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:

More From Eric:

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

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

What Goes Into a Customized Financial Plan?

October 15, 2020

Why should you have a customized financial plan? What do you need to consider and what goals help you build an outline for your plan? Join us as we talk about what goes into the process of setting someone up for a secure future.

Read More

Things That Don’t Matter…Until They Do

October 8, 2020

Certain financial documents might seem like they can be put off for now. But when you need them, it’s important to be prepared ahead of time! Do you have all of these things in place?

Read More

Uncommon Sense in Financial Planning

October 1, 2020

When common sense isn’t followed, what does that look like? What common sense should we adhere to when it comes to financial planning?

Read More

Visiting the Financial Doctor

September 24, 2020

We’ve all been to the doctor at some point, so how is it like working with a financial advisor? We compare the similarities on today’s podcast!

Read More

Mailbag: Should I Withdraw from an Old Annuity?

September 17, 2020

When is a good time to withdraw from an annuity and what should you know ahead of time? Eric answers this and two other questions from the mailbag in this week’s podcast.

Read More

Heard It Through The Grapevine?

September 10, 2020

From million-dollar retirement benchmarks to presidential election fears or predictions, have you heard these through the grapevine? Eric shares what he thinks about these three financial rumors.

Read More

Is This Retirement Fact or Fiction?

September 3, 2020

Ever hear something and think, could that be true? Some of these financial concepts are fact and some are fiction–do you know which is which?

Read More

Are You Flirting with Financial Disaster?

August 27, 2020

You might feel great about where you stand financially but there’s a chance you could be flirting with disaster. We’ll tell you about three key areas where people make mistakes in their planning that can end up causing major financial problems in retirement.

Read More

How To Pack Your Financial Suitcase

August 20, 2020

When you go on a trip, a lot of times it helps to refer to a packing list to make sure you have everything. When putting together a financial plan, do you have everything in order? Let’s talk about what you need to put into your financial suitcase.

Read More

What Is Your Retirement Mindset?

August 13, 2020

When it comes to retirement, where are you at? If you’re getting closer to retirement, it may help to understand your current mindset in order to know how best to proceed.

Read More

Leave a Comment