Episode 93: Stuff You Should Know In The Financial World

Today’s Prep:

Did you know…? From the global bond market to living benefits, we share what kind of stuff should you know when it comes to your financial decisions on today’s podcast.

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

Equipping Points:

Want to learn a few new things today? We put together a list of stuff you should know (but might not yet) in the financial world. David explains what each concept is and how it could impact your own financial decisions.

The global bond market is about twice the size of the global stock market. What does that mean? Consider supply and demand. Why is the stock market so high right now? How will that influence your own financial decisions?

Did you know that income tax rates are close to historic lows right now? Believe it or not, tax rates have been going down since the mid 1940s, but right now there’s a lot of government debt. With a mounting debt problem, taxes have to go up in the future. As you’re planning for your future, you need to make sure you know that your tax rates are going up in the future.

Living benefits, or accelerated death benefits, on life insurance could be a possible long-term care solution. Do you have life insurance set up in a way that could work in your favor? This is not for term insurance, but permanent life insurance that can help pay for long-term care. It’s an advance on money that your heirs might get otherwise.

How much risk do you have in your portfolio? More likely than not, it’s more risk than you realized! When you’re younger, having risk in your 401(k) is one thing, but when you near retirement, make sure you are comfortable with the risk you have.

Finally, what’s stopping you from making good financial decisions? Are you reacting emotionally to a change in value? If you have bad reactions, you might make rash decisions that can hurt you financially. When COVID hit in March, we didn’t know what the market would look like in May, June, and July. Knowing how your emotions and biases may play into your decisions ahead of time can help you better plan.

Listen to the full episode or click on the timestamps below to skip to a particular concept.

[0:34] – Fall sports are back!

[2:26] – The global bond market is about twice the size of the global stock market.

[5:09] – Income tax rates are currently close to historical lows.

[7:54] – Living benefits on life insurance are a long-term care solution.

[11:54] – You probably have more risk in your portfolio than you realize.

[13:13] – The biggest impediment to making good financial decisions is your own emotions.

Today’s Takeaway:

As you’re planning for your future, you need to make sure you know that your tax rates are going up in the future.

– David Dickens

Additional Resources:

PODCAST: 3 Listener Questions about Retirement Planning

PODCAST: What To Know About The 4 Types Of Annuities

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The host: David Dickens

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