Today’s Prep:

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

Equipping Points:

Let’s look at a few financial concepts and see if Eric can answer in the form of a question as well as give an explanation on today’s version of financial Jeopardy.

With high fees and broken promises, this financial product has given a bad name to some of its cousins. What is a variable annuity? Annuities are issued by insurance companies, but not all annuities are the same. Eric explains the differences and what you should look out for.

A financial advisor who is required to put the best interests of the client first is a fiduciary. There’s a difference between a fiduciary and someone who isn’t, like a broker.

What financial phenomenon is bound to return? Whether we are in one now or it’s far off, a market correction is inevitable. There are always ebbs and flows to the market. The key to success in the market is being able to weather these corrections by not having to sell those and lock in the losses. If you look at the long-term trend of the market, it’s always up but if you look at it granularly, there’s some negativity.

This forces retirees to drain their retirement accounts: RMDs. Required minimum distributions are not only for retirees, it can also apply to those who inherit an IRA. What can you do to reduce these RMDs? You need to work with a planner, especially someone who understands taxes.

[0:50] – Let’s play a little Jeopardy!

[1:28] – Known for its high fees, this financial product has given a bad name to others.

[4:47] – This requires a financial advisor to put the clients’ best interests first.

[6:57] – This financial phenomenon will eventually return.

[8:47] – This forces retirees to drain their retirement accounts.

Today’s Takeaway: