Apr 21, 2022

When it comes to understanding our finances, it may be easier to use comparisons when grasping new concepts. Financial literacy has become a lot more important as retirement has become more complex. Instead of relying solely on a pension or Social Security, you probably have various retirement tools to keep track of now. 

On today’s episode, we are going to help you expand your financial literacy by breaking down some comparisons between a healthy lifestyle and a healthy retirement plan.

A lot of us struggle with assessing risk and uncertainty. Understanding is crucial to making wise decisions that will positively impact your future. With a steady bull market for the past decade, it’s no wonder investors are confused about the appropriate amount of risk they should be taking on. To understand this better, let’s compare it to your health. We all know the basics to be healthier: avoiding empty calories, working out, eating healthy foods, etc. 

Empty calories come from things like donuts and soda. They taste good, but they don’t have a lot of nutritional value. In the financial world, empty calories come in the form of heavy and complex plans. You don’t always need a large retirement plan. A plan that you understand and are comfortable with is the best plan. 

Drinks with added sugar aren’t great for us. Financially, this can look like hidden fees. While fees are a normal part of the financial world you should never feel misled. Don’t be afraid to ask questions about fees from your advisors and your investments. 

Trans fats in retirement planning can look like taking on too much risk. You may be tempted by greed to continue to increase your risk for a bigger reward, but the market won’t keep going up forever.
 
The best way to avoid these unhealthy habits is to practice being content with what you have. Working with an advisor and constructing a plan that you can have confidence in can help you stay healthy and happy as you plan for retirement. 

TIMESTAMPS: 

1:08 – Easter party

2:36 – Does experience matter?

5:26 – Need for financial literacy

8:38 – Correctly assessing risk

11:20 - Empty calories

13:47 – Added sugar

15:10 – Trans fats

16:36 – Artificial sweeteners

MORE INFORMATION:  https://www.flemingfinancialservices.com/podcast