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Welcome to How to Retire on Time, a show that answers your retirement questions. Say goodbye to the oversimplified advice you've heard hundreds of times. This show is about getting into the nitty-gritty so you can make better decisions as you prepare for retirement. Text your questions to 913-363-1234 and we'll feature them on the show. Don't forget to grab a copy of the book, How to Retire on Time, or check out our resources by going to www.retireontime.com.
Welcome to how to retire on time, a show that answers your retirement questions. Say goodbye to the oversimplified advice. This show is all about the nitty gritty so you can determine what is right for you. My name is Mike Decker. I'm a financial adviser and fiduciary alongside David Fransen here, my colleague.
Mike:As always, text your questions to (913) 363-1234, and we'll feature them on the show. Just remember, this is a show, not financial advice. David, what have we got today?
David:Hey, Mike. What lifestyle habits have you seen erode someone's retirement plan?
Mike:That's a tough question.
David:So they've already developed the plan, and then
Mike:erode means in this?
David:So maybe they don't have as much, like, liquid assets available as they thought they were going to, or did they have an unexpected expenditure or that sort of ate into something that they were planning on using for income?
Mike:Yeah. So the lifestyle creep costs, your house costs, just kind of those expenses can erode a retirement. You've gotta have some sort of inflationary factor because, let's say, a $100,000 today, net income is not gonna be worth a $100,000 in ten years or twenty years. Inflation's a very real thing. Health care costs are expected to continue to skyrocket.
Mike:I mean, just think about it from an economic standpoint. There's, what, 12,000 people that retire every day today? How many nursing facilities or long term care facilities or health care facilities are being created? The demand will probably significantly outpace the supply, making it more expensive. Are we prepared for those kinds of costs?
Mike:Technology is gonna continue to evolve over time. Technology does bring down the cost of some things. I think behaviorally too, I think people are overall not as happy as they used to be. And so depression often can erode a retirement, not just from, like, a sadness standpoint. I'm talking about, like, if you're depressed, you may end up spending more money to try and compensate for the depression.
Mike:Okay. Trying to buy happiness. Right. That's a very elusive ghost to chase.
David:Maybe you're taking more vacations thinking you'll be happier. That's another one
Mike:that that could be there. But there are so many ways that you could erode a retirement. The way I wanna answer this question is look at your life from a personal standpoint. Are you becoming healthier, or are you becoming more sick? Do you have proper diet and exercise?
Mike:Do you not have proper diet and exercise? For everyone listening in right now, and you can also call us and ask us for the reference or whatever it is, we don't get compensated for this. We don't have any sponsors other than, I guess, it's our show at Kedrick Wealth, but Yeah. There's no third parties paying us to say anything. No.
Mike:But I I highly recommend people to see a functional doctor or to go to functionhealth.com and have a holistic doctor tell you what you should eat and shouldn't eat. You do not want your health to erode any faster than it needs to. So taking care of yourself physically, mentally, like, that's one way your retirement really could erode. You don't want your quality of life to be taken from you because you just had one too many, you know, whatever your vice was. Yes.
Mike:K. The second one is family. Do not let your free time erode your relationships. When you retire, you may want to be involved with your kids and grandkids' lives. Remember, they have a life.
Mike:So you wanna have respectful boundaries with family. You wanna be there when they wanna be there, but not overstep those boundaries. Like, you wanna maintain healthy relationships, but understand where that is. Do not let your family relationships erode. And if they have eroded, if they have gone to the wayside, work with a professional that maybe you can help restore those relationships.
Mike:That might help the overall quality of life. Your professional side of your life is going to change because you stopped working. So now what is your profession? Maybe it's a hobby. Maybe it's a lifestyle business.
Mike:Maybe it's your charitable time that's being given or or whatever it might be, but develop that, because unless there's critical thought, unless there's responsibility, you as a person could erode in certain ways. And then just understand too that your spouse may not be able to do everything you need, that you may need social outlets to help sustain your intellectual, your comedic whatever your other pursuits are. It's very rare that you'll see a couple that fulfill the other in every way. There's usually, like, a couple of other things that you want some friends on. So that's kind of the abstract of it all.
Mike:And then in retirement, the costs of all these things, the increased cost and inflation. Yeah. So that's kind of the overarching conversation to be aware of. But financially, the biggest way people's retirements are eroded, I think, is inflation. Uh-huh.
Mike:And I think we are at high risk levels personally for another round of hyperinflation. If Iran decides to cut off that straight and 40% of the world's oil supply, that could lead to hyperinflation. If there's a geopolitical event that breaks out, that could lead to hyperinflation. If the Fed drops interest rates too soon and the economy grows too fast, that create hyperinflation. If there's a market crash and the Fed or the the government prints too much money, could create hyperinflation.
Mike:So we're at a very difficult point right now where hyperinflation could erode your retirement too. So just these are just kind of a bunch of checklist of things that should be a conversation as a part of your plan. And if they're not, would question the plan. Mhmm. Don't assume it's just gonna work out.
Mike:No. Ask questions. Really get to the nitty gritty. That helps put together a more comprehensive plan, because you've been entrusted. Your life savings, you've been entrusted to maintain that, to manage it, to be a good steward over it.
Mike:No one is going to care more about your money than you. Right. Take on that responsibility and really ask questions. And by the way, just one quick aside as we wrap things up, don't assume you know more than the professional you're talking with. Trust, but verify.
Mike:And I have found that AI, whether it's Grock, whether it's ChatGPT, take your pick. Don't get financial advice from them, but listen to a financial adviser, hear what they have to say, and then check it with AI. It's pretty objective. That's all the time we've got for the show today. If you enjoyed the show, consider subscribing to it wherever you get your podcasts.
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