Today’s Hack:
What financial truths can you depend on to always be true? While some financial statements may be more opinion than fact, these financial truths are ones you’ll want to hang on to.
Other Retirement Facts:
There are a lot of situations that come up when creating a financial plan that might have the answer, “It depends.” While many things come down to your personal situation, there are some financial truths that you can count on.
Are you letting the media drive your decisions? Or are your emotions running the show when it comes to your financial planning? Both can get you worked up more than you need to be, so it’s important to keep your thoughts and emotions in check.
Is movement in the market causing fear and panic? Guess what? The market will continue to move up and down over time. Right now, the news is all about Coronavirus, but in the past it was things like Y2K. Perhaps it is exciting (or terrifying) to closely watch market volatility, but remember that there will always be something happening. Over time, we forget about the things that happened in the past–so use this as a reminder that you probably aren’t as risk tolerant as you think you are.
So, what’s the magic formula to make it all work right for you? There’s no one-size-fits all, no rule of thumb that works for everyone. Because of that, there is no one financial strategy that works perfectly for everyone. Working with an advisor who has your needs in mind is best and create a plan that works for you.
Finally, Phil answers a question from the mailbag from Tim who wants to know if he should find a new advisor. Phil asks, do they have the background you need and are they communicating the way you want them to?
0:50 – Are Americans taking out their retirement funds too early?
4:10 – What are absolute truths in the financial realm?
4:56 – Is watching too much news or TV bad for your financial plan?
6:23 – Emotions can impact our financial decisions.
9:15 – The market will move up and down.
12:46 – We are not as risk tolerant as we think we are.
17:47 – There is no magic answer.
20:21 – Mailbag: When should I find a new financial advisor?