Podcast Summary: "Back to the Office After 26 Years Remote"

Podcast Information:

• Title: Back to the Office After 26 Years Remote
• Host: Jill Schlesinger, CFP®
• Release Date: June 16, 2025
• Platform: Audacy

Introduction

In this episode of Jill on Money with Jill Schlesinger, host Jill Schlesinger delves into the financial implications of transitioning back to an office environment after an extended period of remote work. The episode centers around a listener call from Mary, a long-term remote employee facing mandatory office returns after 26 years of working from home.

Listener Call: Mary's Situation

Mary, a 56-year-old professional from Southern California, calls in to seek advice after receiving notice from her employer mandating a return to the office for four days a week. Having worked remotely for 26 years at her company, Mary planned to retire at 62, leveraging her husband's pension, which provides $66,000 annually. Her husband recently retired and has established a stable financial foundation with multiple income streams, including a pension, a "golden handshake," and substitute teaching.

Mary's Concerns:

• Mandatory Office Return: The sudden policy shift requires her to work four days a week in the office, disrupting her long-term remote work arrangement.
• Retirement Plans: Mary aimed to retire in six years but now faces uncertainty about extending her career to comply with the new policy.
• Financial Security: While her and her husband’s combined income exceeds $200,000 annually, Mary is concerned about the potential impact on her ability to retire as planned if she cannot continue working remotely.

Financial Analysis and Advice

Jill begins by understanding Mary's comprehensive financial picture, which includes:

• Income:

  • Mary's Salary: $120,000 with a 15% bonus.
  • Husband’s Pension: $66,000 annually with a 2% straight-line benefit.
  • Golden Handshake: $21,000 annually until July 2028.
  • Substitute Teaching: Approximately $18,000 annually.

• Expenses:

  • Monthly Expenses: Around $10,000, including $1,600 monthly travel costs.

• Assets:

  • Home: Valued at ~$1 million with a mortgage of $333,000 at 2.875%.
  • Retirement Accounts:
    • Mary’s 401(k): $1.169 million.
    • Husband’s Fidelity Rollover IRA: $354,000.
    • Additional IRA: $50,000.
  • Liquid Assets: $25,000 in checking/savings and $131,000 in CDs.

Jill recognizes that Mary is in a relatively strong financial position but acknowledges the stress and uncertainty caused by the sudden work policy change.

Key Advice Provided by Jill:

1. Evaluate Current Financial Cushion:

   • With substantial retirement savings and multiple income streams, Jill suggests that Mary and her husband are well-prepared to handle the transition if it extends slightly beyond the initial retirement plan.

2. Consider Early Retirement:

   • Jill encourages Mary to explore the possibility of retiring a few years earlier if feasible, leveraging their savings and pension benefits.
   • Jill notes, “It’s always worth it. Cause you get an automatic 8% increase” in Social Security benefits if delayed.

3. Supplementary Income Streams:

   • Mary could consider increasing substitute teaching or exploring other part-time work to bridge any financial gaps if retirement is delayed.
   • Mary: “I was thinking that I could perhaps do the substitute teaching as well. Probably earn about the same.”

4. Life Insurance Considerations:

   • Jill discusses the potential need for life insurance to protect Mary's financial future in case of her husband's untimely passing, recommending consultation with a financial planner.
   • Jill: “There is, there is a case to be made that we take your husband's rollover IRA or we take money from the brokerage account and we think about buying some life insurance.”

5. Engage a Financial Planner:

   • Given the complexities and potential wild cards in Mary’s situation, Jill strongly advises seeking a fiduciary financial planner to create a robust financial strategy.
   • Jill: “I really would encourage [Mary] ... to hire a financial planner ... because I think there's a lot of wild cards here.”

6. Explore Remote Work Alternatives:

   • Jill suggests Mary might seek roles within her company or industry that allow for continued remote work, mitigating the impact of the new policy.

Notable Quotes:

• Jill Schlesinger (05:05): “...you have not. It's not like tons and tons of money. And if you knew that you were going to get that 66 forever, then sure, no biggie.”
• Mary (12:09): “It is causing me so much stress and anxiety and just the upheaval.”
• Jill Schlesinger (17:20): “Mary, you're in really good shape. You guys have done a good job... you need some security in this, and I think you're going to need some plan...”

Conclusions and Next Steps

Jill concludes the conversation by reaffirming Mary’s strong financial position while addressing her immediate concerns about the return-to-office mandate. The primary recommendations include:

• Consulting a Professional: Engaging a financial planner to navigate the complexities introduced by the potential delay in retirement.
• Exploring Employment Flexibility: Investigating possibilities within her current role or elsewhere that might accommodate her preference for remote work.
• Bolstering Safety Nets: Considering life insurance and other financial products to safeguard against unforeseen circumstances.

Jill’s Closing Remarks: “If you have a change in your work life that has been thrust upon you, I think we're going to hear more and more stories like this. ... Think about hiring a financial planner ... You're in really good shape ... you need some security in this, and I think you're going to need some plan.”

Mary expresses gratitude for the guidance, and Jill assures her of continued support by offering to connect her with a reliable financial planner.

Final Thoughts

This episode poignantly highlights the intersection of career shifts and financial planning, emphasizing the importance of proactive financial strategies in adapting to unexpected changes in the workplace. Jill Schlesinger effectively addresses Mary's anxiety by providing actionable insights and encouraging professional financial consultation, serving as a valuable resource for listeners navigating similar challenges.

For More Information:

• Visit jillonmoney.com for additional resources and financial advice.
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