Are We Okay to Start Withdrawals?

Summary

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Podcast Summary: Jill on Money with Jill Schlesinger

Episode: "Are We Okay to Start Withdrawals?"

Date: June 8, 2026
Host: Jill Schlesinger, CFP®
Guest: Kathleen from Rhode Island
Producer/Co-host: Mark Talercio, CFP®

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Episode Overview

In this episode, Jill Schlesinger takes a nuanced listener call from Kathleen, who is at a pivotal life stage with her husband entering retirement—partially due to disability—and two young adult children, one still in college. Kathleen seeks Jill’s guidance on whether her family is financially positioned to begin withdrawals from her husband's retirement accounts. Together with producer Mark Talercio, Jill walks through Kathleen’s detailed financials, weighing college funding, home equity debt, retirement contributions, and the challenges of navigating financial transitions amidst life’s uncertainties.

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Key Discussion Points & Insights

Kathleen's Family & Financial Situation

• Ages & Family: Kathleen (57), husband (60, retired/disabled), two children (23 – job searching; 21 – entering senior year of college)
• Income:
  • Husband receives $5,800/month (SSDI and workplace disability) [04:53]
  • Kathleen earns just under $170,000/year [05:10]
• Education Funding:
  • College funded through student loans, 529 plan, and $70,000 HELOC (Home Equity Line of Credit) drawn from a $150,000 line [05:46][09:32]
• Retirement Assets:
  • Kathleen: $240k (rollover), $418k (old employer), $337k (rollover), $131k (current, with $17k Roth) [07:00]
  • Husband: $1.2 million (pre-tax) [08:03]
  • Other: $500/month pension at 65 (Kathleen), $40k in Robinhood brokerage, two life insurance policies (one $40k cash value, one $1M whole life) [08:52][10:16]
• Home & Debts:
  • Home value ~ $1M, $79k left on mortgage (2.625% rate), to be paid off by 2029 [08:59][09:12]
  • HELOC: $70k used, $80k available (6.75% interest rate) [09:32][14:05]
• Monthly spend: Estimated at $13k [13:06]
• Social Security Projections: Husband receives ~$3,900/month (inflation-adjusted), Kathleen's at 62: $2,600/month; at 67: $3,870/month; at 70: $4,800/month [12:25]

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Financial strategy & Recommendations

1. Retirement Contributions – Downsize Now

• Jill: "I think you should pull back to 5%. You got a lot of money saved for retirement already." [14:43]
• Mark: (In agreement) "For me, that's the absolute limit... They need to stockpile some cash and get rid of the home equity line of credit." [16:07][16:19]
  • Key Insight: Lowering contributions improves monthly cash flow for immediate needs without compromising long-term security.

2. Withdrawals from Husband’s 401(k)

• Strategy:
  • Withdraw $50k now (for car and tuition)
  • Consider another $50k in January to spread tax liability over two years [13:47][17:04]
  • Overall, don’t let balance fall below $1M for future security [16:07]
• Mark: "I wouldn't go beyond the 100 that you just suggested... That stuff is good. They need to stockpile some cash and get rid of... debt and get through college." [16:07][16:19]

3. Brokerage/Robinhood Account – Use Gains for Liquidity

• Jill: "Time to sell it, time to pay capital gains, time to move on. You can keep a tiny bit just for fun, like five grand. But like, I would pull all the money out of that." [17:13]
• Kathleen: Acknowledges husband’s reluctance ("He wants to just watch it grow... It's basically play money for him.") [18:19]
• Jill: "I cannot tell you how much that annoys me... I get that it's fun, but don't you want to pay for your kids college and get a car? Why else are you investing?" [18:29][19:13]

4. HELOC Repayment as Immediate Priority

• Use withdrawals and brokerage proceeds to pay down the HELOC ($70k at 6.75%) as soon as possible, freeing up future cash flow [14:05][16:19]

