Just Investments

June 27, 2019

When it comes to planning for your retirement, there’s a lot more to consider than where to invest. Going beyond the data and numbers, you need to consider these areas of your life and what you want them to look like in retirement.

Read More

Presidential Quotes And The Financial World

June 20, 2019

There are a lot of great quotes from past presidents that also apply in the financial industry. Have you heard all of these? How would you apply them to your financial portfolio?

Read More

Mailbag: Retention Bonus or Retirement?

June 13, 2019

As you near the final months or years before taking the plunge into retirement, there are always a few details to work out and questions to ask. Eric answers a few questions from the mailbag about pensions, paying taxes in retirement, and deciding when to walk away from a retention bonus and just retire already.

Read More

Handling What You Can’t Control in Retirement

June 6, 2019

Some things are just out of your hands. In retirement planning there are a lot of things completely out of your control, but if you re-frame your thinking, there is actually something you can do about them. Eric talks through these four areas where you have an opportunity to prepare for the unpredictable.

Read More

Wishful Thinking In Retirement Planning

May 30, 2019

Is your head in the clouds when it comes to retirement? Here are three common phrases people say when it comes to retirement planning. Eric shares whether these mentalities are wishful thinking. 

Read More

Underrated Or Overrated?

May 23, 2019

We’re playing a game to determine what’s underrated and overrated when it comes to a few topics in the financial world (and even a few outside of financial planning). Let us know what you think. 

Read More

Lazy Money

May 16, 2019

Do you have money sitting around without a purpose? We’ll explain the dangers of lazy money, why people have it, and how you can put it to work! Make your money work for you as you plan for retirement.

Read More

Leave a Comment