Jill on Money with Jill Schlesinger

Episode Title: Can We Cut Back Our Savings Rate?
Release Date: September 26, 2025
Host: Jill Schlesinger, CFP®
Guest: Donnie from Pennsylvania (repeat caller)

Episode Overview

In this episode, Jill welcomes back Donnie from Pennsylvania, who recently completed a home renovation funded by a home equity loan. Donnie, together with his wife, now wonders whether they can afford to scale back their aggressive savings rate and enjoy more of their earnings or if that would jeopardize their long-term security. The episode dives deep into the trade-offs between saving, enjoying life now, and planning for the future, all through the lens of holistic financial planning.

Key Discussion Points and Insights

1. Donnie's Financial Background and Update

[03:28 – 05:09]

• Previously, Donnie called in about financing a home renovation with debt versus saving up.
• The family borrowed money, completed renovations, and are very happy with the result.
• Lived with friends during the renovation—still friends after!
• Donnie: “We’ve been back in our house for three months. … We are very much still friends, thank goodness.” [03:51]

2. Income and Work Structure

[05:18 – 06:21]

• Both Donnie (35) and his wife (36) are nurses, working 2x 12-hour shifts per week (part-time).
• Base combined income: $140k, but Donnie often picks up extra shifts to bring income up to $160k–$180k.

3. Retirement and Savings Strategy

[06:52 – 07:47]

• Retirement savings vehicles: 403(b) (Roth), 401(a), HSA, and Roth IRAs.
• Total saved for retirement: $460,000 (approx. $250k in workplace plans, $210k in other Roths and HSA).
• No taxable brokerage account; only about $10k in liquid savings, working on building this up.

4. Liabilities and Cash Flow

[07:53 – 09:22]

• Home valued at ~$700k; primary mortgage: $350k @ 4.5% (30 years).
• Home equity loan for renovation: $170k @ 6.5% (11 years left).
• No other investments; current expenses about $8,000/month (all-in).

5. College Funding and Trade-Offs

[08:49 – 09:36]

• No 529 plans yet; weighing options (employer-tied tuition, Roth IRA withdrawals for education).
• Donnie doesn’t want to sacrifice lifestyle or work longer just to fund college at all costs.
• “Life is really a series of trade-offs.” —Jill, [09:36]

6. Retirement Projections and Concerns

[12:31 – 13:52]

• Mark (producer/CFP): On track for $2.5–$3 million by retirement if they continue current habits.
• Caution: 30 years is a long time and market conditions can change; should not take success for granted.
• Jill expresses slight hesitation and advises not to reduce savings too far:
  “Maybe we’d like you to put a little more money away.” —Jill, [13:52]
• Mark: “I wouldn’t stop saving altogether…” [14:00]

7. Current Pain Points and Planning Flexibility

[14:11 – 15:05]

• Since taking on the loan, they’ve paused Roth IRA contributions (about $14k/year).
• $1,500 monthly leftover goes toward rebuilding emergency savings.
• Donnie struggles with not being able to save more, but wants to balance lifestyle and work.

8. Advice from Jill and Mark

[15:05 – 18:22]

• Jill: Build up emergency savings to $40k (given their expenses).
• Extra shifts are the real “game changer” for flexibility.
• Saving at higher income provides more options for future needs.
• “The extra shift today pays such massive returns in the future.” —Jill, [17:39]
• Don’t raid the Roths for college; that’s likely to set the plan back.
  Mark: “Be careful…about raiding the Roths to pay for college.” [18:24]

9. Long-Term Planning and Optionality

[18:22 – 20:05]

• Save more today for more future options (Plan B), but enjoy life within reason.
• Preserve retirement accounts and keep re-evaluating as circumstances change.
• Future windfalls (e.g., family business) or increased income may open the door to college saving or other goals.
• Jill emphasizes importance of “optionality”—not locking oneself into a rigid plan, but having flexibility.

Notable Quotes & Memorable Moments

• Jill: “Life is really a series of trade-offs.” [09:36]
• Mark: “I wouldn’t stop saving altogether. … You know, how do things feel? Do you feel tight?” [14:00]
• Jill: “The extra shift today pays such massive returns in the future.” [17:39]
• Mark: “Be careful, very careful, about raiding the Roths to pay for college, because that’ll set you back.” [18:24]
• Jill: “I always like the idea of a little plan B. And plan B, to me, is like, socking away a little bit of extra money.” [17:39]
• Donnie: “We have flexible positions… I can go less part time, I can go more full time… I think the flexibility to just keep rolling like we are—it’s working.” [10:52 – 11:20]
• Jill: “It’s good to be in a place where you’re happy in your dwelling. I think that’s incredibly important.” [19:36]

Important Segment Timestamps

• Listener reintroduction & recap: [03:23 – 03:59]
• Detailed income and savings breakdown: [05:32 – 07:47]
• Liabilities & home equity loan details: [07:53 – 08:16]
• Discussion on college funding strategies: [08:49 – 09:36]
• Financial projections with Mark: [12:31 – 13:52]
• Advice on savings and increasing income: [15:05 – 18:22]
• Emphasis on flexibility & optionality: [18:22 – 20:05]
• Closing encouragement: [20:05 – 20:12]

Summary

This episode offers relatable, practical advice for families juggling aggressive savings, loan payments, and the desire to enjoy today—all delivered with Jill and Mark’s signature frankness and compassion. Listeners are reminded that financial planning is an ongoing process, full of trade-offs and requiring flexibility. Donnie’s story represents a typical financial crossroad: when, how, and if to pull back from saving aggressively—and what that means for long-term peace of mind.

Jill and Mark advocate for maintaining healthy contributions (especially when higher earnings are possible), resisting the temptation to raid retirement for college, and keeping cash reserves robust. Ultimately, their advice is clear: a little extra effort today buys security—and freedom—down the road.