April 3, 2025 • 24 mins
We explore the financial and emotional benefits of part-time employment during retirement, discussing how it can both extend retirement savings and provide a sense of purpose during this major life transition.
• Part-time work provides social connections and purpose when transitioning from decades of career identity
• Working in retirement can help extend retirement funds by supplementing income and reducing the need to deplete savings
• Delaying Social Security through part-time income can increase benefits by 6-8% per year
• Continuing to earn income allows for ongoing retirement account contributions rather than withdrawals
• Working part-time may help improve Social Security calculations by replacing "zero" years in the 35-year formula
• Popular retirement job options include freelancing, consulting, retail positions, teaching, and tutoring
• Creative options include renting property, selling on Etsy/eBay, blogging, creating online courses, and tutoring
• Choose work aligned with your personal interests and desired lifestyle flexibility
Schedule your complimentary consultation at masterplanretire.com or call us at 770-980-9262 to discuss your retirement strategy.
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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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Evan Fricks (00:06):
Should I consider part-time work in retirement?
Hey folks, thanks for joiningus.
Welcome back to RetirementRoadmap with Master Plan
Retirement Consultants.
My name is Evan and with me, asalways, retirement planner,
Mark Fricks.
So retirement looks differentfor everyone.
When some folks retire, they'reready to cut the cord on their
(00:26):
careers completely and diveheadfirst into their new phase
of life.
For others, such an extremechange can be intimidating.
Even if you don't necessarilyneed the income, part-time
employment can have manypowerful benefits in retirement.
Today we'll discuss some ofthose benefits, as well as some
ideas for potential part-timeemployment in retirement.
(00:48):
Mark, part-time employment hasa lot of benefits.
We're seeing it more and moreactually in retirement.
Mark Fricks (00:53):
You know, I was thinking about that before the
show and I think one of thereasons, actually two reasons I
have, number one is we do workwith a lot of federal employees
and they qualify pensionsfairly early, many of them age
56, 57.
That's early, you know, you'restill very young.
So that's, I think that's onereason.
(01:13):
I think another reason if I cangive our, our firm, a little
bit of kudos here, is because ofthe way we work, we, we squeeze
every bit of income out ofassets.
We've maximized the efficiencyof the way we work.
We squeeze every bit of incomeout of assets.
We've maximized the efficiencyof the income production and it
also accelerates the ability toretire, and so I think those two
(01:34):
things together, we are seeingmore and more folks that are
retiring earlier, which I thinkpromotes the part-time work.
Evan Fricks (01:45):
Yeah, we're going to talk about how financially it
can be beneficial.
Before we jump into that, Ithink also as far as a sense of
purpose for folks, it can bereally hard to, like I said
before, cut the cord completelyand completely shift into a new
phase of life, from employmentwhich could have been decades
long in a career, and then to gofrom nothing.
People don't realize that oftenour jobs, our careers, are the
(02:06):
primary social circle that wehave in our lives.
Our sense of purpose,especially in Western culture,
is very wrapped around what wedo.
Oftentimes, when we meetsomeone new, the first thing
they say "what do you do, bob?
Or whatever.
So it can be really shocking.
Mark Fricks (02:21):
It's part of who you are, it's part of who you've
been.
I've really enjoyed getting towatch our clients as they
transition from working toretirement, and especially that
last year, and I kind ofinterview them and we talk about
it.
I've had some clients crybecause they're afraid, you know
(02:41):
, "I don't know what I'm goingto do.
Am I going to just die becauseI've quit working or whatever?
And so we've discussed that.
But most of them have thismixture of emotions.
They were excited, scared.
"Am I going to have enoughmoney?
We show them they will.
It's just all these emotionsand it's really interesting.
I find it really eye-opening totalk about all of this and to
(03:04):
help them through thattransition, because I feel like
there's three segments of ourlife.
There's growing up, you know,which could be to maybe age 25
or 30 for some folks right.
Then there's those middle yearsof adulthood where we maybe
have kids and have our majorcareers.
You know, many of us getmarried and have a home.
(03:25):
It's just kind of a differentfeeling and it seems like it
lasts forever.
Then it's over in a you know,in a flash.
And then that third phase to meis retirement.
Is, you know, 60- ish andbeyond which now is lasting, you
know, 20, 25, 30 years or more.
Um, so if you have spent likeyou said, if you spent these 30
(03:45):
something years, 40, I mean I'veworked some kind of job since I
was like 10.
Now I was cutting grass, but areal job since I was 15 or 16.
And so all of a sudden juststop and kind of like you said,
just jump off that cliff ormountain or whatever it may be.
I remember a client severalyears ago.
They were both, I think, early60s and they both retired on the
(04:06):
same day and they woke up thenext Monday on the beach.
That was their goal.
And never worked again and itwas perfect for them.
But many folks are concernedabout that again because of
what's it going to do to theirlives physically, emotionally
and all of that.
So I think this is a greatsubject to talk about the
reasons why you might want towork part-time and maybe even
(04:27):
some examples of what you coulddo.
Evan Fricks (04:36):
You also don't really know, not everyone, and
this is not a reflection on arelationship between a couple,
but you've spent an entirecareer where one person may have
been out of the house.
The majority of the day
Mark Fricks (04:47):
, or both of them out of the house,
Evan Fricks (04:48):
or both out of the house
And all of a sudden you come back in, your dynamic
might shift a little bit.
Maybe easing into that is alsoa better way.
What'sthat
Mark Fricks (04:58):
Might?
Evan Fricks (04:58):
Might.
Right.
Right.
Mark Fricks (05:01):
That dynamic will shift.
It depends on how much rightand how they handle it.
You know, interesting today intoday's world, so many people
working from home, since COVID,it's become less of an issue.
I was talking to somebody justthe other day and a fairly new
client and they were talkingabout how, yeah, I've worked
from home for, you know, 15years.
My wife is used to me beinghere and she was a stay-at-home
(05:24):
mom and so that's kind of a no-brainer.
I'm sure he was probably in thebasement or upstairs half the
day, but he could come downanytime he wanted, so that would
be less.
