How Far Behind Am I?

Summary

Jill on Money with Jill Schlesinger: Episode Summary – "How Far Behind Am I?"

Release Date: July 21, 2025
Host: Jill Schlesinger, CFP®
Platform: Audacy

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Introduction and Episode Theme

In the episode titled "How Far Behind Am I?", Jill Schlesinger delves into personalized financial planning, challenging conventional rule-of-thumb methods and emphasizing the importance of tailored financial strategies. The episode centers around a listener's concerns about retirement readiness and navigating financial uncertainties.

Jill’s Perspective on Financial Independence 2025

Jill opens the discussion by referencing her blog post, "Financial Independence 2025," where she critiques generic financial benchmarks like the often-cited need for a million-dollar nest egg or saving ten times one's income. She advocates for customized solutions that consider individual circumstances rather than relying on broad-based rules.

"I doesn't take into account a lot of other things or 25 times your annual expenses. There are so many calculators that are out there that can create more customized solutions."
– Jill Schlesinger [02:00]

Jill encourages listeners to seek personalized financial advice to better understand their unique financial landscapes and make informed decisions.

Listener Call-In: Ann from Texas

Ann, a 51-year-old single professional from Texas, joins the show to discuss her financial concerns. She expresses feeling “behind on retirement” despite having accumulated savings, and shares her frustration with a previous Certified Financial Planner (CFP) who was unresponsive.

"I just feel really behind on retirement, even though I just kind of pulled away from a CFP that was kind of unresponsive."
– Ann [03:13]

Ann’s Financial Situation

Ann provides a comprehensive overview of her financial status:

• Income:
  • Base Salary: $140,000
  • Total Earnings Last Year: $150,000 – $155,000 (including bonuses and profit sharing)
• Retirement Savings:
  • 401(k): $104,000 (Traditional)
  • Rollover to Fidelity: $136,000
  • Roth IRA: $25,000
• Other Savings:
  • Traditional Account: $2,300
  • HSA: $1,100
  • Emergency Fund: $32,000
  • Brokerage Account: ~$9,000
• Monthly Expenses:
  • Rent: $2,100 (Renting a beloved apartment)
  • Other Expenses: Approximately $3,900
• Additional Financial Activities:
  • Saving $250/month into brokerage
  • Saving $250/month into savings

Ann highlights that she began seriously saving in her 40s after making less progress in her 20s and 30s due to less disciplined financial behavior.

Advice and Discussion

Jill and her co-host Mark dissect Ann’s financial scenario, offering strategic advice to alleviate her concerns about being behind on retirement:

1. Maximizing Roth Contributions:

   • Jill suggests shifting more savings into a Roth 401(k) to capitalize on tax-free growth, considering Ann is in a 24% tax bracket.
   • Mark agrees, recommending a gradual increase in Roth contributions to assess financial comfort before committing fully.

   "Maybe do, you know, like 12% Roth, 8% pre tax. See if you can change that up and then see how you feel."
   – Mark [09:18]

2. Emergency Funds and Brokerage Investments:

   • With a robust emergency fund of $32,000, Jill advises that sizeable bonuses should be directed primarily into the brokerage account to enhance investment growth rather than adding to the already sufficient savings buffer.

   "If you have a big bonus, I think I would probably put it in the brokerage."
   – Jill Schlesinger [17:26]

3. Beneficiary Designations and Estate Planning:

   • Jill underscores the importance of updating beneficiary designations to prevent unintended inheritance by Ann’s brother, especially since her mother is young at 72.
   • She recommends clarifying her wishes through will creation to ensure that assets are distributed according to her preferences, potentially favoring her niece over her brother.

   "If you don't have a will he go and get some money. So you want to prevent that and he's maybe not so great with money."
   – Jill Schlesinger [16:25]

4. Consideration of Relocation:

   • Discussing the possibility of moving closer to her mother, Ann is advised to weigh the cost of living against her income and job opportunities.
   • Jill emphasizes that relocation should be driven by personal preference and quality of life rather than solely by financial incentives.

