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.
(Click the featured times below to jump forward in the episode)
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
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Mailbag: Should I Move my Mom’s Money into Investments?
Where’s the best place for your money to go? Several people are considering where their money should be, so Eric answers three questions from the mailbag for today’s show.
Read More
A Perfect Match: Tennis and Retirement Planning
Ready to ace your retirement plans? Let’s talk tennis and see how much it relates to your financial plans on today’s show.
Read More
Mailbag: Money Management Tips For Younger Couples
What financial advice does Eric have for younger couples? What can you do to reduce next year’s taxes? Eric answers these questions and more from the mailbag.
Read More
Building a Plan for the Long Haul
What do you need to get you through the long haul of life? Eric talks us through what this looks like in your financial plan and how to build it with an eye on a distant horizon.
Read More
What Do You Need to Know About Today’s Inflation?
Everywhere you turn there’s a headline about inflation but what do you need to know about what’s going on? Eric weighs in on the recent numbers and what you can do about it.
Read More
Mailbag: Should I Save Elsewhere Besides My 401(k)?
What kind of savings do you really need for retirement? Are you working with the right advisor to get you there? Eric answers three questions from listeners.
Read More
Playing the Retirement Game Show
Come on down! We talk about our favorite TV game shows and how it relates to our financial plan (and when it should look different).
Read More
Tax Season
What do you need to know when it comes to tax planning? Eric outlines the ways a tax strategy can make a big difference in your retirement plan.
Read More
Asking the Wrong Questions
What do I really spend? What does it take to maintain this standard of living? And what changes in retirement from when I am working from an expense side?
Read More
Mailbag: Should I Combine My Old 401(k) Accounts?
What should you do about 401(k) accounts from old jobs? How can you find out what your Social Security benefits would be? Eric answers these questions on today’s show.
Read More