Let’s bust some financial myths today on the podcast. Whether it was true in the past or never true at all, Nathan is here to set the record straight.
People used to say that shifting from stocks to bonds reduces volatility in your portfolio. Theoretically, this is what is supposed to happen, but bonds have experienced more volatility recently. Nathan says to be careful what you buy and find out what kind of volatility it holds. Issues caused by the pandemic, the supply chain, and now inflation has changed some of the normal financial patterns.
Once you retire, do you still need life insurance? Hopefully you won’t need it in retirement, but depending on your goals, you may want it. Another thing in retirement is the possibility of needing less money, but don’t assume that’s always the case. Likewise, don’t assume your tax bracket will be lower in retirement.
Is financial planning easier now thanks to the technology available? In some ways the information and the options are there, but it can also be far more confusing. Who can you trust and what information do you follow? Find someone you trust that you can work with who is there when you need them to help you make big financial decisions.
Listen to the entire episode or skip ahead using the timestamps below.
[1:24] – Remember the TV show Mythbusters?
[2:11] – Should you shift from stocks to bonds?
[5:39] – Is life insurance necessary in retirement?
[6:31] – Will you need less income in retirement?
[11:30] – Is financial planning easier to do because of technology?
A Point Of Wisdom:
“Taking money out the right way is huge, and that’s an important part that people miss a lot of times because it’s hard to do it.”