Outdated Financial Rules

Today’s Prep:

What financial rules are worth following and which ones need an update? On this episode, we discuss several known financial rules to see which ones are dated and which ones stand the test of time.

(Click the featured times below to jump forward in the episode)

Equipping Points:

Just like your cell phone or other technology, things get outdated over time. What kinds of financial rules have gotten dated and unusable over time? What has held true?

How does the four percent rule hold up? Eric reviews where this rule came from and how it was applied in the 1980s. Some of the question comes down to how long you want your retirement to last? What kind of success are you aiming for?

Where is the market today? Does the 10-5-3 rule fit in today’s market? If things stay the way they are today, ask yourself how can you retire? How can you generate the income that you need? There are different tools that can make it happen, but relying on the 10-5-3 rule just doesn’t work.

Should you transition from stocks to bonds as you get older? It’s been done to transition from high risk to lower risk. Remember though that bonds still have risk, it just looks different. What are bonds and how do they gain value? Consider what alternatives there are to bonds to that provide you with a sense of safety and security.

Is your goal to save a million dollars for retirement? Is this a worthwhile goal or should you focus on what you already have? Instead of getting caught up on a particular number, look at your plans to make sure you get to enjoy the retirement lifestyle you want.

Listen the full episode or click on the timestamps below to hear what financial rules might be outdated today.

[1:38] – Should you follow the four percent rule? 

[4:36] – What is the 10-5-3 rule?

[5:55] – Does it make sense to change from stocks to bonds as you age?

[8:30] – Are you following the million-dollar rule?

Related Resources:

Defining Dividend-Paying Stocks

Finding Predictable Income Sources In Retirement


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

Retirement Income Planning Essentials

September 23, 2021

What do you need to know about retirement income? From Social Security to planning for inflation, Eric breaks down the basics of what you need to know and how to make a plan that fits your future.

Read More

Easy Financial Improvements To Make

September 16, 2021

What’s a simple way to make your financial planning better? Today we are going to discuss some easy steps you can take to improve your financial plan.

Read More

Empty Nest Syndrome

September 9, 2021

Have all of your little baby birds left the nest? Today, we discuss the kind of financial decisions you may make in this next stage of life.

Read More

Retirement Quiz – Is That Your Final Answer?

September 2, 2021

We quiz Eric with a few multiple-choice questions all about retirement. Which one will he choose? Do you agree?

Read More

Moving On From Financial Mistakes

August 26, 2021

Instead of getting stuck in a rut after a financial mistake, it’s important to move forward in the right direction. So, what can you do to recover? Find out on today’s show.

Read More

Common Complaints About Financial Advisors

August 19, 2021

Are you feeling frustrated when it comes to your financial planning? If so, these three common financial complaints might make you feel like you aren’t alone, but also give you hope for a better scenario.

Read More

Navigating Retirement Disagreements Between Spouses

August 12, 2021

What do couples tend to argue about when it comes to their money in retirement? Eric talks through what you need to do to get on the same page.

Read More

5 Most Common Retirement Planning Mistakes

August 5, 2021

Do you have a strategy in place to avoid these retirement planning mistakes? Eric talks through what to do instead to make sure your plan is a success.

Read More

The Retirement Countdown

July 29, 2021

In those final years before retirement, what should you be considering and doing now? We tackle a list of things you should do in the years before retirement.

Read More

Mailbag: Do I Need Long-Term Care Insurance If I Expect an Inheritance?

July 22, 2021

Looking for a way around paying for long-term care insurance? Will an inheritance cover it? Eric answers this question and two others from the mailbag.

Read More

Leave a Comment