Social Distancing For Your Finances

Today’s Prep:

In order to keep safe, we’re all practicing social distancing right now. With your finances, are there some areas that need a little bit of space between them for safety and protection? Let’s run through four examples of social distancing in your financial plan.

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

 

Equipping Points:

Social distancing, a term none of us had heard a mere month ago, is now part of our everyday lifestyle. When it comes to your finances, should you be doing some social distancing there, too?

For starters, consider your emergency fund and the stock market. These two things should not be mixing and mingling! Emergency funds are important to have in case of emergency and need to stay in a savings account that is easy to access and kept safe. Understand the separation between the two.

Life insurance and your investments are two more things you’ll likely want to keep apart. Eric talks about variable life insurance policies and how to use them the right way. Investments are investments, whereas insurance is protection. Then, when it comes to your high turnover investment strategies, are you keeping them separate from after-tax brokerage accounts?

Finally, you’ll want your emotions and your investment decisions to have some space from each other. Between the news and the fear caused by many unknowns right now, your emotions may seep into your investment decisions. Having an advisor to help guide you through a logical decision that aligns with your plan may save you some heartache later on.

Listen to the full episode or click on the timestamps below to find out more about which items need to stay separate.

[1:00] – Which items should social distance from each other in our finances?

[1:08] – Leave your emergency fund out of the stock market.

[3:33] – Life insurance and investments should not go hand-in-hand.

[5:46] – High turnover investment strategies should not be with after-tax brokerage accounts.

[7:40] – Your emotions and your investment decisions need some space between them.

 

 

Related Resources:

Facing The Final Decade Before Retirement

Don’t Mistake Good Intentions for Sound Financial Advice

5 Frequently Asked 401k Questions

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

Economic News and Sensational Headlines

June 23, 2022

How much should you pay attention to some of these recent financial news headlines? Eric shares what he thinks and what matters when it comes to your financial situation.

Read More

Conventional Wisdom

June 16, 2022

Should you follow conventional wisdom when it comes to your financial decisions? Eric shares when the conventional wisdom might not be best.

Read More

Retirement Vacation Planning

June 9, 2022

Let’s plan the vacation of your dreams: retirement. More than simply a week away, you want to spend the right amount of time and energy thinking about this major season in life.

Read More

Financial Things We Can All Relate To

June 2, 2022

What are we all facing and wondering about in our financial futures? Eric talks through a few topics you might have had on your mind lately.

Read More

Mailbag: Should I Move my Mom’s Money into Investments?

May 26, 2022

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 More

A Perfect Match: Tennis and Retirement Planning

May 19, 2022

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 More

Mailbag: Money Management Tips For Younger Couples

May 12, 2022

What financial advice does Eric have for younger couples? What can you do to reduce next year’s taxes? Eric answers these questions and more from the mailbag.

Read More

Building a Plan for the Long Haul

May 5, 2022

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 More

What Do You Need to Know About Today’s Inflation?

April 28, 2022

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 More

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

April 21, 2022

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.

Read More

Leave a Comment