Today’s Prep:
What kind of lies do you need to watch out for when it comes to your finances? Eric shares the truth you need to know in these five financial situations.
Equipping Points:
Let’s play a game of two truths and a lie on today’s show. Can you spot which one is the lie in each situation?
When it comes to inflation, what is your best bet? Should you have stocks, gold, or bonds to combat inflation? Bonds do not do well in an inflationary environment. Normally when you have higher inflation you have higher interest rates as well. Higher interest rates are a negative to bonds, causing them to go down in value. Rising interest rates hurt borrowers trying to borrow money. Right now, it’s a great time to be a borrower but not as great to be a saver.
We all like to have our money grow but every investment has two of the following: safety, liquidity, and growth. Emergency funds are not intended for growth, but for safety and liquidity so that you can get the money when you need it.
When’s the worst time for a market crash? A market crash right after you retire can be one of the most challenging times that can derail your retirement plan the most. When you’re in your 80s or new to investing, this won’t pose as much of a problem. You want to buy low and sell high, so a market crash is better when you’re ready to invest, not when you’re ready to retire.
Lastly, what do you need to keep in mind with Social Security? The trust fund is set to run out by 2034. All the people putting money into Social Security right now are paying for the people on it. They may look at ways to improve Social Security by moving the age you can withdraw from it or reducing the amount. You don’t want Social Security to be your entire retirement plan, you want it to simply be a part of an overall plan to get it right.
Listen to the entire episode or skip ahead using the timestamps below.
1:23 – Which beats out inflation?
2:37 – Who does rising interest rates hurt?
3:55 – Emergency funds should be what?
5:35 – Market crashes are most problematic when?
8:03 – Social Security could change how?
Today’s Takeaway:
“Normally when you have higher inflation you have higher interest rates as well. Higher interest rates are a negative to bonds.“
-Eric Peterson
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Do You Have These Blind Spots In Your Retirement Plan?
Many people can have a couple of “blind spots” so to speak when it comes to their retirement plans. Do you worry you may not be accounting for everything you might need for your retirement? Then today’s episode is perfect for you!
Read More
Inside Out: How We Can Look at Finances Through the Characters of Pixar’s Latest Flick
There can be a lot of emotions when it comes to investing and planning for retirement. And what better way to discuss those emotions than through the characters of Pixar’s latest film, Inside Out 2?
Read More
The Importance of Preventative Care
Preventative care isn’t just for your health; it’s essential for your financial well-being too. By consulting a financial advisor early and often, you can avoid financial distress and make informed decisions that lead to a secure and fulfilling retirement. Many people will put it off for fear they will be told something they don’t want to hear or because of the perceived costs of financial advisors.
Read More
Preparing for Retirement like Noah’s Ark
Financial planning involves a lot of planning ahead, much like Noah did when he started building the ark long before the rain began. This metaphor serves as a powerful reminder that proactive planning is essential for weathering financial storms. Eric highlights that while we can’t predict events like market crashes or global pandemics, we can prepare for them by stress-testing our financial plans.
Read More
Retirement Income
When planning for retirement, one of the most critical aspects to consider is your income. But what does this mean, and how can you ensure you have enough income to cover your needs and desires?
Read More
Retirement Checklist
Retirement is a significant milestone that requires careful planning and preparation. In today’s podcast, Eric shares a comprehensive checklist to ensure you’re fully prepared for your golden years.
Read More
Financial Wisdom from Mark Twain
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
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
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
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