   "I wouldn't move to a place just because, oh, there's a lower tax rate. I would move to a place because I want to be there."
   – Jill Schlesinger [14:10]

5. Mental Reassurance and Financial Confidence:

   • Jill reinforces that Ann is “not as behind as she feels” due to her consistent savings and strategic investments.
   • She encourages a positive mindset, reminding listeners that being satisfied with their financial position is crucial.

   "I would like to differ. I'd like to remind everybody who listens to this program that there are some people who have a ton of money. ... We want to tilt a little bit more towards Roth... you're doing what you should be doing."
   – Jill Schlesinger [12:44]

Conclusion and Key Takeaways

In wrapping up the episode, Jill reiterates the importance of personalized financial planning over generic rules. Key takeaways include:

• Customized Financial Strategies: Use personalized calculators and professional advice to tailor financial plans to individual circumstances.
• Maximize Retirement Contributions: Optimize retirement accounts by balancing traditional and Roth contributions based on tax situations.
• Estate Planning: Ensure beneficiary designations align with personal wishes and establish a will to control asset distribution.
• Strategic Savings Allocation: Direct bonuses and additional income into investment accounts to foster long-term growth.
• Positive Financial Mindset: Recognize and celebrate financial progress to maintain motivation and reduce undue stress.

Jill invites listeners to connect for personalized advice through her website, jillonmoney.com, and encourages engagement via phone calls or live participation on the show.

"Change your work, change your wealth, change your life."
– Jill Schlesinger [18:40]

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Notable Quotes:

1. "I doesn't take into account a lot of other things or 25 times your annual expenses."
   – Jill Schlesinger [02:00]

2. "I just feel really behind on retirement."
   – Ann [03:13]

3. "You are now saving money. You have found religion, if you will. You're doing it."
   – Jill Schlesinger [10:44]

4. "You're in good shape now because you're single."
   – Jill Schlesinger [12:44]

5. "I'm doing what you should be doing."
   – Jill Schlesinger [12:44]

Resources Mentioned:

• Website: jillonmoney.com
• Podcast: Money Watch
• Newsletter: Free weekly subscription available on the website
• Contact: "Contact Us" button on the website for live participation or personalized advice

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This episode of Jill on Money serves as a valuable resource for individuals feeling uncertain about their financial standing, offering both reassurance and actionable strategies to enhance their financial well-being.

Transcript

[Jill Schlesinger]

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[Jill Schlesinger]

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[Ann]

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[Jill Schlesinger]

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[Ann]

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[Jill Schlesinger]

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[Jill Schlesinger]

Welcome to the Jill on Money show. It's Monday, July 21st and we are here trying to help you make better financial decisions. And you know, that depends on what's going on in your financial life. And you know, recently I wrote a blog post for the jillonmoney.com website, but also I talked about it on the radio and I Talked about on TV which is basically entitled Financial Independence 2025. The thing that always drives me crazy is that like sometimes when you hear like oh, I need a million dollars and everyone knows that that's just silly. Why would everybody need a million dollars? And then there is some rule of thumb like you need 10 times your income. Well, like really do. I doesn't take into account a lot of other things or 25 times your annual expenses. There are so many calculators that are out there that can create more customized solutions. I don't know why we're really falling back on these weird rules of thumb. Now. If you have a desire to really understand what is going on in your financial life and how different decisions could impact your financial life, you should get in touch with us. You shouldn't have to rely on rules of thumb. Just go to jillonmoney.com and in the upper right hand corner there is a contact us button. And when you get that Contact us button, guess what? It's fabulous. You click it, a form pops up. That's the email we receive. And if you are so inclined, you can check the box and say you want to come on the air with us live. That is what Ann did. Ann joins us from Texas. Hello, Ann. How are you?

[Ann]

I'm good.

[Jill Schlesinger]

How are y' all doing? Wonderfully well. I love the accent. I mean, by the way, doesn't it drive you crazy if someone, like, has lived in, say, the south or Texas for five minutes and then all of a sudden they're like New Yorkers and they say, y'?

