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Welcome to How to Retire on Time, a show that answers your questions about all things retirement, including income, taxes, Social Security, healthcare, and more. This show is an extension of the book How to Retire on Time, which you can grab today on Amazon or by going to www.howtoretireontime.com.
This show is intended for those within 10 years of their target retirement date or for those are are currently retired and are concerned about their ability to stay retired.
Welcome to how to retire on time, a show that answers your questions about all things retirement, including income taxes, Social Security, health care, and more. The show is an extension of the book, How to Retire On Time, which you can grab today on Amazon or by going to www.howtoretireontime.com. My name is Mike Decker. I'm the author of the book, How to Retire On Time, but I'm also a licensed financial adviser, insurance agent, and tax professional, which means when it comes to financial topics, we can cover it all. Now that said, please remember this is just a show.
Mike:It's not financial advice. If you want personalized financial advice, you can request your wealth analysis from my team today by going to www.yourwealthanalysis.com. With me in the studio today, mister David Franson. David, thanks for being here.
David:Yep. Happy to be here. Thank you.
Mike:Yeah. David's gonna read your questions, and I am going to do my best to answer them. You can submit your questions at any time during the week by texting (913) 363-1234. That number one more time, (913) 363-1234, or you can email us at heyMike@howtoretireontime.com. Let's begin.
David:Hey, Mike. I am married and my spouse has suggested I go back
David:to work part time in retirement, both for income and to stay busy. What are some things I should consider before doing so?
Mike:There's a
Mike:couple of questions here within the single question. I appreciate the person asking it in that way. The first one is they have to go back for income purposes. That immediately tells me they have the wrong plan. Uh-huh.
Mike:They do not have a plan that they understand, and they're scared about it not working out. Now markets going down, tariffs, geopolitical events, all that stuff can create fear.
David:Right.
Mike:And when you have fear, it's very common to say, hey, can you go back to work, and we just lay off. Maybe you're gonna buy some more top ramen, and not enjoy your life as much as possible, but time is your most precious commodity. So I would immediately question the first part of it, and that's that they need to go back for more income. Do you really need to go back for more income, or do you need a plan that then explores efficiencies, that then puts together the portfolio. Many times in this situation, have found that they're scared because they have a portfolio, and that's kind of it.
Mike:They don't really understand the withdrawal or the distribution side of it.
David:Okay.
Mike:The second part is to stay busy. Mhmm. Yeah. Go back to work for that one. It is a very sobering statistic that the number one group of people that are getting divorced today are 55 and plus.
Mike:Mhmm. Once the kids leave, the spouse realizes they don't know each other, creates friction, and then they get divorced, and they seek their own pleasure. They seek their own fulfillment. The family is falling apart, unfortunately, today, and we get lost in the busyness. We get lost in productivity, but we've forgotten how to be married.
Mike:We've forgotten how to love our spouses. We've forgotten how to have a healthy family. And so when the kids leave, when people retire, and they have all this free time, they want to be focused on themselves, and many times it's an over correction of self indulgence that also hurts the family, that also leads to divorce. And the reason why I bring that up is when you get divorced, it is financially very difficult for many people, because you're getting taxed at a higher rate, and your expenses are probably gonna increase as well.
David:Right. When you actually think through all the things that you share with your spouse, and then when you separate it suddenly, it's like, oh boy.
Mike:It just changes. Yeah. So the reason why I think it's a good idea in many situations to go back to work is because humans are not designed to retire. We are not designed to sit back and relax for thirty years. It actually speeds up your cognitive decline, your physical decline, and just get depressed and anxious.
Mike:Yeah. Get too much on your time watching the news. Yeah. So to answer the question, you may not need to go back for work purposes for an income purpose. Yeah.
Mike:But I've met so many people that got bored, and then they became a checkout clerk at the grocery store, or they work at Home Depot or Lowe's, just because they like being in the environment. Yeah. I mean, granted, if I were handy, I would love to work at Home Depot Yeah. And help people do those projects themselves. Right.
Mike:If that's not your cup of tea, that's okay. Maybe you start a business, an encore career. Mhmm. Very normal, just to file a single member LLC, and you could structure basic cash flow. You can do some QuickBooks.
Mike:You have to try and make income.
David:Mhmm.
Mike:Try and grow it, but maybe you can you can blend a hobby together with a business, and then that's your purpose. Yeah. But I would also raise the idea that maybe your kids need a little bit of help. Maybe your grandkids could use some tutoring. Right.
Mike:Maybe a local shelter just needs some assistance. I'll tell you what, one of the most unfortunate parts I think of our social fabric is how lonely the 80 year old people are. Just going there, and just having a conversation with a I won't say a senior citizen, but like an 80 year old Yeah. Where their kids have kind of forgotten them. I mean, your time can be a huge service to someone else.
Mike:Right. And when you understand gosh. When you understand it's not about money. Yeah. It's about having purpose in life, and giving to society, giving to our social networks, giving to, not social media, but like our communities.
Mike:It's incredible. I can't believe, like look, my wife and I, we could afford to just go out and buy meals, and just have them served up. But when we had our baby, our church and friends have been giving us meals. I'm like, how do you guys find the time to do this? Yeah.
Mike:Yeah. But it's that service, that connection. So if you have excess time on your hands, and you're just doing fun things, you might lose purpose in life. Consider volunteering, consider getting a job, figure out a way to have a reason to get up in the morning and serve people. It's better for your health, physically and mentally, and it also may help your relationship, may give you more things to talk about, may give you more things to pursue, that it may give you more satisfaction overall in life.
Mike:Yeah. Don't focus on just the self indulgence. It is a trap. It's a bag of goods that isn't as good as it seems. Yeah.
Mike:Yeah. Yeah. And that needs to be a part of everyone's plan is your purpose. Just because you could afford to retire doesn't mean you should. That's all the time we've got for the show today.
Mike:If you enjoyed the show, consider subscribing to it wherever you get your podcasts. Just search for how to retire on time. Discover if your portfolio is built to weather flat market cycles or if you're missing tax minimization opportunities that you may not even know exist. Explore strategies that may be able to help you lower your overall risk while potentially increasing your overall growth and lifestyle flexibility. This is not your ordinary financial analysis.
Mike:Learn more about Your Wealth Analysis and what it could do for you regardless of your age, asset, or target retirement date, go to ww.yourwealthanalysis.com today to learn more and get started.