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
The Stress That Comes With Retirement
Eric discusses why this phase can be so daunting and offers strategies to ease the transition.
Read More
Finding Financial Silver Linings
Throughout our lives, there will be times when the markets rise and times when we experience downturns. Largely, we don’t have control over the circumstances we’re dealt, but we do have control over how we respond to those situations.
Read More
Unasked Retirement Questions You Shouldn’t Ignore
Tune in to this episode with Eric, as he breaks down some frequently unasked retirement questions that are very important to consider.
Read More
The Diverse Definitions Of Diversification
Diversification is one of those buzzwords you hear often in financial planning. While many people know it’s important, few are clear on what it actually means when applied to various aspects of their financial strategy. In today’s episode, Eric and Marc will bring you the diverse definitions of diversification.
Read More
The Use Of Technology In Financial Planning
As technology keeps advancing, it’s made our lives easier in so many ways. Tasks that used to need outside help can now be done on our own with just a few clicks. This shift has also brought more accessible online financial tools, but how accurate and helpful are they really?
Read More
Retirement Planning Conversations With Dorothy Parker
Dorothy Parker is one of the great writers of the 20th century. Her wit and prose have been appreciated by readers for generations. But are there any lessons we can learn when it comes to finance with some of Parker’s most well-known quotes?
Read More
Mailbag: Moving To A State With Income Tax And More
In this episode, Eric is answering your questions! We’ll cover a range of topics today, including key considerations for income taxes when moving to a new state, how to initiate financial conversations with parents or grandparents, and whether using a life insurance policy to save for a college fund is a wise choice.
Read More
What Is Lazy Money?
What is lazy money and why do you want to not have too much of it in your retirement portfolio? Simply put, lazy money is money that isn’t growing as much as it could be. Having your money grow and work for you is a key part of building a solid portfolio, so Eric breaks down some strategies to help get the most out of your money in this episode.
Read More
Retirement Planning Today Is Harder Than It Used To Be
Retirement planning simply isn’t the same as it used to be. From changes in life expectancy, the lack of pensions, and getting caught in the sandwich generation, there’s a lot to keep in mind when putting together your financial plan. Instead of taking advice from others who may have retired in a different era, it’s important to understand what strategy is right for you.
Read More
Social Security Variables That Impact Your Claiming Strategy
After so many years of paying into Social Security, you might feel ready to reap the benefits. But before you get too eager, it’s best to have a thorough understanding of the different variables and how to best leverage them.
Read More