Today’s Prep:
Are you clinging to financial ideas that give you a false sense of hope? On this episode, Eric points to clear strategies for you to make wise decisions when retirement planning.
Equipping Points:
Amidst everything going on with the economy and coronavirus, you might be worried about your retirement savings. Where are you holding onto fool’s gold when you should look toward sound advice and financial expertise instead?
Are you aiming for a particular number? Instead of looking for a certain dollar amount to have before retiring, focus on the income side of things. How much do you need to maintain your standard of living? What are your income streams?
Right now, what are your expenses? As we all stay home you may see what your spending habits are without going out to eat or traveling, which may be closer to your base budget. But in retirement, you’ll likely want to still do things and travel. On the other hand, some of your expenses might shift and come down when you are no longer working in retirement. Consider what you might do when you have the time and flexibility to do things once you are retired.
Make sure your plan is thorough and it works for you. Don’t just assume an inheritance will make up for an area where you don’t plan yourself. During this period of staying at home and social distancing, take some time to look at your budget or understand your account statement and how it fits into your financial plan.
Listen to the full episode or click on the timestamps below to hear a specific segment.
2:12 – You don’t have to hit a certain dollar amount to retire.
4:10 – Don’t think your income needs will decrease necessarily.
7:34 – Don’t count on an inheritance to make up for your poor planning.
9:11 – Now is the time to figure out what your plan is.
Related Resources:
Social Distancing For Your Finances
Making Home Renovations and Protecting Your Retirement Income
Retirement Decisions: More Than Just Investments
Today’s Takeaway:
[spp-tweet tweet= “Get some momentum going. Look at your budget this month while you’re in quarantine. Did you just get a statement? If accounts are down, will that still work with your projections for retirement? –Eric Peterson“]
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