October 3, 2025 • 9 mins
“Hey Mike, how does the planning change if you expect to live longer or shorter than average?” Learn how longevity expectations reshape Social Security timing, inflation risk, and your entire plan.
Text your questions to 913-363-1234.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Mike (00:00):
You retire 50 years old, you've just given an extra ten
(00:03):
years potentially based on thethe standard, you know, sixty
years or sixty five years. Youretire 50 years old, if you're
retiring Yeah. You've now gotmaybe two extra market crashes
you've got to endure. You've gotextra time. So it's you've
you've really got to understandthat time is your friend and
your enemy.
A frenemy. A frenemy.
(00:23):
Welcome
to How to Retire on Time, a show that answers your
retirement questions. We're hereto move past that oversimplified
advice you've heard hundreds oftimes. Instead, we do want to
dive into the nitty grittybecause, well, it matters.
There's no such thing as aperfect investment product or
strategy. Heck, there's no suchthing as a perfect or riskless
retirement.
(00:44):
That's why these details matter.Text your questions to (913)
363-1234, and we'll feature themon the show. David, what do we
got today?
David (00:52):
Hey, Mike. How does the planning change if you expect to
live longer or shorter thanaverage?
Mike (01:00):
Great question. Typically, we'll do the plans to age 100 or
so, and the reason is lifeexpectancy may be in the mid
eighties right now, but it justtakes one medical invention to
extend our life. What if thathappens? What if, you know, we
all have little robots that keepus alive, that just follow us
(01:20):
along? Mean, we don't reallyknow what's gonna happen in ten
years, twenty years, or eventhirty years.
There are We are living longerthan ever before. So I think
that is something to consider.Now, some people just have poor
health. Some people just,whether it's diabetes, whether
there's a lot of dementia orAlzheimer's in the family,
(01:41):
whatever it might be, therethere are some people that just
know they're not gonna livemaybe past 80, and that's that's
okay. It's good to acknowledgethese things.
We don't want to focus on ourdate of death. But we want to
acknowledge the reality so youcan assign purpose to your
money. For those situations,you're really gonna take a hard
look at then when do you filefor Social Security and how does
(02:05):
it affect your your portfolio,your your overall assets in five
years from now, ten years fromnow, fifteen years, and twenty
years or so. And the reason is,if you delay Social Security,
you might dip into your assets alittle bit more than you would
otherwise. If you file earlier,you might preserve your assets a
little bit better thanotherwise.
(02:25):
If you're gonna if you expect topass mid seventies or eighties,
RMDs may not be that big of adeal. If you live a longer life,
RMDs may actually end up being areally big deal. So you have to
kind of weigh these differentmetrics of what you expect,
knowing that no one knows thefuture. Hopefully, you live a
long and healthy life. Butyou've really gotta build the
(02:45):
plan and and kind of track in inour plans, it's to the right,
the more right column.
It's the portfolio, projectedportfolio value.
Okay.
And where when you expect to pass, what do you want that
value to be? Do you want it tobe higher? Do you want it to be
lower? Are you trying tomaximize it? If you live past,
(03:07):
what's the contingency plan?
And so on. And even I'll I'll goas far as other conversations
that typically happen withincome. So Social Security, and
when you take Social Security,if you have a pension, have the
option to take pensions atdifferent times. These are
matters that that they'rethey're gonna make a difference.
Survivability on the pensionswill be a part of this
(03:28):
conversation.
Some people will come in andthey'll say, hey, we want
income, but we want a certainamount guaranteed. And we'll
say, okay, here's, you know, thebenefits. It's guaranteed, the
Dutchman's is inflation risk andtax risk, and they say, well,
we're not gonna be around for along time. We just just wanna
know that if we did, it'd stillbe there, but we wanna front
load it. And in thosesituations, you might do like a
(03:50):
flat income stream.
Flat income gives you moreincome upfront, but it won't
keep up with inflation. It'salmost like we're we're making
inflation risk worse, butbecause they're not concerned
about longevity or inflation,it's not as much of a concern
for them. That's why we do thisrisk analysis.
Okay.
We wanna understand the risks they're willing to take
and the risks they're notwilling to take. So when you
(04:11):
kinda put together thiscombination, this mocktail, if
you will, or cocktail Yeah. Thatblends together of what is right
for you, then then, yeah,someone who's gonna live less
will probably have a completelydifferent plan, optimized with
different metrics, withdifferent goals, than someone
who might live a longer time.That's gotta be treated
(04:32):
completely differently. Andinflation is one of the biggest
parts of longevity.
