Today’s Prep:
Eric takes a multiple choice pop quiz about retirement planning. See how his answers stack up with your own.
(Click the featured times below to jump forward in the episode)
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:
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Good News, Bad News
Sometimes you get good news and bad news at the same time. Which one will outweigh the other? More times than not, you are better off than you expected but you won’t know until you ask a professional. In this episode, we talk through a number of financial scenarios that can bring a bit of both good and bad.
Read More401(k) Considerations
A 401(k) is a highly valuable, widely used investment asset for many people. But what should you know when you set one up or contribute to one? In this episode, we’ll talk through some of the things you’ll want to consider when using this powerful investment tool.
Read MoreGenerational Challenges
Every generation has had a different experience and are currently at a different life stage. In this episode, Eric talks through some of the financial challenges that Millennials, Gen X, and Baby Boomers face. Understanding and acknowledging these different challenges can help you better plan according to where you are in life.
Read MoreAdvisor Pet Peeves
We all have pet peeves, so in today’s episode we talk about some pet peeves financial advisors have. Eric shares his experience as a financial advisor and sheds light on some things in the industry that can negatively impact both clients and professionals. From cookie-cutter financial plans to hidden fees, these things can really rub you the wrong way.
Read MoreGrading Your Financial Competency
Financial competency is something that is not taught nearly enough. As an advisor, Eric focuses on teaching not only strategic investing decisions but also the basic foundations of money. It starts by knowing how much you have. Then, ask yourself, how much do you really spend? It’s easy to spend more than you realize, so getting that in check can make a huge difference.
Read MoreFinancial Lessons from Yogi Berra
What kind of financial wisdom can we take from a baseball player’s quotes? Quite a bit! Today’s quotes from Yogi Berra have a bit of humor and a lot of truth when it comes to your financial plan. From navigating annuities to planning for inflation, Eric shares how these quotes can bring a lot of meaning and understanding to our finances.
Read MoreMailbag: Should I be Worried about Investing in a Bank?
You may have seen the news about some bank issues with banks like Silicon Valley Bank. Is that cause for concern? If you have money in the bank, Eric explains how much is covered and what you can do to protect yourself. With any investments you make, realize which of the three components you’ll have: safety, liquidity, or growth.
Read MoreWays to Ruin Retirement
Building a successful retirement requires careful planning and wise decision-making. Unfortunately, it’s all too easy to undo all of that hard work by falling prey to common pitfalls. Rather than risking the enjoyment and security of your golden years, we’ll discuss some ways to avoid these mistakes and secure your financial future in this episode.
Read MoreFinancial Mistruths
Every once in a while, financial concepts or strategies get misunderstood or misconstrued. It’s important to understand what you have and why you have it. On today’s show, we break down some financial ideals to find the “mistruths” or lies that can mistakenly be adopted.
Read MoreWhat’s the Difference? Traditional IRA vs. Roth IRA
Roth IRAs have been around for about 25 years, but a lot of people still don’t know how they differ from a traditional IRA. Understanding the difference between the two will help you determine which option is best for your retirement goals. In this episode, Eric shares what you’ll want to know about a Roth IRA and when to use it.
Read More