Uncommon Sense in Financial Planning

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?

(Click the featured times below to jump forward in the episode)

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?

Are You Flirting with Financial Disaster?

What Is Your Retirement Mindset?

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

Why Eric Loves Working as a Financial Advisor

October 22, 2020

Why does Eric do what he does? What’s his history and what are his passions? Find out on today’s episode of the podcast.

Read More

What Goes Into a Customized Financial Plan?

October 15, 2020

Why should you have a customized financial plan? What do you need to consider and what goals help you build an outline for your plan? Join us as we talk about what goes into the process of setting someone up for a secure future.

Read More

Things That Don’t Matter…Until They Do

October 8, 2020

Certain financial documents might seem like they can be put off for now. But when you need them, it’s important to be prepared ahead of time! Do you have all of these things in place?

Read More

Visiting the Financial Doctor

September 24, 2020

We’ve all been to the doctor at some point, so how is it like working with a financial advisor? We compare the similarities on today’s podcast!

Read More

Mailbag: Should I Withdraw from an Old Annuity?

September 17, 2020

When is a good time to withdraw from an annuity and what should you know ahead of time? Eric answers this and two other questions from the mailbag in this week’s podcast.

Read More

Heard It Through The Grapevine?

September 10, 2020

From million-dollar retirement benchmarks to presidential election fears or predictions, have you heard these through the grapevine? Eric shares what he thinks about these three financial rumors.

Read More

Is This Retirement Fact or Fiction?

September 3, 2020

Ever hear something and think, could that be true? Some of these financial concepts are fact and some are fiction–do you know which is which?

Read More

Are You Flirting with Financial Disaster?

August 27, 2020

You might feel great about where you stand financially but there’s a chance you could be flirting with disaster. We’ll tell you about three key areas where people make mistakes in their planning that can end up causing major financial problems in retirement.

Read More

How To Pack Your Financial Suitcase

August 20, 2020

When you go on a trip, a lot of times it helps to refer to a packing list to make sure you have everything. When putting together a financial plan, do you have everything in order? Let’s talk about what you need to put into your financial suitcase.

Read More

What Is Your Retirement Mindset?

August 13, 2020

When it comes to retirement, where are you at? If you’re getting closer to retirement, it may help to understand your current mindset in order to know how best to proceed.

Read More

Leave a Comment