Episode Summary: "Do We Have Enough for Retirement?"
Podcast Information:
- Title: Jill on Money with Jill Schlesinger
- Host/Author: Audacy
- Description: Host Jill Schlesinger, CFP®, discusses challenging and controversial financial and investing topics in an accessible manner. Each week, Jill engages with listener calls and interviews guests to uncover valuable insights and provide actionable advice to help listeners manage their money effectively.
- Episode: Do We Have Enough for Retirement?
- Release Date: April 28, 2025
Introduction
In the episode titled "Do We Have Enough for Retirement?", Jill Schlesinger welcomes listeners to discuss the financial intricacies of retirement planning. The focal point of the episode is a conversation with Tim from Minnesota, who seeks reassurance about his financial readiness for retirement.
Guest Introduction: Tim’s Retirement Situation
Timestamp: 02:46
Tim introduces himself as a 63-year-old who retired two years ago after a 39-year career. Although retired, he is not yet collecting Social Security benefits. Tim has accumulated savings in a 401(k), a Roth IRA, and owns rental properties. He expresses uncertainty about whether his savings are sufficient for a secure retirement and seeks Jill's expert reassurance.
Notable Quote:
Tim (02:46): "I want to retire. And while I am retired, but not collecting anything yet, I've worked 39 years. I've saved some money in a 401k and put a little bit into a Roth diversified with some property. And I guess I'm just struggling on if this is enough. I think it is, but at the same time, I need more reassurance. Does that make sense?"
Assessing Tim’s Financial Portfolio
Timestamp: 03:19 - 08:13
Jill begins by delving into Tim’s financial details:
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Severance Package: Tim received a lump-sum severance package two years ago, equivalent to one year’s salary plus vacation pay.
Jill (03:56): "How much was that lump sum?"
Tim (04:01): "It was like, almost. I've got a... with my vacation pay, a year salary."
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Retirement Accounts:
- 401(k): Combined total of $900,000, primarily Tim’s.
- Roth IRA: $110,000.
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Rental Properties:
- Two Properties: Generating a total of $2,200 monthly, with net income approximated at $1,100 after expenses.
- Property Values: One valued at $200,000 and the other at $300,000, purchased in 2008 and 2012 respectively.
Notable Quote:
Tim (05:07): "Yes. So here's the other thing. We have two rental properties that we have right now, and they get about $1,100 a month each."
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Primary Residence: Valued at $500,000, fully paid off with no mortgage.
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Cash Reserves: Approximately $44,000 in checking and $9,000 in a savings vacation fund.
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Spousal Income: Tim’s wife, also 63, has just started collecting Social Security benefits amounting to approximately $1,676 per month.
Jill’s Financial Analysis and Advice
Timestamp: 08:13 - 14:06
Jill meticulously evaluates Tim's financial standing:
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Income Streams:
- Tim’s Pension: Expected to provide $2,400 monthly once activated.
- Social Security: Tim has yet to claim his benefits.
- Rental Income: Approximately $1,100 monthly net.
- Wife’s Social Security: $1,676 monthly.
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Monthly Expenses: Estimated at $4,000, which Jill confirms is comfortably covered by Tim’s income sources.
Notable Quote:
Jill (10:18): "You're good. You should not. I don't think you should look back. I don't see any problem with this."
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Recommendations:
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Selling Rental Properties: Jill advises selling the less valuable rental property to free up liquidity for home improvements.
Jill (10:37): "So we do need to sell one of these properties. I think if you sell that $200,000 property, even if, all told, you paid 50 grand in taxes, there's your 150 grand to do the work that you want to do on your house."
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Social Security Strategy: Suggests delaying Tim’s Social Security benefits until age 67 to maximize the payout, while managing withdrawals from his 401(k) to cover expenses in the interim.
Jill (10:37): "Maybe pull out enough just to start getting that money out and getting it taxed. You're fine."
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Estate Planning: Encourages Tim to finalize estate documents to ensure his financial legacy is in order.
Jill (13:23): "Can you just tell you one thing? Do not let them sell you some weird, like, you need a trust or you need this."
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Health Care Considerations: Jill briefly touches on potential increased healthcare costs once Tim qualifies for Medicare, advising planning for supplemental insurance.
Final Assurance and Takeaways
Timestamp: 14:06 - 15:06
Jill wraps up the conversation by reinforcing that Tim and his wife are financially secure. She emphasizes the importance of having multiple income streams and strategic planning.
Notable Quote:
Jill (15:06): "I feel very happy. I feel like a dream has been granted."
She encourages listeners to reach out with their financial questions and highlights the availability of resources on the podcast’s website.
Conclusion
In this episode, Jill Schlesinger provides a comprehensive analysis of a listener’s retirement readiness, illustrating key aspects of retirement planning such as income diversification, asset management, and strategic timing for Social Security benefits. Tim’s case exemplifies how proactive financial planning and expert advice can instill confidence in one’s retirement strategy.
Key Takeaways:
- Diversification of Income: Combining pensions, Social Security, rental income, and retirement accounts enhances financial stability.
- Strategic Social Security Claiming: Delaying benefits can result in higher monthly payouts.
- Asset Liquidity: Selling non-essential assets can provide necessary funds for major expenditures.
- Estate Planning: Ensuring legal documents are in place is crucial for legacy management.
- Expert Guidance: Consulting financial advisors can provide personalized strategies and reassurance.
For listeners contemplating their retirement readiness, this episode underscores the importance of a well-rounded financial plan and seeking professional advice to navigate the complexities of retirement.