But we also had a couple thatactually divorced after their
retirement.
He came home and, they alreadyhad issues, Ok, this wasn't the
only reason, but he came homeand all of a sudden he started
trying to run the household.
(05:44):
And and and you know, and shehad been running the household
just fine, thank you very much,and, but it was part of other
problems they had.
But still, that was kind of thefinal straw from that.
So I guess something you've gotto to talk about, which is
where the part-time work maycome into play.
Evan Fricks (06:01):
Absolutely.
So on the financial side, firstof all, it's it's quite
apparent part-time work canextend your retirement funds.
Number one you're supplementingyour income.
Part-time work can provide asteady stream of income,
depending on what kind of workit is.
Reducing the need to depleteretirement savings quickly, so
maybe you don't need to pullfrom those IRAs or those Roths
so quickly.
That 401(k) you can let thosecontinue to grow.
(06:24):
You have a different timeline,your immediacy.
Maybe you have a little bitmore of a long-term horizon,
time horizon on thoseinvestments.
Mark Fricks (06:31):
Right, and I think you would touch base on this but
also be able to delay takingSocial Security, which will
become a larger check as well.
Again, I don't want to stealbullet point three or four.
No, no.
That pops into play as well.
As we know and, by the way, weactually have an online webinar
coming up on Social Security.
(06:51):
Might be a great time to learnmore about that, but every year
you wait and delay SocialSecurity, there's an increase in
that payment of 6% to 8% forthe rest of your life.
So, again, that part-timeincome of $20,000 or $30,000 a
year may allow you to do that.
Evan Fricks (07:07):
Yeah, building a financial cushion and continuing
to do so if you're not usingall of the income, if you're not
depleting all that income permonth, also able to save more,
just as we're able to hopefullyextend our IRAs and Roths,
certain accounts like annuities,income producing accounts.
The longer you wait, they tendto produce more income, so there
could be more time to allowcertain policies and contracts
(07:30):
to mature before you use them.
There's a lot of benefit tothat.
Also, just flexibility.
You can choose.
You have more options when youhave a little bit extra income
there.
Mark Fricks (07:39):
Yeah, and you touched on this, you can, as
long as you have earned income,you can contribute, instead of
taking money out of your IRAsand 401(k)s.
You can contribute to thosebecause you now have earned
income again.
And if you don't need a lot ofit, you can put that much more.
And if you create your ownbusiness, you can do something
(08:04):
like a SEP or a SIMPLE or somekind of an IRA that has higher
limits.
So instead of doing $8,000 ayear, if you're 50 or older, you
can do $15,000, $20,000,$25,000 a year into these
accounts.
Evan Fricks (08:17):
And, depending on who you are and what your
strategy is for retirement,there's also opportunity for tax
strategy.
In that time, if you're earningpart-time income, you're
probably not earning as much asyou were in your peak earning
years right before retirement,which means you probably have
more likelihood to be able tocontribute to a Roth.
Also consider contributions.
Since you're earning less thatyear, the taxes on those
conversions might not be as highas they would have if you were
(08:40):
working full-time.
So a lot of opportunities toexplore.
With part-time work.
As Mark mentioned, you alsohave an opportunity to
potentially wait before takingyour Social Security benefits,
which, as we all know, allthat's going to do is let it be
a little bit bigger by the timeyou're ready to take it.
That's another strategy to keepin mind.
However, a gotcha that we needto also keep in mind: If we are
(09:06):
working part-time and we arebelow, we have not reached our
full retirement age for SocialSecurity.
Most of you, that's age 67.
Most of us 67, right.
If we've not reached our, whatis it, FRA?
Full retirement age, thenthere's a limit to how much you
could earn per year, and thisyear it's a little over $23,000.
Mark Fricks (09:28):
So that's money you're going out and getting a
W-2 or 1099 because I work forsomebody, okay, so you have to
be careful with that.
That's another reason not toturn on Social Security if
you're working part-time andthink you'll make close to that
or a little bit above that, ormaybe a lot above that as well.
So that is something you haveto be careful of and I think
you're going to mention thislater.
So, um, you also may actuallybe able to add to your Social
(09:52):
Security account.
So, yeah, you know, in manycases not, because, uh,
basically, your Social Securityis, uh is a formula that
includes your highest 35 yearsof earnings, Social Security,
FICA earnings.
Okay.
So probably, if you're making$30,000 a year part-time, you've
(10:12):
made more than that most ofthose 35 years.
But think about this (10:16):
If you retired at 60 and you only have
30 years of FICA earnings, youhave five zeros.
So putting something in thosezeros even if it's only $25,000
or $30,000, could potentiallyincrease that expected amount,
not only because you waited, butbecause there's more money in
your bucket.
That's right.
So possibility.
Evan Fricks (10:38):
And again, it's all strategy, all timing,
everyone's different.
But if you're thinking, well,if I'm working part-time but I
can't take Social Security, whywould I retire?
But if you could maybe spenddown some of that IRA money
early and you can delay SocialSecurity, not only are you
getting a bigger guaranteedSocial Security check, but you
are lowering your RMDs in thefuture.
Mark Fricks (11:00):
There's just a lot of angles to look at.
Yeah, just another way to getsome of that IRA money down,
whether it's converting to aRoth or some other tax-free type
of account.
Or again, people do not realizethe impact of required minimum
distributions.
So, starting at age 73 to 75,depending on your date of birth,
you know, by that time maybeyour IRAs have built up quite
(11:23):
well.
That RMD, I mean we've gotclients having to take out
$20,000 a year.
We have others having to takeout $60,000 and $80,000 a year
on top of their other incomerequired fully taxable.
So having a tax strategy earlycan be really helpful.
Evan Fricks (11:39):
If you want to discuss your own retirement or
are curious about what yourretirement would look like,
especially with part-timeemployment, feel free to reach
out to us at masterplanretire.
com.
You can schedule yourcomplimentary consultation there
.
It'll actually take youdirectly to our calendar to find
a time that works best for you.
gain, that's masterplanretire.
com or call us at the office,770-980-9262.
