Understanding How Your Feelings Impact Your Financial Decisions

Today’s Prep:

When you make a financial decision, does it start with looking at the numbers or asking the question, “How do you feel about that?” When should your feelings overrule the numbers, and what areas of your plan are most likely swayed by feelings and emotions?

 

Equipping Points:

Let’s talk about our feelings! Believe it or not, financial planning is not always about math and logic. Your feelings come into play, especially in regards to specific topics.

If you have a family home that you’ve lived in for the past few decades, do you downsize once the kids are out of the house? Or do you want to fix it up for when family comes to stay? Do you have land that has been in the family for a few generations? Sometimes the financial figures don’t make as much sense, but you need to ask, “How does it make me feel?”

What does your financial legacy look like and how important is it to you to leave money behind? Do you want to pass money to your children and grandchildren or to charities? With some of these decisions you’ll need to also consider the tax planning accordingly.

Depending on how you feel about your financial advisor, you may want to know every fine detail of the plan. Or, you may just want them to make the plans so you can be more carefree. Then, when it comes to market volatility, you’ll want to understand the true risks instead of just basing your decisions on feelings and knee-jerk reactions to a statement.

Listen to the entire episode or click on the segments below to hear more about a particular topic.

1:06 – Feelings get tied up in the family home.

3:36 – Make sure you can age in place and have the proper support around you.

4:06 – How important is it to you to leave a financial legacy?

6:25 – Do you want to know the fine details of your financial plan?

8:41 – How you feel about the market volatility can impact your decisions.

 

Related Resources:

How To Handle Financial Pain Points in Retirement

Tending To Your Retirement Garden

 

Today’s Takeaway:

[spp-tweet tweet=”A lot of times we make financial decisions on an emotional level and justify them rationally with the money side of things. If feelings weren’t involved in purchasing decisions, the economy would be different.

Eric Peterson“]

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

Retirement Checklist

June 20, 2024

Retirement is a significant milestone that requires careful planning and preparation. In today’s podcast, Eric shares a comprehensive checklist to ensure you’re fully prepared for your golden years.

Read More

Financial Wisdom from Mark Twain

June 13, 2024

In the latest episode of the Retirement Ready Podcast, Eric invites us to explore the timeless wisdom of Mark Twain and how it applies to modern financial planning. Mark Twain, known for his wit and keen observations, offers quotes that are surprisingly relevant to today’s financial landscape. Eric takes these quotes and translates them into practical advice for those planning their retirement.

Read More

Understanding Bonds in Today’s Market

June 6, 2024

Are bonds really the safe investment we’ve always been told they are? What percentage of assets should a retiree or pre-retiree hold in bonds? In today’s episode, Eric addresses some of his most frequently asked questions about the world of bonds…

Read More

Understanding Your Financial Statements

May 30, 2024

Financial statements can often feel like a foreign language, filled with jargon and numbers that seem to have little relevance to your everyday life. However, understanding these documents is crucial for effective retirement planning. In the latest episode of the Retirement Ready Podcast, Eric breaks down the essentials of reading and interpreting your financial statements.

Read More

From Graduation to Retirement

May 23, 2024

This one goes to the grads! Whether you know someone graduating high school, college, or even preschool, graduation marks a new stage and season in life. Similarly, retirement is a new chapter in life. It’s a time of change, celebration, and sometimes, uncertainty. On today’s show, we talk through the similarities between leaving school and entering retirement.

Read More

401(k) Mistakes

May 16, 2024

Your 401(k) likely plays a major role in your retirement savings. That’s why it’s important that it’s set up and functions in the way that’s most beneficial to you. Following our last podcast about beneficiary mistakes, now we focus on common mistakes people make with their 401(k).

Read More

Beneficiary Mistakes

May 9, 2024

In this episode of the Retirement Ready Podcast, Eric guides us through the critical yet often overlooked details of beneficiary designations. Learn the simple yet vital steps to prevent beneficiary blunders that could lead to unnecessary headaches for your heirs. Eric calls these errors “low hanging fruit” because they’re easy to fix yet can save your family from future heartache.

Read More

How Emotions Can Impact Your Retirement Plan

May 2, 2024

Dive into the world of financial emotions in this episode with Eric Peterson. Discover how greed, fear, hope, and pride can make or break your investment strategy. Eric unravels the complexities of managing emotions to ensure a secure and enjoyable retirement.

Read More

Retirement Planning Statistics

April 25, 2024

Retirement is closer than you think, but are you ready? With a staggering number of people lacking confidence in their retirement savings, Eric shares the misconceptions people have and what mistakes can derail someone’s financial future. Many people feel inadequate when it comes to what they have saved in their nest egg, uninformed about the pitfalls of target date funds, and unprepared about the reality of leaving the workforce earlier than expected.

Read More

Mailbag: Should I Fire My Broker?

April 18, 2024

Navigating life’s financial crossroads can be tricky, especially when it involves your financial future. In this episode of Retirement Ready, Eric addresses these complex issues head-on. How do you best evaluate your broker and your investment performance against the S&P 500? Eric says a lot of that comes down to setting expectations and understanding the risks. Then, Holly wants to know what to consider before making a midlife career change.

Read More

Leave a Comment