April 10, 2025 • 24 mins
We examine the most common retirement fears that prevent people from planning effectively and offer practical solutions to address them.
• Running out of money tops the list of retirement concerns as people face longer lifespans without traditional pensions
• Healthcare costs average around $335,000 for a retired couple, with Medicare covering less than many expect
• Loss of identity and social isolation after leaving the workforce can lead to depression and accelerated health decline
• Creating purpose through volunteering, social activities and new interests helps maintain mental and physical health
• Longevity risk requires planning for potentially decades of retirement with inflation outpacing fixed income sources
• Fear of burdening family members can be addressed through proper long-term care planning
• Market volatility concerns can be managed through strategic "bucket" planning for different financial needs
Visit masterplanretire.com to access retirement resources, guides, and checklists or call 770-980-9262 to schedule a complimentary consultation.
Have a topic or question you'd like Mark and Evan to address in a future episode? Email us at info@masterplanretire.com or call 770-980-9262.
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Advisory services offered through MasterPlan Retirement Consultants, Inc., a Registered Investment Advisor in the state of Georgia. Insurance, tax and commodities services offered through Fricks and Associates, Inc. dba MasterPlan Retirement Consultants. The aforementioned are affiliated companies.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Evan Fricks (00:06):
What are the scariest things about retirement
?
Hey folks, thanks for joiningus.
Welcome to Retirement Roadmapwith Master Plan Retirement
Consultants.
My name is Evan.
With me, as always, retirementplanner Mark Fricks.
Today we're going to discussthe scariest things about
retirement, things that keeppeople from facing their
retirement plan, putting offplanning, maybe even keeping
(00:28):
folks from retiring when theymay be able to.
Mark, how big of a factor doesfear play into a retirement
planning?
Mark Fricks (00:34):
First of all, is this like, an early Halloween
show?
Evan Fricks (00:37):
It's sort of halfway there.
Mark Fricks (00:38):
Yeah.
So really, the folks that wetalk to, the folks that we meet
with, that's some of the firstthings that we ask: what worries
you, what scares you, whatbothers you about retirement?
And I think it's very importantthat we touch on those items,
because these are real, theseare very common.
(01:00):
Don't feel like you're the onlyone that's worried about this
particular thing or thatparticular thing, but also we
may bring up some things thatyou really hadn't thought about
worrying about.
So I don't know if that's goodor bad, but there are solutions,
and so you can't solvesomething until you face it and
take a look at it and get towork on it.
So that's what I think today'sshow is going to be really great
(01:21):
, powerful, all that kind ofgood stuff.
Evan Fricks (01:24):
One of the first things we do with new folks who
walk into the office is discusshopes, dreams, fears, next six
months, two years, five yearsand beyond.
A lot of times we find thatfolks haven't really discussed
them or thought about them withthemselves or with their spouses
.
Mark Fricks (01:41):
Well, and we also find that people that we don't
work with so this would be maybea friend from church or a
neighbor or whatever and youstart talking about this and
then they start talking aboutI'm retiring or I have retired
and it's like they ignored allof it.
It's like they just turned on aswitch.
You've mentioned this before,just turn on a switch and just
take off, head throughretirement and hoping it all
(02:03):
works out and hopefully it does.
But there are so many thingsyou can do to maximize the
efficiency of your retirementassets and other things related
to make sure that these issues,if they do, arise.
And hey, we've been in abusiness now for 15 years Happy
celebration coming up for ushere shortly but so we've seen a
(02:24):
lot, and even before that, I'vebeen an advisor for 15 years
before that, and so you see alot of the common reoccurrences
of the problems.
But now we're beginning to see,as our clients age, that they
are coming to fruition, some ofthem, and we're seeing that, hey
, these tools are working, thesetools are giving them peace of
mind, and because we meet withour clients once or twice a year
(02:46):
, we don't see them for a yearor so, and then you can really
see a change in their aging andthings they're doing and how
they're evolving into retirement.
So, without getting too deep inthe woods, this is a real
subject.
I hope this is helpful.
In fact, I know it'll behelpful and don't ignore it.
I think that's the whole point.
Evan Fricks (03:05):
Yeah, absolutely.
Well, number one you alluded toit a little bit: running out of
money.
I mean, that's the big one.
In retirement planning, one ofthe most common and legitimate
fears is running out of moneyduring retirement.
If you haven't saved enough, orif unexpected expenses arise,
or maybe even mismanaging yourwithdrawals, the thought of not
(03:26):
having enough funds to lastthrough your retirement years is
terrifying.
This fear is particularlystrong with longer life
expectancies, inflation, risinghealth care costs, tariffs, you
name it.
Mark Fricks (03:37):
There's a lot going on right now, there really is,
and I always relate this back tomy grandfather and his
retirement.
I was probably, you know, 10years old when he retired.
So I can remember visiting mygrandparents outside of Rome,
Georgia.
He worked for a mill and heworked there for 30 something
(03:57):
years.
He had a pension, a good, solidpension.
He had social security.
He wasn't in the market, youknow, most people weren't in the
market until the 401K came outand the IRA, and so his money
was in CDs and savings, hishouse was paid for and he lived
about seven years, and so noneof these things Y ou just kind
of went into retirement andhoped you lived long enough to
(04:19):
enjoy it.
And so today is so different.
Like you said, we're livingmuch longer.
Because we're living longer, wehave more health issues, and
then the fact that, again, mostpensions are gone and we have a
lot of federal workers that wework with and listen to us, and
so they have a great pensionprogram, but most of us don't
have that, and so that'ssomething that's missing as well
(04:41):
, and we're relying more on themarket.
Markets do what?
Markets go up, markets go down,and so if you're trying to take
money from a market, that'sanother area of worry.
Evan Fricks (04:53):
So it's all that coming together almost like a
perfect storm.
