Today’s Prep:
When it comes to phrases or jargon, it’s good to know how to say it and what means what. Do you know what we’re talking about with each of these things?
Equipping Points:
We’ll have a little lesson in linguistics and financial terminology to hear what Eric says about these different terms. Are they all the same or does saying it one way over another make a difference? How do you say it?
Market crash, market correction, or bear market — is it all the same? The media might say it’s a market crash every time it goes down, but it might be only a correction. A bear market happens over an extended period of time. When you invest, think about the long-term investment and then you don’t have to worry so much about the quick ups and downs.
Junk bonds or high yield bonds? Eric prefers calling them junk bonds because they are more descriptive of what you’re getting. Does junk mean it’ll automatically default? No, but it means you’re buying from a company whose borrowing capability is diminished. Realize what you’re getting before you invest.
Which does Eric say more, stocks or equities? Technically, they are the same, but Eric says stocks. More people understand stocks instead of equity though, so it’s more commonly used.
Is Eric a financial advisor, financial planner, stockbroker, or investment advisor? Actually, he prefers the term retirement planner! A financial advisor is different than an investment advisor in that they are looking at a more comprehensive plan, not just individual investments. When you’ve got a young family, you may work with an advisor to help you work toward savings goals and provide for your family. A retirement planner wants to protect their assets, generate retirement income, and transition the money you have leftover to the family.
Finally, client or customer? Eric prefers clients as they are building a relationship. Not all work they do generate sales, but it is for the benefit of the client. They answer questions or provide referrals. This is what you can expect when working with Eric and his team for all of your retirement planning needs.
Listen to the entire episode or skip ahead using the timestamps below.
0:47 – Tennis shoes, sneakers, or gym shoes?
1:35 – Market crash, market correction, or bear market?
4:26 – Fireflies or lightning bugs?
5:00 – Soda or pop?
5:25 – Junk bonds or high yield bonds?
7:04 – Stocks or equities?
7:39 – Financial advisor, financial planner, stockbroker, or investment advisor?
10:45 – Water fountain, drinking fountain, or bubbler?
10:59 – Clients or customers?
Today’s Takeaway:
“What’s included in the fees that we charge are these interactions that we have where all we do is talk about you and your plan. Sometimes there might be some tweaks we need to make.“
-Eric Peterson
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