Mark Fricks (12:08):
Hey I was thinking about something this morning on
the way in.
Just want to mention, if you'redriving around listening to
this show or at home listeningto this show, keep in mind that
we have many, many episodes thatwe've already recorded on every
subject that you can justprobably go to your pocket it's
probably in your smartphone.
All the major podcast servershave our shows on there.
(12:29):
You can go to our website andmany, many past shows, all kinds
of topics on there.
So if you're loving today'sepisode, look back.
Also on our website or theYouTube same episode you just
get to see us.
Okay, I don't know if that's apositive or a negative, but
there you go.
So if you're not liking today'sshow, there might be a better
(12:49):
show on the podcast as well.
So look back and see if it'ssomething you like better, but
I'm sure you're loving it, solet's keep it up.
Again, masterplanretire.
com also a great place to go toschedule a time to meet with us
to discuss your situation, yourgoals, your concerns, your fears
and that's complimentary, sotake advantage of that.
Evan Fricks (13:09):
So we discussed some of the benefits to
part-time employment andretirement whether financial or
emotional, psychological thingslike that.
So how about some ideas forpart-time employment in
retirement?
I love this part.
Yeah, so we do see a lot ofdifferent options.
Obviously, everyone's got adifferent situation, different
skill sets, but sometimes I'mreally surprised by the things
(13:30):
people find that they areinterested in and they end up
doing for work.
So we're just going to runthrough a list of things, kind
of talk through it, maybe givesome ideas from our own
experience with interaction withour own clients.
Mark Fricks (13:41):
Well, the first thing I would do is look at
myself and say what do I reallyenjoy doing?
Yeah, and.
Evan Fricks (13:45):
If you have the freedom to do that.
What an excellent opportunity.
Mark Fricks (13:48):
Yeah, yeah, so I've always wanted to.
I love plants.
I've always wanted to work withplants.
I'm going to get a part-timejob at Pike Nurseries or Home
Depot or whatever.
So we're going to go throughthese, by the way, but that's
the first thing I would do.
Is what would I look forward togetting up?
Maybe the job I've had in thepast, I just got tired of it.
So what do I want to do?
What would fulfill me and stillgive me flexibility to do the
(14:09):
other things I want to do?
So take off there.
Evan Fricks (14:11):
Number one part-time or freelance work.
So freelancing.
If you have a particular skill,whether it be writing, graphic
design, consulting, webdevelopment, freelancing can
offer flexible work without thecommitment of a full-time job.
I have a gentleman.
I've been speaking to who'sbecome a friend.
(14:32):
Actually he is an audioengineer at a radio station, but
he also has picked up for yearsbefore he worked at the radio
station he's at now.
He's just worked out of his home, he's got his little setup.
He's really fast and the amounthe can churn out in a short
amount of time as far asvoiceover work, commercials,
things like that, that'ssomething that he can carry with
him from home, basicallywhenever he wants.
Exactly.
Whenever he wants.
Mark Fricks (14:54):
Under his own terms and the whole thing.
Evan Fricks (14:54):
Yeah, so if you have skills that are similar to
that, we have another client,without mentioning any names,
but after he retired, hiscompany or a similar company,
brought him back on forconsulting and it was incredibly
lucrative that him stepping inas a consultant.
Mark Fricks (15:08):
It probably didn't have the benefits, right, like
health insurance and stuff, butthey make up for it, yeah, and
if you're 65, you've got healthinsurance and, also, even though
they may not have a 401(k) foryou, again, you have earned
income.
You can do your own IRA or Rothor something like that.
So, yeah, that's a greatexample.
Evan Fricks (15:27):
Really many retirees take part-time jobs in
retail, customer service orteaching.
These can provide steady income, reliable income with fewer
hours.
Mark Fricks (15:37):
Yeah yeah.
I'm not sure what examples youwant to give.
I'm going to give some examplesI've seen over the last several
years.
This was not a client.
I was at an auto repair shopand I noticed this auto parts
store.
Their truck pulled up,obviously delivering a part that
they were working on a car with, and this gentleman that looked
(15:58):
to be in his 80s climbs out,delivers the part, gets back in
and drives back.
What a great job.
You know to just be deliveringparts around town.
It's better than deliveringpizzas, which may be fine for
you too, by the way.
I'm not cutting it down.
In my world, I'm not sure.
Cause its daytime and that typeof thing.
Another example was again kindof the plant thing.
(16:20):
I had a client, a femaleclient, loved plants.
She got a part-time job with acompany that took care of plants
in corporate buildings.
And she'd go in and water them,pull the dead leaves off,
things like that.
It was like three days a week.
She loved it.
So just a couple of examplesthat popped in my head.
I'm sure more will enter mybrain as we continue.
Evan Fricks (16:42):
Number two
You know a lot of people.
I've been speaking to someoneyesterday actually two separate
client meetings yesterday.
One gentleman is about fiveyears from retiring and he's
using this opportunity now thathe's at his peak earning years,
to start developing rentalproperties, things like that, so
(17:04):
that he has something to carryhim through retirement.
So, whether you want to rent abuilding, rent a space, I have
clients I spoke to yesterday aswell who have been, they have an
extra apartment in their homethat they have been letting
their children stay there for areduced rate.
Now all their children are ontheir own and they're
independent.
They don't need that for theirchildren anymore, so they're
looking at ways to rent that outand rather than Airbnb or Vrbo
(17:24):
or some of these that you know,you've got some that you see
some positives and negatives tothose.
They actually turned me on to anurses only or healthcare
worker rental site.
The Traveling Nurses, which isamazing because, one, they
typically aren't home most ofthe time other than to sleep.
So, and then there's also alittle bit more accountability
(17:45):
because it's that nurse's site.
Interesting options.
All the best ideas come fromthe clients anyways.
Mark Fricks (17:52):
So they tend to be, you know, take care of property
and things like that.
Don't have to worry aboutsomebody trashing your place,
probably not having wild partiesat night.
But a great little basementsuite with a separate entrance
is a great setup.
But yeah, that's a great idea.