5. Employer Health Coverage & Retirement Timing

• Kathleen eligible for pre-65 retiree medical supplementation after 15 years with current employer (if she retires at 62) [21:05]
• Target: Hope for age 62 retirement; Plan for up to 65 depending on how things develop [20:18][21:15]

6. Estate Planning

• Jill emphasized need for basic documents: "You should have a will that just kind of deals with that. And also you need a healthcare proxy." [22:34]

7. Advisor Fees & Consolidation

• Financial advisor currently managing $250k at 1.25% AUM; husband’s $1.2M is in a lower-fee service (<0.5%) [24:01]
• Jill: Only move assets if lower fee and real planning support provided: "Do it because you think you're getting something of value. And the value isn’t in the money management. The value is this person’s doing planning for us." [25:05]

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Notable Quotes & Memorable Moments

• On downsizing retirement contributions:
  • Jill: “You don’t need to save any more on retirement accounts. That stuff is good. They need to stockpile some cash and get rid of the home equity line of, credit...” [16:19]
• On investing vs. real-life needs:
  • Jill: “Don’t you want to pay for your kids college and get a car? Why else are you investing?” [19:13]
• On the unpredictability of life and planning:
  • Jill: “This is really one of those... whether it’s a disability or someone who gets let go at the wrong time... all of these things really do impact you. But thankfully you guys have a lot of money that is saved.” [21:15]
• Breaking the Social Security glass:
  • “Let’s say, about 40% of your need we have taken care of through Social Security.” [13:08]
• On moving assets to an advisor:
  • Jill (joking): “This person really needs your money. To what? Need a new boat?” [24:01]
• On what to do now:
  • Jill: “If we get rid of the heloc, if you’ve got school kind of stuff taken care of, the mortgage ends in 2029... You should actually be in a pretty good place on a cash flow basis if you work for a couple years beyond that.” [20:32]

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Timestamps for Key Segments

• Kathleen details finances and family situation: [04:07]–[10:42]
• College planning, HELOC, and tuition needs: [05:46][09:32][09:59]
• Run-through of retirement assets: [07:00]–[08:12]
• Mortgage and HELOC discussion: [08:59]–[09:46]
• Social Security breakdown: [12:25]
• Spending and future care needs: [12:07]–[13:08]
• Retirement account withdrawals & cashflow advice: [13:47]–[17:53]
• Debate over selling brokerage account: [17:53]–[19:13]
• Long-term outlook and advisor fee chat: [19:59]–[25:05]
• Estate planning and next steps: [22:34]

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Actionable Takeaways

• Immediately reduce workplace retirement contributions to 5% to capture the employer match, freeing up cash for present needs.
• Withdraw around $50,000 now from the husband's retirement account for major expenses (car, tuition), with a possible second installment next year.
• Sell most of the Robinhood account to further boost cash reserves and pay down the HELOC debt.
• Focus on eliminating the high-interest HELOC—do not let college funding undermine long-term financial security.
• Ensure estate documents (will, health proxy) are completed.
• Monitor work/health and reassess retirement timing/input as the situation evolves.

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Summary Tone

The episode is supportive, practical, and slightly irreverent—a blend of tough love and actionable advice without guilt. Jill’s hallmark clarity and Mark’s practical reinforcement provide reassurance and a clear, step-by-step path forward for Kathleen and other listeners in similar situations.

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This summary covers the essential content and flow of the episode, making it accessible and actionable for those who haven’t listened, while preserving the tone and detail of the conversation.

Transcript

[Sponsor/Ad Reader]

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[Jill Schlesinger]

Welcome to the Jill on Money show. It's Monday, June 8th and we are here answering your financial questions. If you've got one, all you need to do is go to our website. That's jillonmoney.com jillonmoney.com and in the upper right hand corner there is a beautiful Contact Us button. When you click that button what will happen is a form will pop up. That's the email we receive and you can write us a note and give us plenty of details, especially if you don't think you'd like to join us on the program. However, we love it when you come on the show because we can ask follow up questions and we can kind of dig into what's going on in a somewhat different way. So if you want to join the show, just check the box. We can change your name, we can change your location. We want to protect you. Don't worry. And, and just, you know, of course, just know that we're here to help you out. Whatever it is that's going on while you are on the website, do not forget you must subscribe to our free weekly newsletter which comes out on Fridays. Mark and I were just talking about that before we went on the air. We're going to be adding some new feature highlighting our new program called Money Moves. Mark, are we going to be up. Do we have a place on our website? See how well I know the website because Mark runs it. Do we have a place on the website where people can subscribe to our YouTube channel?

