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
Retirement Lessons Hidden in Walt Disney Quotes
Sometimes the best financial lessons come from the most unexpected places. Walt Disney built one of the most recognizable brands in history, but some of his most memorable quotes offer lessons that extend far beyond theme parks and animated characters.
Mailbag: Working Forever, Safety Nets, and Target Date Funds
A lot of people think they’ll work forever, until life changes the plan. In this special mailbag episode, Eric answers listener questions about retirement timing, backup planning, target date funds, and how to think about risk as retirement gets closer.
The Financial Impact of Losing a Spouse
Losing a spouse is one of the hardest realities anyone can face, and it can create major financial changes that you may not see coming. In this episode, Eric walks through the potential financial impact of becoming suddenly single in retirement, including Social Security changes, tax surprises, IRA rules, beneficiary updates, and income planning challenges.
Old Accounts Could Be Costing You
Today, Eric discusses why old financial accounts deserve a second look. He explains how reviewing these accounts can uncover missed opportunities, improve efficiency, and help create a more coordinated financial plan.
Good Intentions, Bad Advice: Well-Meaning Advice Can Cost You
Not all bad financial advice comes from bad sources. Sometimes it comes from the people you trust the most. Eric breaks down how well-meaning input from family, friends, professionals, and even the media can lead to the wrong decisions.
When Life Happens, Your Plan Needs to Change
Life doesn’t always go according to plan, and your finances need to be ready when things change. Eric walks through some of the biggest life events that can impact your financial future and why each one is a moment to revisit your plan. The goal isn’t to predict every twist and turn; it’s to be prepared when they happen. A solid plan gives you the flexibility to adjust without losing confidence.
Challenging What You “Know for Sure” About Retirement
Mark Twain once said, “It’s not what you don’t know that gets you into trouble, it’s what you know for sure that just ain’t so.” How can this wisdom apply to retirement planning?
Questions To Ask Your Advisor
Eric walks through the key questions that can reshape how you think about your plan and explains how the right questions can lead to better clarity, smarter decisions, and a more confident path into retirement.
How the 24/7 News Cycle Hurts Your Portfolio
In today’s 24/7 news cycle, financial headlines are designed to grab attention, not guide smart decisions. The result? Decisions driven more by noise than by strategy. In this episode, Eric explores how media influence, emotional reactions, and misunderstood risk tolerance can quietly derail a financial plan.
Why Most Of Your Financial Goals Fail
Many people talk about setting financial goals, but far fewer people know how to set the right ones, or how to turn them into something that actually works in real life. Eric walks through how to create financial goals that are both meaningful and achievable. It’s easy to aim high, but if your plan isn’t realistic, those goals often fall apart before they ever gain traction.