Today’s Prep:
Financial for 200! Financial for 400! Are you ready to match the questions with the statements like in Jeopardy when it comes to your knowledge of financial terms? Which of these currently impact your retirement plan?
Equipping Points:
Are you up-to-date on your financial trivia? On today’s episode of the Retirement Ready podcast, we put Eric Peterson to the test by playing a round of financial Jeopardy. Play along and see if you can match the definitions to the proper questions.
What is a variable annuity? Variable annuities have high fees in them and can give a bad name to some of the other types of annuities. Fixed annuities, fixed index annuities, and variable annuities are all different though. Do you have an annuity? Do any of these fit in your retirement plan?
What is the fiduciary standard? You may be working with a registered investment advisor, which is someone required to put your best interests first. Or you may be working with a broker, which falls under the suitability standard of care and doesn’t have to disclose conflicts of interest. You need to ask, “Are you a fiduciary?”
What is a market correction? Markets are always going to move up and down depending on what’s going on in the economy. People think corrections and economy move hand-in-hand, but that’s not necessarily the case. Corrections are natural, but you have to understand how it works and know where you will have safe places to draw money from in retirement.
What is a required minimum distribution? There are a number of ways that stop you from taking distributions, but none of them are good. So, if you are past 70 and a half, you do have to take RMDs. That said, there are several different options on what can you do with these (hint: it’s not just spending them).
What is a pension? These are retirement benefits that are becoming rare in our country. So, what does that mean for your retirement plan?
Listen to the full episode to play a bit of financial Jeopardy alongside us or click on the statements below to see how well you know your financial terms.
1:18 – This financial product has given a bad name to some of its cousins.
3:50 – This requires a financial advisor to put his client’s best interests before his own.
4:53 – What is the difference between a fiduciary and a broker?
6:16 – This financial phenomenon is thought to be imminent or by others off in the distance.
9:14 – This is mandated by the IRS and force retirees to drain retirement accounts.
11:04 – This common staple of retirement is quickly becoming scarce.
Related Resources:
Strategizing for Retirement (Just Like In Chess)
Today’s Takeaway:
[spp-tweet tweet=”You don’t want to sell when things are down. That’s why your plan needs to have safe places to take money from. Smart, safe places to take income from that you need in retirement–that’s what works in a plan. –Eric Peterson“]
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