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.
(Click the featured times below to jump forward in the episode)
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
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 MoreA 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 MoreBuilding 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 MoreWhat 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 MorePlaying 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 MoreTax 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 MoreAsking 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 MoreUnderstanding Financial Feelings
How you feel about things has a big impact on your financial decisions. We talk through several areas where understanding your feelings can help you determine what’s best for your financial plan.
Read More