Another area of concern, Imentioned already: health care
costs.
Mark Fricks (05:02):
One of the screens or PowerPoint slides we use when
we teach is the differencebetween normal inflation and the
inflation of health care.
And inflation of health care isabout two to two and a half
percent faster than regularinflation.
And so not only that, but youknow folks have this
misconception that, hey, I'll beon Medicare, everything's taken
(05:24):
care of.
Not so fast, my friend.
As an example, one of thethings it doesn't cover is it
doesn't cover deductibles.
It covers some of them, but nota lot of them.
A lot of the newer drugs comingon board are priced at full
price.
Those aren't covered very much.
There's just a lot of costs.
But I think the one cost a lotof people don't think about is
the premiums from Medicare, partB.
(05:44):
Right, they start this year.
They're around $185 a month perperson.
So if you're a couple, you know$380, give or take, and that
goes up almost every year,anywhere from 1% to 4%, and so
you can see those add up overthe course of a year and years.
If your income is higher, thatpremium is higher as well.
So the latest study I saw andyou can correct me if I'm a
(06:07):
little bit off, but I think theaverage couple is expected to
spend $335,000 in retirement onthose types of costs.
I was about to say the samething.
I thought it was around 300,000plus, so that sounds pretty
close.
Yeah, and this is not including long-term care
cost here.
This is strictly medical cost.
(06:29):
I've got my parents that are intheir 90s and they're at the
doctor every week and they'repaying out-of-pocket co-pays and
deductibles and things likethat as well.
If they're not at the doctorthat week, it's a good week.
But we're living longer, andthen you get into things like
Alzheimer's and things like that.
That creates a nother issuethat has exploded and so I'm not
(06:53):
sure if we're gonna get intolong-term care separately, but
certainly health care costs.
You've got to plan for thoseabsolutely, and it's difficult
to.
Evan Fricks (07:02):
You can't predict how much health care you're
going to need in retirement orhow long you're going to live.
We'll talk about longevity riskas well, but that brings us to
fear.
Number three, deterioratinghealth.
Aging brings health challenges,it just does, and the fear of
facing serious health issues orphysical decline without the
employment or health insurancecoverage; that's overwhelming
(07:25):
for folks.
The the potential for chronicconditions, especially loss of
mobility, requiring assistedliving.
.
.
Mark Fricks (07:31):
That can create anxiety about the future yeah, I
think I'm gonna start keepingtrack of how many of our clients
have had a knee replacement, ahip replacement, a shoulder
replacement.
It's almost automatic in your60s or 70s, depending on your
job, but also just depending onyour lifestyle.
Maybe if you played footballyounger or whatever, but this is
almost a common occurrence.
Now how many clients will tellme "oh, I've had both knees
(07:54):
replaced, I'm so glad I did, butthe cost of that is tremendous.
Now, out of their pocketprobably not a huge amount, but
again it continues adding up andthey have therapy.
Again, I'm not trying to scarepeople or depress people or
anything like that.
I want us to be aware so we canplan for this type of thing.
And you know, we see ourclients over the years, as they
come in, as they deteriorate, asthey age, you know, and it's
(08:16):
just, it's part of life.
We're living longer, but it'scertainly something that has to
be planned for.
Evan Fricks (08:21):
I've said this in a recent episode as well, but on
this topic (08:24):
healthy living is a good financial investment.
Mark Fricks (08:29):
That's a good point .
Yeah, you did talk about it afew episodes ago about taking
care of yourself.
Exercise, stretching, the rightdiet all of this keeping
mentally active as well can makea huge difference and a lot of
our clients, they retire, theystart now, they have time.
So, they'll start going to thegym and things like that.
Some of the advantage programswill pay for a gym membership.
(08:50):
So you know, find somethinglike that.
I know it's hard when I quitexercising to get back into it,
but it's so important, it reallyis.
Or play pickleball, that'sblown up, absolutely.
Evan Fricks (09:07):
Fear number four: loss of identity.
Now, many people associatetheir identity with their
careers, especially in ourWestern society.
That's culturally how weintroduce ourselves most of the
time in conversations.
So when retirement hits, it'snot only the daily work routine
that changes, but also the lossof purpose, sense of self.
(09:28):
The idea of no longer beingthat person who contributed to
the workforce can lead tofeelings of depression, anxiety,
things like that.
Mark Fricks (09:36):
Yeah, if you've been saying for 30 something
years "I'm an engineer or I'm atech IT person or whatever, and
all of a sudden you walk up andthey say, what do you do?
I'm retired, that doesn't reallydescribe anything about you as
opposed to my job.
Now, my job is not my entirelife, it doesn't tell you
everything about me, but it'skind of a starting point and
(09:56):
lets me know oh so you're inthis field, you must have this
education or be doing that orwhatever.
But it's hard for me to imaginesaying I'm retired and you know
, I've told my clients I don'treally plan on ever retiring
until I get chased off or don'tknow where I'm at or something
like that.
But I love what I do, but it isa big part of who I am and I
(10:17):
spend a lot of time each week,you know, just like Evan,
working with folks and doingwhat we do and learning
something new every day, whichkeeps our mind active as well,
and so it's hard for me toimagine that.
Now some people are very proudto say I'm retired, but I bet
they come back around to saying,well, what did you used to do,
you know, and it kind of comesback to that.
I've heard that many times aswell, so I think that's a great
(10:40):
point.
I really do.
Evan Fricks (10:42):
Well, the next is related as well from leaving an
employer in a social circle,that's, social isolation.
Without the built-in socialinteraction of work, retirees
feel lonely or disconnected.
The fear of losing social ties,becoming isolated, is a real
concern for many.
The loss of coworkers as dailycompanions, along with friends
(11:02):
or family members who are stillworking, can leave people
feeling like they have fewerfolks to rely on.
And it's true.
