Today’s Objective…

Join us as we outline some of the crucial financial mistakes we see our clients making. Don’t worry, we’ll outline how to avoid them as well.

(Click the featured times below to jump forward in the episode)

First Things First.

  • [1:10] – In The News: Forbes outlines the world’s top one percent.
  • [3:50]  – Getting To Know You: Dan sends a message back in time to his younger self.
  • [6:10] – Mind Over Money: Dan shares the concept of anchoring with the example of a phone call he recently had with a client.

Tactical Points:

Before We Outline Any Mistakes…

  • [9:52] – Please remember, this is a general conversation. Therefore, it’d be impossible to speak to your specific situation. In lieu of that, we’d like to outline some of the situations we’ve seen in our practice.

Term Versus Permanent Life Insurance.

  • [10:35] – Our clients often want to know which type of life insurance is better. Most of our clients are seeking death benefits and income replacement. Usually, they seek out term life insurance because it’s cheaper, and they can get more coverage. Of course, there are certainly exceptions to that rule of thumb.

Don’t Borrow From Your 401(k).

  • [11:32] – This is potentially a serious mistake. For starters, as long as that money isn’t in your 401(k), it’s not growing. Furthermore, if you leave your employer, and you’ve borrowed against your 401(k), you could have to pay the loan back all at once. In short, it’s a dangerous strategy, and there are better ways to borrow money.

Why Do People Borrow From Their 401(k)

  • [13:12] – Folks choose to borrow from their 401(k) because they don’t have enough cash on hand. That’s why we stress the importance of holding a cash reserve. You need to keep enough cash to cover at least three to six months worth of your living expenses. That way, should your roof collapse or your transmission break down, you’ll have the money to cover the expense.

The Danger Of Timeshares.

  • [14:24] – Stay away from timeshares. In short, they’re organizationally messy, you rarely get your money’s worth, and they’re tricky to sell. In an age when there are all sorts of ways to vacation, don’t tie your money up in a timeshare.

Whether To Lease Or Buy A Car.

  • [16:25] – You can make many mistakes when it comes to car-buying, so you need to do your research. Leasing is probably the most expensive way to purchase a car. If your goal is to build your net worth, buy a car that’s a year or two old. However, if you simply want to continue driving a new car, and you can afford the car payment, go for the lease. Just know it’s not a good way to build wealth, and usually it’s not a good idea for younger folks with student loans and other bills.

The Plan:

Free Retirement Toolkit:

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Extra Planning:

The host: Dan Betzel – ContactRetirement Trailblazer Guide – Retirement Rescue Toolkit – Call: 614-472-4510