Today’s Prep:
When common sense isn’t followed, what does that look like? What common sense should we adhere to when it comes to financial planning?
Equipping Points:
Today we are going to look at several basic statements that you often hear in the financial world. But, more often, people tend to do the opposite of these common sense concepts. Are you making the right decisions when it comes to financial planning?
To be successful in the market, you want to buy low and sell high. Unfortunately, when the market shifts some of us start to panic. It’s important to have a holistic plan that assesses risk and helps you focus on your goals. The real value an advisor brings is behavior modification to help you focus on the plan and avoid selling in a panic.
When it comes to taxes, no one wants to pay more than you have to. It comes down to, are you doing tax preparation or tax planning? The difference in looking at the past vs. the future. What is causing taxes? Can you lower your tax rate legally?
To save money, you have to keep costs low. Do you understand what you’re actually paying when it comes to mutual funds? The hidden costs can really add up. By reducing that expense, you’ll be able to keep more of your money and an advisor can often help you do that.
We all know to diversify. But instead of diversifying between dozens of different mutual funds, think about diversifying between risk and safety. Owning multiple mutual funds might mean owning the same funds ultimately, which is not real diversification. Are you diversifying effectively?
1:06 – Buy low, sell high.
3:13 – Don’t pay more in taxes than you have to.
5:16 – Keep costs low.
7:33 – Diversify your assets.
Today’s Takeaway:
“When you invest in the market, the key to success is to buy low and sell high.“
-Eric Peterson
Related Resources:
Heard It Through The Grapevine?
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
The Use Of Technology In Financial Planning
As technology keeps advancing, it’s made our lives easier in so many ways. Tasks that used to need outside help can now be done on our own with just a few clicks. This shift has also brought more accessible online financial tools, but how accurate and helpful are they really?
Read More
Retirement Planning Conversations With Dorothy Parker
Dorothy Parker is one of the great writers of the 20th century. Her wit and prose have been appreciated by readers for generations. But are there any lessons we can learn when it comes to finance with some of Parker’s most well-known quotes?
Read More
Mailbag: Moving To A State With Income Tax And More
In this episode, Eric is answering your questions! We’ll cover a range of topics today, including key considerations for income taxes when moving to a new state, how to initiate financial conversations with parents or grandparents, and whether using a life insurance policy to save for a college fund is a wise choice.
Read More
What Is Lazy Money?
What is lazy money and why do you want to not have too much of it in your retirement portfolio? Simply put, lazy money is money that isn’t growing as much as it could be. Having your money grow and work for you is a key part of building a solid portfolio, so Eric breaks down some strategies to help get the most out of your money in this episode.
Read More
Retirement Planning Today Is Harder Than It Used To Be
Retirement planning simply isn’t the same as it used to be. From changes in life expectancy, the lack of pensions, and getting caught in the sandwich generation, there’s a lot to keep in mind when putting together your financial plan. Instead of taking advice from others who may have retired in a different era, it’s important to understand what strategy is right for you.
Read More
Social Security Variables That Impact Your Claiming Strategy
After so many years of paying into Social Security, you might feel ready to reap the benefits. But before you get too eager, it’s best to have a thorough understanding of the different variables and how to best leverage them.
Read More
Retirement Real Estate Decisions: Downsizing, Snowbirding, and More
One of the key discussions you may have in retirement is what to do about the house. Should you downsize your home? Pay it off early? Buy a vacation home and become a snow bird? Eric emphasizes the importance of considering not just the financial implications but also the lifestyle changes each of these decisions entail. Weighing out the pros and cons of each decision can highlight what is right for you (which isn’t always the same as what your neighbor is doing).
Read More
Healthcare in Retirement
One major (yet often overlooked!) expense in retirement is healthcare. Especially if you are retiring early, healthcare can be a huge expense as you bridge the gap between your working years and when eligible for Medicare. Not only will you have an increased monthly cost, but you may need to budget for additional medical costs as time goes on or even long-term care needs.
Read More
Family Matters When It Comes to Finances
Today we talk about what happens in a family, particularly when someone has passed away and the financial impact that can have.
Read More
Water Wheels and Retirement Planning
Have you ever wondered how a water wheel can relate to your retirement planning? It might seem like an odd comparison, but in today’s podcast, Eric breaks down this fascinating analogy and its significance in maintaining a stable financial future.
Read More