Evan Fricks (18:09):
If you've not already considered renting that
out in the off season or whenyou're not using it, that's also
a great option as well.
I've got online businesses here.
There are a lot of differente-commerce stores that you can
start, handmade goods, we allknow about Etsy, vintage Items.
You can source them, find them.
You can do your own onlineboutique shop and actually
(18:29):
choose your items.
There's a lot of options there,especially if you are crafty or
there's a hobby or you have askill or a talent in a craft
type of art or something likethat.
Mark Fricks (18:41):
Well, eBay as well.
It's kind of old-fashioned, butpeople sell all kinds of things
on eBay, and I enjoy going toantique malls.
So I've bumped into a fewretired folks that have rented a
booth.
And their hobby is, during theweek, going and finding antiques
and then bringing them in andselling them in the booth.
They don't have to be there allday.
They come in maybe on Saturdaymorning, maybe straighten things
(19:03):
up, add a few items, then leave, and somebody else is there,
you know, running the cashregister.
And I mean I don't know whatthey make.
But the booths I've visited arethere for a long time.
They're not moving in and out,so they must be making some
money.
Evan Fricks (19:17):
Well and even blogging and YouTube, online
blogging, YouTube videos.
If you enjoy writing or makingvideos, you can monetize your
content through ads, sponsoredposts, affiliate marketing,
things like that.
It does typically take a littlebit of startup time to build
that audience, but that'scertainly a viable option.
Mark Fricks (19:33):
But there are consultants, by the way.
That will teach you and helpyou get that promoted.
Yeah, you know, and you have topay them some money, but it
shortens that timeline ofgetting your content out there.
So that's great as well.
Evan Fricks (19:45):
Number four: another option will be investing
.
We talked a little bit aboutreal estate investing, but we've
got investing in things likedividend stocks.
That is helpful.
However, you must keep in minddividends are not guaranteed, so
if you're looking at aguaranteed monthly income,
dividends could be a little bittricky.
Mark Fricks (20:04):
A lot of our clients will keep a little pot.
We're managing most of theirmoney.
But they'll keep a little potof money to kind of play with
and I don't know.
Buy some Bitcoin and buy alittle bit of dividend stock and
try to find the nextup-and-coming company or
something like that.
We've got one client that hasdeveloped an entire system and
he was really really doing welluntil one point.
(20:26):
Then the market went sideways.
But still he's done fine and heenjoys it.
Evan Fricks (20:32):
peer-to-peer lending, so platforms like
Lending Club that allow you tolend money to others and earn
interest?
Mark Fricks (20:40):
Well, I don't think there's a guarantee, but yeah,
again, this would have to bemoney you're not afraid to lose.
Yeah, but it would definitely,I think is an opportunity, maybe
a miniature angel investor typeof thing situation, depending
on how much money you have.
Just talking to friends andfamily and things like that, of
folks that you know that mightwant to start a business.
(21:00):
That's great.
At least you know who they are,their character, things like
that.
Again, be careful, you know.
There's one thing you said youknow never lend money to a
friend, you know.
But so make sure everything'sin writing and it's for a
specific purpose.
They have a business plan, allthat kind of good stuff.
But certainly an opportunity.
Again, just don't put out somuch money that you harm your
retirement.
Evan Fricks (21:25):
Right so number five
Online tutoring if you haveexpertise in a subject you can
teach or tutor online.
There are platforms like VIPkid or chegg c-h-e-g-g where you
can tutor students.
Music and art lessons if youhave artistic or musical talent,
consider teaching lessons inperson or online as well.
It's amazing how many artistshave moved, especially with
Covid, with the shutdown onvenues and everything else,
(21:46):
moved to online lessons.
There's so much available nowas far as.
.
.
Mark Fricks (21:51):
It's so much easier, you don't have to travel
.
You don't have to, you know,the musician didn't have to rent
a room and I don't know.
It's a great idea.
I love the way things aremoving that direction.
So absolutely, yeah.
Evan Fricks (22:02):
S elf-publishing.
You a writer?
Do you love to write?
Have you ever consideredpublishing?
Putting on Amazon Kindle Direct?
They allow you to publish andsell books online, often with a
flexible schedule.
Guides, books, memoirs.
They can provide passive incomeif they sell over time.
Mark Fricks (22:21):
That's a great idea .
You know a lot of our clientstravel and some of them just go
to some exotic places.
What a great idea to write atravel blog about where they go
and then share those experiencesand helping other people see
the world or tips on how totravel to that particular place.
I like that.
Evan Fricks (22:38):
Number seven
We talked about that a littlebit with Etsy.
Etsy shop.
If you like knitting, painting,woodworking, really anything
it's amazing what you can findon there.
But it's something I didn'tconsider photography.
Mark Fricks (23:00):
I think I'd heard that a long time ago, but I had
never really followed up with it.
That's the great idea, though.
I know I've purchased thingsoff of there and somebody had to
take that photograph right?
Evan Fricks (23:08):
But another really cool one is create an online
course.
That reminds us of anotherclient of ours who's earning a
lot of income because he createdan online course.
Mark Fricks (23:17):
It's so cool and it's actually a course that is
required to be taken.
It's a continuing ed course.
Won't name the profession oranything like that, and he does
it with a touch of humor.
So basically, once he getsthese 10, 8, 12 courses recorded
, people buy them and they paythrough PayPal, and really he's
(23:38):
not doing anything else, he'sjust collecting money for this
continuing ed course.
And they get great reviews too.
They do, yeah, they really do.
So well, I think we're out oftime.
We appreciate you joining ustoday.
Remember our podcast as well asour radio show on YouTube.
But I guess the best thing tosay now is schedule an
appointment, masterplanretire.
com, and until we see each otheragain, plan well and prosper,
(24:00):
take care.
This was Retirement RoadmapRadio with Mark Fricks of Master
Plan Retirement Consultants.
To schedule a complimentaryconsultation, go to
masterplanretire.
com or call 770-980-9262.
Disclosure (24:35):
All matters discussed during this show are
for informational purposes only.
Each individual situation mayvary and the opinions expressed
here may not apply to everyone.
