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2016: Your Retirement Planning Doesn't Have to Be a Gamble by Erik Carter with Financial Finesse on Investment Diversification

Dec 31, 2023

10:11

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Erik Carter, retirement planning expert, simplifies the complex subject by comparing personal finance to basic health practices. He emphasizes the importance of using retirement calculators, diversifying investments, and following Warren Buffet's advice on index funds. The speaker provides practical tips for retirement planning, discusses the benefits of automatic enrollment, and highlights the significance of saving and investing for a secure retirement.

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Quick takeaways

Retirement planning has become more complex as individuals are responsible for their own savings and investment decisions.

Using retirement calculators and diversifying investments are fundamental steps for effective retirement planning.

Deep dives

Shift from traditional pension plans to 401ks

The podcast discusses how the shift from traditional defined benefit pension plans to defined contribution plans like 401ks has shifted the risk and responsibility of retirement planning to employees. This change has resulted in half of all Americans stating they can't save for retirement. The shift has drawbacks, such as employees rating their retirement accounts to pay for emergencies and education expenses, employees putting too much money in their company's stock, and employees suffering significant investment losses in their retirement accounts.

Introduction

5min

Practical Tips for Retirement Planning

3min

The Importance of Retirement Planning and the Benefits of Automatic Enrollment

4min

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Episode 2016:

Erik Carter's insights in "Your Retirement Planning Doesn’t Have to Be a Gamble" demystify the complexities of retirement planning. He equates personal finance to basic health practices, emphasizing simplicity in approach and the importance of fundamental steps like using retirement calculators and diversifying investments.

Read along with the original article(s) here: https://www.financialfinesse.com/2013/06/27/your-retirement-planning-doesnt-have-to-be-a-gamble/

Quotes to ponder:

"Personal finance is a lot like dieting and exercise. [...] the fundamentals are pretty basic: avoid junk food, exercise at least 3 times a week, and eat your veggies."

"Run a retirement calculator to see how much you need to save for retirement. [...] It’s not a pension, but it’s a nice benefit if you use it."

"Warren Buffet’s advice [...] just go with index funds, which outperform the vast majority of actively managed funds because of their low fees and trading costs."

Episode references:

Financial Finesse: https://www.financialfinesse.com/

SSA.gov: https://www.ssa.gov/

Financial Engines: https://www.financialengines.com/

GuidedChoice: https://www.guidedchoice.com/

Garrett Planning Network: https://www.garrettplanningnetwork.com/

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