Our communities have becomemore and more limited to our
employment and churches, thingslike that.
But those are not built innecessarily.
You have to go out and beactive in those communities.
Mark Fricks (11:23):
Yeah, and you know, Evan, that's really changed
since COVID as well.
Now more people are working athome and so there's less of that
.
So I don't know what the effectof that is and we may not know
the effect for a while, buthopefully people have learned to
be involved in other places ifyou are working at home most of
the time.
But also I had this discussionwith someone the other day and
(11:44):
started reading up on it.
Social gatherings have becomeless and less.
Like a lot of our clients,either their friends have passed
away or maybe even they'vepassed away.
A lot of people aren't doingfunerals anymore.
They're doing maybe just six oreight or family members around
a grave or whatever, as opposedto 200 people in a church or
something.
Even reunions I'm seeing lessand less high school and college
(12:10):
reunions happening.
It's almost like people areless desiring to get together
with other folks, and I'm notsure if that's because it
became a habit?
Maybe, I don't know, that'dmake for a great theme paper or
term paper or something, butthat's happening as well.
So I think you have to try evenharder in retirement to get
involved, and I have a lot of myclients and your clients tell
(12:33):
us about volunteering I thinkthat's a great thing because you
do get that gratification ordoing something where you make a
little bit of money but stillstay involved in more than one
thing.
I think it needs to be more thanjust one activity.
Whether it be your neighborhood, some of these senior
neighborhoods, they all become agroup.
I was just talking to a couplethis morning and they sit on
(12:54):
their front porch and just haveneighbors walk back and forth,
stop by, have a glass of winewith them, chat what's going on,
just being social.
And especially if you're single, if you're widowed or divorced
and retired, that can be almostdangerous and you really need to
make a conscious effort to getout there.
So I do want to remind you realquickly of our website.
(13:14):
Yes, just like most folks, wehave a website, but it's more of
a resource.
It is a retirement resource.
I hope you'll visit it,bookmark it, because there's
always something newMasterPlanRetire.
com.
There are guides, there arechecklists about retirement,
there is information aboutupcoming classes, both in person
(13:37):
, face-to-face, but also video,zoom-oriented type of thing.
But also there's a littlebutton that says schedule a
meeting and you say, well,what's that for?
Well, we do offer acomplimentary consultation.
It starts with a chat 30minutes.
Again, what Evan mentionedearlier your thoughts, your
fears, your goals Some peoplehave never thought about them
(13:57):
before and then, based on thatconversation, we will run a
series of reports anywhere fromsix to nine reports to see where
you're at now and how to getyou where you want to be.
And then we stress, test itwhat happens if taxes go up?
What happens if your spousepredeceases you?
All of these differentcategories, because if you don't
again confront the problem, youcan't have a solution for the
(14:19):
problem.
So we want to find out wherethat wound is, where that high
blood pressure is, where thathigh cholesterol is, and treat
it and have a plan for it.
So again, masterplanretirecom,or give us a call at
770-980-9262, option two, if youcan remember that or there is a
(14:41):
nice phone tree that will guideyou but that will give you a
chance as well to schedulesomething with one of us.
Evan Fricks (14:48):
Absolutely.
The previous two points, aswell as this one, all circle
around not having purpose orlacking purpose in one's life.
This next fear is just rightout of that same topic.
It's boredom or, moreimportantly, lack of fulfillment
.
If you haven't planned yourtime carefully, retirement can
(15:08):
quickly become monotonous.
You might fear becoming bored,losing the motivation to stay
active.
We talked about health.
Not having anything meaningfulto do, period, Something to get
you out of bed in the morning.
Many people also worry theywon't find new hobbies or
passions to replace the onesthat work used to provide, and
we know when we don't havepurpose.
So many of these things areaffected by something that
(15:30):
simple your social circle, yourdepression, your health physical
and emotional.
Yeah, lack of fulfillment.
Mark Fricks (15:36):
And some of our clients we do see deteriorate
quicker than others, and I thinkthese are the clients that
aren't doing what we're talkingabout today.
I mean, we can actually seeover the course after their
retirement and you've heard thisbefore that many folks pass
away after retirement.
There's a reason for that.
It's not because they retired,it's because they didn't enter
(15:57):
retirement with these thoughtsin mind.
So don't think I can't retirebecause I'm going to pass away.
Just make sure that you shiftand transition into that new
phase appropriately and makesure that these things we've
talked about today that you'vetaken into heart and really done
something about them.
Evan Fricks (16:15):
Yeah, so previously , the very first fear we
discussed was running out ofmoney.
Now, this next fear is a veryspecific way of running out of
money, and that's outliving yoursavings, which is also known as
longevity risk.
Mark Fricks (16:29):
Yes, and this is increasing every year.
And as it increases, it notonly and of course now we're
talking, you know, if you're acouple, you know one of you is
probably going to live to age 85or 90, right, maybe both of you
like again my parents but thisis increasing almost every year.
And not only are we having tohave more years of money, but
(16:51):
inflation always outpaces SocialSecurity, it always outpaces
pensions, so we're fallingfurther and further behind, plus
the health care costsincreasing.
All of this coming together andthe fact the longer you live,
the more likely you are to haveadditional health issues.
So, you know, sometimes ourclients jokingly say I'm going
(17:11):
to live to age 85, and then youknow I'm going to put a pillow
over my face or something, andthat's horrible, you know.
But they, yeah, something likethat or I don't know, let's not
get into that today, but theysay jokingly, but they're scared
of aging.
And again, if you've got thisother stuff going on and you've
(17:33):
got a circle of friends, then itdoes help all of this, even
with, you know, when you havebad health, you know if you've
got a neighbor that come by andcheck on you because you've
created a social circle.