[Mark Talercio]

You have to go to the YouTube page to subscribe.

[Jill Schlesinger]

I say, okay, well, we're going to figure out how to do that. Mark will make this magic happen. I know nothing. I'm just this, I'm just spouting off with my, with my wise wisdom. Anyway, that's Mark Talercio. He's the executive producer. He's also a cfp, a certified financial planner.

[Sponsor/Ad Reader]

So am I.

[Jill Schlesinger]

And we don't really do much with that designation about, except brag that we passed hard tests. But we love talking to you, so please do get in touch with us. Today we are joined by Kathleen from Rhode Island. So, Kathleen, what is going on? How can we help you out?

[Kathleen (Caller)]

Hi, Jill and Mark. Thanks. So I am 57. My husband is 60. We have one child graduated from college. One will be entering his senior year next year. My husband has been quote, unquote retired for the past few years and we're wondering if we're okay to start taking some money out of his 401.

[Jill Schlesinger]

Okay, that sounds like when you say quote, unquote retired because someone retired him. Or was this. What's going on? Give us a little bit more background and are you working full time?

[Kathleen (Caller)]

I am working full time, yes. He, he's retired, slash disabled.

[Jill Schlesinger]

Okay, got it. Okay, understood. Understood. Does he receive disability payments through ssdi?

[Kathleen (Caller)]

Yes, both SSDI and a work plan.

[Jill Schlesinger]

Okay, so between the two disability insurance payments, what, what's coming in from that income?

[Kathleen (Caller)]

About $5,800 a month.

[Jill Schlesinger]

Okay, and what about you? How much are you Earning right now,

[Kathleen (Caller)]

I make just shy of 170amonth. A month? Oh, I wish.

[Jill Schlesinger]

God bless. 170, please. All right. The college graduate is that kid. Living home launched. Like where, where are, where is the. The. I guess I'm just trying to figure

[Kathleen (Caller)]

out whether you're living.

[Jill Schlesinger]

Living home. Okay.

[Kathleen (Caller)]

Living home, searching for a job.

[Jill Schlesinger]

Living home, searching for a job.

[Kathleen (Caller)]

Also, you know, working, just not in a career job.

[Jill Schlesinger]

Quite right. Right. Okay, got it. Now then, we have one more who's entering finishing year, is that right?

[Kathleen (Caller)]

Correct.

[Jill Schlesinger]

Okay, got it. And how are you paying for school?

[Kathleen (Caller)]

A combination of student loans, some saved 529 and some HELOC.

[Jill Schlesinger]

Oh, you tap the home equity. Right.

[Kathleen (Caller)]

Because the original plan was to have one of us not contribute to our 401ks. You know, this is, you know, five, six years ago. Yes. And use that money towards college. But those plans got thrown off of it.

[Jill Schlesinger]

Yeah, that, that. Okay, I understand. So now just so I understand, does your husband receive those payments until when? Like that 5,800amonth. Is it till 62, 5 or 7?

[Kathleen (Caller)]

The Social Security, I believe, is indefinite. The other 2,100 I believe goes to 65.

[Jill Schlesinger]

Okay. Okay, got it. So how are you doing right now, cash flow wise? Your 170 plus his 5,800amonth.

[Kathleen (Caller)]

Yeah. Okay.

[Jill Schlesinger]

Yeah, hanging in like, not so bad, right? Okay, so let's talk about the amount of money that you guys have saved in your various pots. So let's start with your retirement account. What's going on for you?

