Episode #7: Financial Pop Quiz

Today’s Prep:

Eric takes a multiple choice pop quiz about retirement planning. See how his answers stack up with your own.

 

Equipping Points:

1:29 – At What Age Should You Start Saving For Retirement? 

  • The answer we’re really looking for is, “As soon as possible.” More tangibly, you really need to start saving for retirement as soon as you start working. In fact, David Bach, the author of Smart Couples Finish Rich, argues you should always pay yourself first. While we of course want to take care of our loved ones, we’re not going to be of much good to anybody if we haven’t first taken care of ourselves. It’s a bit like listening to a flight attendant on an airplane telling you to put on your own mask before helping the person next to you.

4:32 – How Much Of Your Income Will You Need In Retirement? 

  • Ask yourself how much it will take for you to maintain your standard of living in retirement. That’s the number you want to focus on when determining exactly how much monthly income you’ll need. It’s easy to think you’ll simply need whatever level of income you have now, but you could spend more or less in retirement depending on your lifestyle. After all, you’re not going to start eating spam and tuna fish once you enter into permanent unemployment. You’ll want to continue the lifestyle you had when you were working and maybe even add in a few fun activities here and there. As you determine how much income you’ll need, focus on your expenses, and account for an evolving lifestyle as you age.

9:49 – What Do Retirees Fear The Most? 

  • Most folks fear needing long-term care in retirement and running out of money. In fact, running out of money might be the number one fear retirees have. AARP did a study and found folks even feared running out of money more than death itself. You don’t want to find yourself out of options in retirement, and that’s why we always stress the need for a sound income plan that will last you all the way through retirement. We’d rather you have some left over than not enough as you approach the finish line.

Other Preparation:

  • 11:23 – What Represents A Diversified Retirement Plan?

Today’s Takeaway:

“Your income plan should be based upon your expenses, not your current salary. – Retirement Ready

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

Retirement Checklist

June 20, 2024

Retirement is a significant milestone that requires careful planning and preparation. In today’s podcast, Eric shares a comprehensive checklist to ensure you’re fully prepared for your golden years.

Read More

Financial Wisdom from Mark Twain

June 13, 2024

In the latest episode of the Retirement Ready Podcast, Eric invites us to explore the timeless wisdom of Mark Twain and how it applies to modern financial planning. Mark Twain, known for his wit and keen observations, offers quotes that are surprisingly relevant to today’s financial landscape. Eric takes these quotes and translates them into practical advice for those planning their retirement.

Read More

Understanding Bonds in Today’s Market

June 6, 2024

Are bonds really the safe investment we’ve always been told they are? What percentage of assets should a retiree or pre-retiree hold in bonds? In today’s episode, Eric addresses some of his most frequently asked questions about the world of bonds…

Read More

Understanding Your Financial Statements

May 30, 2024

Financial statements can often feel like a foreign language, filled with jargon and numbers that seem to have little relevance to your everyday life. However, understanding these documents is crucial for effective retirement planning. In the latest episode of the Retirement Ready Podcast, Eric breaks down the essentials of reading and interpreting your financial statements.

Read More

From Graduation to Retirement

May 23, 2024

This one goes to the grads! Whether you know someone graduating high school, college, or even preschool, graduation marks a new stage and season in life. Similarly, retirement is a new chapter in life. It’s a time of change, celebration, and sometimes, uncertainty. On today’s show, we talk through the similarities between leaving school and entering retirement.

Read More

401(k) Mistakes

May 16, 2024

Your 401(k) likely plays a major role in your retirement savings. That’s why it’s important that it’s set up and functions in the way that’s most beneficial to you. Following our last podcast about beneficiary mistakes, now we focus on common mistakes people make with their 401(k).

Read More

Beneficiary Mistakes

May 9, 2024

In this episode of the Retirement Ready Podcast, Eric guides us through the critical yet often overlooked details of beneficiary designations. Learn the simple yet vital steps to prevent beneficiary blunders that could lead to unnecessary headaches for your heirs. Eric calls these errors “low hanging fruit” because they’re easy to fix yet can save your family from future heartache.

Read More

How Emotions Can Impact Your Retirement Plan

May 2, 2024

Dive into the world of financial emotions in this episode with Eric Peterson. Discover how greed, fear, hope, and pride can make or break your investment strategy. Eric unravels the complexities of managing emotions to ensure a secure and enjoyable retirement.

Read More

Retirement Planning Statistics

April 25, 2024

Retirement is closer than you think, but are you ready? With a staggering number of people lacking confidence in their retirement savings, Eric shares the misconceptions people have and what mistakes can derail someone’s financial future. Many people feel inadequate when it comes to what they have saved in their nest egg, uninformed about the pitfalls of target date funds, and unprepared about the reality of leaving the workforce earlier than expected.

Read More

Mailbag: Should I Fire My Broker?

April 18, 2024

Navigating life’s financial crossroads can be tricky, especially when it involves your financial future. In this episode of Retirement Ready, Eric addresses these complex issues head-on. How do you best evaluate your broker and your investment performance against the S&P 500? Eric says a lot of that comes down to setting expectations and understanding the risks. Then, Holly wants to know what to consider before making a midlife career change.

Read More

Leave a Comment