Today’s Prep:
Whether you are growing some backyard tomatoes or have 100 acres of farmland, what are some financial lessons to be learned? You don’t need a green thumb to understand these financial principles.
Equipping Points:
In Iowa, you can’t get too far without driving by a farm. What are some farm life lessons that can apply to your financial life?
Whether you have a farm or not, it’s important to understand the difference between net worth and cash flow. Maybe your net worth varies a value, but if you are in need, you can’t necessarily get the money off the land right away. Do you know the difference between your overall net worth and your investable net worth?
If you have the land and the resources to start a new project or tend a new garden, you have to consider what kind of predators or pests you’ll need to protect yourself from. When it comes to your retirement, you have to watch out for inflation, market losses, fees, and long-term care needs that might put your investments in harm’s way.
Instead of basing your entire farm on one crop, having diversity helps you in different seasons or allows for a more well-rounded yield in case of bad weather or disease. Same with your asset class, you want a little bit of a few different types of investments. You want diversification so that you are both protected from the market and are participating in the market.
Listen to the full episode or click on the timestamps below to hear the key points.
1:55 – Understanding net worth vs. cash flow.
4:41 – What sort of predators might you face?
7:22 – A diversity of crops is important to maintain.
Today’s Takeaway:
[spp-tweet tweet= “You just don’t want all stocks. You want some stuff that will be different–that’s going to provide income and safety and well-rounded plans. -Eric Peterson”]
Related Resources:
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
What 400+ Advisors Say Really Keeps Retirees Up at Night
What are Americans really concerned about when it comes to retirement? In this episode, we unpack the results of an insightful survey from Financial Advisor Magazine, which was completed by over 400 financial advisors. We’ll also compare these answers with the real-world concerns we hear every day from the clients in our own practice.
Read MoreBracket Busters and Stock Flops: The Risky Game of Picking Winners
March Madness is here, and just like filling out a bracket, picking individual stocks can feel like a thrilling gamble. But the odds of winning big are slim. In fact, history shows that most stock picks, like most brackets, end up busted.
Read MoreAre Hidden Fees Draining Your Retirement Savings?
In this episode, Eric reveals the true cost of investing and how to protect yourself from unnecessary financial drains.
Read MoreWhat Game Night Can Teach Us About Financial Planning
In this episode, Eric breaks down the surprising financial lessons hidden in classic board games, offering valuable insights to help you navigate your retirement strategy.
Read MoreMailbag – Upsizing, Financial Advisors & Business Owner Planning
Join us as we answer questions about the challenges of downsizing, the emotional aspects of planning for family gatherings, and the realities of transitioning into a financial advisory career.
Read MorePlanning for Kids, Grandkids, & Your Future
As many nearing retirement age are discovering, adult children and grandchildren can significantly influence financial strategies, making it crucial to understand how to navigate these relationships effectively.
Read MoreFinancial Planning Conversations for Couples
This episode is focused specifically on that planning we do with couples with insights on how we help them navigate tricky conversations about money and retirement.
Read MoreIs Your Retirement Based on Wishful Thinking?
Many people fall into the trap of wishful thinking when it comes to what they expect will happen in retirement, but a successful retirement isn’t built on hope and assumptions.
Read MoreSpending With Confidence in Retirement
Eric shares strategies to help retirees enjoy their savings while ensuring financial security.
Read More