Today’s Prep:
Is your head in the clouds when it comes to retirement? Here are three common phrases people say when it comes to retirement planning. Eric shares whether these mentalities are wishful thinking.
Equipping Points:
1:05 “I’ll Live Off the Interest and Won’t Touch the Principal”
- It’s possible because retirement is all about the income you need to maintain a standard of living.
- This includes expenses as well as the things you want to do in retirement.
- Can you generate enough interest off your nest egg where you don’t have to risk any of the principal?
- Eric gives an example of how the numbers can work.
- Retirement goes in three phases: go go, slow go, and no go years.
- Things will cost more tomorrow than they will today because of inflation.
- You need to have money in different buckets, including some that can outpace inflation.
6:17 “I’ll be in a Lower Tax Bracket Once I Retire”
- That’s possible, depending on how you structure it.
- If your money is sheltered in tax-protected accounts like IRAs, 401(k)s, 403(b)s, TSPs, then in retirement, you aren’t forced to take that out until age 70 and 1/2.
- Retirement gives you a better opportunity to control your tax burden than your entire career did.
- Tax planning is a crucial element of your retirement plan.
9:07 “We Don’t Need to Worry About Assisted Living Expenses”
- Even though you are committed to caring for your spouse, life might have other plans.
- You won’t necessarily go into a nursing home, but you should address long-term care as part of your retirement planning process.
- The default option when it comes to long-term care is self-insurance.
- People are finding large increases in premiums in long-term care insurance, so Eric advises people to use other accounts for long-term care costs.
- You need have the conversation and look at how it could impact your portfolio.
Today’s Takeaway:
“Things are still going to cost more tomorrow than they will today because of inflation. – Eric Peterson“
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
What 400+ Advisors Say Really Keeps Retirees Up at Night
What are Americans really concerned about when it comes to retirement? In this episode, we unpack the results of an insightful survey from Financial Advisor Magazine, which was completed by over 400 financial advisors. We’ll also compare these answers with the real-world concerns we hear every day from the clients in our own practice.
Read MoreBracket Busters and Stock Flops: The Risky Game of Picking Winners
March Madness is here, and just like filling out a bracket, picking individual stocks can feel like a thrilling gamble. But the odds of winning big are slim. In fact, history shows that most stock picks, like most brackets, end up busted.
Read MoreAre Hidden Fees Draining Your Retirement Savings?
In this episode, Eric reveals the true cost of investing and how to protect yourself from unnecessary financial drains.
Read MoreWhat Game Night Can Teach Us About Financial Planning
In this episode, Eric breaks down the surprising financial lessons hidden in classic board games, offering valuable insights to help you navigate your retirement strategy.
Read MoreMailbag – Upsizing, Financial Advisors & Business Owner Planning
Join us as we answer questions about the challenges of downsizing, the emotional aspects of planning for family gatherings, and the realities of transitioning into a financial advisory career.
Read MorePlanning for Kids, Grandkids, & Your Future
As many nearing retirement age are discovering, adult children and grandchildren can significantly influence financial strategies, making it crucial to understand how to navigate these relationships effectively.
Read MoreFinancial Planning Conversations for Couples
This episode is focused specifically on that planning we do with couples with insights on how we help them navigate tricky conversations about money and retirement.
Read MoreIs Your Retirement Based on Wishful Thinking?
Many people fall into the trap of wishful thinking when it comes to what they expect will happen in retirement, but a successful retirement isn’t built on hope and assumptions.
Read MoreSpending With Confidence in Retirement
Eric shares strategies to help retirees enjoy their savings while ensuring financial security.
Read More