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?
(Click the featured times below to jump forward in the episode)
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?
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Things Your Financial Advisor Might Not Be Doing
Sometimes people get advice from financial “professionals” who maybe aren’t the right fit for their needs. Today, we discuss some of the things your advisor might not be talking to you about.
Read MoreTax Consequences
Taxes are a major part of your life, especially your life in retirement. Having a good understanding of how you can prepare may save you in the long-run. Discussing your options with a financial advisor can help point you in the right direction. Listen in as we chat about tax consequences in today’s episode.
Read MoreCutting Corners Financially
Sometimes we want to take the easy way out instead of the smarter way. Today, we talk about ways people have tried to cut corners financially and where that falls apart. Think you can take extra risk to make up for lost time? Letting your financial life fall to disarray?
Read MoreRisk Aversion
No one loves losing money. So how do you strike the right balance of investing vs. being overly risk averse? Eric talks through how he guides clients through this dilemma. You might be surprised to find out your investment accounts are riskier than you realized!
Read MoreTax Planning in Retirement
Next to income, tax planning is the most important thing Eric focuses on with his clients. If you can control how much tax you pay, it’s more money you get to keep, spend, and enjoy. Retirement is a prime time to focus on tax planning as you have more opportunity to control the taxes you owe.
Read MoreOverconfidence in Your Financial Life
When can overconfidence cause catastrophe? If you are setting your financial goals based on a rule of thumb or a certain arbitrary dollar amount, you might want to reconsider. Having overconfidence, especially in the wrong things, can lead to financial disaster.
Read MoreLearning From Financial Mistakes
Sometimes we learn from our mistakes, and unfortunately, sometimes we make the same mistake over and over. Having a financial advisor can help you navigate through your financial decisions so you don’t get stuck in the same rut of financial mistakes on repeat. In today’s episode, Eric will share some of the mistakes that he sees people make frequently.
Read MoreThe Hierarchy Of Retirement Needs
You may be familiar with Maslow’s hierarchy of needs which breaks down a human’s needs into five different tiers. In today’s episode, we apply those tiers to what you need when retirement planning. Have you planned and saved in a way that will cover all of these needs?
Read MoreFinances with Forrest Gump
The classic movie, Forrest Gump, is full of great quotes. We see how some of those quotes can be applied to your finances. From figuring out what to do when life isn’t going just like you thought to learning from past mistakes, there are a lot of takeaways from Forrest.
Read More