Today’s Prep:
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.
Equipping Points:
As you near retirement, you may wonder the best way to proceed. Eric answers three questions from the mailbag, all about what to be aware of as you get into the final planning stages of retirement.
Kate in Urbandale hasn’t been saving 15 percent of her income toward retirement. Will she be stuck eating cat food in retirement? What you need in retirement is really dependent on your situation. You might want to work part-time for extra income, develop rental income, or take withdrawals from retirement savings. Look at how much you need to get to reach your goal. If you’re unable to get to 15 percent, you want to get at least enough to reach the match in your 401(k) if it is offered. It’s likely not as dire as you’re thinking, but you may want to sit down with a professional to see where you stand.
Ricky from Des Moines questions if he should continue to work with a financial advisor who is older than him or move on to someone else who won’t retire before he does. Eric says to consider the wealth of experience an older advisor likely has. You’ll want a continuity plan, a succession plan for the team you’re working with, but more than anything, a strong financial plan. The plan should work without the person who put it together for you.
Alfonso in Ames is retiring in about five years and currently maxing out his 401(k) but not doing any other savings. Should he be saving elsewhere besides his 401(k)? Eric says it’s good to diversify between different tax buckets. You may want to find out if you have an option for a Roth 401(k). When you’re 5-10 years from retirement, this is the time to evaluate and make some adjustments so you can retire in any economy and pay the least amount of tax possible.
Listen to the entire episode or skip ahead using the timestamps below.
0:47 – Mailbag: If I can’t save 15 percent for retirement will I be okay?
4:45 – Mailbag: Is it bad if my financial advisor is older than me?
7:48 – Mailbag: Should I save elsewhere besides my 401(k)?
Today’s Takeaway:
“The thing about retirement and how much income you’re going to need is really dependent on your situation.”
-Eric Peterson
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
What 400+ Advisors Say Really Keeps Retirees Up at Night
What are Americans really concerned about when it comes to retirement? In this episode, we unpack the results of an insightful survey from Financial Advisor Magazine, which was completed by over 400 financial advisors. We’ll also compare these answers with the real-world concerns we hear every day from the clients in our own practice.
Read More
Bracket Busters and Stock Flops: The Risky Game of Picking Winners
March Madness is here, and just like filling out a bracket, picking individual stocks can feel like a thrilling gamble. But the odds of winning big are slim. In fact, history shows that most stock picks, like most brackets, end up busted.
Read More
Are Hidden Fees Draining Your Retirement Savings?
In this episode, Eric reveals the true cost of investing and how to protect yourself from unnecessary financial drains.
Read More
What Game Night Can Teach Us About Financial Planning
In this episode, Eric breaks down the surprising financial lessons hidden in classic board games, offering valuable insights to help you navigate your retirement strategy.
Read More
Mailbag – Upsizing, Financial Advisors & Business Owner Planning
Join us as we answer questions about the challenges of downsizing, the emotional aspects of planning for family gatherings, and the realities of transitioning into a financial advisory career.
Read More
Planning for Unique Situations in Retirement
While many face the same general retirement concerns, each individual’s situation is unique, requiring tailored solutions.
Read More
Planning for Kids, Grandkids, & Your Future
As many nearing retirement age are discovering, adult children and grandchildren can significantly influence financial strategies, making it crucial to understand how to navigate these relationships effectively.
Read More
Financial Planning Conversations for Couples
This episode is focused specifically on that planning we do with couples with insights on how we help them navigate tricky conversations about money and retirement.
Read More
Is Your Retirement Based on Wishful Thinking?
Many people fall into the trap of wishful thinking when it comes to what they expect will happen in retirement, but a successful retirement isn’t built on hope and assumptions.
Read More
Spending With Confidence in Retirement
Eric shares strategies to help retirees enjoy their savings while ensuring financial security.
Read More