Skip to content

Underrated Or Overrated?

Today’s Prep:

We’re playing a game to determine what’s underrated and overrated when it comes to a few topics in the financial world (and even a few outside of financial planning). Let us know what you think.

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

Equipping Points:

[1:06] Variable Annuities

  • Eric says variable annuities are overrated.
  • A lot of the hype surrounding variable annuities centers around the guarantees they provide.
  • You need to be careful and understand the hidden fees involved with variable annuities.
  • Eric gives an example using the duck boats he rode on vacation. These are vehicles designed for both land and water.
  • Annuities are like duck boats; they can operate in two investing worlds. They’re designed to provide growth and safety, but they’re not efficient at providing either.

[4:02] Fireworks

  • Underrated – Eric says these are cool unless you try to operate them yourself.

[4:30] Paying Off Your Mortgage Early

  • A little of both, but more so, overrated.
  • A lot of people might sacrifice to pay off their mortgage early. This could come at the expense of saving for retirement.
  • You can finance anything in life except retirement.

[5:45] Roller Coasters

  • Eric is a big fan of roller coasters, so they are underrated.
  • It’s an impressive engineering feat to be suspended in the air and upside down.

[7:12] Sushi

  • Eric says overrated.
  • You’re paying a lot for something that hasn’t even been cooked.

[7:52] Getting a Big Tax Refund

  • Extremely overrated.
  • It may feel like a forced savings account that allows for a trip.
  • Tax refunds essentially mean you paid the government too much money and received zero interest in return.
  • Try to get your taxes to the point where you pay a little bit, but not enough for a penalty.
  • You could have that money invested toward retirement instead.

[10:11] Roth IRAs

  • Severely underrated.
  • You can invest in an account that allows you to grow your money tax-free.
  • Some may have too much income to contribute.
  • This is the optimal time to shift money from IRAs and 401(k)s to Roth IRAs.

Today’s Takeaway:

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

Reasons Why People Don’t Retire

February 13, 2020

Why would someone put off retirement? Are there valid reasons to wait, even if you are of retirement age? Today we’ll look at the reasons that we often hear and the meaning behind what is said.

Read More

Financial Advisor Green Flags

February 6, 2020

How do you know if you’ve found the right type of financial advisor? What is most important when looking for someone to work with who will create the right types of financial strategies for where you are in life?

Read More

Understanding The SECURE Act, Part 2: Stretch IRAs

January 30, 2020

In part two of our series on the SECURE Act, we talk about some of the downsides to the changes. Eric explains the stretch IRA and what impact the SECURE Act made on it.

Read More

Understanding The SECURE Act, Part 1

January 23, 2020

What is the SECURE Act? And how does it impact your retirement plans? We’ll outline some of the major changes you need to be aware of in this two-part series.

Read More

Retirement Savings Options: IRA Contributions & Roth Conversions

January 16, 2020

What happens if you’ve maxed out your 401(k) contribution limit? When is a good time to make a Roth conversion? Eric answers three questions from the mailbag this week all pertaining to the options you have when it comes to saving for retirement.

Read More

Making The Right Decisions When It Comes To Real Estate

January 9, 2020

Are you considering making a move this year? When it comes to home buying or selling decisions, there are a lot of factors to consider. Eric answers a few questions from the mailbag related to real estate.

Read More

Fortune Cookie Proverbs For Your Financial Plan

January 2, 2020

The message inside a fortune cookie may bring you more fortune than you think if you apply those proverbs in your financial plan. Let’s look at four fortunes and how it applies with your financial decisions.

Read More

Facing The Final Decade Before Retirement

December 26, 2019

The last few years leading up to retirement can have a significant impact on what your retirement actually looks like. This is when you start making the decisions and plans you’ll actually implement in a few years. Are you ready?

Read More

A Message For The Good Savers

December 19, 2019

Maybe you are great at saving and putting away money toward retirement. Is that enough? Find out three areas where a bit more strategy and behavior modification may come into play with your savings and investments as you enter into retirement.

Read More

What Flying Can Teach Us About Retirement

December 12, 2019

Any time you fly in a plane, there’s a lot going on as you travel to your destination. How does this relate to your financial plan? We compare the experience of flying to preparing for retirement in today’s episode.

Read More

Leave a Comment