Episode Summary: "I have $11,000 to invest in retirement. Is an ESG fund a good idea?"

Podcast: HerMoney with Jean Chatzky
Host: Jean Chatzky
Guest: Kerry Hannon, author and Yahoo Finance senior columnist
Air Date: October 3, 2025

Episode Overview

In this special mailbag episode, Jean Chatzky is joined by Kerry Hannon to tackle listeners’ retirement questions. The conversation zeroes in on smart decisions for women navigating retirement—from handling paid-up life insurance and choosing ESG (Environmental, Social, Governance) funds, to building trust with financial advisors and visualizing your ideal retirement. The advice is candid, relatable, and empowering, with a tone that mixes warmth, humor, and expert insight.

Key Discussion Points & Insights

1. Cashing Out Life Insurance When Needs Have Changed

Listener Question:
Beth, who is single with no dependents and owns her home, asks if she should cash out her fully paid life insurance and use the funds for prepaid funeral expenses and invest the rest.

Advice (02:30–04:52):

• Kerry Hannon:
  • Suggests cashing out the policy and using it for funeral expenses and investments, highlighting personal control over the money (“You can choose where it’s invested at this stage in your life. Why not?”).
  • Recognizes this is an individual decision but leans toward taking direct management over forced savings.
• Jean Chatzky:
  • Emphasizes life insurance is intended for those with people depending on their income.
  • Encourages listeners to consider their current goals and use the funds for meaningful life experiences rather than holding an unneeded policy.

Notable Quote:

"Maybe you had this because you were supporting older parents... but clearly with no real debts, a home that you own outright, no people that you are supporting, you don't need an insurance policy that basically provides income once you're no longer here."
— Jean Chatzky (03:02)

2. Investing $11,000 in an ESG Fund

Listener Question:
Lucy, a 75-year-old widow in strong financial health, wonders if she should invest $11,000 from a CD into a socially conscious ESG fund.

Advice (05:42–07:37):

• Kerry Hannon:
  • Celebrates Lucy’s financial position (“Oh my gosh. I was just like, woo hoo. Congratulations.”).
  • Encourages researching ESG funds to ensure they align with personal values, especially checking the fund’s mission and companies included.
  • Advises comparing management fees—ESG funds have become more affordable; look for ratios around 0.05–0.09%.
  • Suggests deciding between low-fee index (passive) funds and actively managed ones, depending on preference.
• Jean Chatzky:
  • Invites Lucy and other listeners to join “Investing Fix,” a biweekly club co-hosted with Karen Feinerman for deeper investing education.

Notable Quote:

"Look for one that's going to focus on what mission is important to you... Do they speak to you?"
— Kerry Hannon (06:13)

3. Who Should You Trust for Financial Advice?

Listener Question:
An anonymous 57-year-old listener, considering early retirement and wary of running out of money, wonders about the best way to seek unbiased financial advice.

Advice (09:56–12:39):

• Kerry Hannon:
  • Stresses the importance of unbiased, objective advice—preferably from someone not affiliated with institutions where the listener already holds accounts.
  • Suggests building a trusted, one-on-one relationship and interviewing multiple advisors.
• Jean Chatzky:
  • Recommends starting with the workplace 401(k) advisor for foundational advice, but then seeking a fee-only independent advisor as a comparison.
  • Mentions the HerMoney “Find an Advisor” tool using Wealth Ramp.

Notable Quote:

"Most people have an agenda of some sort if they're reaching out from your financial services company... I like having one unbiased, objective person."
— Kerry Hannon (11:25)

4. Envisioning Your Ideal Retirement Week

Host’s Question:
Jean asks Kerry about her book’s advice to imagine an “ideal week” in retirement—what the process looks like and its importance.

Advice (14:08–15:27):

• Kerry Hannon:
  • Describes it as a “dreamy” exercise that helps create actionable financial goals.
  • Recommends writing down or picturing what you want to do—travel, hobbies, social activities—as it translates dreams into tangible motivations for saving and planning.
  • Shares a personal touch about posting inspiring images (like her horse or favorite vacation spots) as reminders.

Notable Quote:

"If you can't visualize something, you can't get there. So if you can somehow put some concrete imagery around what this ideal week might look like... it helps you make decisions today that would help you get to that ideal week."
— Kerry Hannon (14:12)

Notable Quotes & Memorable Moments

• Financial independence as opportunity:

  "This money is kind of an opportunity, I think, to really check something off your list that maybe you haven't been doing."
  — Jean Chatzky (04:22)

• Importance of unbiased advice:

  "Giving your financial advice to anybody involves a deep level of trust and that's what you can build with a one-on-one relationship with someone."
  — Kerry Hannon (12:12)

• Dream first, plan second:

  "They say if you dream it, you can do it. And I guess if you see it, you can do it as well."
  — Jean Chatzky (15:27)

Timestamps for Key Segments

• [02:30] – Cashing out life insurance policies when needs have changed
• [05:42] – Investing in ESG funds: what to look for & how to choose
• [09:56] – How to seek trustworthy financial planning advice
• [14:08] – Visualizing your ideal retirement week as a planning tool

Resources & Further Information

• Kerry Hannon’s book: Retirement Bites
• Investing Fix: investingfix.com (with two x's)
• Find an Advisor tool at HerMoney.com (uses Wealth Ramp for fee-only advisor matches)
• Kerry Hannon’s website: kerryhannon.com

This episode mixes practical advice with encouragement, empowering women to make confident, informed retirement choices tailored to their values and lifestyles.