[Kathleen (Caller)]

I have an old, you know, rollover that is with a financial advisor right now that has approximately $240,000. I have another from another employer of 418.

[Jill Schlesinger]

And that's all. This is all pre tax that we're talking the two four. 240,000, 418,000. These are old pre tax. Right, Correct. Gotcha.

[Kathleen (Caller)]

Okay. And then currently my current employer, I have 337 in traditional. And then now an active, like contributing to 131. About 17 of that is Roth, but the rest is traditional.

[Jill Schlesinger]

Okay, I gotcha. Wait a second. You said a current of 337. What was the 131?

[Kathleen (Caller)]

So, so the 330. Sorry, 337 is another like not really a rollover, but let's call it a rollover. And then the 131S is the new.

[Jill Schlesinger]

Okay, okay, got it. And there's a bit in. A little bit in Roth. Yeah, I got you. Okay. Now your husband, his retirement account. What's going on there.

[Kathleen (Caller)]

He has 1.2.

[Jill Schlesinger]

And that is all pre tax, right?

[Kathleen (Caller)]

Like 7,000, 7,800, I believe is. Okay.

[Jill Schlesinger]

All right, let's. Let's call. Okay, gotcha. Now, when you look outside of retirement, is there any. I presume there's not a ton of money because you're getting. You're taking this home equity loan. So is there any other money you have that's set aside?

[Kathleen (Caller)]

Yeah, not really. Okay, I'll receive a small $500 a month pension starting at 65.

[Jill Schlesinger]

Okay, got it. Just some money in the bank. Like cash ish stuff. Not so much.

[Kathleen (Caller)]

Enough to cover the bills. Okay, gotcha.

[Jill Schlesinger]

Any money that is like a flyer, brokerage account, any crypto, like, you know, just like stuff that you had thrown around.

[Kathleen (Caller)]

Approximately 40,000, like in Robinhood accounts.

[Jill Schlesinger]

So what is the value of the home?

[Kathleen (Caller)]

I'd say about a million. My husband might say more, but let's just say a million.

[Jill Schlesinger]

You know, pie in the sky. Okay. Mortgage. The current.

[Kathleen (Caller)]

The.

[Jill Schlesinger]

Not the heloc, but is there a current mortgage?

[Kathleen (Caller)]

Yes.

[Jill Schlesinger]

How much?

[Kathleen (Caller)]

There's $79,000 left.

[Jill Schlesinger]

That's it?

[Kathleen (Caller)]

That's it.

[Jill Schlesinger]

Oh, my gosh. What's the interest rate on that?

[Kathleen (Caller)]

You're going to love this one. 2.625.

[Jill Schlesinger]

Oh, my gosh.

[Kathleen (Caller)]

Okay, so it should be paid off by the end of December of $29,000.

[Jill Schlesinger]

Okay. The home equity line of credit that you pulled down to help with college, et cetera. What do you got?

[Kathleen (Caller)]

It's about $70,000 right now.

[Jill Schlesinger]

Okay.

[Kathleen (Caller)]

Might have to dip into that for next year's final tuition bang.

[Jill Schlesinger]

How? 70,000. You've already. In other words, the 70,000 is already pulled down or. That's available. What's available?

[Kathleen (Caller)]

Oh, there's 80 available. It was like a total of 150 and we've used 70.

[Jill Schlesinger]

Okay, I got you. I got it. Okay, so here's my question to you. If looking ahead, what do you need to have set aside for this kid to get through the academic year?

[Kathleen (Caller)]

Maybe 15. That's it? Well, only because, you know, he'll be taking loans for the rest.

[Sponsor/Ad Reader]

Okay.

[Jill Schlesinger]

All right, that's good. All right, that's fine. Any other asset that's out there. Is there an old life insurance possibility, like something that has a cash value?

