Today’s Prep:
What does retirement planning have in common with growing a garden? Both need patience, vision, determination, and the proper tools to succeed. Eric Peterson explores all the comparisons on this week’s podcast.
Equipping Points:
1:06 Plants don’t grow overnight
- If you want to have a BLT for dinner, you can’t buy a tomato plant and stick it in the ground and expect to eat tomato that evening.
- A lot of clients who retire want to go into gardening because it’s something that you do almost every day but also something that makes you focus on a longer-term goal. Some people struggle, however, with that level of patience. This is true in a lot of younger people who don’t have enough of a long-term focus and don’t see how they need to build up their financial future.
4:18 Keep the weeds and pests away
- If you don’t pull the weeds in your garden, they’ll take it over and choke out your plants and prevent them from growing.
- In the financial world, hidden fees are the weeds.
- Keep in mind which investments carry fees. If you’re investing in things like stocks and mutual funds, there are fees present and you need to be aware of their existence.
- You can’t always eliminate weeds or fees, but you can at least keep them under control and in check.
- Unlike weeds, which aren’t really ever helpful, fees can still be worth paying if you’re getting good value from the service or strategy to make them worth it.
7:00 You need the right tool for the right task
- Your neighbors would laugh at you if they caught you trying to use a water hose to dig a hole or if they found you watering your plants by scooping tiny amounts of water out of a bucket with a shovel and dumping the water on the plants.
- For a financial parallel, consider CDs and money market accounts. These aren’t designed for long-term investing or keeping up with inflation. That doesn’t mean they’re terrible tools, they just aren’t right for that job or responsibility. So, don’t shun a tool just because you don’t understand it, or you’ve used it for the wrong function in the past.
Related Podcasts:
Today’s Takeaway:
“A lot of times people will come in and be close-minded about tools, saying they only want to be invested in stocks, mutual funds, ETFs. Then you’re only using half the toolbox to accomplish your goals. – Eric Peterson“
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Financial Truths Hidden in Famous Songs
Money shows up in our favorite songs for a reason. It captures the emotions, tensions, and tradeoffs we all feel when it comes to finances. In this episode, Eric has some fun pulling financial lessons from iconic lyrics and exploring what they reveal about real-life money decisions. You might never hear these songs the same way again.
Are You Falling for Financial “Shiny Objects?”
In a world full of flashy promises and polished marketing, how do you know what actually matters when choosing a financial professional? In this episode, Eric tackles “shiny object syndrome” in retirement planning- the glossy brochures, impressive projections, testimonials, awards, and alphabet soup of credentials that can distract investors from what really counts. Eric breaks down which tools can be helpful, which deserve skepticism, and why trust, process, and real-world experience ultimately outweigh hype.
Mailbag: Do I Really Need An Advisor If I Have Enough Money?
When it comes to retirement, having enough money doesn’t automatically mean having everything figured out. In this episode, Eric tackles real listener questions that reveal where even confident savers can still go wrong. From deciding wheth-er an advisor adds value when money isn’t an issue, to the risks of relying on stock-picking and “passive income” strategies for early retirement, the conversation centers on one core idea: having options isn’t the same as having a strategy.
Retiree’s First Christmas: The First Holiday Season After You Retire
We’ve all seen those Christmas ornaments that say things like “Baby’s First Christmas.” It’s a milestone moment worth commemorating. But what about a retiree’s first Christmas? You may not have a specialty ornament to hang on the tree for this one, but that doesn’t mean it isn’t a milestone.
Does It Even Matter?: What Retirees Should Actually Worry About
We’re bombarded daily with headlines that spark panic, but how much of it really matters for your retirement?
Wizard of Oz Lessons for Retirement Planning
Your retirement journey has more in common with The Wizard of Oz than you might think. In
Money Mistakes You Only Make Once
Eric explores common money mistakes people often make when planning for retirement, and scenarios that could cost you in the long run. The discussion also covers critical considerations around long-term care and how to avoid financial setbacks. Tune in to learn what you can do now to steer clear of these all-too-common errors and set yourself up for a worry-free retirement.
The Friendly Skies of Retirement Planning
What do flight plans and retirement strategies have in common? In today’s episode, Eric draws an analogy between pilot-ing a plane and navigating retirement.
Tough Conversations: Facing Life’s Hardest Financial Moments
It’s time to get comfortable with the uncomfortable.
Financial Lessons from Aesop’s Fables
Think fairy tales are just for kids? Think again. The secrets to lasting wealth may be hiding in stories you heard at bedtime.