Ever wonder what it is they aren’t telling you when it comes to your financial decisions? What are those dirty little secrets in the financial world? And how can you strategize accordingly?
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What are the dirty little secrets in the financial world? How can you make sure you keep the important things at the forefront of your financial strategy and the small details on the backburner? In today’s episode of Cover Your Assets KC, David Dickens shares his thoughts on some of the secrets when it comes to setting your financial strategy.
It’s important that you don’t pretend to know what the future holds. Although it’s important and helpful to be informed about the financial climate, current events, and historical patterns, you need to have the humility to recognize that you never really know what’s going to happen. Try to understand the causes and effects, understand history, and have a clear understanding of if the market is a long-term uptrend or long-term downtrend.
When it comes to different opinions and arguments, it’s important to keep perspective. When it comes to financial decisions, ignore the little stuff but focus on the big picture. Understand if we are in a long-term uptrend or downtrend and what your exposure to stocks is in that time.
Sometimes it can be tricky to differentiate between skill and luck. Be careful with brokers, advisors, and even well-meaning friends who are caught up on one particular strategy or investment that has worked out in the past.
Finally, in the mailbag, David answers a question about spending in retirement. Is it typical to spend a lot of money early on in retirement and then less later on? While many choose to travel and have fun in the beginning of retirement, don’t forget about healthcare costs later on in retirement. Make sure your plan as a really good plan for paying for health and medical expenses.
Listen to the full episode or click on the timestamps below to hear more details about these dirty little secrets.
[0:58] – Nobody can predict the future.
[2:06] – Most of the things we argue about aren’t all that important.
[4:01] – It’s difficult to differentiate between skill and luck.
[5:30] – The bolder the headline, the more people pay attention to it.
[7:51] – Mailbag: Is it typical to spend a lot of money early in retirement and less later on?
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