[Ann]

All.

[Jill Schlesinger]

It just drives me nuts, you know, don't go to London for five minutes and then have a British accent. Don't go to Texas for five minutes and have a Southern accent. Just be yourself. Okay. And it sounds like you come by it naturally. What is going on and how can we help you out?

[Ann]

Well, obviously, like, I just feel really behind on retirement, even though I just kind of pulled away from a CFP that was kind of unresponsive. And so I just want to double check. She said that I would be fine once if I stay on the current track, but it just has me stressed out knowing that I may have to help my mother. And then also, like, she has me in a ton of investments, and I just don't even know, like, I just rolled them over to Fidelity, and I just want to make sure, like, what my next step should be.

[Jill Schlesinger]

Note to all of the financial professionals who listen to this show, and we have a bunch. Non responsiveness. Not a great way to keep your clients.

[Ann]

No, really? No.

[Jill Schlesinger]

Like, you can almost make a bad mistake as long as you own it and you're in touch with people. When you're non responsive, I don't like that at all. So I think probably a good decision. So, Leon, tell us a little bit about yourself. How old are you?

[Ann]

I'm 51.

[Jill Schlesinger]

And are you married, single, partnered, anything?

[Ann]

Oh, no. Never married. No children? No.

[Jill Schlesinger]

Oh, okay. But you said you have a parent who's still alive.

[Ann]

Yes, my mother is still alive.

[Jill Schlesinger]

How old is mom?

[Ann]

Oh, gosh. She's 72.

[Jill Schlesinger]

Okay, so she's young and doing okay, right?

[Ann]

Yeah, for the most part, yeah.

[Jill Schlesinger]

Do you help her now financially?

[Ann]

Just a little bit with, like, things here or there. But she always insists on paying me back, which I don't expect that. So, you know, But I've had to help her with that, like, some major house stuff.

[Jill Schlesinger]

Right. So she doesn't have some big pot of money that is sitting there. Okay. All right. Now, the fact that you have never been married and have no kids may also indicate to me that you've saved a bunch of money. So tell us now that you have moved and you're working full time?

[Ann]

Yes, I am.

[Jill Schlesinger]

How much do you earn?

[Ann]

I think my base is like one. I think it's like 140.

[Jill Schlesinger]

Okay. And you're entitled to bonus. Are you commission based?

[Ann]

I'm. I get bonuses quarterly. And then we usually do like a profit sharing. So I think last year I ended up making like 150, 155.

[Jill Schlesinger]

Okay. And do you have a retirement plan through work?

[Ann]

Yeah, we just started it like three years ago, which is really. Yeah. What is happening?

[Jill Schlesinger]

Is it a 401k or a profit?

[Ann]

Yes.

[Jill Schlesinger]

Okay, it's a 401k. And you're putting money in?

[Ann]

Right now I'm doing 10% Roth and 10% pre tax.

[Jill Schlesinger]

Okay. How have you been saving prior to that 401k starting a few years ago?

[Ann]

Well, not much. I mean, I had a former 401k. So I've been with this company for a little over 10 years. So I was doing like some trying, but I also, like, I did a lot of stupid things and with money in my 20s and 30s, and then like really buckled down in my 40s. And also when I started working, I worked it. I like made no money. I worked in sports and so.

[Jill Schlesinger]

What do you mean?

[Ann]

You.

[Jill Schlesinger]

Wait a minute, hold on. You just got our attention. First of all, let's just rename this that. You know, Ann had a lot of fun in her 20s and 30s. And then. Yeah, let's stop having fun. Did you. Were you an athlete? Did you participate in the sports?

[Ann]

No, I worked in the athletic department, so I did like media relations.