They care about each other, youcare about them, you take them
a meal if they need it, all ofthis kind of circles around
Sometimes it's a churchorganization or their volunteer
organization where you becomeclose to people that care about
(17:56):
you and I think, again, thatjust comes back to all of this.
Evan Fricks (18:08):
But I think Evan and I have a very unique
perspective on this, because weare seeing these folks every
year to six months and we seesome of them progressing much
quicker than others.
Yeah, the next fear isburdening family.
So another common fear isbecoming a financial burden on
your children or other familymembers.
You might worry about needingcare or assistance in your later
years, especially if you don'thave long-term care insurance or
the financial means to supportyour needs.
Mark Fricks (18:28):
Yeah.
So a lot of our clients willmake it very clear I do not want
to be a burden on my children.
You know, I want them to enjoytheir lives.
They're raising children.
By the time I pass away, theymay be close to retirement
anyway.
I don't want to be a burden.
Now, some of them have a plan.
They'll say, hey, we've alreadytalked to my daughter.
They have an in-law suite inthe basement, they want us to
come, they want us to be withthe grandkids, all that kind of
(18:50):
stuff.
But the problem is is, if youget to a health point, to where
they're having to actually takecare of you on a daily basis or
something like that, that can bereally difficult because, as
we've seen before a caregiver,the stress of taking care of a
loved one, can actually reduceyour lifetime, your life
(19:11):
expectancy, and so, again, ifit's a plan, that's great, but
just be careful with this.
Whether it be long-term caretools that we use that can
actually double your income ifyou have a long-term care need,
whether it be some other toolswe use to make sure those are
covered, even if you do end upwanting to move in or the kids
want you to move in, you stillwant to be able to bring in
(19:32):
outside help so that they arenot hey, what if they've got
kids in college and maybe a kidin high school and they're
having to help take care of you?
To me that's not fair.
I would not want to do that tomy children for sure.
So I want to try to make sureI've got something lined up, but
it's a real problem and issueand it's not going to go away.
Evan Fricks (19:51):
Yeah, the next fear is not being able to enjoy
retirement.
So some retirees feel that,despite saving for years, they
won't be able to live the lifethey envisioned during
retirement.
You know, this could be due toa lot of things.
We already discussed unexpectedhealth issues, financial
setbacks, or also maybe justrealizing retirement isn't as
fulfilling as they had hoped.
On the financial aspect, onething that you should do as soon
(20:14):
as possible is set up an incomeplan.
That way you know where yourincome's coming from and you can
determine, okay, what actuallyis my quality of life quotient.
Where am I on what I need andhow much money I have and how
far it can take me.
Mark Fricks (20:28):
Yeah, I can't tell you how many times that I'll be
meeting with a client and I'llhave to give them permission to
spend money because we have aplan.
They're not used to having aplan like this because when
you're working you could loseyour job or something like that.
But in retirement we set upguaranteed income flows and so
you know those aren't going away.
So this other money that'sdesigned just to be there, have
(20:52):
permission to use it, and wetalk about that.
And I had somebody just theother day and they're fine, they
have a great income plan, theyhave great guaranteed income
sources.
They're not going away.
If one of them passes away,they continue on.
So why not enjoy some of thatmoney you worked so long for?
Take that trip to Europe, takethat cross-country RV trip, buy
(21:14):
that Porsche I don't know whatit might be, but seriously, and
we talk about that and I try togive them permission because you
know, a lot of the folks wework with have done a good job
of saving.
Why, how?
They've been diligent.
So now, all of a sudden, forthem to start spending money is
almost against their nature, andso we try to give them
permission to do that, and howto do it and where to take it
(21:35):
from.
Evan Fricks (21:36):
Right.
The next fear, and we'reexperiencing this right now
market volatility and economicuncertainty, and we're
experiencing this right now,market volatility and economic
uncertainty.
Mark Fricks (21:46):
Yeah, so I saw a great article the other day.
It talked about the history ofthe stock market and how it
showed we basically had a Ithink it was every bear market
of correction we had.
They occurred like every threeto seven years.
The average one only lastednine months, and so you just
have to kind of stick with it.
That's why we have differentwhat we call buckets of money.
(22:08):
Some are going to be availablethat have a protected principle,
so if the market's down, that'swhere you go for money.
The other ones are going to beup and down at different times,
but they try to work separatelyOne's up in a good market, one's
up in a bad market or whateverto make sure that there's always
something available, becausewe're retirement planners and
(22:30):
consultants and we're able toreally make sure that our
clients are never at adisadvantage, because you don't
want to be down 20% when you'reretired.
We use a lot of different toolsand so we don't get too many
phone calls when the markets arebad.
Out of our hundreds of clients,I've probably talked to three
or four folks and even then theywere like I know, I'm okay, I
(22:52):
just want to hear your voice andknow that we're prepared for
this and I said yes because ofthis, that and the other.
And so it's a different way oflooking at money.
If I'm 35, I let it run, but ifI'm in my 50s or 60s or closer
to retirement, you want to beset up appropriately for
retirement, not for growth.
Totally different plan.
Evan Fricks (23:10):
Absolutely, and everything we've discussed today
are things that we do haveconversations with our clients
about, and they're ongoingconversations because, just as
life has different phases, evenretirement has different phases
beginning, middle andpre-retirement, and your goals,
your dreams, your fears they'llchange throughout that process.
Mark Fricks (23:31):
So often they change.
We'll have a client come in andit's all set up.
They've been with us for fiveyears and all of a sudden we've
decided we want to move to CostaRica.
They had never talked about itbefore We've decided.
Or this has happened, or now wehave to raise a grandchild.
There's so many things that canchange, which is why our plans
are definitely flexible.
So really appreciate you guysbeing with us today.
(23:53):
I hope you enjoyed this episode.
There's more listed on thewebsite masterplanretirecom.
But until we see each otheragain, remember plan well and
prosper.
Take care.