It's inflation, it'sunderstanding that you might
have more market crashes toendure, and it's understanding
that what your life will be likein twenty or thirty years will
probably be significantlydifferent than today. I mean,
what's twenty years from today?Or February. Uh-huh. Twenty
(04:55):
years ago.
Yeah. February, 02/2005. Yeah.Yeah. Facebook wasn't even a
thing.
Social media never existed.Right. Cell phones were the
Nokia little brick phone. Yeah.Remember those?
Uh-huh. Had a You played snakeon it or whatever? Right. What
else was going on in 02/2005? Imean
We didn't we didn't have any streaming services. We we
listened to, like, physical CD.
(05:16):
Blockbuster was a big deal.
We went to Blockbuster to find movies to rent. Yeah.
We dialed up American Online. We did. And now we're
paying Google Fiber, much highercosts. Yeah. We're paying a
thousand dollars at least forour smartphones.
Right.
We all have a laptop we carry around instead of the
gateway, whatever computer thingthat you bought in the cow box
(05:37):
Yeah. That would you'd stick onthe you know, on there. Yeah.
This big old, bunky, clunkything
Right.
That you'd spend maybe two hours on a week.
Yeah. Yeah. Yeah.
Now we're like four hours a day on the computer.
So that illustrates, yeah, that it could be a lot
different. We don't know.
Well, even like surgeries back then. Let's talk medically,
for example. Then, doctors wereold school in that they were
(06:01):
doing all the surgeries. Yeah.Today, walk in and a robot can
do procedures for you.
Isn't that wild? You know, andthere's less risk every single
year with the surgeries, there'sbetter outpatient experiences,
medical science is advancing,we've got this thing called AI
that's even more advanced inthings. We're talking about
(06:22):
rockets to the moon. Maybeyou're an 80 year old that wants
to do a lap around the moon.Maybe that's a possibility in
ten years or so.
We just don't know. Yeah. Andso, having the flexibility to
pay for the things you don'teven know you want to pay for is
important. But you've also gotto maintain and keep up with
(06:44):
inflation, and you've gottamaintain the flexibility, and
you've gotta be able to endurethe multiple market crashes
you'll experience along the way.Mhmm.
So do you see how they're verydifferent situations?
Yeah. Yeah, do. And it sounds like maybe, and you can
tell me if I'm wrong, if youexpect to live longer or
shorter, that might play a bigfactor in when you should file
for Social Security.
(07:05):
Yep. Big factor. Yep. Real important. And especially the
longer your life, the more riskyou're taking, so the better
your plan is managed the moreimportant that your plan is
managed well.
Mhmm. If you retire at 50 yearsold, you've just given an extra
ten years, potentially, based onthe the standard, you know,
(07:27):
sixty years or sixty five years,you retire. 50 years old, if
you're retiring Yeah. You've nowgot maybe two extra market
crashes you've got to endure.You've got extra time, so it's
you've you've really got tounderstand that time is your
friend and your enemy.
A frenemy. A frenemy.
Yeah. But in the end, I mean, if there's one big
(07:49):
takeaway I want to put in here,it's time's your most precious
commodity. We wanna treasure it.If you can afford to retire and
there's purpose in the time andhow you would spend your life,
then something to consider.
Mhmm.
You've just gotta understand the longevity risk
and the lifetime income streamfrom annuity is not guaranteed
(08:10):
comfortable income. It's just aguaranteed paycheck that will
never change.
Yeah. Because our paychecks in February, like we
were talking about earlier, ifwe had that same paycheck now
It wouldn't work. No. So you've gotta be very careful
about how you hedge againstinflation for longevity risk.
And if you're not gonna last aslong, kind of sorry. Gruesome
(08:31):
way to say it, but Yeah.
Then you just plan differently.That's why it's important to
have customized plans builtaround your lifestyle and legacy
goals and expectations. That'sall the time we've got for
today's show. If you enjoyed theshow, consider telling a friend,
leaving a rating, and mostimportantly, that you are
(08:52):
subscribed to it so that youdon't miss a thing. For more
resources, including a copy ofmy book, on demand courses, and
so much more, just go towww.retireontime.com.
If you want help putting yourretirement plan together, go to
retireontime.com and click thebutton that says get started.
