Mailbag: Should I Save Elsewhere Besides My 401(k)?

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

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Financial Wisdom from Mark Twain

June 13, 2024

In the latest episode of the Retirement Ready Podcast, Eric invites us to explore the timeless wisdom of Mark Twain and how it applies to modern financial planning. Mark Twain, known for his wit and keen observations, offers quotes that are surprisingly relevant to today’s financial landscape. Eric takes these quotes and translates them into practical advice for those planning their retirement.

Read More

Understanding Bonds in Today’s Market

June 6, 2024

Are bonds really the safe investment we’ve always been told they are? What percentage of assets should a retiree or pre-retiree hold in bonds? In today’s episode, Eric addresses some of his most frequently asked questions about the world of bonds…

Read More

Understanding Your Financial Statements

May 30, 2024

Financial statements can often feel like a foreign language, filled with jargon and numbers that seem to have little relevance to your everyday life. However, understanding these documents is crucial for effective retirement planning. In the latest episode of the Retirement Ready Podcast, Eric breaks down the essentials of reading and interpreting your financial statements.

Read More

From Graduation to Retirement

May 23, 2024

This one goes to the grads! Whether you know someone graduating high school, college, or even preschool, graduation marks a new stage and season in life. Similarly, retirement is a new chapter in life. It’s a time of change, celebration, and sometimes, uncertainty. On today’s show, we talk through the similarities between leaving school and entering retirement.

Read More

401(k) Mistakes

May 16, 2024

Your 401(k) likely plays a major role in your retirement savings. That’s why it’s important that it’s set up and functions in the way that’s most beneficial to you. Following our last podcast about beneficiary mistakes, now we focus on common mistakes people make with their 401(k).

Read More

Beneficiary Mistakes

May 9, 2024

In this episode of the Retirement Ready Podcast, Eric guides us through the critical yet often overlooked details of beneficiary designations. Learn the simple yet vital steps to prevent beneficiary blunders that could lead to unnecessary headaches for your heirs. Eric calls these errors “low hanging fruit” because they’re easy to fix yet can save your family from future heartache.

Read More

How Emotions Can Impact Your Retirement Plan

May 2, 2024

Dive into the world of financial emotions in this episode with Eric Peterson. Discover how greed, fear, hope, and pride can make or break your investment strategy. Eric unravels the complexities of managing emotions to ensure a secure and enjoyable retirement.

Read More

Retirement Planning Statistics

April 25, 2024

Retirement is closer than you think, but are you ready? With a staggering number of people lacking confidence in their retirement savings, Eric shares the misconceptions people have and what mistakes can derail someone’s financial future. Many people feel inadequate when it comes to what they have saved in their nest egg, uninformed about the pitfalls of target date funds, and unprepared about the reality of leaving the workforce earlier than expected.

Read More

Mailbag: Should I Fire My Broker?

April 18, 2024

Navigating life’s financial crossroads can be tricky, especially when it involves your financial future. In this episode of Retirement Ready, Eric addresses these complex issues head-on. How do you best evaluate your broker and your investment performance against the S&P 500? Eric says a lot of that comes down to setting expectations and understanding the risks. Then, Holly wants to know what to consider before making a midlife career change.

Read More

Putting It Off

April 11, 2024

We are all guilty of procrastinating from time to time. Financially speaking, though, this can get you into a lot of trouble. Let’s talk about the areas where it might feel better to kick the can down the road.

Read More

Leave a Comment