Ready to see how you fair in today’s quiz? Nathan is put to the test as we play a Jeopardy-style game focused on financial products, financial standards, and what you might face in your financial future.
This financial product gives a bad name to some of the others: variable annuities. Typically, they have high fees and a lot of riders, but sometimes that means a lot of broken promises. Be careful with these, they are oversold. Sometimes an annuity is the right fit for your portfolio, but make sure you get the right annuity for you.
Next, this requires a financial advisor to put the clients’ best interest ahead of their own: the fiduciary standard. Unfortunately, not every advisor is governed by this rule. A broker gets paid more to sell you their products, which might not necessarily be what’s best for you.
What common retirement staple is becoming scarce as an employment benefit? Pensions are becoming scarce. Employers don’t like the liability and expense, but many employees don’t like having to work with a certain company their whole lives. Instead, you have to make sure you set aside what you need in retirement.
Mandated by the IRS, these force retirees to drain retirement accounts whether they want to or not. What is required minimum distributions? These distributions require you to take money out and pay taxes on it, starting at age 72. There are other options though to reduce what these RMDs amount to, such as Roth conversions.
Finally, this financial phenomenon is thought to be way off by some or currently eminent by others. A market correction is something that is happening now. A lot of different things affect it, but remember that corrections are normal.
Listen to the entire episode or skip ahead using the timestamps below.
0:56 – Let’s play some financial Jeopardy!
2:26 – This financial product has given a bad name to some of the others.
5:45 – This requires a financial advisor to put the clients’ best interest first.
9:42 – This common retirement staple is becoming scarce.
12:50 – These force retirees to drain retirement accounts.
17:14 – This financial phenomenon will eventually return.
A Point Of Wisdom:
“Looking historically, we see market movement within two percent, two and a half percent up or down every day. That’s normal. Then you have days that are outside of the norm.”