Podcast Summary: "Are We Saving Enough?" Jill on Money with Jill Schlesinger
Release Date: January 29, 2025

Introduction

In the episode titled "Are We Saving Enough?" Jill Schlesinger delves into the financial concerns of retirees and those nearing retirement age. Focusing on listener interactions, Jill provides personalized advice to ensure financial security and effective savings strategies.

Listener Profile: Dave from Chicago [03:14]

Dave, a 50-year-old retired military personnel now working as a government civilian, reaches out to seek Jill's expertise. He expresses uncertainty about whether his current savings and pensions are sufficient for a comfortable retirement.

Dave’s Financial Situation [03:17 - 09:19]

Income Sources

• Military Pension:

  • Amount: $6,600/month (taxable)
  • Details: "It's a lot of money." [04:18]

• Government Civilian Salary:

  • Amount: $153,000/year (taxable)
  • Contribution: Actively contributing to the Thrift Savings Plan (TSP).

• VA Pension:

  • Amount: $2,500/month (tax-free)
  • Origin: Rolled over from his wife’s former 403(b).
  • Clarification: "That's not taxable, right?" [04:51]
    • Jill confirms: "That's $2,500 a month, not taxable." [05:17]

• Wife’s Income:

  • Amount: $500/month (part-time)

Assets and Savings

• 529 College Savings Plan:
  • Total: $100,000
  • Contributions: Actively funding for two younger daughters.
  • Strategy: Directing funds towards state schools.
• Retirement Accounts:
  • Traditional TSP: $86,000
  • Personal Roth IRA: $107,000
  • Wife’s Roth IRA: $68,000
• Annuity:
  • Amount: $113,000
  • Origin: Rolled over from wife’s 403(b).
  • Taxation: Taxed upon retirement.
• Savings Accounts:
  • High-Yield Savings: $5,000
  • Checking Account: Approximately $10,000
• Real Estate:
  • Home Value: $550,000 - $600,000
  • Mortgage: $352,000 at a favorable 2.25% interest rate

Family and Expenses

• Children: Three daughters aged 17, 16, and 13.
• Giving:
  • Charitable Donations: 10% of gross income to the local church and other charities, totaling around $16,000/month.
  • Adjusted Spend Without Giving: Approximately $11,000/month.
  • Jill Questions Donation Method: "You say, 'I'm 10% tithing on your gross or on your net?'" [11:00]
    • Dave Answers: "We do our gross." [11:09]

Analysis and Recommendations [09:20 - 18:17]

Current Financial Health

Jill commends Dave on his robust financial standing:

• Income vs. Expenses: "If you're really gonna do that... the retirement scenario looks great for you guys." [13:35]
• Savings: Adequate contributions to TSPs and Roth IRAs.
• Debts: Favorable mortgage rate contributes positively to net worth.

Estate Planning

• Existing Documents:
  • Wills and Power of Attorney: Established six years ago.
• Recommendations:
  • Update Estate Documents: Ensure guardianship and financial management roles are current as children age.
  • Create a Healthcare Proxy: "Whatever you want to happen, just put it down on paper." [14:57]

Retirement Strategy

• Projected Income at 60:

  • Total: Approximately $11,600/month
    • Military Pension: $6,600 (inflation-adjusted)
    • Future Government Pension: $2,500
    • VA Pension: $2,500 (tax-free)

• Annuity Management:

  • Suggestion: Roll over the annuity into a Fidelity Rollover IRA to manage tax implications effectively.
  • Jill Advises: "If there are no fees to get out now, I would do it right now." [16:15]

• Withdrawal Strategy:

  • Traditional TSP: Slowly withdraw to manage taxable income.
  • Qualified Charitable Distribution: Utilize to bypass certain taxes by donating directly to qualified charities.
  • Social Security: Delay claiming to maximize benefits, while ensuring some income before claiming.

Reassurance and Final Thoughts

Jill reassures Dave that his current savings and income sources position him well for a comfortable retirement:

• Feeling of Pressure: Acknowledges Dave’s concerns but emphasizes his solid financial foundation.
• Family Investments: Highlights the importance of Dave’s investments in his children’s education.
• Overall Assessment: "It sounds like you're in really good shape." [13:35]

Conclusion

Jill concludes the episode by reinforcing the importance of comprehensive financial planning and regular reviews. She encourages listeners to assess their financial strategies, update necessary documents, and seek professional advice to ensure they are on track for their retirement goals.

Notable Quotes

• Jill Schlesinger: "You're doing a great job, dude. Stop sweating it." [18:17]
• Dave: "We do our gross." [11:09]
• Jill Schlesinger: "It sounds like you're in really good shape." [13:35]

Final Remarks

Jill extends her appreciation to military personnel and invites other listeners to engage with the show for personalized financial advice. She also promotes the podcast’s subscription service, offering additional resources for subscribers.

Note: This summary excludes advertisements and non-content sections as per the listener's request, focusing solely on the meaningful financial discussion between Jill and Dave.