How To Ask Better Financial Questions

Today’s Prep:

Asking questions is always a good thing. The more you ask, the more you understand. But sometimes you don’t get the answer you need until you ask the right question. These four common financial questions are a bit better when they are rephrased and reconsidered.

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

 

Equipping Points:

When it comes to retirement, you may have a lot of questions. How much do I need or what’s the “magic number” to achieve before retirement? But you may be asking the wrong questions when it comes to getting the answer you really need.

In this episode of Retirement Ready we talk through four different common questions that need a mindset shift in order to come to the proper conclusion. Asking questions in a new way may provide not only more clarity, but more peace of mind when it comes to your financial plan.

For instance, the most common question when planning for retirement is, “How much money do I need?” A commercial showed people carrying around numbers of what they had, but the amount is different for everyone. A better question to ask in this case is, “How much income do I need in retirement?” That number will help you develop strategies to generate the income you need. This can be done by considering the 4% rule and preparing a budget. Then you’ll want to consider what happens if you are in a bad market and an advisor can prepare a gap analysis.

Other questions you might be asking is how to get the highest rate of return or reduce advisor fees. But those may overlook the value of an advisor and a solid financial plan with a variety of investment options. Consider this, if you are getting surgery, do you want the cheapest surgeon or the best and most competent?

Vanguard did a study about the value an advisor brings. A lot of it comes down to behavior modification, preventing someone from doing the wrong thing at the wrong time. More than just making investments (and the right ones), you want someone who can show you how to reduce your tax reliability. Someone who points you toward the long-term plan, not just the short-term savings on advisor fees. In the long-run, that will pay off.

Listen to the entire podcast for more ways to reframe your financial questions or click on the timestamp below to hear about a specific question.

[1:07] – “How much money do I need to retire?” Better question: How much income do I need?

[3:26] – “How can I get the highest possible return on my money?”

[5:26] – “Where can I pay the lowest fees for financial advice?”

[7:01] – Vanguard study shows what value an advisor brings to portfolio.

[8:11] – “What can I do to pay less in taxes this year?” Better question: What can I save on taxes in the future?

 

Related Resources:

Financial Mythbusting: Making a Financial Plan Based on Reality

Unlikely Wisdom from Unlikely Voices

Today’s Takeaway:

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The host: Eric Peterson - Contact - Call: (515) 226-1500

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