Materials presented arebelieved to be from reliable
sources and no representationscan be made as to its accuracy.
All ideas and informationshould be discussed in detail
with one of our qualifiedrepresentatives prior to
implementation.
Advisory services offered byMasterPlan Retirement
Consultants a RegisteredInvestment Advisor in the state
of Georgia, Mark Fricks andMasterPlan Retirement
Consultants are not affiliatedwith or endorsed by the Social
Security Administration or anyother government agency.
Should I consider part-time work in retirement?
Hey folks, thanks for joiningus.
Welcome back to RetirementRoadmap with Master Plan
Retirement Consultants.
My name is Evan and with me, asalways, retirement planner,
Mark Fricks.
So retirement looks differentfor everyone.
When some folks retire, they'reready to cut the cord on their
(00:26):
careers completely and diveheadfirst into their new phase
of life.
For others, such an extremechange can be intimidating.
Even if you don't necessarilyneed the income, part-time
employment can have manypowerful benefits in retirement.
Today we'll discuss some ofthose benefits, as well as some
ideas for potential part-timeemployment in retirement.
(00:48):
Mark, part-time employment hasa lot of benefits.
We're seeing it more and moreactually in retirement.
Mark Fricks (00:53):
You know, I was thinking about that before the
show and I think one of thereasons, actually two reasons I
have, number one is we do workwith a lot of federal employees
and they qualify pensionsfairly early, many of them age
56, 57.
That's early, you know, you'restill very young.
So that's, I think that's onereason.
(01:13):
I think another reason if I cangive our, our firm, a little
bit of kudos here, is because ofthe way we work, we, we squeeze
every bit of income out ofassets.
We've maximized the efficiencyof the way we work.
We squeeze every bit of incomeout of assets.
We've maximized the efficiencyof the income production and it
also accelerates the ability toretire, and so I think those two
(01:34):
things together, we are seeingmore and more folks that are
retiring earlier, which I thinkpromotes the part-time work.
Evan Fricks (01:45):
Yeah, we're going to talk about how financially it
can be beneficial.
Before we jump into that, Ithink also as far as a sense of
purpose for folks, it can bereally hard to, like I said
before, cut the cord completelyand completely shift into a new
phase of life, from employmentwhich could have been decades
long in a career, and then to gofrom nothing.
People don't realize that oftenour jobs, our careers, are the
(02:06):
primary social circle that wehave in our lives.
Our sense of purpose,especially in Western culture,
is very wrapped around what wedo.
Oftentimes, when we meetsomeone new, the first thing
they say "what do you do, bob?
Or whatever.
So it can be really shocking.
Mark Fricks (02:21):
It's part of who you are, it's part of who you've
been.
I've really enjoyed getting towatch our clients as they
transition from working toretirement, and especially that
last year, and I kind ofinterview them and we talk about
it.
I've had some clients crybecause they're afraid, you know
(02:41):
, "I don't know what I'm goingto do.
Am I going to just die becauseI've quit working or whatever?
And so we've discussed that.
But most of them have thismixture of emotions.
They were excited, scared.
"Am I going to have enoughmoney?
We show them they will.
It's just all these emotionsand it's really interesting.
I find it really eye-opening totalk about all of this and to
(03:04):
help them through thattransition, because I feel like
there's three segments of ourlife.
There's growing up, you know,which could be to maybe age 25
or 30 for some folks right.
Then there's those middle yearsof adulthood where we maybe
have kids and have our majorcareers.
You know, many of us getmarried and have a home.
(03:25):
It's just kind of a differentfeeling and it seems like it
lasts forever.
Then it's over in a you know,in a flash.
And then that third phase to meis retirement.
Is, you know, 60- ish andbeyond which now is lasting, you
know, 20, 25, 30 years or more.
Um, so if you have spent likeyou said, if you spent these 30
(03:45):
something years, 40, I mean I'veworked some kind of job since I
was like 10.
Now I was cutting grass, but areal job since I was 15 or 16.
And so all of a sudden juststop and kind of like you said,
just jump off that cliff ormountain or whatever it may be.
I remember a client severalyears ago.
They were both, I think, early60s and they both retired on the
(04:06):
same day and they woke up thenext Monday on the beach.
That was their goal.
And never worked again and itwas perfect for them.
But many folks are concernedabout that again because of
what's it going to do to theirlives physically, emotionally
and all of that.
So I think this is a greatsubject to talk about the
reasons why you might want towork part-time and maybe even
(04:27):
some examples of what you coulddo.
Evan Fricks (04:36):
You also don't really know, not everyone, and
this is not a reflection on arelationship between a couple,
but you've spent an entirecareer where one person may have
been out of the house.
The majority of the day
Mark Fricks (04:47):
, or both of them out of the house,
Evan Fricks (04:48):
or both out of the house
And all of a sudden you come back in, your dynamic
might shift a little bit.
Maybe easing into that is alsoa better way.
What'sthat
Mark Fricks (04:58):
Might?
Evan Fricks (04:58):
Might.
Right.
Right.
Mark Fricks (05:01):
That dynamic will shift.
It depends on how much rightand how they handle it.
You know, interesting today intoday's world, so many people
working from home, since COVID,it's become less of an issue.
I was talking to somebody justthe other day and a fairly new
client and they were talkingabout how, yeah, I've worked
from home for, you know, 15years.
My wife is used to me beinghere and she was a stay-at-home
(05:24):
mom and so that's kind of a no-brainer.
I'm sure he was probably in thebasement or upstairs half the
day, but he could come downanytime he wanted, so that would
be less.
But we also had a couple thatactually divorced after their
retirement.
He came home and, they alreadyhad issues, Ok, this wasn't the
only reason, but he came homeand all of a sudden he started
trying to run the household.
(05:44):
And and and you know, and shehad been running the household
just fine, thank you very much,and, but it was part of other
problems they had.
But still, that was kind of thefinal straw from that.
So I guess something you've gotto to talk about, which is
where the part-time work maycome into play.
Evan Fricks (06:01):
Absolutely.