[Kathleen (Caller)]

Yeah, actually we do. So my husband has two. Two life insurance, two whole life. You know, one before we got married, he had gotten. He signed up for. It was 100,000. That I believe has a 40,000 cash out right now. And then he has a million whole life that has no cash value, but we kind of feel like that's going to be our, I don't know, like, inheritance thing. If we spend all our money for

[Jill Schlesinger]

our kids, if we spend all their money. And I presume because he's disabled, though, these are policies that were purchased before that disability came about. Correct. Okay. So we could never get him insured again. This might be a case where you just hang on to what you have.

[Kathleen (Caller)]

Right, right.

[Jill Schlesinger]

Don't look back. Okay. For your working life, what do you look like? What do you see ahead for yourself? You know, you're 57, you're working full time, but how long do you think you want to keep plowing ahead with your career?

[Kathleen (Caller)]

Yeah, I used to say I'm working till 67, definitely. And then I was like, oh, 65. And now I'm like, 62. And now I'm like, I hope I can. I hope my job will be there.

[Jill Schlesinger]

I know. It's so scary. I get that. I totally get that. Well, let. Let's presume it's 62 for a second. Just for. For the heck of it. Okay. Let's say that we get through next year, right. And the kid is taken care of or, you know, moves back home. Same kind of thing where they're. You have. The two kids are living home, they're, you know, making a little bit of money. They're maybe not fully launched. Get that. I get that. What do you think the cost of. Of your, like, your life is? What is the monthly spend you think you're facing with. And again, think that. Think it in, like, chunks, almost, like, let's say until you're. For the next five years, like, how much do you think you spend on a monthly basis?

[Kathleen (Caller)]

I'm gonna say, like, between 12 and 15.

[Jill Schlesinger]

Does that. Does your husband need care? Like, do you need care in the home? Is like. Is it that kind of disability?

[Kathleen (Caller)]

No, no, no, it's not that.

[Jill Schlesinger]

Okay, I got you. I got you. Okay. Have you guys run your Social Security numbers? What do you got for that?

[Kathleen (Caller)]

So, well, so he right now got 38, almost 39. I want to say, you know, that's inflation adjusted every year. For myself, 62 would be 2000, 600. 67 would be 3870 would be 4800.

[Jill Schlesinger]

How is your health?

[Kathleen (Caller)]

I want to say decent, but then again, you know, like, you never really know.

[Jill Schlesinger]

I mean, well, you. Because you've dealt with something that came out of the blue, and that's so weird. And so you're very heightened to that, but generally speaking, you're in good health.

[Kathleen (Caller)]

Yes.

[Jill Schlesinger]

Okay, so when you say 12 to 15, it's sort of like a big number to me. Like a big, like. Do you think it's more like 12 or do you really think it's more like 15? Just so I can kind of figure out the planning part of it, I'm

[Kathleen (Caller)]

gonna say it's more like 13. Let's say 13.

[Jill Schlesinger]

Okay. Lucky 13. So if we look at like your Social Security at 67 and his. So, you know, we're looking at a, let's say that about, let's say 40% of your need we have taken care of through Social Security. Right out of the 13 grand. I'm going to do it in today's dollars. I'm going to mess around a little bit here with the numbers. But you have a lot of money, right? You do have a lot of money that's, you know, kicking around. And at this point, you want to start thinking about maybe pulling money out of these accounts. How much money would you want to put. Pull out of these accounts to help you with your cash flow?

[Kathleen (Caller)]

So let's say for this year, we're thinking about between 50 and 60. We're coming to the end of an auto lease, and we just, we're thinking we're just going to buy it and then also then thinking it might be a good idea to start building up some kind of a cash account, slash payday on that HELOC account.

[Jill Schlesinger]

Right. What's the interest rate on the HELOC right now?

[Kathleen (Caller)]

6.75.

[Jill Schlesinger]

Oof.

[Kathleen (Caller)]

Not great.

[Jill Schlesinger]

Okay, well, you know, just what it

[Mark Talercio]

is, what it is, is Kathleen making retirement contributions at work.

[Kathleen (Caller)]

Yes.