[Jill Schlesinger]

Okay. By the way, Mark, just a little aside, you know, it's been very hot in New York this month. And I was driving, I was going down Broadway and I saw a woman doing a stand up, which, you know what that is, right? Standing in front of an area about to do some broadcast, literally flat ironing her hair on the street, which was amazing. One of the greatest things I've seen in a long time. All right, so you saved a bunch of money starting in your 40s. So what is it that you have in saving so far? Like, what did you roll over in that Fidelity account?

[Ann]

Okay, so I have about 136,000 in a rollover.

[Jill Schlesinger]

Okay.

[Ann]

I have about 2,300 in a traditional.

[Jill Schlesinger]

Okay.

[Ann]

And then I have about 24, 25,000 in a Roth.

[Jill Schlesinger]

Okay, that's great.

[Ann]

And then I have about 1100 in a HSA.

[Jill Schlesinger]

This is all good. How about in a plain old boring bank account?

[Ann]

So I have about. I always keep about 5,000 in cash in my checking accounts. I just started a brokerage account last year, so it has just under 9,000 in it.

[Jill Schlesinger]

How about where you live?

[Ann]

Oh, sorry. And I also have a emergency fund of about 32,000.

[Jill Schlesinger]

Okay. So the bank plus the 5,000 plus 32,000.

[Ann]

Yeah, got it.

[Jill Schlesinger]

Okay. And you live in a house that you own or do you rent?

[Ann]

No, I rent.

[Jill Schlesinger]

How's your rent? What is the price?

[Ann]

Oh, it's like 2100amonth.

[Jill Schlesinger]

Why did you say, ugh, that sounds not so bad?

[Ann]

Well, because, I mean, I feel like it's a really nice place. It's like the first time that I've, like, lived somewhere that I, like, really love living because I've always not lived in. I mean, I've lived in okay places, but, like, I really love this apartment.

[Jill Schlesinger]

So I just make 150 grand a year. Why shouldn't you live? Nice place.

[Ann]

Yeah, no, I love it. Yeah, but. I know, but I'm like, oh, God, that rent is so expensive.

[Jill Schlesinger]

But yeah, I think relative to the amount of money you earn, that's not bad. So right now, as you were, you know, you had like, whatever a dozen years ago, you're like, oh, I had so much fun. But now I have to get serious. You started putting money away, now you're putting 20% of your salary away. 10% Roth, 10% pre tax. Right?

[Ann]

Yeah, yeah.

[Jill Schlesinger]

And is there any other money that you are putting away on an ongoing basis into either the brokerage, the bank, anywhere else that you're putting money away just proactively?

[Ann]

So I'm doing 250amonth into the brokerage.

[Jill Schlesinger]

Okay.

[Ann]

And 250amonth into savings.

[Jill Schlesinger]

Okay, great. You are doing what you should be doing. You're saving money. Right now, I think the one question that I would have, since you do live in Texas, I'm wondering if maybe you should just do all roth for your 401k. It will hurt a little bit just in terms of when you do your taxes next, but I think you're going to be better off. Mark, don't you think that Ann would be. She's, you know, she's in a 24% bracket no matter what. Right. And at the highest. That's the highest. But Mark, do you think that you would do Roth also? Well, I mean, 100%, obviously, but I would ease into it probably just, you know, Instead of doing 10% and 10%, maybe do, you know, like 12%, 8% and see how the paycheck feels and then. And that's right. That's a great idea to just maybe like, do it for the next, you know, till the end of the year. Just say 12% Roth, 8% pre tax. See if you can change that up and then see how you feel. And then at the end of the year, you can make a different decision.

[Ann]

So I have 104 in my current 401k, which I hadn't told you these numbers. I have 104,000 traditional. And then. Well, heck, I can't really tell. The statements are really weird that this company sends out. I want it, but it's the bulk of it. It's. I have 136,000 total in that. Okay. So, yeah, that's great.

[Jill Schlesinger]

You are now saving money. You have found religion, if you will. You're doing it.

[Ann]

Yeah.

[Jill Schlesinger]

I'm going to take you off the hook. Don't worry about the rent. Do you think. Does your mom live near you right now or does she live somewhere else?

[Ann]

She lives somewhere else.