This was Retirement RoadmapRadio with Mark Fricks of Master
Plan Retirement Consultants.
To schedule a complimentaryconsultation, go to
masterplanretirecom or call770-980-9262.
(24:18):
Thanks for listening andremember plan well and prosper.
Disclosure (24:31):
All matters discussed during this show are
for informational purposes only.
Thanks for listening andremember plan well and prosper.
Advisory services offered byMasterPlan Retirement
Consultancy, a registeredinvestment advisor in the state
of Georgia.
Mark Frick's and MasterPlanRetirement Consultants are not
affiliated with or endorsed bythe Social Security
Administration or any othergovernment agency.
What are the scariest things about retirement
?
Hey folks, thanks for joiningus.
Welcome to Retirement Roadmapwith Master Plan Retirement
Consultants.
My name is Evan.
With me, as always, retirementplanner Mark Fricks.
Today we're going to discussthe scariest things about
retirement, things that keeppeople from facing their
retirement plan, putting offplanning, maybe even keeping
(00:28):
folks from retiring when theymay be able to.
Mark, how big of a factor doesfear play into a retirement
planning?
Mark Fricks (00:34):
First of all, is this like, an early Halloween
show?
Evan Fricks (00:37):
It's sort of halfway there.
Mark Fricks (00:38):
Yeah.
So really, the folks that wetalk to, the folks that we meet
with, that's some of the firstthings that we ask: what worries
you, what scares you, whatbothers you about retirement?
And I think it's very importantthat we touch on those items,
because these are real, theseare very common.
(01:00):
Don't feel like you're the onlyone that's worried about this
particular thing or thatparticular thing, but also we
may bring up some things thatyou really hadn't thought about
worrying about.
So I don't know if that's goodor bad, but there are solutions,
and so you can't solvesomething until you face it and
take a look at it and get towork on it.
So that's what I think today'sshow is going to be really great
(01:21):
, powerful, all that kind ofgood stuff.
Evan Fricks (01:24):
One of the first things we do with new folks who
walk into the office is discusshopes, dreams, fears, next six
months, two years, five yearsand beyond.
A lot of times we find thatfolks haven't really discussed
them or thought about them withthemselves or with their spouses
.
Mark Fricks (01:41):
Well, and we also find that people that we don't
work with so this would be maybea friend from church or a
neighbor or whatever and youstart talking about this and
then they start talking aboutI'm retiring or I have retired
and it's like they ignored allof it.
It's like they just turned on aswitch.
You've mentioned this before,just turn on a switch and just
take off, head throughretirement and hoping it all
(02:03):
works out and hopefully it does.
But there are so many thingsyou can do to maximize the
efficiency of your retirementassets and other things related
to make sure that these issues,if they do, arise.
And hey, we've been in abusiness now for 15 years Happy
celebration coming up for ushere shortly but so we've seen a
(02:24):
lot, and even before that, I'vebeen an advisor for 15 years
before that, and so you see alot of the common reoccurrences
of the problems.
But now we're beginning to see,as our clients age, that they
are coming to fruition, some ofthem, and we're seeing that, hey
, these tools are working, thesetools are giving them peace of
mind, and because we meet withour clients once or twice a year
(02:46):
, we don't see them for a yearor so, and then you can really
see a change in their aging andthings they're doing and how
they're evolving into retirement.
So, without getting too deep inthe woods, this is a real
subject.
I hope this is helpful.
In fact, I know it'll behelpful and don't ignore it.
I think that's the whole point.
Evan Fricks (03:05):
Yeah, absolutely.
Well, number one you alluded toit a little bit: running out of
money.
I mean, that's the big one.
In retirement planning, one ofthe most common and legitimate
fears is running out of moneyduring retirement.
If you haven't saved enough, orif unexpected expenses arise,
or maybe even mismanaging yourwithdrawals, the thought of not
(03:26):
having enough funds to lastthrough your retirement years is
terrifying.
This fear is particularlystrong with longer life
expectancies, inflation, risinghealth care costs, tariffs, you
name it.
Mark Fricks (03:37):
There's a lot going on right now, there really is,
and I always relate this back tomy grandfather and his
retirement.
I was probably, you know, 10years old when he retired.
So I can remember visiting mygrandparents outside of Rome,
Georgia.
He worked for a mill and heworked there for 30 something
(03:57):
years.
He had a pension, a good, solidpension.
He had social security.
He wasn't in the market, youknow, most people weren't in the
market until the 401K came outand the IRA, and so his money
was in CDs and savings, hishouse was paid for and he lived
about seven years, and so noneof these things Y ou just kind
of went into retirement andhoped you lived long enough to
(04:19):
enjoy it.
And so today is so different.
Like you said, we're livingmuch longer.
Because we're living longer, wehave more health issues, and
then the fact that, again, mostpensions are gone and we have a
lot of federal workers that wework with and listen to us, and
so they have a great pensionprogram, but most of us don't
have that, and so that'ssomething that's missing as well
(04:41):
, and we're relying more on themarket.
Markets do what?
Markets go up, markets go down,and so if you're trying to take
money from a market, that'sanother area of worry.
Evan Fricks (04:53):
So it's all that coming together almost like a
perfect storm.
Another area of concern, Imentioned already: health care
costs.
Mark Fricks (05:02):
One of the screens or PowerPoint slides we use when
we teach is the differencebetween normal inflation and the
inflation of health care.
And inflation of health care isabout two to two and a half
percent faster than regularinflation.
And so not only that, but youknow folks have this
misconception that, hey, I'll beon Medicare, everything's taken
(05:24):
care of.
Not so fast, my friend.
As an example, one of thethings it doesn't cover is it
doesn't cover deductibles.
It covers some of them, but nota lot of them.
A lot of the newer drugs comingon board are priced at full
price.
Those aren't covered very much.
