Today’s Prep:
On this podcast, we love a good analogy. Join us as we discover what we can learn from retirement by observing a water wheel.
(Click the featured times below to jump forward in the episode)
Equipping Points:
1:10 – What Is A Water Wheel?
- A water wheel is a machine used for grinding grain. Water is diverted toward the wheel, and as the water turns the wheel’s paddles, the wheel manually powers the gristmill or sawmill. See the example of George Washington’s gristmill below.
1:48 – How Is Retirement Like A Water Wheel?
- A water wheel requires a consistent stream of water to turn and power the mill. Similarly, you need a consistent stream of income to power your retirement. If your proverbial stream starts flowing, your retirement could be in trouble. As you’re preparing for retirement, you need to develop a predictable income plan.
4:06 – What Income Streams Are Powering Your Water Wheel?
- We take your pension, Social Security, qualified retirement accounts, and brokerage accounts all into account as we calculate the level of income you’ll be able to receive in retirement.
6:04 – What Could Stem Your Flow Of Income In Retirement?
- Market withdrawals, healthcare costs, and rising rates of inflation could all reduce your income in retirement. Your plan needs to prepare you, so that even if there’s a drop in the market, your income will continue to consistently flow into your retirement.
9:53 – Diversify Your Income Streams.
- If all of your income is coming from one place, you could be in trouble should your stream run dry. You need to develop multiple streams of income, and that’s where annuities come into play. Annuities essentially agree to either protect your principal or give you an income. They can be a useful tool for generating income in retirement. Remember, there’s no bad tool when it comes to your retirement. You simply have to determine what tools you’ll need to put your plan together and accomplish your goals.
Today’s Takeaway:
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Things Your Financial Advisor Might Not Be Doing
Sometimes people get advice from financial “professionals” who maybe aren’t the right fit for their needs. Today, we discuss some of the things your advisor might not be talking to you about.
Read More
Tax Consequences
Taxes are a major part of your life, especially your life in retirement. Having a good understanding of how you can prepare may save you in the long-run. Discussing your options with a financial advisor can help point you in the right direction. Listen in as we chat about tax consequences in today’s episode.
Read More
Cutting Corners Financially
Sometimes we want to take the easy way out instead of the smarter way. Today, we talk about ways people have tried to cut corners financially and where that falls apart. Think you can take extra risk to make up for lost time? Letting your financial life fall to disarray?
Read More
Risk Aversion
No one loves losing money. So how do you strike the right balance of investing vs. being overly risk averse? Eric talks through how he guides clients through this dilemma. You might be surprised to find out your investment accounts are riskier than you realized!
Read More
Tax Planning in Retirement
Next to income, tax planning is the most important thing Eric focuses on with his clients. If you can control how much tax you pay, it’s more money you get to keep, spend, and enjoy. Retirement is a prime time to focus on tax planning as you have more opportunity to control the taxes you owe.
Read More
Overconfidence in Your Financial Life
When can overconfidence cause catastrophe? If you are setting your financial goals based on a rule of thumb or a certain arbitrary dollar amount, you might want to reconsider. Having overconfidence, especially in the wrong things, can lead to financial disaster.
Read More
Learning From Financial Mistakes
Sometimes we learn from our mistakes, and unfortunately, sometimes we make the same mistake over and over. Having a financial advisor can help you navigate through your financial decisions so you don’t get stuck in the same rut of financial mistakes on repeat. In today’s episode, Eric will share some of the mistakes that he sees people make frequently.
Read More
The Hierarchy Of Retirement Needs
You may be familiar with Maslow’s hierarchy of needs which breaks down a human’s needs into five different tiers. In today’s episode, we apply those tiers to what you need when retirement planning. Have you planned and saved in a way that will cover all of these needs?
Read More
Finances with Forrest Gump
The classic movie, Forrest Gump, is full of great quotes. We see how some of those quotes can be applied to your finances. From figuring out what to do when life isn’t going just like you thought to learning from past mistakes, there are a lot of takeaways from Forrest.
Read More
Financial Matters People Put Off
Humans can be really good at procrastination. When we have the basics covered, it’s easy to put off the decisions and actions that we don’t want to deal with just yet. Today, we talk about some of the financial matters people are prone to put off and what you would be better off tackling right away. You might be surprised to find it wasn’t so hard to handle after all!
Read More