Funding a Condo Purchase

Summary

Episode Summary: Funding a Condo Purchase

Podcast: Jill on Money with Jill Schlesinger
Release Date: July 16, 2026
Host: Jill Schlesinger, CFP®
Featured Caller: Tony from Florida

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Overview

In this episode, Jill Schlesinger helps a financially secure retiree, Tony, navigate the logistics and strategy for funding his next home purchase. Tony, considering a move within Florida, weighs whether to purchase a condo using funds from his brokerage accounts or to take out a mortgage. The discussion evolves into broader financial planning: income sources in retirement, tax-efficient charitable giving, cash flow management, and estate priorities — all handled with Jill’s signature candid, supportive style.

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Key Discussion Points & Insights

1. Tony’s Financial Snapshot (04:17–07:25)

• Demographics:
  • 70 years old, single, no children, lives in Florida.
• Housing Situation:
  • Owns a primary residence outright, valued at ~$550,000. Looking to buy a less expensive condo ($425,000–$450,000) in central Florida.
• Income Streams:
  • Social Security: $3,600/month
  • Military annuity: $3,200/month
  • Federal civil service (OPM) pension: $6,500/month
  • VA waiver: $790/month
  • Investment withdrawals: ~$6,000/month
  • Total monthly income: ~ $20,000
  • Actual monthly spending: ~$6,000 (mostly on travel, especially with a nephew)
• Investments/Cash:
  • Taxable brokerage: $1,033,000
  • SEP IRA: $1,700,000
  • Vanguard IRA: $548,000
  • Roth IRA: $648,000
  • Betterment Roth: $52,000
  • Betterment brokerage: $369,000
  • Cash: $486,000

2. Should Tony Use Investments or a Mortgage to Buy? (07:38–08:12)

• Jill’s Recommendation:
  • Buy the new condo outright using cash from the brokerage account.
  • After selling the current house, replenish the brokerage account with proceeds.
  • Avoid getting a mortgage, given Tony's abundant resources and low spending.
  • “Go live in a place that you want to live and spend some money! Who cares?” — Jill (07:32)

3. Cash Flow and Required Minimum Distributions (RMDs) (08:12–09:00)

• RMD Concern:
  • With large IRA balances, Tony will face significant RMDs in the future.
• Jill’s Perspective:
  • Spending rate is low relative to income and assets.
  • “Even if your spending went from six grand to ten grand or twelve grand, it’s fine. You’re not running out of money. You just got so much income and I think you’re in great shape.” — Jill (11:28)

4. Charitable Giving & Tax Strategies (09:08–11:14)

• Qualified Charitable Distributions (QCDs):
  • Jill introduces the idea of Tony using QCDs from his IRA (up to $111,000/year) to make tax-efficient donations.
  • “You don’t get a charitable deduction, but you don’t get taxed on that money either.” — Jill (09:58)
  • Must go directly from IRA to charity.
• Estate Planning:
  • Tony’s nephew is the main beneficiary, but he also has other nephews and does some charitable giving.

5. Lifestyle and Housing Flexibility (11:50–13:17)

• Jill encourages Tony to focus on where he feels happiest and to be flexible (including possibly renting for a year to try out a new area).
• “You could rent for a year wherever you want to be. You can try it out. … Be in the place you want to be. Do not, don’t, don’t kind of hesitate, you have so much money, you’re in such good shape.” — Jill (12:43)

6. Family, Legacy, and Emotional Well-being (08:41, 11:50)

• Tony’s generosity with his nephew is noted as a highlight of his retirement spending.
  • “You're just like, being the best uncle ever, pretty much.” — Jill (06:11)
• Jill jokes about wanting to be Tony’s niece, bringing warmth and humor to the discussion.

7. Final Thoughts and Encouragement (13:27–13:30)

• Jill checks: Estate documents are up to date.
• She invites listeners with similar questions to contact the show.