There's just a lot of costs.
But I think the one cost a lotof people don't think about is
the premiums from Medicare, partB.
(05:44):
Right, they start this year.
They're around $185 a month perperson.
So if you're a couple, you know$380, give or take, and that
goes up almost every year,anywhere from 1% to 4%, and so
you can see those add up overthe course of a year and years.
If your income is higher, thatpremium is higher as well.
So the latest study I saw andyou can correct me if I'm a
(06:07):
little bit off, but I think theaverage couple is expected to
spend $335,000 in retirement onthose types of costs.
I was about to say the samething.
I thought it was around 300,000plus, so that sounds pretty
close.
Yeah, and this is not including long-term care
cost here.
This is strictly medical cost.
(06:29):
I've got my parents that are intheir 90s and they're at the
doctor every week and they'repaying out-of-pocket co-pays and
deductibles and things likethat as well.
If they're not at the doctorthat week, it's a good week.
But we're living longer, andthen you get into things like
Alzheimer's and things like that.
That creates a nother issuethat has exploded and so I'm not
(06:53):
sure if we're gonna get intolong-term care separately, but
certainly health care costs.
You've got to plan for thoseabsolutely, and it's difficult
to.
Evan Fricks (07:02):
You can't predict how much health care you're
going to need in retirement orhow long you're going to live.
We'll talk about longevity riskas well, but that brings us to
fear.
Number three, deterioratinghealth.
Aging brings health challenges,it just does, and the fear of
facing serious health issues orphysical decline without the
employment or health insurancecoverage; that's overwhelming
(07:25):
for folks.
The the potential for chronicconditions, especially loss of
mobility, requiring assistedliving.
.
.
Mark Fricks (07:31):
That can create anxiety about the future yeah, I
think I'm gonna start keepingtrack of how many of our clients
have had a knee replacement, ahip replacement, a shoulder
replacement.
It's almost automatic in your60s or 70s, depending on your
job, but also just depending onyour lifestyle.
Maybe if you played footballyounger or whatever, but this is
almost a common occurrence.
Now how many clients will tellme "oh, I've had both knees
(07:54):
replaced, I'm so glad I did, butthe cost of that is tremendous.
Now, out of their pocketprobably not a huge amount, but
again it continues adding up andthey have therapy.
Again, I'm not trying to scarepeople or depress people or
anything like that.
I want us to be aware so we canplan for this type of thing.
And you know, we see ourclients over the years, as they
come in, as they deteriorate, asthey age, you know, and it's
(08:16):
just, it's part of life.
We're living longer, but it'scertainly something that has to
be planned for.
Evan Fricks (08:21):
I've said this in a recent episode as well, but on
this topic (08:24):
healthy living is a good financial investment.
Mark Fricks (08:29):
That's a good point .
Yeah, you did talk about it afew episodes ago about taking
care of yourself.
Exercise, stretching, the rightdiet all of this keeping
mentally active as well can makea huge difference and a lot of
our clients, they retire, theystart now, they have time.
So, they'll start going to thegym and things like that.
Some of the advantage programswill pay for a gym membership.
(08:50):
So you know, find somethinglike that.
I know it's hard when I quitexercising to get back into it,
but it's so important, it reallyis.
Or play pickleball, that'sblown up, absolutely.
Evan Fricks (09:07):
Fear number four: loss of identity.
Now, many people associatetheir identity with their
careers, especially in ourWestern society.
That's culturally how weintroduce ourselves most of the
time in conversations.
So when retirement hits, it'snot only the daily work routine
that changes, but also the lossof purpose, sense of self.
(09:28):
The idea of no longer beingthat person who contributed to
the workforce can lead tofeelings of depression, anxiety,
things like that.
Mark Fricks (09:36):
Yeah, if you've been saying for 30 something
years "I'm an engineer or I'm atech IT person or whatever, and
all of a sudden you walk up andthey say, what do you do?
I'm retired, that doesn't reallydescribe anything about you as
opposed to my job.
Now, my job is not my entirelife, it doesn't tell you
everything about me, but it'skind of a starting point and
(09:56):
lets me know oh so you're inthis field, you must have this
education or be doing that orwhatever.
But it's hard for me to imaginesaying I'm retired and you know
, I've told my clients I don'treally plan on ever retiring
until I get chased off or don'tknow where I'm at or something
like that.
But I love what I do, but it isa big part of who I am and I
(10:17):
spend a lot of time each week,you know, just like Evan,
working with folks and doingwhat we do and learning
something new every day, whichkeeps our mind active as well,
and so it's hard for me toimagine that.
Now some people are very proudto say I'm retired, but I bet
they come back around to saying,well, what did you used to do,
you know, and it kind of comesback to that.
I've heard that many times aswell, so I think that's a great
(10:40):
point.
I really do.
Evan Fricks (10:42):
Well, the next is related as well from leaving an
employer in a social circle,that's, social isolation.
Without the built-in socialinteraction of work, retirees
feel lonely or disconnected.
The fear of losing social ties,becoming isolated, is a real
concern for many.
The loss of coworkers as dailycompanions, along with friends
(11:02):
or family members who are stillworking, can leave people
feeling like they have fewerfolks to rely on.
And it's true.
Our communities have becomemore and more limited to our
employment and churches, thingslike that.
But those are not built innecessarily.
You have to go out and beactive in those communities.
Mark Fricks (11:23):
Yeah, and you know, Evan, that's really changed
since COVID as well.
Now more people are working athome and so there's less of that
.
So I don't know what the effectof that is and we may not know
the effect for a while, buthopefully people have learned to
be involved in other places ifyou are working at home most of
the time.
But also I had this discussionwith someone the other day and
(11:44):
started reading up on it.
Social gatherings have becomeless and less.
Like a lot of our clients,either their friends have passed
away or maybe even they'vepassed away.