[Jill Schlesinger]

Is it possible that you would move somewhere else towards your mom or that she would move towards you? What do you think?

[Ann]

I don't know, because that's something that I'm trying to figure out where I want to go next. And the easy thing would be just to move back to my home area and then. But I don't know that I'm ready to do that.

[Jill Schlesinger]

Okay. Well, it's something to keep in mind. Do you think that the cost of living in the where your mom is is cheaper than where you are now?

[Ann]

Yeah, a little bit cheaper. Yeah.

[Jill Schlesinger]

But would you be able to get as good a job?

[Ann]

That would be the question. I've talked to a friend that's a recruiter that has said that they didn't think that would be a problem, but I'm kind of one of those jacks of all trade, master of none people. So. Yeah. So it's like, you gotta find the right fit.

[Jill Schlesinger]

If you say to me like, oh, my God, I'm behind on retirement. I don't really feel that you are. If you look back in time and you hear people like me yak around, oh, it's so good when you start early. It is. It's better. Like, had you from your very first job started putting 10% away, you'd have more money. But you know what? You didn't. Who cares? Like, really, I'm not that concerned. You're young, you're happy to work. Like that's a big deal, right? Like that you are actually happy to be able to work and you can work. And it sounds like you're in a good place. You put your money away. We'd like you to tilt a little bit more towards Roth. But for somebody, just to be clear, for somebody who has basically feels like, oh, I'm so behind you saved a bunch of money, you're in good shape, you don't have debt. Right.

[Ann]

And right.

[Jill Schlesinger]

You're so, you're, you're rocking and rolling. I wouldn't worry about this. I really do. I do really believe for most people, if you can take a deep breath and remind yourself, I am where I am, this is good. I'm doing what I should be doing. That's the message that I think is important. Do you have siblings, by the way?

[Ann]

I do. I have one brother.

[Jill Schlesinger]

Oh, boy. She don't like the brother Mark. Hear that?

[Ann]

I just feel like the boys get such a pass turns and I'm just.

[Jill Schlesinger]

Like, are you kidding me? I know. I'll never forget that with my mother in law, like, you know, my wife and her sister were doing pretty much everything and then some brother shows up, like, who hadn't showed up? Oh, he came today. You're like, oh, God, really? Come on.

[Ann]

Like, he literally lives like around like a mile or two from here too. So.

[Jill Schlesinger]

Yeah, yeah, I, I, I know that. I know that drill, baby. Okay, I am going to give you the. Please take a deep breath. Please know that you're doing what you should be doing. And I think that if you keep putting this money away, you will be on track to do the things you want to do. I mean, the fact that you've saved all this money in basically a dozen years is pretty amazing. And you'll just keep clicking away. And when you're ready to think about a different decision, like if in two years or in two months, if your friend the recruiter's like, hey, Ann, I have a great job for you. You could move back to where you grew up. You could be close to your mom. There's all this stuff, like, if you want to run numbers by us, you should do that. Because I think a lot of people are having these conversations about where is it that I want to be? I've lived in one place, I like it. I want to move someplace else. Or, you know, I always get asked this question, like, what's the best place to retire? I don't know. It depends on the person. I wouldn't move to a place just because, oh, there's a lower tax rate. I would move to a place because I want to be there. And if you find that moving back towards your mother and your, you know, bust out brother and I'm just kidding. He's probably very nice. If you want to do that, then maybe there's a way to. And maybe you don't have to make 150 grand a year. Maybe you could have a very similar Life and Make125 and it would be. Work out. Okay.

[Ann]

Yeah.

[Jill Schlesinger]

It's all about, like, what it is that's possible for you and just keep doing what you're doing. You're in good shape now because you're single. I'm just going to make sure I nude you. Do you have a will?

[Ann]

I'm sorry, I'm having a hard time deciding, like, who gets stuff. Like I'm. Yeah. I don't know why it's.

[Jill Schlesinger]

Well, let me ask you this. You've got a 401k right now and you had to ask. They asked you who's the beneficiary? Is that your brother?

