Mailbag: Is It Common to Worry About Running Out of Money?

Today’s Prep:

Do people usually fret about running out of money? Are there ways to set aside retirement money for your adult children? Eric answers these questions and more on today’s show.

Equipping Points:

Michael in Waukee has a 30-year-old son who finally just finished grad school. Between the late start to saving for retirement and a lot of student loan debt, is there a way Michael can help his son save? They have more than they need for retirement but would like to set some aside for their son. Eric says one way to do this is through a Roth IRA, as long as he earns income. You can gift money to your children and can suggest that he place it in a Roth account. This helps your child build a financial foundation and retirement savings now instead of waiting until they get it via inheritance.

Penny in Ames has been retired for about three years and even with her withdrawals, the account balance is bigger than it was when she started. Even still, she worries about running out of money eventually in retirement. Is that common? Eric says it is a common fear because you are without that safety net of work and earning a paycheck. Meeting with an advisor can help you stress test your plan, protect your investments, and see how you can best take out your distributions. Eric talks through what happened during our last major downturn in 2008 and what it was like being an advisor at that time.

James in Iowa City was planning to retire next year but his company asked him to stay on for a project that will last longer. Any benefit to retiring at 67 instead of 65? More money! If you like what you do and want to do this project, Eric says you’ll have more all around. You’ll have more savings, bigger Social Security benefits, and a larger pension at the end of those two years. Ultimately, you want to make sure it’s the right thing for you.

Listen to the entire episode or skip ahead using the timestamps below.

0:46 – Can I help my adult son save for retirement?

4:04 – Is it common to worry about running out of money?

6:37 – Was your advisor in business during our last market downturn?

10:55 – Any benefit to retiring at 67 instead of 65?


Today’s Takeaway:

The value an advisor brings is behavior modification: preventing you from doing things that are nonbeneficial to your plan, keeping you on task.”

-Eric Peterson

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

Financial Wisdom from Mark Twain

June 13, 2024

In the latest episode of the Retirement Ready Podcast, Eric invites us to explore the timeless wisdom of Mark Twain and how it applies to modern financial planning. Mark Twain, known for his wit and keen observations, offers quotes that are surprisingly relevant to today’s financial landscape. Eric takes these quotes and translates them into practical advice for those planning their retirement.

Read More

Understanding Bonds in Today’s Market

June 6, 2024

Are bonds really the safe investment we’ve always been told they are? What percentage of assets should a retiree or pre-retiree hold in bonds? In today’s episode, Eric addresses some of his most frequently asked questions about the world of bonds…

Read More

Understanding Your Financial Statements

May 30, 2024

Financial statements can often feel like a foreign language, filled with jargon and numbers that seem to have little relevance to your everyday life. However, understanding these documents is crucial for effective retirement planning. In the latest episode of the Retirement Ready Podcast, Eric breaks down the essentials of reading and interpreting your financial statements.

Read More

From Graduation to Retirement

May 23, 2024

This one goes to the grads! Whether you know someone graduating high school, college, or even preschool, graduation marks a new stage and season in life. Similarly, retirement is a new chapter in life. It’s a time of change, celebration, and sometimes, uncertainty. On today’s show, we talk through the similarities between leaving school and entering retirement.

Read More

401(k) Mistakes

May 16, 2024

Your 401(k) likely plays a major role in your retirement savings. That’s why it’s important that it’s set up and functions in the way that’s most beneficial to you. Following our last podcast about beneficiary mistakes, now we focus on common mistakes people make with their 401(k).

Read More

Beneficiary Mistakes

May 9, 2024

In this episode of the Retirement Ready Podcast, Eric guides us through the critical yet often overlooked details of beneficiary designations. Learn the simple yet vital steps to prevent beneficiary blunders that could lead to unnecessary headaches for your heirs. Eric calls these errors “low hanging fruit” because they’re easy to fix yet can save your family from future heartache.

Read More

How Emotions Can Impact Your Retirement Plan

May 2, 2024

Dive into the world of financial emotions in this episode with Eric Peterson. Discover how greed, fear, hope, and pride can make or break your investment strategy. Eric unravels the complexities of managing emotions to ensure a secure and enjoyable retirement.

Read More

Retirement Planning Statistics

April 25, 2024

Retirement is closer than you think, but are you ready? With a staggering number of people lacking confidence in their retirement savings, Eric shares the misconceptions people have and what mistakes can derail someone’s financial future. Many people feel inadequate when it comes to what they have saved in their nest egg, uninformed about the pitfalls of target date funds, and unprepared about the reality of leaving the workforce earlier than expected.

Read More

Mailbag: Should I Fire My Broker?

April 18, 2024

Navigating life’s financial crossroads can be tricky, especially when it involves your financial future. In this episode of Retirement Ready, Eric addresses these complex issues head-on. How do you best evaluate your broker and your investment performance against the S&P 500? Eric says a lot of that comes down to setting expectations and understanding the risks. Then, Holly wants to know what to consider before making a midlife career change.

Read More

Putting It Off

April 11, 2024

We are all guilty of procrastinating from time to time. Financially speaking, though, this can get you into a lot of trouble. Let’s talk about the areas where it might feel better to kick the can down the road.

Read More

Leave a Comment