Today’s Prep:
What common financial advice have you heard that is actually worth following? Do these concepts provide a better financial future for you and your family? Or are these ideas more damaging in the long-run?
Equipping Points:
We’ve all heard a few different sayings when it comes to finances and building wealth. Do these have merit or lead us astray?
Conventional financial wisdom says real estate is a way to build wealth. But before you go buying a second (or third or fourth) home, consider what responsibilities are required of you. Eric says the tree T’s of real estate are: tenants, trash, and toilets. If any of these three things go wrong with your real estate investment, are you prepared to deal with them?
Is a mortgage considered good debt? When it comes to your own home, you may feel in a rush to pay off home debt. Should you prioritize paying off your house quickly over saving more toward retirement? You may feel like this is an asset, but remember that your house is worth what someone else is willing to pay for it.
When something seems like it isn’t working with your investments, it’s easy to want to make a quick change to correct the issue. Remember though that investments have an ebb and flow. Constantly trying something else may actually be a costly decision. How then do you know if you should shift your plan or pivot with your investments when things don’t seem to be working out?
Find out by listening to the entire episode or click on the timestamps below for a specific segment.
1:03 – Real estate is said to appreciate in value. But is it a good investment?
4:22 – There’s good debt and bad debt, and mortgage is considered good debt. Is it though? 5:42 – You can’t finance your retirement.
6:50 – Should you pay off the house at an accelerated rate?
8:50 – If your investments aren’t doing well, should you try something else?
Related Resources:
Wishful Thinking In Retirement Planning
Tending To Your Retirement Garden
Today’s Takeaway:
[spp-tweet tweet=”Make sure you have the right allocation. See what you’re agreeable with as far as from a risk tolerance standpoint, make sure you have a well-constructed and diversified portfolio. –Eric Peterson“]
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
The Stress That Comes With Retirement
Eric discusses why this phase can be so daunting and offers strategies to ease the transition.
Read More
Finding Financial Silver Linings
Throughout our lives, there will be times when the markets rise and times when we experience downturns. Largely, we don’t have control over the circumstances we’re dealt, but we do have control over how we respond to those situations.
Read More
Unasked Retirement Questions You Shouldn’t Ignore
Tune in to this episode with Eric, as he breaks down some frequently unasked retirement questions that are very important to consider.
Read More
The Diverse Definitions Of Diversification
Diversification is one of those buzzwords you hear often in financial planning. While many people know it’s important, few are clear on what it actually means when applied to various aspects of their financial strategy. In today’s episode, Eric and Marc will bring you the diverse definitions of diversification.
Read More
The Use Of Technology In Financial Planning
As technology keeps advancing, it’s made our lives easier in so many ways. Tasks that used to need outside help can now be done on our own with just a few clicks. This shift has also brought more accessible online financial tools, but how accurate and helpful are they really?
Read More
Retirement Planning Conversations With Dorothy Parker
Dorothy Parker is one of the great writers of the 20th century. Her wit and prose have been appreciated by readers for generations. But are there any lessons we can learn when it comes to finance with some of Parker’s most well-known quotes?
Read More
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