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)
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.
“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.“
Check out some other recent episodes
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
From market crashes to empty nests, we discuss different situations that may be first viewed as a crisis. But is it really an opportunity in disguise? We will explore both sides today on the podcast.Read More
What kind of classic TV personality do you most relate with when it comes to handling your finances? Are you more like Gilligan or Barney Fife? Find out on today’s podcast!Read More