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

Translating Financial Jargon

February 25, 2021

Do you know the difference between large cap and small cap funds? What are basis points? This episode will discuss various financial jargon to help translate what these really mean.

Read More

Financial Fill in the Blank

February 18, 2021

What’s the best way to not run out of money in retirement? What are most people worried about when retirement planning? Eric fills in these blanks in today’s episode.

Read More

What to Know About Biden’s Initial Executive Orders

February 11, 2021

Let’s take a look at some of Biden’s executive orders so far in his first few weeks. How could they alter your financial plan?

Read More

Mailbag: Retirement Planning With Separate Bank Accounts

February 4, 2021

From managing your income as a contract employee to managing your income in retirement, Eric answers three questions from the mailbag in today’s episode of the podcast.

Read More

Estate & Legacy Planning FAQs

January 28, 2021

When receiving an inheritance, a lot of interesting or unexpected scenarios can occur. We discuss four different situations to hear Eric’s advice on how to handle them on today’s episode of the Retirement Ready podcast.

Read More

What Does Mark Twain Have to Say About Your Financial Plan?

January 21, 2021

What financial wisdom can we glean from the sayings of Mark Twain? Believe it or not, many of these quotes are quite relevant today.

Read More

New Year, New Ideas to Consider

January 14, 2021

We all like the idea of a fresh start in the new year. What changes are already underway? Or, what changes might be unwelcomed when it comes to your retirement plan?

Read More

Mailbag: Should I Use My Severance Package to Pay Off the House?

January 7, 2021

Whether you want to learn more about using your HSA or trying to make strategic use of your severance package, Eric answers three questions from the mailbag. Do any of these questions relate to your situation?

Read More

Things Your Advisor Should Be Doing

December 30, 2020

What kind of decisions are you making alongside your financial advisor? How do you know if they are doing everything you need when it comes to creating and implementing a retirement plan? Eric talks through what you deserve from a financial advisor and how his team works with clients to meet their needs.

Read More

The Three Worlds of Money

December 23, 2020

Do you know the three worlds of money? Where does the bulk of your money live? Is your money appropriately balanced across all three worlds? We’ll break it all down on this episode.

Read More

Leave a Comment