Episode 70: Are These Financial Views Fact or Fiction?

Today’s Prep:

When it comes to your financial plan, are you basing it off of facts or fiction? Consider the decisions you’re making and where you’re getting your information. We’ll help you do that on this episode.

(Click the featured times below to jump forward in the episode)

Equipping Points:

Let’s play a game of fact or fiction! Which of these financial statements are fact and which ones are fiction? Are any of them a little bit of both? David shares what he thinks on today’s episode of Cover Your Assets KC.

Starting with a tough one, is Social Security taxable? It depends. Do you have a provisional income? David explains what provisional income may include and how it could impact your taxes.

Speaking of taxes, will they be lower in retirement? For most of David’s clients, that’s fiction. Think about some of the deductions you might be getting while working or raising children. Things like a mortgage interest or dependents or 401(k) contributions or even charitable deductions may go down in retirement.

Is term life insurance the way to go? David talks about the difference between the two and which might be best for young families. What about Medicare, will it cover all your medical needs in retirement?

Finally, when you get older, should you gradually shift from stocks to bonds? This may be a commonly held belief, but think about more than just your age. What is your risk tolerance? What are your goals? What is your tax situation? What is the economy doing?

Do you know fact from fiction? Listen to the full episode or click on the timestamps below to play along!

[0:29] – Fact or Fiction: Your Social Security is taxable.

[2:22] – Fact or Fiction: Your taxes will likely be lower in retirement.

[4:00] – Fact or Fiction: Term life insurance is better than whole insurance.

[5:25] – Fact or Fiction: Medicare will cover most of your medical needs in retirement.

[6:14] – Fact or Fiction: As you get older, you should gradually switch from stocks to bonds.

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The host: David Dickens

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