But seriously, from all of ushere at Kedrick Wealth, we wanna
thank you for spending yourtime, your most precious asset
(09:14):
with us today. We'll see you inthe next episode.
You retire 50 years old, you've just given an extra ten
(00:03):
years potentially based on thethe standard, you know, sixty
years or sixty five years. Youretire 50 years old, if you're
retiring Yeah. You've now gotmaybe two extra market crashes
you've got to endure. You've gotextra time. So it's you've
you've really got to understandthat time is your friend and
your enemy.
A frenemy. A frenemy.
(00:23):
Welcome
to How to Retire on Time, a show that answers your
retirement questions. We're hereto move past that oversimplified
advice you've heard hundreds oftimes. Instead, we do want to
dive into the nitty grittybecause, well, it matters.
There's no such thing as aperfect investment product or
strategy. Heck, there's no suchthing as a perfect or riskless
retirement.
(00:44):
That's why these details matter.Text your questions to (913)
363-1234, and we'll feature themon the show. David, what do we
got today?
David (00:52):
Hey, Mike. How does the planning change if you expect to
live longer or shorter thanaverage?
Mike (01:00):
Great question. Typically, we'll do the plans to age 100 or
so, and the reason is lifeexpectancy may be in the mid
eighties right now, but it justtakes one medical invention to
extend our life. What if thathappens? What if, you know, we
all have little robots that keepus alive, that just follow us
(01:20):
along? Mean, we don't reallyknow what's gonna happen in ten
years, twenty years, or eventhirty years.
There are We are living longerthan ever before. So I think
that is something to consider.Now, some people just have poor
health. Some people just,whether it's diabetes, whether
there's a lot of dementia orAlzheimer's in the family,
(01:41):
whatever it might be, therethere are some people that just
know they're not gonna livemaybe past 80, and that's that's
okay. It's good to acknowledgethese things.
We don't want to focus on ourdate of death. But we want to
acknowledge the reality so youcan assign purpose to your
money. For those situations,you're really gonna take a hard
look at then when do you filefor Social Security and how does
(02:05):
it affect your your portfolio,your your overall assets in five
years from now, ten years fromnow, fifteen years, and twenty
years or so. And the reason is,if you delay Social Security,
you might dip into your assets alittle bit more than you would
otherwise. If you file earlier,you might preserve your assets a
little bit better thanotherwise.
(02:25):
If you're gonna if you expect topass mid seventies or eighties,
RMDs may not be that big of adeal. If you live a longer life,
RMDs may actually end up being areally big deal. So you have to
kind of weigh these differentmetrics of what you expect,
knowing that no one knows thefuture. Hopefully, you live a
long and healthy life. Butyou've really gotta build the
(02:45):
plan and and kind of track in inour plans, it's to the right,
the more right column.
It's the portfolio, projectedportfolio value.
Okay.
And where when you expect to pass, what do you want that
value to be? Do you want it tobe higher? Do you want it to be
lower? Are you trying tomaximize it? If you live past,
(03:07):
what's the contingency plan?
And so on. And even I'll I'll goas far as other conversations
that typically happen withincome. So Social Security, and
when you take Social Security,if you have a pension, have the
option to take pensions atdifferent times. These are
matters that that they'rethey're gonna make a difference.
Survivability on the pensionswill be a part of this
(03:28):
conversation.
Some people will come in andthey'll say, hey, we want
income, but we want a certainamount guaranteed. And we'll
say, okay, here's, you know, thebenefits. It's guaranteed, the
Dutchman's is inflation risk andtax risk, and they say, well,
we're not gonna be around for along time. We just just wanna
know that if we did, it'd stillbe there, but we wanna front
load it. And in thosesituations, you might do like a
(03:50):
flat income stream.
Flat income gives you moreincome upfront, but it won't
keep up with inflation. It'salmost like we're we're making
inflation risk worse, butbecause they're not concerned
about longevity or inflation,it's not as much of a concern
for them. That's why we do thisrisk analysis.
Okay.
We wanna understand the risks they're willing to take
and the risks they're notwilling to take. So when you
(04:11):
kinda put together thiscombination, this mocktail, if
you will, or cocktail Yeah. Thatblends together of what is right
for you, then then, yeah,someone who's gonna live less
will probably have a completelydifferent plan, optimized with
different metrics, withdifferent goals, than someone
who might live a longer time.That's gotta be treated
(04:32):
completely differently. Andinflation is one of the biggest
parts of longevity.
