Today’s Prep:
We are opening up the mailbag today to answer some listener questions. We will be discussing rental properties, taxes on sold businesses, and changing advisors based on investment performances.
Equipping Points:
How can you make wise decisions with your investments? From rental property to the stock market, you want your investments to be worthwhile. Eric answers three questions to help guide listeners through important investing decisions.
Ernie in Grimes is interested in buying a rental property or two. Should he wait until his mortgage is paid off first? Eric says to think about the reasons why you want to do that. A rental property is an asset that can appreciate. It’s a business decision. Make sure you consider the risks of having a rental property.
Rebekah in Des Moines recently sold her business and retired last year. She and her husband are now planning to sell the building that the business was in. What are the tax implications on a sale like this? Eric talks through what kind of taxes you may need to consider. You’ll want to avoid penalty fees by paying the taxes ahead of time.
Woody’s investments didn’t do well the past year. Should he reevaluate his financial advisor based on this underperformance? Eric says it’s not necessarily due to something the advisor did wrong. You need to look at how much risk you’re willing to take and see what improvements could be made. If you wanted to be a moderate or conservative investor, you may have more bonds in your portfolio. Does your plan align with your investments? Planning should come first, then the selection of the investment or the allocation should come second.
Reach out to Eric and his team to get a retirement readiness review and assess whether your plan, your goals, and your investments are all aligned.
Listen to the entire episode or skip ahead using the timestamps below.
0:46 – Should I pay off my mortgage before buying a rental property?
4:21 – What are the tax implications on selling a business building?
8:03 – Should I reevaluate my advisor based on portfolio performance?
Today’s Takeaway:
“Planning should come first, then the selection of the investment or the allocation should come second.“
-Eric Peterson
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Laid Off Near Retirement? What to Do Next
A layoff close to retirement can feel like a financial emergency, but it may not be as damaging as it first appears. Eric explains why layoffs are happening and walks through the key financial decisions that follow. He also shares a practical checklist for evaluating whether returning to work is necessary, or whether retirement may already be possible.
Mailbag: HELOCs, Trusts, and Family Money
In this mailbag episode, Eric answers listener questions about borrowing after retirement, avoiding unnecessary taxes on large IRA withdrawals, simplifying an estate, and setting healthy financial boundaries with loved ones.
Easy Ways to Ruin Retirement
Retirement can be exciting, but it can also come with new challenges. In this episode, Eric discusses some of the most common ways people can accidentally ruin retirement.
The National Park Guide to Retirement Planning
Whether you’re visiting one of the 63 national parks this summer or just hitting a local trail, a lot of the best practices for a great hike apply just as well to your retirement plan. Today, Eric “walks” through a few.
Mailbag: Military Pension Mistakes & Retirement Decision Paralysis
What happens if you make a retirement decision you can’t undo? And how do you know when you’ve done enough research before making an important financial move? In this mailbag episode, Eric answers two listener questions—one from a military retiree looking to protect his spouse after declining a survivor pension benefit, and another from a listener who struggles with overthinking every financial decision.
Movie Quotes That Reveal the Truth About Retirement
Can classic movie quotes actually teach valuable retirement lessons? In this episode, Eric takes memorable lines from films like The Terminator, When Harry Met Sally, and The Wizard of Oz and uses them to explain key retirement-planning concepts. From preparing for inevitable market downturns to understanding why every retirement plan should be personalized, these famous quotes provide surprisingly practical financial insights.
Mailbag: Simplify Your Retirement Accounts
Sometimes, the most valuable retirement lessons come from the questions people are asking every day. In this mailbag episode, Eric tackles listener questions covering investment organization, diversification, and pursuing new opportunities later in life.
Where Does Guaranteed Income in Retirement Really Come From?
What does “guaranteed income” really mean in retirement, and is it actually possible to create a paycheck you can count on for life? In this episode, Eric breaks down the different sources of retirement income, including Social Security, pensions, investments, rental properties, and insurance-based solutions. He explains the risks many retirees overlook when relying solely on portfolios, dividends, bonds, or rental income and discusses why predictable income streams can play an important role in a well-designed retirement strategy.
Mailbag: IRA Withdrawals, Whole Life Insurance & Cash on the Sidelines
In this mailbag episode, Eric tackles a variety of listener questions about retirement and financial planning.
He breaks down complex topics into clear, practical guidance to help you make more confident money decisions.
Retirement Lessons Hidden in Walt Disney Quotes
Sometimes the best financial lessons come from the most unexpected places. Walt Disney built one of the most recognizable brands in history, but some of his most memorable quotes offer lessons that extend far beyond theme parks and animated characters.