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Memorable Quotes & Moments

• On spending confidently:
  • “Why are you going to spend less money? Go live in a place that you want to live and spend some money! Who cares?” — Jill (07:32)
• On relative wealth:
  • “Mark, it’s hard to believe this guy’s single, but maybe he wants to be. This nephew is lucky.” — Jill (06:59)
• On being financially secure:
  • “Don’t even… Do not live in a place where you are unhappy.” — Jill (11:35)
• On charitable giving strategy:
  • “You could take up to $111,000 this year from the IRA… the money would go directly from the IRA to the charity.” — Jill (09:48)
• On rental flexibility:
  • “Don’t be afraid of that. You’re in great shape.” — Jill (13:20)

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Important Timestamps

• 03:21 – Tony joins the show and states his goals/questions
• 04:28–07:25 – Deep dive into Tony’s income, assets, and lifestyle
• 07:38–08:12 – Jill’s home-buying recommendation
• 09:08–11:14 – QCD and charitable giving guidance
• 12:15–13:27 – Flexibility in housing and aging considerations
• 13:27–13:30 – Estate planning and wrap-up

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Takeaways for Listeners

• It’s okay to spend and enjoy your wealth in retirement, especially when your resources far outpace your needs.
• When selling and buying real estate in retirement, consider liquidity, lifestyle, and simplicity—sometimes paying cash and avoiding debt is best.
• For charitably inclined retirees with large pre-tax IRA balances, QCDs can be a smart, tax-efficient way to give.
• Reassess your living situation as your needs and desires change, and don’t hesitate to rent temporarily to find the perfect fit.
• Keep estate documents updated and think beyond finances—well-being and where you spend your golden years matter.

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For more, or to submit your own question, visit jillonmoney.com.

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Transcript

[A]

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[B]

Hi.

[A]

How you doing?

[B]

Fine, thank you.

[A]

What's going on? How can we help you out?

[B]

Well, I moved here years ago by work reasons. Better pay, you know, better. Less stress. And then I got retired and the pandemic got me here. So I would like to move to a more stimulating place that aligns better with my life philosophy. Oh, I'm a question. Yeah, that's kind of.

[A]

It's fun.

[B]

Yeah. So my options are if it would be wise to cash out some money in one of my brokerage accounts to buy a condo where I like to move or get a mortgage, then put my current home for sale, and they pay off my mortgage.

[A]

Aha. Okay. But you definitely want to sell what you own, right?

[B]

Yes.

[A]

Okay, so, Toni, let's start with a few essential facts. How old are you, Toni?

[B]

I am 70.

[A]

And are you married, single, partnered?

[B]

I am single.

[A]

Okay. Kids or no kids?

[B]

No kids.

[A]

Okay. The house that you own, how much is that worth?

[B]

About $550,000.

[A]

And there's a mortgage on it, right?

[B]

No.

[A]

Oh, there's no mortgage. Okay, so there's no mortgage on that. Would you want to spend about the same amount wherever you move or more or less?

[B]

It will be less.

[A]

Okay. How much do you think it would be? Just a guess.

[B]

Around 425. 450.

[A]

All right. Not that much.

[B]

Less? Yeah.

[A]

Okay. Right now, how do you support yourself, Tony? Are you receiving Social Security?

[B]

Yes.

[A]

How much is that?

[B]

That is 600.

[A]

Are you also entitled to a pension?

[B]

Yes.

[A]

How much is that?

[B]

I have two. One is a military annuity, 3200. And the second one is federal civil service and OPM for 6500.

[A]

Wait a minute. Hold on a second. That's a lot of income. Social Security is 3,600. One pension is 3,200. And then there's 6,500 on top of that.

[B]

Yes. And I also have what is called a VA waiver. I was in the military. That's $790. And I am taking out some money from my investments because I think it's time to start spending.

[A]

Yes.

[B]

And I travel quite frequently with my nephew. I'm getting about six grand from that.

[A]

From my investment a month?

[B]

Yes.