It's inflation, it'sunderstanding that you might
have more market crashes toendure, and it's understanding
that what your life will be likein twenty or thirty years will
probably be significantlydifferent than today. I mean,
what's twenty years from today?Or February. Uh-huh. Twenty
(04:55):
years ago.
Yeah. February, 02/2005. Yeah.Yeah. Facebook wasn't even a
thing.
Social media never existed.Right. Cell phones were the
Nokia little brick phone. Yeah.Remember those?
Uh-huh. Had a You played snakeon it or whatever? Right. What
else was going on in 02/2005? Imean
We didn't we didn't have any streaming services. We we
listened to, like, physical CD.
(05:16):
Blockbuster was a big deal.
We went to Blockbuster to find movies to rent. Yeah.
We dialed up American Online. We did. And now we're
paying Google Fiber, much highercosts. Yeah. We're paying a
thousand dollars at least forour smartphones.
Right.
We all have a laptop we carry around instead of the
gateway, whatever computer thingthat you bought in the cow box
(05:37):
Yeah. That would you'd stick onthe you know, on there. Yeah.
This big old, bunky, clunkything
Right.
That you'd spend maybe two hours on a week.
Yeah. Yeah. Yeah.
Now we're like four hours a day on the computer.
So that illustrates, yeah, that it could be a lot
different. We don't know.
Well, even like surgeries back then. Let's talk medically,
for example. Then, doctors wereold school in that they were
(06:01):
doing all the surgeries. Yeah.Today, walk in and a robot can
do procedures for you.
Isn't that wild? You know, andthere's less risk every single
year with the surgeries, there'sbetter outpatient experiences,
medical science is advancing,we've got this thing called AI
that's even more advanced inthings. We're talking about
(06:22):
rockets to the moon. Maybeyou're an 80 year old that wants
to do a lap around the moon.Maybe that's a possibility in
ten years or so.
We just don't know. Yeah. Andso, having the flexibility to
pay for the things you don'teven know you want to pay for is
important. But you've also gotto maintain and keep up with
(06:44):
inflation, and you've gottamaintain the flexibility, and
you've gotta be able to endurethe multiple market crashes
you'll experience along the way.Mhmm.
So do you see how they're verydifferent situations?
Yeah. Yeah, do. And it sounds like maybe, and you can
tell me if I'm wrong, if youexpect to live longer or
shorter, that might play a bigfactor in when you should file
for Social Security.
(07:05):
Yep. Big factor. Yep. Real important. And especially the
longer your life, the more riskyou're taking, so the better
your plan is managed the moreimportant that your plan is
managed well.
Mhmm. If you retire at 50 yearsold, you've just given an extra
ten years, potentially, based onthe the standard, you know,
(07:27):
sixty years or sixty five years,you retire. 50 years old, if
you're retiring Yeah. You've nowgot maybe two extra market
crashes you've got to endure.You've got extra time, so it's
you've you've really got tounderstand that time is your
friend and your enemy.
A frenemy. A frenemy.
Yeah. But in the end, I mean, if there's one big
(07:49):
takeaway I want to put in here,it's time's your most precious
commodity. We wanna treasure it.If you can afford to retire and
there's purpose in the time andhow you would spend your life,
then something to consider.
Mhmm.
You've just gotta understand the longevity risk
and the lifetime income streamfrom annuity is not guaranteed
(08:10):
comfortable income. It's just aguaranteed paycheck that will
never change.
Yeah. Because our paychecks in February, like we
were talking about earlier, ifwe had that same paycheck now
It wouldn't work. No. So you've gotta be very careful
about how you hedge againstinflation for longevity risk.
And if you're not gonna last aslong, kind of sorry. Gruesome
(08:31):
way to say it, but Yeah.
Then you just plan differently.That's why it's important to
have customized plans builtaround your lifestyle and legacy
goals and expectations. That'sall the time we've got for
today's show. If you enjoyed theshow, consider telling a friend,
leaving a rating, and mostimportantly, that you are
(08:52):
subscribed to it so that youdon't miss a thing. For more
resources, including a copy ofmy book, on demand courses, and
so much more, just go towww.retireontime.com.
If you want help putting yourretirement plan together, go to
retireontime.com and click thebutton that says get started.
But seriously, from all of ushere at Kedrick Wealth, we wanna
thank you for spending yourtime, your most precious asset
(09:14):
with us today. We'll see you inthe next episode.
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