Podcast Summary: "Do I Need a Financial Advisor?"
Podcast: Jill on Money with Jill Schlesinger
Host: Jill Schlesinger, CFP®
Episode Release Date: August 5, 2025
Episode Title: Do I Need a Financial Advisor?
Introduction and Listener Engagement
In the August 5, 2025 episode of "Jill on Money with Jill Schlesinger," host Jill Schlesinger sets the stage by emphasizing the common financial challenges listeners face, regardless of their financial status. She encourages listeners to reach out for personalized advice, highlighting the variety of resources available on the show's website, jillonmoney.com.
Notable Quote:
"We all have weird things about our financial lives... you don’t have to do it on your own." – Jill Schlesinger [01:07]
Listener Call-In: Jeff from Minnesota
The episode features a call from Jeff, a 69-year-old retiree from Minnesota, who shares his experiences with financial advisors and seeks guidance on managing his finances post-retirement.
Background Information:
- Age: 69
- Employment: Recently retired from a part-time position at FedEx Express (January 2025)
- Income:
- Social Security: $2,400/month
- Pension from FedEx: $10,000/month (after taxes)
- Additional Income: Dividend income from four stocks valued at approximately $1.25 million (pre-split)
- Checking Account: $60,000
- Roth IRA: $170,000
- Assets:
- Traditional IRA: $550,000
- Townhome: Valued at $400,000 (paid in cash, no debt)
- Family: One adult son, a flight instructor with a job awaiting post-training at Delta Airlines.
Notable Conversation Points:
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Experience with Financial Advisors:
- Jeff has consulted three financial advisors but remained unsatisfied, primarily due to a lack of personalized, written guidance.
- Notable Quote:
"Third time's a charm, babe." – Jill Schlesinger [03:22]
-
Investment Management:
- Jeff's traditional IRA is managed through Vanguard, invested in a total stock fund, bond fund, and international fund.
- He expresses concern over the financial advisor's recommendation to split his IRA between an unnamed ETF and a fixed index annuity, questioning the fiduciary responsibility.
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Income and Expenses:
- Jeff's combined income from Social Security, pension, and dividends totals approximately $2,600/month, with additional dividend income roughly translating to $5,000/month gross.
- He manages expenses by using a credit card, typically spending around $2,000/month.
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Tax Concerns and IRMAA:
- Jeff is worried about taxes and the Income-Related Monthly Adjustment Amount (IRMAA) affecting his Medicare premiums due to his income levels.
- Jill Schlesinger explains IRMAA:
"IRMAA... based on the amount of money that you have earned." – Jill Schlesinger [11:02]
- They discuss strategies to manage income withdrawals from the traditional IRA to mitigate IRMAA impacts and prevent a significant tax burden later.
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Recommendations Provided:
- Jill advises Jeff to consider withdrawing a controlled amount from his traditional IRA to balance his income and manage tax liabilities.
- She suggests avoiding fixed index annuities and recommends seeking a fee-only financial advisor or a trusted accountant for unbiased financial planning.
- For his life insurance, Jill recommends extending the term for one more year, emphasizing it's a minimal cost for added security.
- Regarding gifting, Jill advises Jeff to gift $19,000 in stock to his son, leveraging his son's lower tax bracket to minimize capital gains taxes.
Notable Quotes:
"You don't need it. But there's only one year left. So finish it out and just finish it." – Jill Schlesinger [20:01]
"I would give him $19,000 of one of these stocks and then say, as soon as I gift it to you, turn around and sell it." – Jill Schlesinger [20:38]
Key Takeaways and Insights
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Evaluating Financial Advisors:
- Not all financial advisors are created equal. It’s crucial to find advisors who act in the client's best interest, preferably fee-only advisors who avoid conflicts of interest related to commissions.
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Managing Retirement Income:
- Balancing various income sources (Social Security, pensions, dividends) is essential to ensure financial stability and minimize tax burdens.
- Understanding and managing IRMAA is vital for retirees with substantial income sources to prevent unexpected increases in Medicare premiums.
-
Investment Strategy:
- Diversified investment portfolios, like Jeff’s allocation in stock, bond, and international funds through Vanguard, can provide stability.
- Avoiding complex financial products, such as fixed index annuities, may be beneficial unless they align clearly with one's financial goals.
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Tax-Efficient Gifting:
- Strategic gifting of appreciated assets to family members in lower tax brackets can reduce overall tax liabilities and facilitate wealth transfer.
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Leveraging Professional Help:
- Collaborating with trusted accountants or financial planners, especially those recommended by existing legal advisors or through professional networks, can enhance financial management without unnecessary complications.
Conclusion and Final Advice
Jill Schlesinger wraps up the episode by reinforcing the importance of thoughtful financial planning and the value of seeking reliable professional guidance. She encourages listeners who feel uncertain about their financial strategies to reach out for support, emphasizing that informed decisions can lead to a more secure and less stressful financial future.
Final Notable Quote:
"Change your work, change your wealth, change your life." – Jill Schlesinger [21:43]
Additional Resources Mentioned
- Website: jillonmoney.com – For contacting the show, accessing the free weekly newsletter, and exploring additional content like the "Money Watch" podcast, blogs, and videos.
- Alternative Podcast: "Money Watch" – Recommended for further financial insights.
This episode provides a comprehensive look into the intricacies of managing retirement finances, the importance of selecting the right financial advisor, and strategies to optimize income and tax liabilities. Jeff's real-life scenario, coupled with Jill's expert advice, offers valuable lessons for listeners navigating similar financial landscapes.