Excuses, Excuses, Excuses – Stop Making Them

Today’s Prep:

What’s your excuse for doing one thing over another when it comes to finances? Sometimes you want to justify your actions instead of thinking through what is actually best for you and your money. Here are three common decisions people make and why the excuses just don’t add up.

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

Equipping Points:

[1:15] Taking your social security

The earliest you can take money out is at 62 years old. Right now it’s projected that the reserve will be depleted at 2035, so there may be some changes to social security. Don’t claim your money at 62 just because you want to get it out of the system. Do it if it’s right for your plan. Think about variables such as life expectancy, taxation, spousal benefits. Then, think about the burn rate — how many of your assets you’ll burn through before getting social security.

[5:29] Trying to make up for lost time

Find out what kind of rate of return you need to make your plan work. Go through your capacity, attitude, and needs to see what kind of returns you need. Statistics say 69 percent of people surveyed by Employee Benefit Research Institute think they have enough money for retirement, but only 41 percent have actually calculated it. You need to have a plan to dictate the decisions of what you do.

[7:54] Keeping cash in the bank

When you have cash in the bank you still need to consider things like inflation and taxes. Understand what liquidity really means. Having a lot of money in cash is not prudent, so just have the amount you need to feel comfortable.

Today’s Takeaway:

Additional Resources:

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

Mailbag: Which Investment Should I Withdraw From?

September 29, 2022

Whether you are nearing retirement or wanting to buy a new car, taxes are often a big part of the conversation. Thinking through how and when to withdraw from your investments strategically can make all the difference in what taxes you pay afterwards.

Read More

Investing and Coffee

September 22, 2022

In the fall, a lot of people are ready to cozy up with a coffee or latte in their favorite mug. For fun, we talk about the different types of coffee drinks and what kind of investor that might make them. Do you take your coffee the same style you do your investing? Which one are you?

Read More

The Different Kinds Of Annuities

September 15, 2022

To some people, an annuity is almost like a dirty word. In reality, there are a lot of different kinds of annuities, and some are better for your financial plan than others.

Read More

Financial Fortune Cookies

September 8, 2022

What small piece of wisdom can we take away and apply to our financial plan? Eric talks through five fortune cookie statements and what they mean.

Read More

The Worst Investor

September 1, 2022

Which investors will end up ahead in the end? Eric talks through the types that might look successful…until they aren’t.

Read More

What Happens in a Periodic Review With Your Financial Advisor?

August 25, 2022

Think about the taxes! Eric answers three questions from the mailbag today that all involve financial decisions with tax implications.

Read More

Mailbag: Does It Matter Who Gets What Asset in My Legacy Plan?

August 18, 2022

Think about the taxes! Eric answers three questions from the mailbag today that all involve financial decisions with tax implications.

Read More

More than Just a “Nice Person”

August 11, 2022

Financial advisors are people who want to get along with, but you probably want more than just a nice person. We talk through what you should expect with a fiduciary and when you should get a second opinion.

Read More

Mailbag: How Much is Too Much to Spend on a Forever Home?

August 4, 2022

Retirement decisions involve a lot more than just the money, but also the emotional and lifestyle decisions, too. Eric answers three questions from the mailbag from listeners making retirement decisions.

Read More

Financial Jeopardy

July 28, 2022

We play the game of Jeopardy as Eric answers financial questions on today’s show. Do you know all the answers?

Read More

Leave a Comment