Today’s Prep:

This or that? Depending on who you listen to, you may have heard a variety of opinions on these financial debates. Eric shares his thoughts on debt, mortgages, life insurance, and mutual funds.

Equipping Points:

1:06 – IN THE NEWS: STUDENT LOAN DEBT

• Bernie Sanders wants to forgive about $1.6 trillion in student loan debt. Is this a good idea or realistic?
• Who is going to pay for it?
• The first rule you should learn about taking out loans.
• Eric gives his take on the topic.

3:55 – PAY OFF DEBT OR BUILD UP SAVINGS?

• Both are important but here’s how you treat yourself.
• Strategy you should use in your life.

5:00 – KEEP A MORTGAGE OR PAY OFF HOUSE AS QUICKLY AS POSSIBLE

• Why do people say mortgage debt ‘better’ than other types of debt?
• Eric shares a client example of someone wanting to pay off their mortgage with retirement account money.
• Is it advantageous to refinance?

7:11 – TERM LIFE INSURANCE VS PERMANENT LIFE INSURANCE

• What is term life insurance?
• When would term life benefit you?
• What type does Eric carry?
• What is permanent life insurance?
• Both have advantages and disadvantages.

8:54 – MUTUAL FUNDS: GOOD OR BAD?

• What can mutual funds provide and are they still as solid as they used to be?
• Are exchange-traded funds better?
• With mutual funds, the actions of others can impact you.

Related Resources:

PODCAST: 3 Questions You Should Ask a Potential Advisor

PODCAST: If Retirement Were Like a Game Show

Today’s Takeaway:

“Inside of 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.  Eric Peterson“