On The Agenda:
On today’s episode of How Money Works, we’ll discuss the financial red zone. What is it, and what should you do if you fall in this category?
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Episode Show Notes:
On this episode of How Money Works, Craig and Jennifer Moser talk about the financial red zone. So, what is it? It’s the last 10 years before retiring and the first five to 10 years after retiring.
Your financial plans needs to be set up in the beginning and running really well by the time you’re in retirement.
“You need to understand that time is no longer on your side,” said Craig. “Once you get further down the road, the mistakes are harder to recover from.”
Do the analysis, run the numbers, and do the more than one time as you approach retirement.
“The things that you don’t do right you’ll have to live with for 20 or maybe 25 years,” said Craig.
There are some common mistakes people make in the red zone, or when they’re close to retirement. One mistake is taking on too much risk. Different investments have different levels of risk.
- CD – not much loss, but not much gain
- Bond – has some risk, but much more stable than a stock
- Fixed indexed annuity – it will make money if the index it’s tied to goes up
Listen to the full episode or use the timestamps below to jump to a certain section. Thanks for listening.
Important Points:
1:31 – Financial red zone
4:23 – Common mistakes in red zone
5:23 – Different levels of risk
7:06 – Mistake of not having a plan
10:17 – Do-it-yourself mistakes
Other Resources:
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Ask Craig & Jennifer a question by emailing: info@maestrowealth.com