A lot of people aren't doingfunerals anymore.
They're doing maybe just six oreight or family members around
a grave or whatever, as opposedto 200 people in a church or
something.
Even reunions I'm seeing lessand less high school and college
(12:10):
reunions happening.
It's almost like people areless desiring to get together
with other folks, and I'm notsure if that's because it
became a habit?
Maybe, I don't know, that'dmake for a great theme paper or
term paper or something, butthat's happening as well.
So I think you have to try evenharder in retirement to get
involved, and I have a lot of myclients and your clients tell
(12:33):
us about volunteering I thinkthat's a great thing because you
do get that gratification ordoing something where you make a
little bit of money but stillstay involved in more than one
thing.
I think it needs to be more thanjust one activity.
Whether it be your neighborhood, some of these senior
neighborhoods, they all become agroup.
I was just talking to a couplethis morning and they sit on
(12:54):
their front porch and just haveneighbors walk back and forth,
stop by, have a glass of winewith them, chat what's going on,
just being social.
And especially if you're single, if you're widowed or divorced
and retired, that can be almostdangerous and you really need to
make a conscious effort to getout there.
So I do want to remind you realquickly of our website.
(13:14):
Yes, just like most folks, wehave a website, but it's more of
a resource.
It is a retirement resource.
I hope you'll visit it,bookmark it, because there's
always something newMasterPlanRetire.
com.
There are guides, there arechecklists about retirement,
there is information aboutupcoming classes, both in person
(13:37):
, face-to-face, but also video,zoom-oriented type of thing.
But also there's a littlebutton that says schedule a
meeting and you say, well,what's that for?
Well, we do offer acomplimentary consultation.
It starts with a chat 30minutes.
Again, what Evan mentionedearlier your thoughts, your
fears, your goals Some peoplehave never thought about them
(13:57):
before and then, based on thatconversation, we will run a
series of reports anywhere fromsix to nine reports to see where
you're at now and how to getyou where you want to be.
And then we stress, test itwhat happens if taxes go up?
What happens if your spousepredeceases you?
All of these differentcategories, because if you don't
again confront the problem, youcan't have a solution for the
(14:19):
problem.
So we want to find out wherethat wound is, where that high
blood pressure is, where thathigh cholesterol is, and treat
it and have a plan for it.
So again, masterplanretirecom,or give us a call at
770-980-9262, option two, if youcan remember that or there is a
(14:41):
nice phone tree that will guideyou but that will give you a
chance as well to schedulesomething with one of us.
Evan Fricks (14:48):
Absolutely.
The previous two points, aswell as this one, all circle
around not having purpose orlacking purpose in one's life.
This next fear is just rightout of that same topic.
It's boredom or, moreimportantly, lack of fulfillment
.
If you haven't planned yourtime carefully, retirement can
(15:08):
quickly become monotonous.
You might fear becoming bored,losing the motivation to stay
active.
We talked about health.
Not having anything meaningfulto do, period, Something to get
you out of bed in the morning.
Many people also worry theywon't find new hobbies or
passions to replace the onesthat work used to provide, and
we know when we don't havepurpose.
So many of these things areaffected by something that
(15:30):
simple your social circle, yourdepression, your health physical
and emotional.
Yeah, lack of fulfillment.
Mark Fricks (15:36):
And some of our clients we do see deteriorate
quicker than others, and I thinkthese are the clients that
aren't doing what we're talkingabout today.
I mean, we can actually seeover the course after their
retirement and you've heard thisbefore that many folks pass
away after retirement.
There's a reason for that.
It's not because they retired,it's because they didn't enter
(15:57):
retirement with these thoughtsin mind.
So don't think I can't retirebecause I'm going to pass away.
Just make sure that you shiftand transition into that new
phase appropriately and makesure that these things we've
talked about today that you'vetaken into heart and really done
something about them.
Evan Fricks (16:15):
Yeah, so previously , the very first fear we
discussed was running out ofmoney.
Now, this next fear is a veryspecific way of running out of
money, and that's outliving yoursavings, which is also known as
longevity risk.
Mark Fricks (16:29):
Yes, and this is increasing every year.
And as it increases, it notonly and of course now we're
talking, you know, if you're acouple, you know one of you is
probably going to live to age 85or 90, right, maybe both of you
like again my parents but thisis increasing almost every year.
And not only are we having tohave more years of money, but
(16:51):
inflation always outpaces SocialSecurity, it always outpaces
pensions, so we're fallingfurther and further behind, plus
the health care costsincreasing.
All of this coming together andthe fact the longer you live,
the more likely you are to haveadditional health issues.
So, you know, sometimes ourclients jokingly say I'm going
(17:11):
to live to age 85, and then youknow I'm going to put a pillow
over my face or something, andthat's horrible, you know.
But they, yeah, something likethat or I don't know, let's not
get into that today, but theysay jokingly, but they're scared
of aging.
And again, if you've got thisother stuff going on and you've
(17:33):
got a circle of friends, then itdoes help all of this, even
with, you know, when you havebad health, you know if you've
got a neighbor that come by andcheck on you because you've
created a social circle.
They care about each other, youcare about them, you take them
a meal if they need it, all ofthis kind of circles around
Sometimes it's a churchorganization or their volunteer
organization where you becomeclose to people that care about
(17:56):
you and I think, again, thatjust comes back to all of this.
Evan Fricks (18:08):
But I think Evan and I have a very unique
perspective on this, because weare seeing these folks every
year to six months and we seesome of them progressing much
quicker than others.
Yeah, the next fear isburdening family.
So another common fear isbecoming a financial burden on
your children or other familymembers.
You might worry about needingcare or assistance in your later
years, especially if you don'thave long-term care insurance or
the financial means to supportyour needs.
Mark Fricks (18:28):
Yeah.
So a lot of our clients willmake it very clear I do not want
to be a burden on my children.
