Jill on Money – Episode Summary

Episode Title: Are We Really Ready to Retire Early?
Date: March 10, 2026
Host: Jill Schlesinger
Guests: Sonia and Michael (Callers from Denver, Colorado), commentary by producer Mark Telarisio

Overview

In this episode, Jill takes a live call from Sonia and Michael, a Denver couple in their late 40s/early 50s, who are debating whether they’re financially and emotionally ready to become “work optional” and retire early. The discussion explores their finances in detail, covers couples’ dynamics around major life decisions, and offers practical, jargon-free advice about early retirement—especially for high-earning, high-saver families. The episode dives into the realities of early retirement, the subtle complexities of spousal expectations, and the importance of planning for both finances and purpose.

Key Discussion Points & Insights

1. The Couple’s Primary Question

• [03:57] C (Michael): "We would just like to know if we're in our current financial situation. It's an option for us to be financially independent, basically be work optional."
• Sonia expresses doubt, Michael is ready to quit now.
• Jill: “I can also be a marriage counselor as well...” ([04:41])

2. Financial Snapshot & Assets

Jill methodically builds the couple’s financial landscape:

• Ages: Sonia (49), Michael (54.5) ([04:48])
• Incomes: Sonia ≈ $100k; Michael's base and bonus ≈ $390k ([14:45])
• Retirement assets:
  • Roth (tax-free): $600,000 ([05:40])
  • HSAs: $26,000 ([05:40])
  • Traditional tax-deferred: $1.2M ([05:56])
  • After-tax brokerage: $1.9M ([06:40])
  • Cash/money markets: $200,000 ([06:40])
  • Additional vested RSUs: $450,000 ([06:40])
• Real Estate:
  • Primary home value: $900,000 (paid off) ([07:18])
  • Rental property: $500,000 (net ~ $1,500–2,000/mo) ([07:32–07:55])
• No mortgage, no rich parents, no caretaker obligations.
• 529s fully funded for both children’s college ([06:15])

3. Spending & Early Retirement Math

• Current monthly spending: $9,000–$12,000, potentially higher with healthcare and kids ([08:05–08:48])
  • “Let’s say 12 grand a month. Let’s call it.” — Jill ([08:48])
• Discussion of healthcare costs and ongoing travel/lifestyle needs.
• Jill pushes for realism in post-retirement health expenses.

4. Income Bridge to Traditional Retirement Age

• Expected future pension: $1,300/month at age 67 ([10:14–10:34])
• Estimated Social Security at 67: Michael $3,300, Sonia $1,630 ([11:32–11:43])
  • Total household SS + pension at 67 ≈ $5,000/mo + $1,300/mo

5. Retirement Drawdown Strategy

• Game plan:
  • “Let’s use that [brokerage/RSU/cash] money for some period, then the pretax accounts, then at 67–70, rely on Social Security and pension.” — Jill ([12:16–12:29])
• Considering the IRS ‘Rule of 55’ for 401(k) withdrawals ([12:29–12:44])
• Michael floats idea of using cash as “runway” in market downturns.

6. The Emotional Side & Spousal Alignment

• Sonia: Uncomfortable with quitting if Michael stops but “I do like working. But I don’t want to work full time if Michael is not going to be working.” ([09:19–09:25])
• Michael: “I think I'm not uninclined to work. I just want to figure out if we have to.” ([13:05])

7. Expert Opinions

• Mark (Producer) weighs in:
  • “They could probably do this. But I also think it’s very, very close... with the health care expense, it’s close. It’s probably too close for me.” ([13:31])
• Jill agrees and suggests improving liquidity by selling the rental property:
  • “$1,500 a month is OK. It’s not great on a half million dollar investment.” ([13:44])
  • “Even if the numbers work, you guys have to feel good about this together.” ([14:15])
• Jill’s Proposal:
  • “What would make me feel better: Sell that rental, get that $500,000 to work... Also, consider both working part-time for a while, especially for keeping health care covered and softening the transition.” ([14:15–14:45])
  • “When you said you’re not on the same page, this is not about money. This is about philosophically, how do we view the next five years?” ([15:37])

8. Mind the “Work Optional” Gap

• Transition plan favored:
  • "If you were to work full time for three more years, this is a lot easier." ([16:54])
  • “Do that for a couple of years, and then, boom, you’re done.” ([17:23])

9. Family & Legacy Concerns

• Sonia is emotionally attached to the rental property: dreams of passing it to kids ([18:00])
  • Jill: “Come on. Damn kids... It’s better for the kids and your lives for you to have liquidity than to have a piece of property to pass down.” ([18:10])
  • Suggests primary home ($900k) is plenty of legacy ([18:20])

10. Key Advice for Listeners

• Liquidity and flexibility are crucial—don’t get locked into illiquid real estate or overly rigid plans.
• Spousal alignment is as important as the spreadsheets.
  • “This is not about money. This is about philosophically, how do we view the next five years?” ([15:37])
• Early retirement is possible, but when it’s “close,” caution, flexibility, and continued earning (even part-time) make a big difference.
• Estate planning and regular document reviews are a must for those approaching retirement.

Notable Quotes & Memorable Moments

• Jill, on early retirement nerves:
  • “If you’re making a half million dollars a year together, going from a half million to zero is a lot.” ([14:48])
• On family consensus:
  • “Even if the numbers work, you guys have to feel good about this together.” — Jill ([14:15])
• Jill, pragmatic:
  • “I would sell that rental property and get that $500k and get that to work in a different way... Having the liquidity is important.” ([13:44])
• Jill’s philosophical zinger:
  • “This is not about money. This is about philosophically, how do we view the next five years?” ([15:37])
• On passing down property:
  • “Come on. Damn kids. Good Lord, Mark. What am I to do with this?” — Jill ([18:10])
• Mark, lighthearted:
  • “I can just envision Sonia, like, giving him the elbow throughout this whole time. See, I told you so.” ([20:13])
• Jill, on conservative planning:
  • “When it’s close, I’m going to err on the side of being more conservative because I’m a wimp.” ([20:07])

Important Timestamps

• [03:54] – Call begins, Sonia & Michael introduced
• [04:25–05:56] – Ages, incomes, retirement accounts
• [06:06–06:29] – Children and college savings
• [06:40–07:14] – Brokerage, cash, RSUs
• [07:18–07:55] – Real estate holdings and rental income
• [08:05–08:48] – Monthly spending, healthcare cost discussion
• [10:11–11:43] – Pension & Social Security estimates
• [13:31–13:44] – Producer Mark’s conservative take
• [14:15–16:54] – Jill’s proposal: sell rental, work part-time, ease into retirement, get on the same page
• [18:00–18:47] – Emotional debate about passing real estate to the kids
• [20:07–20:13] – Jill on the value of being conservative with close decisions, Mark’s quip about spousal nudging

Final Advice & Tone

Jill’s Style: Warm, honest, slightly teasing, direct and practical—balancing the spreadsheets with life realities and relationship needs.

• “Take a deep breath. You can cancel the marriage counseling session. I feel like we’ve gotten to that place.”
• “What I really want to know is how this story ends.”

Big Takeaways:

• Early retirement for high savers is possible, but only just in this couple’s case; extra caution is recommended.
• Emotional readiness and teamwork are just as important as numbers.
• Liquidity provides flexibility and peace of mind.
• Part-time work and gradual transitions may be the smarter route.

Actionable Listener Advice:
“If you and your spouse are going through something like this, you want to try to get on the same page, get in touch with us. Go to jillonmoney.com, click the Contact Us button...”

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