Detailed Summary of "Can We Go On a Reduced Schedule?" Episode from Jill on Money with Jill Schlesinger

In the episode titled "Can We Go On a Reduced Schedule?" released on May 19, 2025, Jill Schlesinger, CFP®, along with her co-host Mark, delves into listeners' financial dilemmas surrounding significant life decisions. The episode is structured around answering listener emails, providing actionable insights without the overwhelming financial jargon. Below is a comprehensive summary of the key discussions, insights, and conclusions drawn during the episode.

Introduction and Purpose [01:55]

Jill Schlesinger opens the show by emphasizing the importance of addressing substantial life decisions that intertwine with financial considerations. She highlights the show's objective to help listeners "articulate what they'd like to do and then present a couple of different options for how to get there." Jill reassures listeners that both she and Mark are certified financial planners who offer impartial advice without any vested interests.

Listener Questions and Expert Advice

1. Selling Home to Rent in Hawaii [03:00]

Listener: George and his wife, both 55, have paid off their home and are considering selling it to rent in Hawaii to enjoy their frequent travels. They are concerned about the high cost of living and maintaining their retirement goals.

Jill's Advice:

• Assess Financial Readiness: Jill stresses the importance of evaluating their "cost of day-to-day expenses" in Hawaii versus their current expenses.

• Income vs. Expenses: Determine if their current income can cover the higher living costs without jeopardizing their retirement savings.

• Retirement Planning: Even if they sell their home, they need to ensure that their retirement plans remain intact.

Notable Quote:
"Maybe I don't have to own, maybe I could rent." — Jill Schlesinger

Timestamp: [05:30]

2. Lump Sum vs. Monthly Pension Payments [07:15]

Listener: Patrick is contemplating whether to take a lump sum offer from his employer instead of receiving monthly pension payments of $3,400. He is concerned about determining the appropriate lump sum amount, the interest rate to assume, and the risk associated with the pension ending unexpectedly.

Jill and Mark's Advice:

• Evaluate Lump Sum Offer: Assess the total value of the lump sum compared to the present value of the monthly payments.

• Control vs. Security: A lump sum offers more control and flexibility, whereas a pension provides a "guaranteed stream of income."

• Personal Circumstances: Consider personal factors such as marital status, longevity, and financial needs.

Notable Quote:
"Sometimes the pension, the monthly payment is a better deal based on the fact that it's a guaranteed stream of income with a certain amount of cost of living adjustment attached to it." — Jill Schlesinger

Timestamp: [09:45]

3. Reduced Work Schedule with Pay Cuts [12:01]

Listener: Jason and his wife are offered a 32-hour workweek with a 20% pay reduction. They currently earn over $200,000 annually and have substantial retirement savings. They seek advice on whether this reduction will impact their future retirement plans.

Jill and Mark's Advice:

• Adjust Retirement Contributions: Recommend reducing contributions from their pre-tax 401(k) accounts to accommodate the reduced income while maintaining the employer match.

• Maintain Key Investments: Advise continuing contributions to Roth IRAs, HSAs, and 529 plans despite the pay cut.

• Leverage Existing Assets: Utilize rental property cash flow and consider the potential sale of some properties to bolster savings if necessary.

Notable Quotes:
"Yeah, that's the place to do it." — Mark
"They've already got $1.3 million saved. So I think they can do it." — Mark
"I think they're in pretty good shape." — Jill Schlesinger

Timestamp: [12:01 - 12:12]

4. Roth IRA Conversion During Market Downturn [13:22]

Listener: Avis, aged 68, is concerned about converting her 403(b) and 401(k) into a Roth IRA amidst a declining stock market. She aims to stay within the 24% tax bracket but fears a significant tax bill as she approaches her 73rd birthday.

Jill and Mark's Advice:

• Continue Conversions Within Current Bracket: Advise maintaining conversions within the 24% tax bracket to manage tax liabilities effectively.

• Plan for RMDs: Encourage planning strategies for Required Minimum Distributions (RMDs) to mitigate tax impacts later on.

Notable Quote:
"Continuing to convert at your 24% bracket would be great." — Jill Schlesinger

Timestamp: [13:22]

5. Investment Allocation with Annuities and 401(k) [14:50]

Listener: Scott, 61, owns a construction company and seeks advice on streamlining his investments, which include two annuities and a 401(k), as he contemplates retirement at 65.

Jill and Mark's Advice:

• Understand Annuity Types: Determine whether the annuities are qualified or non-qualified to decide on possible consolidation.

• Streamline Accounts: Consider combining like accounts (e.g., consolidating retirement annuities with the 401(k)) for easier management.

• Evaluate Annuity Options: Assess whether to annuitize the contracts at retirement or explore other distribution strategies.

Notable Quote:
"We are certainly able to do something with an old annuity contract that may make sense for you." — Jill Schlesinger

Timestamp: [16:00]

Conclusion and Resources [17:21]

Jill wraps up the episode by encouraging listeners to reach out for personalized advice through the website jillonmoney.com. She highlights additional resources available, including podcasts, radio shows, blogs, and a free weekly newsletter. Jill and Mark invite listeners to subscribe, leave reviews, and engage with the community to foster financial well-being.

Final Thoughts

This episode of Jill on Money masterfully addresses common financial concerns related to major life changes, such as altering work schedules, managing retirement savings, and making informed investment decisions. Jill and Mark provide thoughtful, practical advice tailored to each listener's unique situation, empowering them to make confident financial choices.

For more detailed discussions and personalized advice, listeners are encouraged to visit jillonmoney.com and connect with the hosts directly.