Is This Retirement Fact or Fiction?

Today’s Prep:

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?

Equipping Points:

On today’s podcast we play a game of fact or fiction. These different statements get thrown around a lot when it comes to financial planning, but are they really true?

For starters, is Social Security taxable? Eric talks through how this is a fact, but also explains the ways this can look differently from one person to another. What about taxes? Are they lower in retirement? Are you planning for retirement accordingly?

Is term life insurance better than whole life insurance? To determine that, you need to understand what each tool does. What are the pros and cons of each form of insurance? What benefit might be provided? Is it worth having both? 

How much can you really depend on Medicare? What does it cover and what gaps do you need to fill? How can an HSA be of use to you? As much as health expenses aren’t as fun or flashy as a nice vacation, they are a major expense you need to be prepared for in retirement.

Finally, as you get older should you be shifting your stocks to bonds? How can you do this wisely and in a way that will best protect your investments? Be sure to talk with your financial advisor in order to act strategically with your money.

Listen to the full episode or click on the timestamps below to skip ahead to a particular fact or fiction.

1:04 – Fact or Fiction: Social Security is taxable. 

3:18 – Fact or Fiction: Your taxes will likely be lower in retirement.

5:24 – Fact or Fiction: Term life insurance is better than whole life insurance.

7:37 – Fact or Fiction: Medicare will cover most of your medical needs in retirement.

9:30 – Fact or Fiction: As we get older, we should shift from stocks to bonds.

Today’s Takeaway:

What kind of rate of return do I need to make my plan work? If my plan works at a low rate of return, I’ve got all kinds of tools I can use. If I need a high rate of return, I’ll need to be more stock-based.

-Eric Peterson

Related Resources:

Are You Flirting with Financial Disaster?

What Is Your Retirement Mindset?

Grading Your Financial Competency

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

Villains of the Financial World

March 14, 2024

Just like some of these cinematic villains, some of these financial elements may have a bit of nuance and history that can make it hard to label them all good or all bad.

Read More

Uses for Life Insurance

March 7, 2024

When you’re younger, life insurance is often thought of as an income replacement as needed. But as you get older and into retirement, you might find other uses for life insurance. When thinking ahead for your estate and how it passes to beneficiaries, life insurance can prove to be a useful tool. Currently, the proceeds from life insurance are tax-free. How does that change how you include it in your financial plan? Eric outlines some of the options and benefits life insurance can provide.

Read More

Understanding Financial Risk

February 29, 2024

What kind of risks do you take in your financial life? As you get less comfortable with things like climbing up ladders and riding on skateboards, you might also become less financially risky. When you enter retirement, how you view your money in the market changes significantly from your working years. It’s important to look at your portfolio to ensure your investments match your risk tolerance.

Read More

Mailbag: What Financial Advice Should I Share with My Grandchild?

February 22, 2024

Why is retirement planning different than the “good old days” that our parents and grandparents experienced? Things like pensions, Social Security, and even RMD age have changed. Is your financial plan set up accordingly or is it in need of some changes to match?

Read More

The Good Old Days

February 15, 2024

Why is retirement planning different than the “good old days” that our parents and grandparents experienced? Things like pensions, Social Security, and even RMD age have changed. Is your financial plan set up accordingly or is it in need of some changes to match?

Read More

Mailbag: When Should I Retire?

February 8, 2024

When is the perfect time to retire? One question from the mailbag asks whether retiring now or in two years will make a big difference. Eric explains what you’ll need to consider and what differences you might encounter from a work and lifestyle standpoint. Then, he answers Nancy’s question on how important it is to have a financial advisor in retirement.

Read More

Discussing Dave Ramsey and His Core Beliefs

February 1, 2024

More than likely, you’ve heard about financial commentator, Dave Ramsey. Today, we talk about some of Dave’s core beliefs and how it may differ from those of a licensed financial advisor. While Dave’s tips and baby steps have helped people, it’s worth taking some of his advice with a grain of salt. 

Read More

Mailbag: What Should I Do With My Inheritance?

January 25, 2024

Every day you have to make choices about your money. What to spend it on, when to save, and how to manage it well. We tackle three questions from the mailbag today from people facing a financial decision. From learning how to take care of the household finances after one spouse passes to deciding about helping a child pay for college, Eric can help point clients in the right direction.

Read More

The Voice of Greed

January 18, 2024

What does the voice of greed sound like? We hear a lot in the financial space, some of it sound advice, and some of it just plain greedy (and even risky). There’s a time and a place for risk, but it comes down to planning. Not all of your money should have the same risk profile. Working with a financial advisor can help you determine how much risk is good vs. having safety.

Read More

The Financial Guessing Game

January 11, 2024

Sometimes we fall into playing the guessing game when it comes to our finances. For instance, how much do you really need in retirement? Instead of grabbing at arbitrary numbers, first think about how much you spend. Some of your expenses may change in retirement compared to your working years, but plan for your needs based on your expenses and your goals.

Read More

Leave a Comment