[A]

Okay, that's. You have a lot of cash flow, so 3,600, 3,200, 6,500, $790, and then another 6,000 on top of that, right?

[B]

Yes.

[A]

Okay. And are you actually spending all of that or, like, what's happening with all that?

[B]

I travel frequently, and then I spend more when I travel with my nephew.

[A]

Okay. You're just like, being the best uncle ever, pretty much.

[B]

It's a great kit.

[A]

Oh, that's so nice. That's amazing. So right now you got income of around 20 grand a month?

[B]

That's correct.

[A]

Okay, got it. Now let's talk about the actual portfolio, not just the income where you're taking six grand a month. You said it's from a brokerage account, right?

[B]

Yes.

[A]

How much is in there?

[B]

I get four accounts there when it's a brokerage for 1,033,000. I got a SEP IRA 1.7 million.

[A]

Oh, my God. Okay.

[B]

I got a Vanguard Traditional IRA, IRA 548,000. And I got also a Roth with them for 648,000.

[A]

Mark, it's hard to believe this guy's single, but maybe he wants to be. This nephew is lucky. Oh, yeah, I'll say.

[B]

There's more.

[A]

Okay, wait there, Mark. But wait, there's more. Tell us more.

[B]

I got a betterment Roth for 52,000. I got a better man brokerage for 369. I have about $486,000 in cash also.

[A]

Oh, my God. I mean, okay, you could seriously upgrade your. Your home if you want. Yeah. Like, what are we talking about here? Why are you going to spend less money, Go live in a place that you want to live and spend some money? Who cares?

[B]

Yeah.

[A]

Okay, so you want to know about. I know it's funny you called in about real estate. You know, you have no problems. I would say let's just pretend that we're doing 550 to 550. Right. Okay, so you can wait to sell your house. You should use the cash in the brokerage account to just buy your new home outright. Do not get a mortgage when you sell the house. Just replenish what you spent and go from there. I mean, it's not a big deal one way or the other. I mean, listen, you're gonna have a heck of a required minimum distribution.

[B]

Yes.

[A]

Mark, what are we gonna do about all this money that hasn't been taxed yet?

[B]

I think.

[A]

Tony, do you have, like. Is there some great fear of spending your money? No, no, he just has a lot of it. He doesn't have. You don't have a lot of expenses. What do you spend a month? He says you're spending. You have 20 grand a month coming in. What are you spending?

[B]

I spend about six grand a month.

[A]

Six or 16?

[B]

No, six.

[A]

Well, I mean, this is unbelievable.

[B]

The reason I get that much cash is because of that. The. The excess cash I'm getting.

[A]

I mean, is your nephew going to be the beneficiary of all these accounts?

[B]

Yeah.

[A]

How much. How's your nephew's financial situation?

[B]

He's. He's. He's okay.

[A]

Yeah.

[B]

He's making about 110. $110,000. Okay.

[A]

And he's doing a good job.

[B]

Okay. He's doing okay.

[A]

Okay. Are you at all charitably inclined?

[B]

I. I do, yeah.

[A]

Okay. Are you familiar with what's called a qcd, A qualified charitable distribution?

[B]

No.

[A]