So on the financial side, firstof all, it's it's quite
apparent part-time work canextend your retirement funds.
Number one you're supplementingyour income.
Part-time work can provide asteady stream of income,
depending on what kind of workit is.
Reducing the need to depleteretirement savings quickly, so
maybe you don't need to pullfrom those IRAs or those Roths
so quickly.
That 401(k) you can let thosecontinue to grow.
(06:24):
You have a different timeline,your immediacy.
Maybe you have a little bitmore of a long-term horizon,
time horizon on thoseinvestments.
Mark Fricks (06:31):
Right, and I think you would touch base on this but
also be able to delay takingSocial Security, which will
become a larger check as well.
Again, I don't want to stealbullet point three or four.
No, no.
That pops into play as well.
As we know and, by the way, weactually have an online webinar
coming up on Social Security.
(06:51):
Might be a great time to learnmore about that, but every year
you wait and delay SocialSecurity, there's an increase in
that payment of 6% to 8% forthe rest of your life.
So, again, that part-timeincome of $20,000 or $30,000 a
year may allow you to do that.
Evan Fricks (07:07):
Yeah, building a financial cushion and continuing
to do so if you're not usingall of the income, if you're not
depleting all that income permonth, also able to save more,
just as we're able to hopefullyextend our IRAs and Roths,
certain accounts like annuities,income producing accounts.
The longer you wait, they tendto produce more income, so there
could be more time to allowcertain policies and contracts
(07:30):
to mature before you use them.
There's a lot of benefit tothat.
Also, just flexibility.
You can choose.
You have more options when youhave a little bit extra income
there.
Mark Fricks (07:39):
Yeah, and you touched on this, you can, as
long as you have earned income,you can contribute, instead of
taking money out of your IRAsand 401(k)s.
You can contribute to thosebecause you now have earned
income again.
And if you don't need a lot ofit, you can put that much more.
And if you create your ownbusiness, you can do something
(08:04):
like a SEP or a SIMPLE or somekind of an IRA that has higher
limits.
So instead of doing $8,000 ayear, if you're 50 or older, you
can do $15,000, $20,000,$25,000 a year into these
accounts.
Evan Fricks (08:17):
And, depending on who you are and what your
strategy is for retirement,there's also opportunity for tax
strategy.
In that time, if you're earningpart-time income, you're
probably not earning as much asyou were in your peak earning
years right before retirement,which means you probably have
more likelihood to be able tocontribute to a Roth.
Also consider contributions.
Since you're earning less thatyear, the taxes on those
conversions might not be as highas they would have if you were
(08:40):
working full-time.
So a lot of opportunities toexplore.
With part-time work.
As Mark mentioned, you alsohave an opportunity to
potentially wait before takingyour Social Security benefits,
which, as we all know, allthat's going to do is let it be
a little bit bigger by the timeyou're ready to take it.
That's another strategy to keepin mind.
However, a gotcha that we needto also keep in mind: If we are
(09:06):
working part-time and we arebelow, we have not reached our
full retirement age for SocialSecurity.
Most of you, that's age 67.
Most of us 67, right.
If we've not reached our, whatis it, FRA?
Full retirement age, thenthere's a limit to how much you
could earn per year, and thisyear it's a little over $23,000.
Mark Fricks (09:28):
So that's money you're going out and getting a
W-2 or 1099 because I work forsomebody, okay, so you have to
be careful with that.
That's another reason not toturn on Social Security if
you're working part-time andthink you'll make close to that
or a little bit above that, ormaybe a lot above that as well.
So that is something you haveto be careful of and I think
you're going to mention thislater.
So, um, you also may actuallybe able to add to your Social
(09:52):
Security account.
So, yeah, you know, in manycases not, because, uh,
basically, your Social Securityis, uh is a formula that
includes your highest 35 yearsof earnings, Social Security,
FICA earnings.
Okay.
So probably, if you're making$30,000 a year part-time, you've
(10:12):
made more than that most ofthose 35 years.
But think about this (10:16):
If you retired at 60 and you only have
30 years of FICA earnings, youhave five zeros.
So putting something in thosezeros even if it's only $25,000
or $30,000, could potentiallyincrease that expected amount,
not only because you waited, butbecause there's more money in
your bucket.
That's right.
So possibility.
Evan Fricks (10:38):
And again, it's all strategy, all timing,
everyone's different.
But if you're thinking, well,if I'm working part-time but I
can't take Social Security, whywould I retire?
But if you could maybe spenddown some of that IRA money
early and you can delay SocialSecurity, not only are you
getting a bigger guaranteedSocial Security check, but you
are lowering your RMDs in thefuture.
Mark Fricks (11:00):
There's just a lot of angles to look at.
Yeah, just another way to getsome of that IRA money down,
whether it's converting to aRoth or some other tax-free type
of account.
Or again, people do not realizethe impact of required minimum
distributions.
So, starting at age 73 to 75,depending on your date of birth,
you know, by that time maybeyour IRAs have built up quite
(11:23):
well.
That RMD, I mean we've gotclients having to take out
$20,000 a year.
We have others having to takeout $60,000 and $80,000 a year
on top of their other incomerequired fully taxable.
So having a tax strategy earlycan be really helpful.
Evan Fricks (11:39):
If you want to discuss your own retirement or
are curious about what yourretirement would look like,
especially with part-timeemployment, feel free to reach
out to us at masterplanretire.
com.
You can schedule yourcomplimentary consultation there
.
It'll actually take youdirectly to our calendar to find
a time that works best for you.
gain, that's masterplanretire.
com or call us at the office,770-980-9262.
Mark Fricks (12:08):
Hey I was thinking about something this morning on
the way in.
Just want to mention, if you'redriving around listening to
this show or at home listeningto this show, keep in mind that
we have many, many episodes thatwe've already recorded on every
subject that you can justprobably go to your pocket it's
probably in your smartphone.
All the major podcast servershave our shows on there.
(12:29):
You can go to our website andmany, many past shows, all kinds
of topics on there.
So if you're loving today'sepisode, look back.
