Today's Hack

What scenarios might come up in your financial future? We talk through what you may (or may not) face and how to prepare accordingly with your financial plan.

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Show Notes For This Episode

Other Retirement Facts:

There’s a lot we can’t control, but we can prepare for what might happen in different “what if” scenarios. On today’s episode of the podcast, we discuss a number of “what if” scenarios (some more likely than others) to see how we could prepare for them today.

What if interest rates were to double over the next five years? Depending on where you’re at, this could be good or bad. From a saver’s standpoint, that’s really good. But on the other side, that also means slow spending. For investors wanting safety through a bond, you would actually be able to earn something. How would it impact the stock market?

If the U.S. were to get into a major war for some reason, what would this mean economically? Manufacturers could shift, similar to what we just experienced with COVID. Who would pay for this war? A lot of similar concepts have been shown so far in the pandemic. Taxes would likely take an increase because that money would have to be paid back.

What if one day college were to become free? Does it devalue the degree? Perhaps a better “what if” would be making college more affordable. Right now, college is going to cost you something, but it’s a substantial cost for a degree. Nothing is free though, so this would still be paid for somewhere.

While the pandemic had an impact on the market, what if we experienced another economic downturn more similar to 2008-2009? Economies ebb and flow. You have to have a strategy to handle volatility. Different buckets of money allow you to have different levels of risk.

As you enter into retirement, make sure you run the numbers and include inflation. New different taxes could come up. Disaster could strike. Have you done a stress-test with your financial plan? Doing so allows you to look at all the “what if” situations with an advisor.

Listen to the entire show or click on the timestamps below to skip ahead to a particular “what if” situation.

[0:20] – Today we are playing the “what if…?” game.

[2:00] What if… interest rates double?

[5:46] What if… the U.S. gets involved in a major war?

[8:34] – What if… college education becomes free?

[12:15] – What if… we experience another economic downturn?

[15:57] – What if…various taxes and inflation go up? 

A Quotable Moment:

We can’t control, but we can prepare for “what if…?” What does it look like if this happens? And try to best make sure we’ve got plans in place to manage those variables.

-Phil Putney

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