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A
Running a business is hard enough, so why make it harder with a dozen different apps that don't talk to each other? One for sales, another for inventory, a separate one for accounting. Before you know it, you're drowning in software instead of growing your business. That's where Odoo comes in. It's an all in one fully integrated platform that handles everything. CRM, accounting, inventory, E commerce, HR and more. No more app overload, no more juggling logins. Just one seamless system that makes work easier. And the best part, Odoo replaces multiple expensive platforms for a fraction of the cost. It's built to grow with your business, whether you're just starting out or already scaling up. Plus, it's easy to use, customizable and designed to streamline every process so you can focus on what really matters running your business. Thousands of businesses have already made the switch. Why not you try Odoo for free today@odoo.com that's o d o o dot com.
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B
You know, when Mark and I first started this podcast, we had no idea how many hats we would be wearing. Host, Producer, Editor, Social Media Manager. It was exciting, but also intimidating. We really wish that we had had a built in business partner from day one. A partner like Shopify. It's the commerce platform behind of businesses worldwide and powers 10% of all E commerce in the US you can build a beautiful online store with hundreds of ready to use templates that match your brand's style and their AI tools, help write product descriptions, create headlines, even enhance your product photos. Plus you can run email and social campaigns and manage inventory, payments and analytics all in one place. Start your business today with the industry's best best business partner, Shopify and start hearing. Sign up for your $1 per month trial today at shopify.com jillonmoney go to shopify.com jillonmoney that's shopify.com jillonmoney. Welcome to the Jill on Money show. It's Wednesday, March 4th and we are here trying to answer your financial question questions. If you've got one, all you need to do is go to our website, jillonmoney.com and when you're there, in the upper right hand corner, wherever you are navigating on that website, you will see a contact us button. When you click on that button, a form pops up. That's the email that we receive. If you're shy and you don't think you want to come on the program, give us a lot of details. And again, please don't forget about the whole what do I spend every month? That's our big one that we always say, oh, follow up with how much money you're spending and give us any other details, like, good, good highlights, good color commentary. If you do want to join us on the program, check the box. Mark will do everything else. He'll bring you on the air live with us. We love talking to you live. Why? Because then I get to ask you more nosy questions. And sometimes you'll notice that some of the big questions that we are tackling have to do with the emotions that are underneath the actual financial question that you are posing to us. So that's why we like having you on the air. And if you are shy, don't worry. You can change your name, you can change will protect you. But if you are shy, yes, we do emails. And today is an email show. So this is from Jill, not me, Jill, another Jill subject. Prenups thoughts. Okay, Jill writes, my daughter is in her early 30s. She recently got engaged. She's been working in a lucrative field, no debt, lives and works in California. She's got reasonable rent. She lives pretty cheap. And she's been able to save what I would consider a good amount of money. She maxes out her 401k. She's got $200,000 in brokerage and bank accounts. Her fiance is about the same age. He doesn't appear to have the same money saved. He's frugal. His career is not lucrative. Should I ask her to consider a prenup before getting married? Well, I think that what you can do is try to encourage her to make sure she's having conversations with her fiance about money and how they manage it and then have a real conversation about maybe what they should be doing is just keep their money separate. Because a lot of the law around matrimony is simply about commingling assets. So I think that if you want to not have an actual prenup, this may not be enough money to really do that, but to at least have a conversation, it can address it. And if you don't commingle assets and something goes south, then maybe you can have that. You'll have that money separate. On the other hand, I do understand that a lot of the younger generation, Mark, I'm sure you've read this also, they are very much more into prenups. If you look at a lot of the data on who's actually creating prenups and postnups, which is like you're already married and you want to have some sort of agreement. If things go south, they may be open to it. So just make sure that she has that conversation. I think that's more important than anything else. All right, next up, we've got a question from Stephanie. Greetings, Jill and Mark. I'm hoping to call it a career in two years, if possible. I'm 61, wife is 59. I've been in healthcare for my entire life. I'm hoping to turn the page within the next 24 months. Here is our current financial situation. Holy smokes. Stephanie's gross pay, 450 grand. Wow. I haven't always made this much money. It's only been for a few years. My wife runs the household. I will be entitled to a small pension when I turn 65. $600 a month. Social Security at age 67 will be 4,000. At 70, it's over 5,000. And my wife's Social Security, much less. Not sure the amount. Okay, here's what I got. A 403 with $1.2 million, all pre tax. I will begin Roth contributions starting this year. My wife has an IRA, $1.6 million. Some is Roth. The rest is a stock portfolio she inherited. And those funds are managed by her, her CFP. Oh, my gosh. We own three properties, all paid off. Okay, house number one, $1.1 million. House two, $350,000. And then the third house is also $350,000. One of those two they're going to sell when she retires. Emergency fund, 50 grand. We use a lot of money to pay for that third house. And she. There's a funny little side note that she basically is like, I needed an escape hatch, someplace to hide. Okay. They are trying to save a lot of money in the next two years. Debt free. Drive older cars. We want to have a little bit more fun. They spend $6,000 a month. And we anticipate an increase in our monthly spending in the early years of retirement, not by a crazy amount. Two adult children, financially secure. My father is 92. My mother is 84. I don't think I'm going to have to take care of them financially. Okay, here's the plan. Work another two years, then work part time. Remember that she's 61. So at 63, she says, I'm going to fill in for vacations. Ideally, I'd like to retire and be done. It's been a long career in trauma intensive care for the last 18 years. Mark, you thinking about our nurses in the pit or what? I love those nurses so much. Okay, ready for the questions can I retire in two years or should I extend for another year after that? That's number one. Number two, how can I lower my tax burden from that pre tax 403. Remember, she's got a $1.2 million pre tax 403. She doesn't have a CFP. She says the plan is in the hospital's plan. That 403. Third question is, should she move her retirement fund when she retires or leave it where it is and see if they have a cfp. Okay, so let's do big picture. It sounds like she and the wife are managing money separately. But just to be clear, they've got $2.8 million saved up. There will be another 350 right when the house number two is sold. So I guess the question is, can she do this in two years, be done making that 450 grand? And then maybe she just goes a little. Like when she says part time, I'm sure it's going to be much less. I don't know how much money she would make. What do you think, Mark? Do you think that that's a possibility? I mean she'll get. I'm sort of thinking that we wait for, so I don't know, her health, but, but let's just say she gets her small pension when she turns 65. Let's say she's at 63 to maybe she does like two years of part time just to get her to Medicare and keep some health insurance. Six grand a month. I'm just looking at this. So she'll have. I think I have the game plan. Mark, do you think she's okay for her retirement in two years?
