Lazy Money

Today’s Prep:

Do you have money sitting around without a purpose? We’ll explain the dangers of lazy money, why people have it, and how you can put it to work! Make your money work for you as you plan for retirement.

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

Equipping Points:

[0:46] What Is “Lazy Money”?

  • Lazy money is money that isn’t working; it isn’t making money or doing anything for except existing.
  • Money markets and savings accounts are considered lazy money.
  • A lot of people think they need liquidity for a rainy day.
  • There are three basic things money can do for you and you only get to pick two: safety, liquidity, and growth.
  • Liquidity changes when you get closer to retirement.

[4:33] Why Do People Have Lazy Money?

  • Aside from an emergency fund, some people lack a financial plan to give their money purpose.
  • In 2008, people got burned. Now they’re scared to put their money into the market.
  • You need to have a balance between risk and safety in your portfolio.

[6:25] How Do You Put Lazy Money to Work?

  • There are three worlds of money: safety, growth opportunity, and linked. Each world consists of certain products, services, and companies.
  • In safety: banks, government, and insurance companies.
  • In growth: mutual funds, stocks, bonds, real estate investments, and variable annuities.
  • In between those two worlds is a linked world that features instruments that focus on protection but are linked to growth. There are restrictions on what you can do with this money, but it’s a way to put your lazy money to work.

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

Translating Financial Jargon

February 25, 2021

Do you know the difference between large cap and small cap funds? What are basis points? This episode will discuss various financial jargon to help translate what these really mean.

Read More

Financial Fill in the Blank

February 18, 2021

What’s the best way to not run out of money in retirement? What are most people worried about when retirement planning? Eric fills in these blanks in today’s episode.

Read More

What to Know About Biden’s Initial Executive Orders

February 11, 2021

Let’s take a look at some of Biden’s executive orders so far in his first few weeks. How could they alter your financial plan?

Read More

Mailbag: Retirement Planning With Separate Bank Accounts

February 4, 2021

From managing your income as a contract employee to managing your income in retirement, Eric answers three questions from the mailbag in today’s episode of the podcast.

Read More

Estate & Legacy Planning FAQs

January 28, 2021

When receiving an inheritance, a lot of interesting or unexpected scenarios can occur. We discuss four different situations to hear Eric’s advice on how to handle them on today’s episode of the Retirement Ready podcast.

Read More

What Does Mark Twain Have to Say About Your Financial Plan?

January 21, 2021

What financial wisdom can we glean from the sayings of Mark Twain? Believe it or not, many of these quotes are quite relevant today.

Read More

New Year, New Ideas to Consider

January 14, 2021

We all like the idea of a fresh start in the new year. What changes are already underway? Or, what changes might be unwelcomed when it comes to your retirement plan?

Read More

Mailbag: Should I Use My Severance Package to Pay Off the House?

January 7, 2021

Whether you want to learn more about using your HSA or trying to make strategic use of your severance package, Eric answers three questions from the mailbag. Do any of these questions relate to your situation?

Read More

Things Your Advisor Should Be Doing

December 30, 2020

What kind of decisions are you making alongside your financial advisor? How do you know if they are doing everything you need when it comes to creating and implementing a retirement plan? Eric talks through what you deserve from a financial advisor and how his team works with clients to meet their needs.

Read More

The Three Worlds of Money

December 23, 2020

Do you know the three worlds of money? Where does the bulk of your money live? Is your money appropriately balanced across all three worlds? We’ll break it all down on this episode.

Read More

Leave a Comment