On The Agenda:
A lot of people have questions about their retirement plan, but you might be asking the wrong questions. We’ll share some common wrong questions and what better questions might be.
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Episode Show Notes:
On this episode of How Money Works, we’re sharing some wrong questions you might be asking about your finances.
Wrong: How much money do I need to have saved in order to retire?
Better: How much income will I need, and how much will my savings give me?
From a financial planning perspective, you need to develop and build a plan. You need an income goal and back into it. For example: “I need $100,000 net after taxes, inflated at 3%.”
We have good software that can work with those numbers and project it out 20 to 30 years.
You also need to factor in Social Security. You have to do some homework and run your numbers.
Wrong: Should I get long-term care insurance or just roll the dice?
Better: What are all of my options for covering long-term care expenses?
“Should I get long-term care insurance?” is a loaded question. You need to analyze that question to see if you can cover it out of your current investments and cash flow.
You can pay it out of pocket, a long-term care policy, a hybrid plan, or through life insurance. You need to run your numbers.
Wrong: How can I get the highest possible return on my money?
Better: Will Rogers once said, ‘It’s less about the return ON my money and more about the return OF my money.’… So how do I make sure my money gets returned to me?
You need to have a portfolio that will adjust to the market. You need a plan for when things go wrong in the world.
Listen to the full episode or use the timestamps below to jump to a certain section. Thanks for listening.
0:52 – How much to save?
3:07 – Long-term care insurance
6:10 – The highest return
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