Ep 29: Spotting Red Flags In Your Finances

Today we’re sharing some potential red flags you should be aware of in your finances. How would you answer these questions?

Can you name all of the investments in your portfolio? 

It’s not a red flag if you can’t name them all, but you should know generally what you own. If you can name them all, you might not be very well diversified. If you don’t know how your money is invested, maybe you’re not diversified enough or maybe you’re taking too much risk or not enough. You have to pay attention to how your money is invested.  

How often do you meet with your financial advisor? 

You’re paying someone to give you advice, so you need to be in touch with them regularly. Meetings don’t always have to be long and detailed. Sometimes a 15-minute conversation is all you need to check in.

Are your account balances constantly moving up and down? 

Most people are OK with volatility when they’re trying to accumulate funds. It can be to your advantage because you can buy when the market drops. Retirees, on the other hand, don’t like the ups and downs of the market. You need to meet with your advisor and know more about your investments and the big picture.

How much income will you need in retirement?

If you are close to retirement and you don’t know how much you’ll need in retirement, that’s probably a red flag. Everyone spends different amounts, but you need to know, generally speaking, how much money you need in your bank account each month.

Listen to the entire episode or click on the timestamps below to skip ahead to a particular question.

 3:12 – Name your investments
 5:26 – Meeting with your advisor
 7:31 – Account balances
 10:14 – How much income you’ll need
 12:40 – Retirement plan

 

Read more and get additional resources here: https://makeretirementwork.com/make-retirement-work/podcast.html