[Jill Schlesinger]

What are you putting in right now, Kathleen?

[Kathleen (Caller)]

Right now I am at 14, I think 14%.

[Jill Schlesinger]

Do you have a match for your.

[Kathleen (Caller)]

A matching component? Yes. So they match up to five and then they do a little extra. So I get seven and a half percent a year.

[Jill Schlesinger]

As long as you put in seven and a half percent.

[Kathleen (Caller)]

I think I want to put in

[Jill Schlesinger]

five to get to seven and a half.

[Kathleen (Caller)]

Yes.

[Jill Schlesinger]

Mark, how would you feel?

[Mark Talercio]

Gotta reduce it.

[Jill Schlesinger]

Yeah. How would you feel? And this is what I'm asking because Mark is the one who doesn't like reducing these things. I feel like as soon as you said 14%, I think you should pull back to 5%. You got a lot of money saved for retirement already. You've done a very good job. I think that the number one thing is I would pull. Pull back to 5%. See how your cash flow feels there. That doesn't mean you shouldn't take money out of these accounts. I think, number one is sure, you could take money out of your, out of your husband's retirement account, because I think that that's fine. Like, you could take, you could take out 100 this year or even let's say 50 now and then 50 in January just to spread it out over two calendar years. You could have the money available for the car. You'd have the money available to start paying down the heloc and, you know, a little bit at a time. I wouldn't like, plow through that money. Mark, how much money could they reasonably pull out over the next. Let's just say couple of years. Let's just say two this year, 18 months or six months now, six months in the future. What do you think is reasonable? Because, you know, I want to tap this Robinhood account like crazy, so I'm ready to sell that out. But Mark, what, what can we take out of the. His retirement account and feel safe? I kind of feel like I want to leave a million bucks in there. Do you agree?

[Mark Talercio]

No, I, I wouldn't go beyond the 100 that you just suggested. Yeah, like that. For me, that's, that's the absolute limit. And that's why I think, you know, her pulling back on retirement contributions, like they don't need to save any more on retirement accounts. That stuff is good.

[Kathleen (Caller)]

Yeah.

[Mark Talercio]

They need to stockpile some cash and get rid of the home equity line of, credit that debt and get through college.

[Tom Hanks (Narrator)]

That's.

[Mark Talercio]

That's where the priorities.

[Jill Schlesinger]

Yeah. And I kind of feel like it's a, it's a, like there's a 12 to 15 month window here where things are a little bit tough on you guys to get this kid through school and do the car thing. But I really think there are two. There are two action points that I look at. One is, well, three, reducing your contribution down to 5% to help your cash flow. Two would be to pull out, let's say, 50 grand from in 20, 26, pull up 50 grand this year, and then maybe another. When do we have to do the car? This year or next year?

[Kathleen (Caller)]

This summer?

[Jill Schlesinger]

This. How much do I really need for that car?

[Kathleen (Caller)]

Oh, like 30, let's say.

[Jill Schlesinger]

Okay, so we knew. But we need 50 because you got to pay tax on it, don't forget.

[Kathleen (Caller)]

Right, right, right, right.

[Jill Schlesinger]

So we got to do 50 right now. And then when do we need to make a tuition? Like, when do we need to deal with our 15 grand for the academic year. Is that in this calendar year?

[Kathleen (Caller)]

Yes, it would be probably in like August.

[Jill Schlesinger]

Okay, so what I'm going to suggest is 50 grand from the 401k. Maybe you could do 60 is fine. But I also think that Robinhood account where you've made 78%, time to sell it, time to pay capital gains, time to move on. You can keep a tiny bit just for fun, like five grand. But like, I would pull all the money out of that. And that is the beginning of your cash account. That is your safety valve.

[Kathleen (Caller)]

Oh, interesting.

[Jill Schlesinger]

Mark, are you okay selling my Robin Hood account? No more confetti for Kathleen.