Okay, so one thing that you could do if you are charitable, you can use that IRA, that $548,000 IRA account. You can, if you would like, take up to. I don't know what it is. It's probably about $110,000. Mark, can you look this up for me? It's 105,000 or 110,000. What the QCD level is this year. You can take money from that retirement account and grant it directly to a charity. 111. 111. Not bad. Okay, so what that means is you could take up to $111,000 this year from the IRA. You don't have to. I'm just saying this is up to. It could be a bunch of different qualified charities, and the money would go directly from the IRA to the charity. Now, why would you do this? You would do this because, first of all, all the charitable rules have changed a little bit. And so giving charitably, while still very helpful, it's not quite as good a deal as it once was. And for you, you have all this money that hasn't been taxed yet. And the nice thing would be, is if you could take that money, and I don't know how much you give away on an annual basis, but even if you say, I give 20 or 30 grand a year away. You could take the money from the ira, send it directly to the charity. You don't get a charitable deduction, but you don't get taxed on that money either. And that's gotcha. I would definitely look into that. So that's a qcd, a quote. Qualified charitable distribution has to go directly. Right. They're trying to change the law. I don't know if you saw that, Mark, but it has to go directly from the IRA to the charity. And I think this would be a great idea for you. I mean, in terms of the buying the new real estate and want to be. And you want to move to a place where you feel a little bit more like I'm in a place where I want to be. I don't look back. You got plenty of money. I would not even think twice. You're one of the few people who can do this and not worry about, like, how you're going to do it. Like, you have the money. You have brokerage account money. Buy the new place, sell the old place, replenish into the brokerage account, move on. Don't even. And don't be. Don't. Do not live in a place where you are unhappy. I mean, even if your spending went from six grand to ten grand or twelve grand, it's fine. You're not running out of money. I mean, you just got so much income, and I think you're in great shape. Do you only have one nephew?

[B]

I get more nephews, but that's the one that I. We are always kind of traveling together and talk about.

[A]

I feel bad for those other nephews. They're getting shut up. They're getting shut.

[B]

Well, they will get something.

[A]

All right, Tony, Tony, do you want to say where are you going from Florida to where? Like, where are you thinking of going? Come to New York. Come spend your money in New York. We'd love to have you.

[B]

I'm thinking moving to a different part of Florida. Central Florida. Orlando. Okay.

[A]

Oh, okay.

[B]

I got friends and family there.

[A]

Well, I mean, I think that that's. I think once you start to age a little bit, you're like, where do I want to be? You want to be around the people and the place where you're going to be able to age and have more access and all these things are great. And by the way, Tony, if it's like, let's just pretend you find. Maybe you find a place, you're like, oh, I found this great place, different part of Florida. I'M psyched, but it's not available yet. You could rent for a year and it wouldn't kill you. You could rent for a year wherever you want to be. You can try it out. You can try out a different neighborhood, and during that year, you can figure it out. You'll sell the old place. Like, if you don't worry about throwing your money away because, you know, I hate that thinking. Do think about, like, be in the place you want to be. Do not, don't, don't kind of hesitate that you have so much money, you're in such good shape. You can wait. You can be patient. You can rent for a year. You can rent for a couple of years till you figure out where you want to be. So don't be afraid of that. You're in great shape. You're in great shape. Tony from Florida. I want to be your niece. I can't. Maybe your little sister. I could do that.

[B]

Okay.

[A]

You have all of your estate docs done?

[B]

Yes.

[A]

Great. Okay. Let us know when you're ready to pull the trigger. I'm excited. Hey, are you like Tony? Are you unsatisfied with where you are? You want to move someplace else? You want to figure out what to do next? You got a quick question, you got a longer question? Get in touch with us. Go to jillonmoney.com, click the contact us button, write us a note. And if you want to join us live, just check the box. And, of course, don't forget, all of our content lives on the website, so you can check it out there. Don't forget, you can subscribe to us on the Odyssey app or wherever you find your favorite podcast. And while you do that, do subscribe to our sister broadcast called Money Moves. All right, gang, you know the mantra. Lift someone up. Change your work, change your wealth, change your life. Thank you for listening. We'll talk to you tomorrow. This is the sound of captivity. This is the sound of rescue. And this is the sound of freedom. Give Armenia's captive bears a second chance by supporting International Animal Rescue. Call 508-826-1083 or search the Great Bear Rescue to learn more. Hey, there. It's Jill Schlesinger. I'm launching a new show. It's called Money Moves, and your money is going to move. We're going to help you make better financial decisions. We're going to call out the B.S. you're finding all over social media. We're going to give you actionable guidance to make your financial life clearer, less stressful. We're going to answer your financial question questions and take the mystery out of your financial life. Follow and listen to Money Moves with Jill Schlesinger wherever you get your podcasts.