[Ann]

It's my mom right now. And then the contingency is my oldest niece.

[Jill Schlesinger]

Okay, we like the oldest niece.

[Ann]

Yeah.

[Jill Schlesinger]

All right. So really doesn't like the brother. I hate him so much.

[Ann]

I don't hate him.

[Jill Schlesinger]

All right. Okay. Okay. I know he might not even be good with money, so we'll figure that out. I would just. Okay. If. If you want to do that only because your mom is young, that if you could say, like, my mom is the beneficiary of my retirement account because maybe mom doesn't have so much money. And then make the niece the. The beneficiary of some other stuff. Just make her like, get. Let her get the money. And if you wanted to, you can have like a letter that says to her, like, you got to take care of my mother, your grandma. You know what I mean? Like, you can do some different things there, but get it done. Because if you die intestate, guess where the money goes. Your brother's getting some of that money.

[Ann]

Yeah.

[Jill Schlesinger]

No matter what. If you don't have a will he go and get some money? So you want to prevent that and he's maybe not so great with money.

[Ann]

I'm fine with money. I wouldn't hate it. Wouldn't be the worst thing if he got it, but.

[Jill Schlesinger]

But it's not your preference.

[Ann]

It's not my preference. I really would like to figure out what charities to like, leave it. Actually, I would like to burn it all before I die, but.

[Jill Schlesinger]

Okay, just tell me the day you're gonna die and we can figure it Out. We'll do it. We'll go from there. I think you're in good shape. Get that done. All right.

[Ann]

Okay. Can I ask one more question?

[Jill Schlesinger]

Sure.

[Ann]

When I get, like, money from bonuses, or should I be throwing that into my savings or into my brokerage?

[Jill Schlesinger]

If you looked at your expenses right now, what are the expenses that you have? Like, you know, you told me the rent is $2,100 a month, but if you add everything up, what are you spending? Five grand a month, six grand a month?

[Ann]

I mean, probably like five grand a month. Yeah.

[Jill Schlesinger]

I mean, you've got the six months of emergency reserve. So if you have a big bonus, I think I would probably put it in the brokerage.

[Ann]

Okay.

[Jill Schlesinger]

You're. You're good. I mean, in fact, you know, if you want to build up a little bit more in the bank account, that's fine, just because maybe you would move and that will cost some money. But otherwise, I think you could start using the brokerage account.

[Ann]

Okay.

[Jill Schlesinger]

Okay.

[Ann]

Excellent.

[Jill Schlesinger]

You're free to go. Ann. I'm excited now. If you are like Ann, and you are just being mean to yourself, saying you're behind on retirement, I would like to differ. I'd like to remind everybody who listens to this program that there are some people who have a ton of money. That's them. If you want to know what's going on for you and where you stand and think about some of the decisions that you're trying to wrestle with and you want another opinion or coaching, mentoring, get in touch with us. Go to jillonmoney.com, click the contact us button. Write us that note. And if you'd like to come on the air, check the box. Mark will do everything else because he's so good. Hey, while you're on the website, check out all the content that lives there. We've got another podcast. It's called Money Watch. We've got a blog, we've got resources, and of course, the free weekly newsletter. You can subscribe to us on the Odyssey app or wherever you find your favorite podcasts. And, of course, do something nice for someone else today. Change your work, change your wealth, change your life. Thank you for listening, and we'll talk to you tomorrow.

[Chrissy]

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[Brian]

Hey there cats and kittens. It's Brian from the Commercial Break, the mediocre comedy podcast where my best friend Chrissy and I attempt to make sense of the world. We talk about the absurd, the ridiculous, and the stuff no one asked for, like Internet weirdos, pickup artists, and why everyone is obsessed with crystals and colonics. It's all gotta stop. The show is free, it's frequent, and it's probably not for everyone. You can go to tcbpodcast.com, [e-mail] the commercial break or check out the show wherever you listen to podcasts. We'll see you on the next commercial break and best of you.