[Kathleen (Caller)]

Well, see, now we're only going to be able to sell Kathleen's because on the flip side, my, My significant other darling husband, like will refuse to sell. He wants to just watch it grow. He's. He's waiting for these crazy tech stocks to like, blow through the roof. It's basically play money for him.

[Jill Schlesinger]

Oh, okay, okay.

[Kathleen (Caller)]

I know it's not. That's, you know, I'm all for. Okay.

[Jill Schlesinger]

All right. I don't. I cannot tell you how much that annoys me. I really, I. I want to be. I really want to be understanding around this. I'm really just going to give up because if you tell me he's not going to do it, then he's not going to do it.

[Kathleen (Caller)]

I'm going to shut up. Okay, but he might, because you said it. He might change his mind.

[Jill Schlesinger]

Maybe. But like Mr. You know, stock picker there, he's not that smart. It's just that the market has done really well and I'm happy. And I think everybody, everybody kind of knows that. Right? Like, there's nobody out there who's like, I am so smart. Thank goodness. But I get that it's fun, but don't you want to pay for your kids college and get a car? Why else are you investing?

[Kathleen (Caller)]

Right? Right.

[Jill Schlesinger]

I don't know that you guys are in a very. You're in a very strange place because, like, really the onus falls on you, Kathleen, since you're the worker and you know, yes, of course, I'd love you to wait till 67, but you know, it's a lot to carry. I think that what you're going to need to see is how the next couple of years plays out. If you did not have. If we could get rid of the HELOC, if we can cover your kid that 15 grand for next year and get the car, reduce your contribution from 14% to 5% maybe you'll feel a little bit less pressure and maybe you'll want to keep working. I don't know, maybe you're not going to have a huge choice. You have a financial advisor, you said, because you had somebody's managing some money, right?

[Kathleen (Caller)]

Yes.

[Jill Schlesinger]

Yes. And what is that person saying about the, the probability that you can make it?

[Kathleen (Caller)]

I think they, they think it's pretty decent, but I think they're. The last time we spoke with them, I was working till 65, I believe.

[Jill Schlesinger]

Yeah, I feel like it is possible, I know that, that a lot of things could change between now and then, but I definitely think it's possible. And I forgot to ask you, just so I am clear, you do want to stay in this house, right?

[Kathleen (Caller)]

Yes.

[Jill Schlesinger]

Okay, then I think you'll be good. I mean, look, if you get through, just think about what you could get, like how your, your cash flow is going to change in the next few years. If we get rid of the heloc, if you've got school kind of stuff taken care of. The mortgage ends in 2029. And now all of a sudden like you're, you should actually be in a pretty good place on a cash flow basis if you work for a couple years beyond that. So that's three years gets you to 60. So again, if you, if you were to stop at 62, how are you getting health insurance?

[Kathleen (Caller)]

When I hit 62, I will be with my current employer for 15 years and they have a pre 65 medical plan supplementation.

[Jill Schlesinger]

Awesome. Awesome. So that's a possibility. So that makes me feel a little bit better. But let's see how things go. I think we're, we're hoping for 62, we're shooting for 65. Let's see. And by the way, both kids move out in a couple years and things are a little bit different and maybe a little bit of the pressure. You've taken some of the pressure off. Fine. Totally fine. Really. And I think that it, it does, it will work for you. I think that. I'm very sorry that you've had to deal with this unpleasant surprise. You know, Mark, it reminds me of Theresa Gillard Ducci when she always. She's an economist, she studies retirement and she talks about all the things that can happen that are so out of your control sometimes. This is really one of those. And you know, whether it's a disability or perhaps whether it's somebody who just gets let go at the wrong time because you're in an industry that's consolidating all of These things really do impact you. But thankfully you guys have a lot of money that is saved. You really do. And by the way, you make a good living. You make a really good living. And you know, we're at the end of the mortgage. All these things argue for, like it should be okay, let's see.

[Sponsor/Ad Reader]

And you know, we're here for you.

[Jill Schlesinger]

We totally are here for you. Do you guys have your estate documents done?

