Episode Summary: "Am I in Good Shape to Retire Next Year?"

Podcast: Jill on Money with Jill Schlesinger
Host: Jill Schlesinger, CFP®
Release Date: June 20, 2025

Introduction

In this insightful episode of Jill on Money with Jill Schlesinger, host Jill Schlesinger addresses a pressing question from a listener contemplating retirement in the coming year. The episode delves deep into the intricacies of retirement planning, offering actionable advice and highlighting the importance of early and consistent financial planning.

Listener Call-In: Christine from Rhode Island

Background

At [04:48], Christine from the Ocean State, Rhode Island, calls in seeking guidance on whether she's financially prepared to retire next September at the age of 65. Recently widowed, Christine is earnestly reviewing her financial standing to ensure a secure retirement.

Financial Overview

• Income and Savings: Christine currently earns $157,000 annually and has amassed $1,800,000 in pre-tax retirement savings, which includes an inherited $350,000 IRA from her late husband. Additionally, she has $280,000 in liquid savings and owns a fully paid-off home valued at approximately $450,000.
• Social Security: Upon retirement, she expects to receive about $2,000 per month from her late husband's Social Security benefits, increasing to $4,100 when she claims at age 70.
• Expenses: Christine spends around $5,000 monthly, aiming to plan for $7,000 to accommodate future needs, including $10,000 annually to support her daughter's private school tuition for the next five to six years.

Key Discussion Points

1. Withdrawal Strategy and Tax Implications:

   • Jill Schlesinger explains the importance of managing withdrawals from pre-tax accounts to stay within a favorable tax bracket.
   • Quote: “You could pull up to about $195,000 a year out of less than 25%.” [11:11]

2. Asset Allocation:

   • Christine considers moving some funds into a brokerage account, potentially using index funds with a 40% stock and 60% bond allocation.
   • Quote: “Asset allocation... I was thinking of using index funds. Yep. Do you think like 40, 60 is good?” [16:11]

3. Estate Planning and Legacy:

   • The conversation underscores the significance of having an estate plan, including wills and healthcare proxies. Christine confirms that her estate planning is in order.
   • Quote: “Just you. We're going to get to you. There's nothing else that is that I should know about?” [08:32]

4. Long-Term Care Considerations:

   • Jill advises that with Christine's substantial assets and single status, long-term care should be manageable without the need for additional insurance products.
   • Quote: “I don't think you've got a big problem here.” [18:17]

5. Hiring a Financial Advisor:

   • Jill suggests that while Christine currently manages well on her own, consulting a financial advisor could provide additional peace of mind in the future.
   • Quote: “If you did need that, I know someone fabulous in Rhode Island.” [18:35]

Insights and Recommendations

• Consistency in Saving: Christine attributes her success to starting early, paying herself first, and maintaining consistent savings habits.

  • Quote: “You have to be. You have to start early. You have to, you know, look at it as paying yourself, and you have to be consistent.” [14:14]

• Maximizing Social Security Benefits: Delaying Social Security benefits until age 70 can significantly increase monthly payouts, providing a more substantial financial cushion in later retirement years.

• Strategic Withdrawals to Manage Taxes: By carefully planning withdrawals to remain within a certain tax bracket, retirees can minimize their tax liabilities and preserve more of their savings.

• Diversified Investment Portfolio: Utilizing a balanced mix of stocks and bonds through index funds can offer growth potential while mitigating risks, especially important for those anticipating a long retirement.

Conclusion and Takeaways

Jill commends Christine on her diligent financial planning and emphasizes that her situation exemplifies successful retirement preparation through disciplined saving and strategic financial decisions. She encourages listeners to adopt similar practices, highlighting that timely and consistent efforts can lead to substantial financial security.

Final Thought from Jill:
“Everybody thinks a million dollars is like, oh, I could never save a million dollars. Yeah, you can.” [14:31]

Additional Resources

Listeners interested in assessing their own retirement readiness or seeking personalized advice are encouraged to visit jillonmoney.com and utilize the "Contact Us" feature to connect with Jill and her team.

Thank you for listening to this episode of Jill on Money. Stay tuned for more expert financial advice and empowering stories to help you navigate your financial journey.