Today’s Prep:
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.
Equipping Points:
William in Waukee is 62 and his wife is 58, married with no kids. They wonder why they keep working but don’t feel like they are wanting to retire. Eric says you might have a preconceived notion about what retirement is. Maybe you should consider a work-optional lifestyle. What would it look like to enjoy yourselves and this time? That doesn’t mean you have to stop working, but maybe you work doing what you want to do it. With an age difference, you may have to be strategic about what accounts to draw from, but meeting with a financial advisor can help you discover what your options are.
Sophie in Altoona says her 401(k) has dropped a lot in the last few months, but she’s eligible for a rollover on a portion of that money. Should she consider the rollover to stop the losses? Eric says the reason to rollover is to get something your 401(k) doesn’t have. Remember, it takes awhile to process the rollover and you won’t know the exact date it changes. The timing is something you’ll want to talk through.
Philip in Des Moines says his 87-year-old mom keeps an embarrassing amount of money in the bank. With close to $300,000 in the bank, he is considering asking her for a loan to invest it and do something more with it. Keep in mind, you are viewing that money in a different lens than she has. It’s not your money yet, so be sure to understand her goals with what she’s doing with it.
Listen to the entire episode or skip ahead to a particular question from the mailbag.
[spp-timestamp time=”0:46″] – What if I don’t know if I’m wanting to retire?
[spp-timestamp time=”5:33″] – Should I do a rollover to stop the market losses?
[spp-timestamp time=”7:50″] – Should I move my mom’s money into investments?
Today’s Takeaway:
“There’s a difference between saving and investing. “
-Eric Peterson
Related Resources:
Building a Plan for the Long Haul
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Mailbag: Moving To A State With Income Tax And More
In this episode, Eric is answering your questions! We’ll cover a range of topics today, including key considerations for income taxes when moving to a new state, how to initiate financial conversations with parents or grandparents, and whether using a life insurance policy to save for a college fund is a wise choice.
Read More
What Is Lazy Money?
What is lazy money and why do you want to not have too much of it in your retirement portfolio? Simply put, lazy money is money that isn’t growing as much as it could be. Having your money grow and work for you is a key part of building a solid portfolio, so Eric breaks down some strategies to help get the most out of your money in this episode.
Read More
Retirement Planning Today Is Harder Than It Used To Be
Retirement planning simply isn’t the same as it used to be. From changes in life expectancy, the lack of pensions, and getting caught in the sandwich generation, there’s a lot to keep in mind when putting together your financial plan. Instead of taking advice from others who may have retired in a different era, it’s important to understand what strategy is right for you.
Read More
Social Security Variables That Impact Your Claiming Strategy
After so many years of paying into Social Security, you might feel ready to reap the benefits. But before you get too eager, it’s best to have a thorough understanding of the different variables and how to best leverage them.
Read More
Retirement Real Estate Decisions: Downsizing, Snowbirding, and More
One of the key discussions you may have in retirement is what to do about the house. Should you downsize your home? Pay it off early? Buy a vacation home and become a snow bird? Eric emphasizes the importance of considering not just the financial implications but also the lifestyle changes each of these decisions entail. Weighing out the pros and cons of each decision can highlight what is right for you (which isn’t always the same as what your neighbor is doing).
Read More
Healthcare in Retirement
One major (yet often overlooked!) expense in retirement is healthcare. Especially if you are retiring early, healthcare can be a huge expense as you bridge the gap between your working years and when eligible for Medicare. Not only will you have an increased monthly cost, but you may need to budget for additional medical costs as time goes on or even long-term care needs.
Read More
Family Matters When It Comes to Finances
Today we talk about what happens in a family, particularly when someone has passed away and the financial impact that can have.
Read More
Water Wheels and Retirement Planning
Have you ever wondered how a water wheel can relate to your retirement planning? It might seem like an odd comparison, but in today’s podcast, Eric breaks down this fascinating analogy and its significance in maintaining a stable financial future.
Read More
Most Common Retirement Planning Mistakes
We all make mistakes from time to time. But what if your financial mistakes could be avoided with just a little insight? Eric shares some of the most common retirement planning mistakes people are prone to make and what you can do to save yourself from heartache.
Read More
Common Complaints About Financial Planning
When it comes to planning for retirement, the relationship you have with your financial advisor is crucial. Many people express common complaints about their financial advisors, from taking on too much risk to paying high fees or a lack of communication. In today’s podcast, Eric sheds light on these concerns and offers valuable insights to help you navigate your financial journey.
Read More