The ‘What If?’ Game

Today’s Prep:

Are you looking at the future and wondering, “What if…?” We talk through several scenarios to see what may or may not be possible and how you can prepare accordingly.

Equipping Points:

When planning for retirement, a lot of things may or may not happen. What if they do happen? Eric talks through a number of possible scenarios and how they could impact your retirement plan.

What if interest rates double? Doubling sounds bad but interest rates doubling will slow borrowing down. This could help conservative savers, whereas right now it’s better for borrowers that interest rates are low. The value of bonds could also be negatively impacted.

Every society needs new workers coming in. What if couples currently under 30 years old average one child or less per family? This could impact the economy down the road as well as social benefits. If down the line college becomes free, what does that mean? Eric believes there’s value in it not being free. What if it at least became more affordable? College prices have gotten way out of control lately.

What happens if we have another market downturn this decade, similar to the financial crisis of 2008-2009? The market is always going to fluctuate. Is your retirement plan set up in a way that it would be derailed in a major downturn? Then you need a better plan. You want to be able to retire in any market, not just a good market.

Could a state secede from the union? It would be very difficult for that to happen based on our government structure. Politics have taken a turn lately. Some have decided it’s a time to move to another state that better suits their needs or values.

Listen to the entire episode or click on the timestamps below to skip ahead to a particular “what if” scenario.

1:20 – What if… interest rates double?

3:24 – What if… married couples under 30 have one (or less) child per family?

6:31 – What if… college education becomes free?

8:56 – What if… we experience another economic downturn?

11:26 – What if… a state decides to secede from the union?

15:02 – What if… price of oil doubles?

16:10 – What if… we adopt a single payer healthcare system?

 

Today’s Takeaway:

If your retirement plan would derail if we went through another 2008-2009, then you don’t have an all-weather plan. You want to be able to retire in any economy.

-Eric Peterson

Related Resources:

Retirement Readiness Pop Quiz

Navigating the New Administration’s Tax Plan

Do You Agree or Disagree with this Retirement Advice?

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

Financial Wisdom from Mark Twain

June 13, 2024

In the latest episode of the Retirement Ready Podcast, Eric invites us to explore the timeless wisdom of Mark Twain and how it applies to modern financial planning. Mark Twain, known for his wit and keen observations, offers quotes that are surprisingly relevant to today’s financial landscape. Eric takes these quotes and translates them into practical advice for those planning their retirement.

Read More

Understanding Bonds in Today’s Market

June 6, 2024

Are bonds really the safe investment we’ve always been told they are? What percentage of assets should a retiree or pre-retiree hold in bonds? In today’s episode, Eric addresses some of his most frequently asked questions about the world of bonds…

Read More

Understanding Your Financial Statements

May 30, 2024

Financial statements can often feel like a foreign language, filled with jargon and numbers that seem to have little relevance to your everyday life. However, understanding these documents is crucial for effective retirement planning. In the latest episode of the Retirement Ready Podcast, Eric breaks down the essentials of reading and interpreting your financial statements.

Read More

From Graduation to Retirement

May 23, 2024

This one goes to the grads! Whether you know someone graduating high school, college, or even preschool, graduation marks a new stage and season in life. Similarly, retirement is a new chapter in life. It’s a time of change, celebration, and sometimes, uncertainty. On today’s show, we talk through the similarities between leaving school and entering retirement.

Read More

401(k) Mistakes

May 16, 2024

Your 401(k) likely plays a major role in your retirement savings. That’s why it’s important that it’s set up and functions in the way that’s most beneficial to you. Following our last podcast about beneficiary mistakes, now we focus on common mistakes people make with their 401(k).

Read More

Beneficiary Mistakes

May 9, 2024

In this episode of the Retirement Ready Podcast, Eric guides us through the critical yet often overlooked details of beneficiary designations. Learn the simple yet vital steps to prevent beneficiary blunders that could lead to unnecessary headaches for your heirs. Eric calls these errors “low hanging fruit” because they’re easy to fix yet can save your family from future heartache.

Read More

How Emotions Can Impact Your Retirement Plan

May 2, 2024

Dive into the world of financial emotions in this episode with Eric Peterson. Discover how greed, fear, hope, and pride can make or break your investment strategy. Eric unravels the complexities of managing emotions to ensure a secure and enjoyable retirement.

Read More

Retirement Planning Statistics

April 25, 2024

Retirement is closer than you think, but are you ready? With a staggering number of people lacking confidence in their retirement savings, Eric shares the misconceptions people have and what mistakes can derail someone’s financial future. Many people feel inadequate when it comes to what they have saved in their nest egg, uninformed about the pitfalls of target date funds, and unprepared about the reality of leaving the workforce earlier than expected.

Read More

Mailbag: Should I Fire My Broker?

April 18, 2024

Navigating life’s financial crossroads can be tricky, especially when it involves your financial future. In this episode of Retirement Ready, Eric addresses these complex issues head-on. How do you best evaluate your broker and your investment performance against the S&P 500? Eric says a lot of that comes down to setting expectations and understanding the risks. Then, Holly wants to know what to consider before making a midlife career change.

Read More

Putting It Off

April 11, 2024

We are all guilty of procrastinating from time to time. Financially speaking, though, this can get you into a lot of trouble. Let’s talk about the areas where it might feel better to kick the can down the road.

Read More

Leave a Comment