We all want to believe that we are making financial decisions based on facts and not assumptions, but that’s not always the case with planning.

Many financial assumptions have been passed down for years that we think will always continue to be true. Then there’s the reality of our current situation that someone might not completely grasp. Whatever that situation may be, an advisor is there to make sure you know what’s true and what’s not.

On this episode Money Wisdom, Joel Johnson is going to do just that by dropping a few truth bombs on the show. These might not change your life or make you question everything you’ve ever heard, but hopefully they provide you with a little knowledge that you didn’t have before you started the show.

Are bonds always a great option if you’re looking for safe money? A lot of people believe that to be the case but Joel will tell you why this isn’t always accurate.

A few other areas that we’ll discuss are historically-low tax rates, managing your own behavior, and taking on more risk than you think. Make sure you don’t make the mistake in thinking expertise in one area will lead to expertise with money. We see this all too often and want to drop a little truth on this as well.

Mailbag

The first question we take on the how is one about investing in Roth accounts. Much like the second truth bomb we dropped today, it’s important to be closely examining your tax situation. There could be ways to create tax-free revenue streams in retirement by taking action now, and that’s what this listener is thinking about. No one strategy will work for everyone but there’s a good chance that moving more money into Roth accounts is going to be your best option.

The second question asks about something we discuss quite a bit with clients and that’s about protecting the assets you have. At what point should you be less concerned with growing your portfolio and start focusing on ways to limit losses and protect what you’ve already accumulated? Joel has some general guidance on this and the short answer is that it’s not short-sighted at all.

[0:36] – Bonds aren’t always as great for retirees as people think.  

[1:32] – Income tax rates are currently close to historical lows.

[2:21] – The hardest part of investing is managing your own behavior.  

[3:28] – Just because you’re an expert in one area doesn’t mean you’re an expert with money.

[6:30] – You probably have more risk in your portfolio than you realize.

[7:21] – Mailbag Question #1: My primary retirement concern is rising taxes down the road. Does that mean all of my retirement savings should be going into Roth?

[8:39] – Mailbag Question #2: At this point in my life I’m not interested in making my portfolio much bigger. I just want to protect what I have. Is that short-sighted?

[10:02] – Set up your visit and get your customized Money Map.