[Kathleen (Caller)]

No. I mean, I have all the beneficiaries set up, but we don't have like a will. Slash. Okay, here's because I feel like the house is the only thing.

[Jill Schlesinger]

Right, right. You have the house and then you have the Robin Hood account, which I'm going to then steal from you. I. I mean the house is a biggie and your older son is what,

[Kathleen (Caller)]

22, 3, 21 and 23.

[Jill Schlesinger]

21 and 23. So they're like the age of majority. So you should have a will that just kind of deals with that. And also you need a healthcare proxy. You know, you need those things. I'm glad you got in touch with us because I do think pulling back on that retirement contribution is going to give you a very, very good, like a good feeling of like, oh, okay. Like it doesn't feel so tight every month. And then also having the money to pay for the car and get the 15 grand for college. Like, these are all things that work.

[Kathleen (Caller)]

So now with these, with the 400, like to take this money out of this 401k, should we leave it where it is? It's like being managed by a service. Or do we roll it over and

[Jill Schlesinger]

then you could just take a distribution from where it is. Do you like the service?

[Kathleen (Caller)]

Yeah, it's, you know, again, it might just be because the market's been so well, but it's, you know, I mean,

[Jill Schlesinger]

you don't have to mess with it. I bet your financial advisor would love that million bucks, though.

[Kathleen (Caller)]

That's the other thing. I feel a little guilty about that. That we only have like 2:50 ish with the financial advisor and everything else is on the person.

[Jill Schlesinger]

This person really needs your money. To what? Need a new boat? I'm just kidding. I mean, don't feel so guilty. I mean, if you want to move it. How much does the Advisor charge you?

[Kathleen (Caller)]

1.25. Which is another reason why I don't want to move anything more.

[Jill Schlesinger]

0.25 or 1.25.

[Kathleen (Caller)]

1.25.

[Jill Schlesinger]

Well, you know what you could do? How much is the Service for the 1.2 million old retirement account. How much does that cost?

[Kathleen (Caller)]

Oh, like nothing.

[Jill Schlesinger]

Nothing? Yeah, like a quarter or half a percent or something.

[Kathleen (Caller)]

Yeah.

[Jill Schlesinger]

Okay. The thing that might be interesting is if you like the advisor and you feel so guilty, you could say, if we moved everything over to you, what would our rate be? You have to induce us to come over, right? So if they said, oh, you know what? Well, if you took all of your old rollover money and his retirement account, you'd be at, let's call it around, almost 2 million. And then your fee would be, I'm gonna make it up 0.75%. Maybe that would be an inducement to you. Cause you like this person.

[Mark Talercio]

Maybe.

[Jill Schlesinger]

I don't know. It's like, really about, like, don't do it because, oh, I like the guy. Do it because you think you're getting something of value. And the value isn't in the money management. The value is this person's doing planning for us and is really helping us. All right, Kathleen, we wish you the best of luck. If you're like Kathleen and her husband, you're kind of getting towards that retirement goal. You don't know whether to pull money from accounts or not. You don't know how to manage this next few years. You're off ramp. Get in touch with us. Go to jillonmoney.com, click the contact us button, write us a note. And if you'd like to join us on the air, all you need to do is check the box. Check out all the content that lives on the website. There is a blog, there are videos, there are resources. It's all there for you. So fabulous. You can subscribe to us on the Odyssey app or wherever you find your favorite podcast. Please leave us a rating or review. Wherever you listen, try to lift someone up. Change your work, change your wealth, change your life. Thanks for listening and we'll talk to you tomorrow. Are you really buying a car online on Autotrader right now? Really? I can get super specific with dealer

[Kathleen (Caller)]

listings and see cars based on my budget.

[Jill Schlesinger]

You can really have it delivered or pick it up.

[Kathleen (Caller)]

Mommy's walk.

[Jill Schlesinger]

I think kid is walking up the slide.

[Kathleen (Caller)]

Really?

[Jill Schlesinger]

Auto trader. Buy your car online. Really?

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