Episode Summary: "Can We Cut Back on Work?"

Podcast: Jill on Money with Jill Schlesinger
Date: December 2, 2025
Host: Jill Schlesinger
Main Theme:
This episode centers on a listener question from James in North Carolina, who, along with his wife, is considering cutting back on work to spend more time with their young child. Jill provides an in-depth analysis of their financial situation, weighing the viability of reducing work hours while maintaining long-term financial security and life priorities.

Key Discussion Points & Insights

1. Caller’s Background & Goals

• James (53) and his wife (47) have a four-year-old. They want to work less (James: four days/week; wife: three days/week), prioritizing family time.
• They’ve been “very diligent savers” (James, 03:16), with nearly $2M in retirement investments and $30K in cash savings.
• Home: ~$1.3M value, $269K mortgage at 2.65%, 13 years left; keen to stay put.
• Current incomes total $500K (James: $275K, wife: $225K, [05:00]). Post-cutback estimate: $300K–$350K annually.

2. Financial Assessment & Feasibility

• All $2M in retirement accounts.
  • Jill: "Oh, yeah.” (03:51) when learning it’s all retirement, but reassures this is not a problem.
• Cash on Hand: $30K—Jill recommends building to $100K before making changes (08:01).
• Expenses: $7,000–$8,000/month.
  • Jill: "Can you pay your bills on $300,000?"
  • James: "No problem." (05:27)
• Additional Savings: $54K in a 529 plan, to be transferred to youngest child.

3. Retirement & Future Contributions

• James is self-employed, contributes $7–8K/mo to retirement; wife works for government, will get a modest pension if she stays (07:13).
  • Jill: "Are you having like a self-funded pension plan as a self-employed person?"
    • James: "Yes." (07:41)
  • Jill strongly advises: Cut back retirement contributions, prioritize cash savings.
• Potential Withdrawal from Workforce/Pension Considerations:
  • Wife may leave her job (with pension) for contract work, to better align with family needs (08:30–09:08).
  • Jill is cautious about this risk due to pension and 80% paid medical benefits.
    • Jill: “[Medical coverage] is big. You can't go below $300,000.” (09:42)

4. Insurance and Estate Planning

• Life Insurance: None yet. Jill suggests exploring a 10-year level term policy and checking if government insurance is portable (10:04).
  • Jill: "[Life insurance] is not going to be cheap because you're 53 but you are in good shape." (10:17)
• Estate Documents: They’re in place—Jill relieved (10:48).

5. Jill’s Action Plan & Final Guidance

• Cut retirement saving contributions, build a $100K cash cushion.
• If more liquidity needed, after cash savings, create a taxed joint brokerage account (11:00).
  • Jill: “You just want to be able to have money that’s already been taxed...if you know you have $100,000 that’s safe and secure and then you have another couple hundred thousand that's in...a balanced account.”
• Avoid prepaying mortgage due to low interest rate.
• Test lifestyle and spending needs as income/client load shifts—option to revert to more work if needed.
  • Jill: "You can always crank it up again if it doesn’t work." (09:55)

Notable Quotes & Memorable Moments

• On being in good financial shape:
  • Jill: "Oh, my gosh, Mark, they're swimming in moolah." (04:28)
• On financial planning mindset:
  • James: "We just have really just the mortgage bill. We've been putting away money for 529 plan." (05:29)
• On shifting work-life balance:
  • James: "I could really foresee myself, I'm healthy so I could foresee myself working till 66 to 70 years old possibly." (06:43)
• On risk of giving up pension/benefits:
  • Jill [firmly]: "You can't go below $300,000. And we have to keep testing it. We really do..." (09:42)
• On the importance of documentation:
  • Jill (relieved): "Oh, thank God. I thought he was pausing for a second, I was gonna be able to take his butt." (10:49)

Timestamps for Important Segments

• [02:39] Caller (James) introduces situation: desire to spend more time with child, cut back on work.
• [03:41-04:28] Financial deep dive: retirement vs. cash savings, home value and mortgage.
• [05:00-05:29] Income breakdown now and after reducing work.
• [07:13-07:41] Retirement savings strategy/self-employed pension.
• [08:01] Jill recommends increasing cash reserves.
• [08:30-09:08] Wife considering leaving government job and pension implications.
• [10:04-10:33] Jill highlights need for life insurance.
• [10:48] Estate planning check-in.
• [11:00] Jill’s step-by-step plan: cash buffer, then brokerage account for future liquidity.

Episode Tone & Style

• Direct, supportive, and lightly humorous. Jill is encouraging but realistic—she pushes for smart financial moves and risk management.
• Jill respects the caller's diligence, yet plays devil’s advocate on key decisions (pension, insurance).
• The advice is actionable and jargon-free, making it accessible for listeners not well-versed in finance.

Summary Conclusion

Jill concludes James and his wife are well-positioned to reduce work, so long as they shift from max retirement savings to building liquid, non-retirement reserves, and don’t compromise on life insurance and estate plans. The step-back is doable with careful cash-flow monitoring, a healthy cash buffer, and continued attention to benefits (like pension and healthcare) especially if his wife pursues contract work.

"Change your work, change your wealth, change your life." — Jill Schlesinger