Today we’re tackling five financial pain points you will likely face–if not now, then in the future. Do you know how you plan to address these in your life? Then, we’ll talk about J’Neanne’s thoughts on taxing the rich and saving for college.
(Click the featured times below to jump forward in the episode)
[2:57] Extreme worry about running out of money before you die.
- For a lot of people they don’t understand the numbers. If they haven’t done a budget to see how much it is costing them to live, they aren’t sure how their nest egg will last. The only way to figure it out is to walk through the numbers.
[4:54] Angst about taxes.
- Sometimes people don’t consider taxes until they start to go into retirement. Then they realize that taxes will take a big portion of savings.
[6:11] Paralyzing fears of ending up in a nursing home.
- People who are going through the experience with an elderly parent, they have a better understanding of the price and what this looks like. With a transient culture, a lot of people have parents or children several states away, so care has been outsourced. Some people are adamant about not going into a nursing home. When you hit 65 years old, you need to talk to your children or someone you trust about this and what your wishes are.
[7:44] Uneasiness about retiring and walking away from a paycheck.
- People are often in accumulation mode, so walking away from a paycheck is scary with a lot of unknowns. Going over the numbers can help give some assurance. There is a ripple effect with any of these pain points that can impact your decision making.
[9:55] Anxiety about an impending market crash.
- 2018 was not pretty at the end of the year, but when you look at historical norms you can have a better idea of what to expect. Understanding the marketplace and then understanding what is normal for you are the two keys to overcoming this fear.
[14:05] Getting to Know J’Neanne.
- If you could nominate one person that you’ve known for sainthood, who would it be?
[19:46] In the News. More presidential candidates are throwing their hats into the ring and there is more discussion about increased taxes on high incomes and larger estates. Is this a good idea?
- No, our tax brackets are already taxing the rich. There are only three things you can do with money — save it, spend it, invest it. When the government taxes it, it takes more of your money to give it elsewhere which cuts off the flow of income in the economy.
[24:03] Mailbag: Jim has kids who will go to college in about four years and has their college savings invested in technology stocks. Should he diversify? How?
- That is not where to invest money in for college. Just owning tech stocks is a tremendous amount of risk. Today they are doing well, but it could tank by the time your kids are going to college. Start going toward a more conservative portfolio, especially as college nears.
The Grand Plan:
The Spy Kit:
Click the image to get a free retirement rescue toolkit.