Podcast Episode 315: Well I Heard…
Anytime a sentence begins with, “Well I heard,” it gets our attention because you never know what someone is about to ask us. People are bombarded by suggestions and recommendations everyday so it’s no surprise that people always bring new ideas or beliefs to a meeting. We’re going to share some of these things people commonly hear and help explain why they don’t always apply to you.
Ever wondered if that age-old adage, “You need at least a million dollars to retire,” holds any water? Without doing much planning, people will pick a number out of the air even though it might not mean anything to them in reality. That million-dollar mark is probably the most common target because it’s always felt like a lot of money, but you made need much more or you might actually need less. The key is identifying your needs through proper planning so you have the correct target in mind.
How about this one: “Well I hear you should start Social Security as early as you can.” There’s plenty of concern over the future of Social Security and some of that worry is warranted. But that doesn’t mean turning on your benefits as soon as your eligible is the best strategy. It definitely could be, but we want to look at your entire picture and determine how much income you’re going to need. Then we can work on a claiming strategy, but you don’t want to start collecting just because you heard it will run out of money.
Another one we’ve heard a lot, especially recently, is that the market is about to tank. You can insert your own reason why because they seem to be endless, but how worried should you be about the market? The reality is the market will tank again at some point. That’s inevitable. Proper planning can help you withstand the swings and prevent you from making emotional decisions out of fear.
The last one we’ll discuss here is, “Well I heard the dollar won’t be the world’s reserve currency anymore.” This seems pretty unlikely to us even though we’re dealing with some tough economic conditions. Don’t let doom and gloom guide your planning. Work with a professional who can lend their perspective and keep you from making any irrational decisions because of something you heard.
No matter what you hear, talk with a financial professional before taking any action. Our complimentary Money Map review is a great place to start that planning process and begin the conversation.
Here are some of the things we discuss in this episode:
1:06 – You need to have at least a million dollars to retire
3:27 – You should start Social Security as early as you can
4:48 – The market is going to tank because [insert reason here]
6:16 – I should try to keep the house in divorce because it will comfort me emotionally
7:33 – Soon the dollar won’t be the world’s reserve currency anymore