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

Common 401(k) FAQs

December 2, 2021

As you’re accumulating, depending on what stage your life’s in, your contribution should be a different risk tolerance than your balance.

Read More

How Do You Pick A Financial Advisor?

November 23, 2021

Maybe you know you want to work with a financial advisor but don’t know how to determine which one is best for you. Where do you start? What should you look for?

Read More

Finding the Silver Linings

November 18, 2021

If you have a financial setback, how can you find the upside in the situation? We talk through four major financial upsets that could actually be an opportunity in disguise.

Read More

Delayed Gratification in Retirement Planning

November 11, 2021

What financial rewards are worth waiting for? We talk through three sets of options to determine whether delayed or instant gratification is better in retirement.

Read More

Two Truths and A Lie

November 4, 2021

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.

Read More

Retirement Reality Checks

October 28, 2021

Are your expectations of retirement realistic? We talk through four things to keep in mind when you dream about your retirement future.

Read More

Financial Lies We Tell Ourselves

October 21, 2021

Think you’ve figured out the secret to beating the system when it comes to your finances? What financial lies might you be telling to yourself and how can you overcome them?

Read More

Unlikely Financial Wisdom

October 14, 2021

Sometimes wisdom comes from the most unlikely places. Today we take celebrity advice and apply it to our own financial lives for a new take on how to approach your financial plan.

Read More

Reasons to NOT Work with a Financial Advisor

October 7, 2021

Are there any good reasons to skip out on working with a financial advisor? We talk through some funny ones on today’s show.

Read More

Mailbag: Rental Properties, Advisor Reviews, and More

September 30, 2021

We are opening up the mailbag today to answer some listener questions. We will be discussing rental properties, taxes on sold businesses, and changing advisors based on investment performances.

Read More

Leave a Comment