You know, I want them to enjoytheir lives.
They're raising children.
By the time I pass away, theymay be close to retirement
anyway.
I don't want to be a burden.
Now, some of them have a plan.
They'll say, hey, we've alreadytalked to my daughter.
They have an in-law suite inthe basement, they want us to
come, they want us to be withthe grandkids, all that kind of
(18:50):
stuff.
But the problem is is, if youget to a health point, to where
they're having to actually takecare of you on a daily basis or
something like that, that can bereally difficult because, as
we've seen before a caregiver,the stress of taking care of a
loved one, can actually reduceyour lifetime, your life
(19:11):
expectancy, and so, again, ifit's a plan, that's great, but
just be careful with this.
Whether it be long-term caretools that we use that can
actually double your income ifyou have a long-term care need,
whether it be some other toolswe use to make sure those are
covered, even if you do end upwanting to move in or the kids
want you to move in, you stillwant to be able to bring in
(19:32):
outside help so that they arenot hey, what if they've got
kids in college and maybe a kidin high school and they're
having to help take care of you?
To me that's not fair.
I would not want to do that tomy children for sure.
So I want to try to make sureI've got something lined up, but
it's a real problem and issueand it's not going to go away.
Evan Fricks (19:51):
Yeah, the next fear is not being able to enjoy
retirement.
So some retirees feel that,despite saving for years, they
won't be able to live the lifethey envisioned during
retirement.
You know, this could be due toa lot of things.
We already discussed unexpectedhealth issues, financial
setbacks, or also maybe justrealizing retirement isn't as
fulfilling as they had hoped.
On the financial aspect, onething that you should do as soon
(20:14):
as possible is set up an incomeplan.
That way you know where yourincome's coming from and you can
determine, okay, what actuallyis my quality of life quotient.
Where am I on what I need andhow much money I have and how
far it can take me.
Mark Fricks (20:28):
Yeah, I can't tell you how many times that I'll be
meeting with a client and I'llhave to give them permission to
spend money because we have aplan.
They're not used to having aplan like this because when
you're working you could loseyour job or something like that.
But in retirement we set upguaranteed income flows and so
you know those aren't going away.
So this other money that'sdesigned just to be there, have
(20:52):
permission to use it, and wetalk about that.
And I had somebody just theother day and they're fine, they
have a great income plan, theyhave great guaranteed income
sources.
They're not going away.
If one of them passes away,they continue on.
So why not enjoy some of thatmoney you worked so long for?
Take that trip to Europe, takethat cross-country RV trip, buy
(21:14):
that Porsche I don't know whatit might be, but seriously, and
we talk about that and I try togive them permission because you
know, a lot of the folks wework with have done a good job
of saving.
Why, how?
They've been diligent.
So now, all of a sudden, forthem to start spending money is
almost against their nature, andso we try to give them
permission to do that, and howto do it and where to take it
(21:35):
from.
Evan Fricks (21:36):
Right.
The next fear, and we'reexperiencing this right now
market volatility and economicuncertainty, and we're
experiencing this right now,market volatility and economic
uncertainty.
Mark Fricks (21:46):
Yeah, so I saw a great article the other day.
It talked about the history ofthe stock market and how it
showed we basically had a Ithink it was every bear market
of correction we had.
They occurred like every threeto seven years.
The average one only lastednine months, and so you just
have to kind of stick with it.
That's why we have differentwhat we call buckets of money.
(22:08):
Some are going to be availablethat have a protected principle,
so if the market's down, that'swhere you go for money.
The other ones are going to beup and down at different times,
but they try to work separatelyOne's up in a good market, one's
up in a bad market or whateverto make sure that there's always
something available, becausewe're retirement planners and
(22:30):
consultants and we're able toreally make sure that our
clients are never at adisadvantage, because you don't
want to be down 20% when you'reretired.
We use a lot of different toolsand so we don't get too many
phone calls when the markets arebad.
Out of our hundreds of clients,I've probably talked to three
or four folks and even then theywere like I know, I'm okay, I
(22:52):
just want to hear your voice andknow that we're prepared for
this and I said yes because ofthis, that and the other.
And so it's a different way oflooking at money.
If I'm 35, I let it run, but ifI'm in my 50s or 60s or closer
to retirement, you want to beset up appropriately for
retirement, not for growth.
Totally different plan.
Evan Fricks (23:10):
Absolutely, and everything we've discussed today
are things that we do haveconversations with our clients
about, and they're ongoingconversations because, just as
life has different phases, evenretirement has different phases
beginning, middle andpre-retirement, and your goals,
your dreams, your fears they'llchange throughout that process.
Mark Fricks (23:31):
So often they change.
We'll have a client come in andit's all set up.
They've been with us for fiveyears and all of a sudden we've
decided we want to move to CostaRica.
They had never talked about itbefore We've decided.
Or this has happened, or now wehave to raise a grandchild.
There's so many things that canchange, which is why our plans
are definitely flexible.
So really appreciate you guysbeing with us today.
(23:53):
I hope you enjoyed this episode.
There's more listed on thewebsite masterplanretirecom.
But until we see each otheragain, remember plan well and
prosper.
Take care.
This was Retirement RoadmapRadio with Mark Fricks of Master
Plan Retirement Consultants.
To schedule a complimentaryconsultation, go to
masterplanretirecom or call770-980-9262.
(24:18):
Thanks for listening andremember plan well and prosper.
Disclosure (24:31):
All matters discussed during this show are
for informational purposes only.
Thanks for listening andremember plan well and prosper.
Advisory services offered byMasterPlan Retirement
Consultancy, a registeredinvestment advisor in the state
of Georgia.
Mark Frick's and MasterPlanRetirement Consultants are not
affiliated with or endorsed bythe Social Security
Administration or any othergovernment agency.
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