Today’s Prep:

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?