Also on our website or theYouTube same episode you just
get to see us.
Okay, I don't know if that's apositive or a negative, but
there you go.
So if you're not liking today'sshow, there might be a better
(12:49):
show on the podcast as well.
So look back and see if it'ssomething you like better, but
I'm sure you're loving it, solet's keep it up.
Again, masterplanretire.
com also a great place to go toschedule a time to meet with us
to discuss your situation, yourgoals, your concerns, your fears
and that's complimentary, sotake advantage of that.
Evan Fricks (13:09):
So we discussed some of the benefits to
part-time employment andretirement whether financial or
emotional, psychological thingslike that.
So how about some ideas forpart-time employment in
retirement?
I love this part.
Yeah, so we do see a lot ofdifferent options.
Obviously, everyone's got adifferent situation, different
skill sets, but sometimes I'mreally surprised by the things
(13:30):
people find that they areinterested in and they end up
doing for work.
So we're just going to runthrough a list of things, kind
of talk through it, maybe givesome ideas from our own
experience with interaction withour own clients.
Mark Fricks (13:41):
Well, the first thing I would do is look at
myself and say what do I reallyenjoy doing?
Yeah, and.
Evan Fricks (13:45):
If you have the freedom to do that.
What an excellent opportunity.
Mark Fricks (13:48):
Yeah, yeah, so I've always wanted to.
I love plants.
I've always wanted to work withplants.
I'm going to get a part-timejob at Pike Nurseries or Home
Depot or whatever.
So we're going to go throughthese, by the way, but that's
the first thing I would do.
Is what would I look forward togetting up?
Maybe the job I've had in thepast, I just got tired of it.
So what do I want to do?
What would fulfill me and stillgive me flexibility to do the
(14:09):
other things I want to do?
So take off there.
Evan Fricks (14:11):
Number one part-time or freelance work.
So freelancing.
If you have a particular skill,whether it be writing, graphic
design, consulting, webdevelopment, freelancing can
offer flexible work without thecommitment of a full-time job.
I have a gentleman.
I've been speaking to who'sbecome a friend.
(14:32):
Actually he is an audioengineer at a radio station, but
he also has picked up for yearsbefore he worked at the radio
station he's at now.
He's just worked out of his home, he's got his little setup.
He's really fast and the amounthe can churn out in a short
amount of time as far asvoiceover work, commercials,
things like that, that'ssomething that he can carry with
him from home, basicallywhenever he wants.
Exactly.
Whenever he wants.
Mark Fricks (14:54):
Under his own terms and the whole thing.
Evan Fricks (14:54):
Yeah, so if you have skills that are similar to
that, we have another client,without mentioning any names,
but after he retired, hiscompany or a similar company,
brought him back on forconsulting and it was incredibly
lucrative that him stepping inas a consultant.
Mark Fricks (15:08):
It probably didn't have the benefits, right, like
health insurance and stuff, butthey make up for it, yeah, and
if you're 65, you've got healthinsurance and, also, even though
they may not have a 401(k) foryou, again, you have earned
income.
You can do your own IRA or Rothor something like that.
So, yeah, that's a greatexample.
Evan Fricks (15:27):
Really many retirees take part-time jobs in
retail, customer service orteaching.
These can provide steady income, reliable income with fewer
hours.
Mark Fricks (15:37):
Yeah yeah.
I'm not sure what examples youwant to give.
I'm going to give some examplesI've seen over the last several
years.
This was not a client.
I was at an auto repair shopand I noticed this auto parts
store.
Their truck pulled up,obviously delivering a part that
they were working on a car with, and this gentleman that looked
(15:58):
to be in his 80s climbs out,delivers the part, gets back in
and drives back.
What a great job.
You know to just be deliveringparts around town.
It's better than deliveringpizzas, which may be fine for
you too, by the way.
I'm not cutting it down.
In my world, I'm not sure.
Cause its daytime and that typeof thing.
Another example was again kindof the plant thing.
(16:20):
I had a client, a femaleclient, loved plants.
She got a part-time job with acompany that took care of plants
in corporate buildings.
And she'd go in and water them,pull the dead leaves off,
things like that.
It was like three days a week.
She loved it.
So just a couple of examplesthat popped in my head.
I'm sure more will enter mybrain as we continue.
Evan Fricks (16:42):
Number two
You know a lot of people.
I've been speaking to someoneyesterday actually two separate
client meetings yesterday.
One gentleman is about fiveyears from retiring and he's
using this opportunity now thathe's at his peak earning years,
to start developing rentalproperties, things like that, so
(17:04):
that he has something to carryhim through retirement.
So, whether you want to rent abuilding, rent a space, I have
clients I spoke to yesterday aswell who have been, they have an
extra apartment in their homethat they have been letting
their children stay there for areduced rate.
Now all their children are ontheir own and they're
independent.
They don't need that for theirchildren anymore, so they're
looking at ways to rent that outand rather than Airbnb or Vrbo
(17:24):
or some of these that you know,you've got some that you see
some positives and negatives tothose.
They actually turned me on to anurses only or healthcare
worker rental site.
The Traveling Nurses, which isamazing because, one, they
typically aren't home most ofthe time other than to sleep.
So, and then there's also alittle bit more accountability
(17:45):
because it's that nurse's site.
Interesting options.
All the best ideas come fromthe clients anyways.
Mark Fricks (17:52):
So they tend to be, you know, take care of property
and things like that.
Don't have to worry aboutsomebody trashing your place,
probably not having wild partiesat night.
But a great little basementsuite with a separate entrance
is a great setup.
But yeah, that's a great idea.
Evan Fricks (18:09):
If you've not already considered renting that
out in the off season or whenyou're not using it, that's also
a great option as well.
I've got online businesses here.
There are a lot of differente-commerce stores that you can
start, handmade goods, we allknow about Etsy, vintage Items.
You can source them, find them.
You can do your own onlineboutique shop and actually
(18:29):
choose your items.
There's a lot of options there,especially if you are crafty or
there's a hobby or you have askill or a talent in a craft
type of art or something likethat.
Mark Fricks (18:41):
Well, eBay as well.
