Ep 55: Are You Asking the Wrong Questions About Your Finances?
RetirementOn This Episode
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.
Takeaways
On today’s Saving With Silverman podcast, Mark Silverman CFP® shares 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?
This is a very common question, but it’s the wrong one because it’s not about a number. Everybody’s number is different, because it depends on how much you’ll spend in retirement.
The more you make the more you typically spend. You also need to know how old you will be when you retire. Some people say you need $1 million to retire, but that’s not the case. A lot of people need a lot more than that to retire.
The mystery is we don’t know how long we’ll live, so you need to be prepared financially.
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?
You need to understand what your options are, and there are more options now than ever. Long-term care insurance is still an option. You can get life insurance with long-term care benefits, which we like for our clients.
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?
It’s important to keep pace with inflation, but it’s risk versus return. The more risk you take, the more return you’re going to get, on average. Everybody’s number is different.
Some people say you need $1 million to retire, but that’s not the case. A lot of people need a lot more than that to retire.
- Mark Silverman, CFP®
The Layout
Listen to the entire episode to hear more. Click on the timestamps below to skip to a particular segment.
0:46 – How much to save?
1:38 – Long-term care insurance
2:49 – Highest return
4:36 – Fees
5:55 – Taxes
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