Today’s Prep:
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.
Equipping Points:
What do these fortune cookie sayings have in common with your finances? Let’s apply these pieces of wisdom to our financial lives and see.
In the markets right now, the fortune “Crisis is an opportunity riding on a dangerous wind” may apply. Whether you have a lot like Warren Buffett or you are trying to make the most out of what you have, finding these opportunities is important when building your portfolio. There’s always an opportunity, so ask what opportunity is available to you right now.
The next fortune, “A feather in the hand is better than a bird in the air” is similar to one we commonly say. Protect what you have. Sometimes you’ve accumulated enough money that you don’t need to make that large rate of return in order for your plan to work. So why take a risk if you don’t have to?
“Accept something you cannot change and you’ll feel better.” You can’t change tax rates and you can’t change what will happen to the stock market. What you can change is how much risk you take with your portfolio or how much money is subject to taxation.
Another fortune is, “A foolish man listens to his heart.” Sometimes you want to make sudden or drastic moves with your finances based on emotions. This is where a financial advisor comes in to coach you on how best to make financial decisions based on logic and your plan. Don’t try to twist the numbers to justify your decision. As the fortune goes, “Don’t let statistics do a number on you.” Numbers help support your decisions, but they have to be real numbers.
Listen to the entire episode or skip ahead to a particular question using the timestamps below.
[spp-timestamp time=”1:37″] – “Crisis is an opportunity…”
[spp-timestamp time=”3:10″] – “A feather in the hand is better than a bird in the air.”
[spp-timestamp time=”3:45″] – “Accept something you cannot change and you’ll feel better.”
[spp-timestamp time=”6:03″] – “A foolish man listens to his heart.” .
[spp-timestamp time=”7:00″] – “Don’t let statistics do a number on you.”
Today’s Takeaway:
Protect what you have. Sometimes you’ve accumulated enough money that you don’t need to make that large rate of return in order for your plan to work. So why take a risk if you don’t have to?
-Eric Peterson
Related Resources:
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Mailbag: Should I Fire My Broker?
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
Putting It Off
We are all guilty of procrastinating from time to time. Financially speaking, though, this can get you into a lot of trouble. Let’s talk about the areas where it might feel better to kick the can down the road.
Read More
Common Scams to Avoid
Americans over 60 have lost more than $3.1 billion in various forms of fraud and scams in the last 12 months! Today we talk through some of the common scams people unfortunately fall for and how you can stay vigilant against it.
Read More
Financial Strategies: Agree or Disagree?
There are a number of financial ideas that people have differing opinions on. Eric shares today which of these he agrees with or disagrees and why.
Read More
Divorce Mistakes
Unfortunately, divorce happens. When it does, no one wants to make costly financial mistakes amidst an already stressful time. Today, we talk about the mistakes that can happen and how to avoid them when it comes to dividing up your assets with a spouse.
Read More
Villains of the Financial World
Just like some of these cinematic villains, some of these financial elements may have a bit of nuance and history that can make it hard to label them all good or all bad.
Read More
Uses for Life Insurance
When you’re younger, life insurance is often thought of as an income replacement as needed. But as you get older and into retirement, you might find other uses for life insurance. When thinking ahead for your estate and how it passes to beneficiaries, life insurance can prove to be a useful tool. Currently, the proceeds from life insurance are tax-free. How does that change how you include it in your financial plan? Eric outlines some of the options and benefits life insurance can provide.
Read More
Understanding Financial Risk
What kind of risks do you take in your financial life? As you get less comfortable with things like climbing up ladders and riding on skateboards, you might also become less financially risky. When you enter retirement, how you view your money in the market changes significantly from your working years. It’s important to look at your portfolio to ensure your investments match your risk tolerance.
Read More
Mailbag: What Financial Advice Should I Share with My Grandchild?
Why is retirement planning different than the “good old days” that our parents and grandparents experienced? Things like pensions, Social Security, and even RMD age have changed. Is your financial plan set up accordingly or is it in need of some changes to match?
Read More
The Good Old Days
Why is retirement planning different than the “good old days” that our parents and grandparents experienced? Things like pensions, Social Security, and even RMD age have changed. Is your financial plan set up accordingly or is it in need of some changes to match?
Read More