It's kind of old-fashioned, butpeople sell all kinds of things
on eBay, and I enjoy going toantique malls.
So I've bumped into a fewretired folks that have rented a
booth.
And their hobby is, during theweek, going and finding antiques
and then bringing them in andselling them in the booth.
They don't have to be there allday.
They come in maybe on Saturdaymorning, maybe straighten things
(19:03):
up, add a few items, then leave, and somebody else is there,
you know, running the cashregister.
And I mean I don't know whatthey make.
But the booths I've visited arethere for a long time.
They're not moving in and out,so they must be making some
money.
Evan Fricks (19:17):
Well and even blogging and YouTube, online
blogging, YouTube videos.
If you enjoy writing or makingvideos, you can monetize your
content through ads, sponsoredposts, affiliate marketing,
things like that.
It does typically take a littlebit of startup time to build
that audience, but that'scertainly a viable option.
Mark Fricks (19:33):
But there are consultants, by the way.
That will teach you and helpyou get that promoted.
Yeah, you know, and you have topay them some money, but it
shortens that timeline ofgetting your content out there.
So that's great as well.
Evan Fricks (19:45):
Number four: another option will be investing
.
We talked a little bit aboutreal estate investing, but we've
got investing in things likedividend stocks.
That is helpful.
However, you must keep in minddividends are not guaranteed, so
if you're looking at aguaranteed monthly income,
dividends could be a little bittricky.
Mark Fricks (20:04):
A lot of our clients will keep a little pot.
We're managing most of theirmoney.
But they'll keep a little potof money to kind of play with
and I don't know.
Buy some Bitcoin and buy alittle bit of dividend stock and
try to find the nextup-and-coming company or
something like that.
We've got one client that hasdeveloped an entire system and
he was really really doing welluntil one point.
(20:26):
Then the market went sideways.
But still he's done fine and heenjoys it.
Evan Fricks (20:32):
peer-to-peer lending, so platforms like
Lending Club that allow you tolend money to others and earn
interest?
Mark Fricks (20:40):
Well, I don't think there's a guarantee, but yeah,
again, this would have to bemoney you're not afraid to lose.
Yeah, but it would definitely,I think is an opportunity, maybe
a miniature angel investor typeof thing situation, depending
on how much money you have.
Just talking to friends andfamily and things like that, of
folks that you know that mightwant to start a business.
(21:00):
That's great.
At least you know who they are,their character, things like
that.
Again, be careful, you know.
There's one thing you said youknow never lend money to a
friend, you know.
But so make sure everything'sin writing and it's for a
specific purpose.
They have a business plan, allthat kind of good stuff.
But certainly an opportunity.
Again, just don't put out somuch money that you harm your
retirement.
Evan Fricks (21:25):
Right so number five
Online tutoring if you haveexpertise in a subject you can
teach or tutor online.
There are platforms like VIPkid or chegg c-h-e-g-g where you
can tutor students.
Music and art lessons if youhave artistic or musical talent,
consider teaching lessons inperson or online as well.
It's amazing how many artistshave moved, especially with
Covid, with the shutdown onvenues and everything else,
(21:46):
moved to online lessons.
There's so much available nowas far as.
.
.
Mark Fricks (21:51):
It's so much easier, you don't have to travel
.
You don't have to, you know,the musician didn't have to rent
a room and I don't know.
It's a great idea.
I love the way things aremoving that direction.
So absolutely, yeah.
Evan Fricks (22:02):
S elf-publishing.
You a writer?
Do you love to write?
Have you ever consideredpublishing?
Putting on Amazon Kindle Direct?
They allow you to publish andsell books online, often with a
flexible schedule.
Guides, books, memoirs.
They can provide passive incomeif they sell over time.
Mark Fricks (22:21):
That's a great idea .
You know a lot of our clientstravel and some of them just go
to some exotic places.
What a great idea to write atravel blog about where they go
and then share those experiencesand helping other people see
the world or tips on how totravel to that particular place.
I like that.
Evan Fricks (22:38):
Number seven
We talked about that a littlebit with Etsy.
Etsy shop.
If you like knitting, painting,woodworking, really anything
it's amazing what you can findon there.
But it's something I didn'tconsider photography.
Mark Fricks (23:00):
I think I'd heard that a long time ago, but I had
never really followed up with it.
That's the great idea, though.
I know I've purchased thingsoff of there and somebody had to
take that photograph right?
Evan Fricks (23:08):
But another really cool one is create an online
course.
That reminds us of anotherclient of ours who's earning a
lot of income because he createdan online course.
Mark Fricks (23:17):
It's so cool and it's actually a course that is
required to be taken.
It's a continuing ed course.
Won't name the profession oranything like that, and he does
it with a touch of humor.
So basically, once he getsthese 10, 8, 12 courses recorded
, people buy them and they paythrough PayPal, and really he's
(23:38):
not doing anything else, he'sjust collecting money for this
continuing ed course.
And they get great reviews too.
They do, yeah, they really do.
So well, I think we're out oftime.
We appreciate you joining ustoday.
Remember our podcast as well asour radio show on YouTube.
But I guess the best thing tosay now is schedule an
appointment, masterplanretire.
com, and until we see each otheragain, plan well and prosper,
(24:00):
take care.
This was Retirement RoadmapRadio with Mark Fricks of Master
Plan Retirement Consultants.
To schedule a complimentaryconsultation, go to
masterplanretire.
com or call 770-980-9262.
Disclosure (24:35):
All matters discussed during this show are
for informational purposes only.
Each individual situation mayvary and the opinions expressed
here may not apply to everyone.
Materials presented arebelieved to be from reliable
sources and no representationscan be made as to its accuracy.
All ideas and informationshould be discussed in detail
with one of our qualifiedrepresentatives prior to
implementation.
Advisory services offered byMasterPlan Retirement
Consultants a RegisteredInvestment Advisor in the state
of Georgia, Mark Fricks andMasterPlan Retirement
Consultants are not affiliatedwith or endorsed by the Social
Security Administration or anyother government agency.
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If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com