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I do. I mean really, it's just a seven year gap that we have to cover until age 70. And she wants to reduce her tax burden. Well, those are seven years to start reducing your tax burden.
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So that's what I'm thinking. Exactly. So here's what we think makes sense. So you have seven years at 63. I'm not even sure you need to work part time unless you just want to. But let's just say that's gravy. So let's say that for those 63 to 70, and again, I'm presuming you're in good health because you wouldn't claim, you wouldn't wait to claim at 70 unless you were in good health. You said you needed 6,000amonth. Let's make it $7,000 a month. Okay, let's make it that. Then let's say that you pull the money that you need over those seven years from that pre tax retirement account. That's what you'll do. And you'll say, let's just say you took 100 grand a year out of that account. Just like, you know, for fun, 100 grand a year for seven years, maybe it's even 120 grand a year. We'll make it nice. Even numbers, 10 grand a month, you'll have to pay tax on it. You do that for seven years, you claim your Social Security, you get that five grand you will have, and we haven't even talked about your wife's money. And you will also have that extra money that you have from the sale of the second home, which will be in a brokerage account. And you're good. I think that's totally, I think that's worth. That should be the game plan. I don't think you need to convert. I don't think you need to worry about that. You pull the money out of the account and you know, for all intents and purposes, even if you had to do a little bit, even a little more money over those seven years, let's presume that if they're married, filing jointly, and they've got some income from other stuff, everything gets delayed till age 70. I mean, I think that in terms of Social Security claiming, but like you could take 150 grand a year out of that and you're still in the 22% tax bracket. It'll be better than what you're doing now. So work for two years, start pulling out, you know, at least 10, maybe 12 grand a month out of your retire your pre tax retirement account, pay the tax it's due, live on the money. You'll still probably have money left at the end, you'll have your wife's money left at the end, you'll have money in a retirement account. All good. I don't know about the cfp. I'd really have to talk to you about it. Generally speaking, I would probably move the money out of the retirement fund. And if you want to hire a CFP to do this, you certainly can and maybe you should. But maybe you should talk to your wife's CFP just because they know the story already. Anyway, get back in touch with us if you think you've got more follow up questions. All right, get ready for this. Marcus writes, I'm 49 years old, single, an Air Force veteran. My monthly expenses are $2,500 a month. I currently make $53,000 annually and bring in an additional 12 grand in VA compensation. At age 65, I will receive $1,700 a month in Social Security, 700 in pension, 14amonth in VA comp. All this money, my God. Would it be a smart financial decision to retire at age 62 or just wait till 65? I don't have kids, family that will need my assistance. I enjoy your show. Thanks for the help. Okay. Marcus is 49, got a lot of money, will have plenty of income. I think, Marcus, the answer to this question is it's not financial. I think that obviously you'll have healthcare because you're an Air Force veteran, which is what most people. The reason why most people delay retirement till 65 is for health benefits. You should do whatever you want to do. That's what I think. And I don't think it's a financial decision. It's about what you want to do. Okay. Tracy needs guidance on pension options. Okay. Tracy says I'll be 70 years old in July. Single, no kids. Boy, we have a lot of singletons today. Retired in 2022. Monthly expenses about. Let's call it six grand a month, which includes 12 years left of a mortgage. Since retiring, I've been living off Social Security, which I began taking in at the end of 2022. And the Social Security payment? 3750, 55 grand in an online savings account. I have a will way back when in December, I rolled over my pre tax retirement account into an ira. It's about a million dollars. And there's a roth account with 90 grand. Okay, so here are the pension options. Okay. There's a basic plan, has a choice to be made, and an annuity that increases 1% every month until I take it. And it's available. Nine grand a month. Oh, my God. This guy's gonna. Or girl? I don't know if it's a girl or a guy. You get an annuity payment and a monthly payment. Or you can get a lump sum with a lower annuity. You know, the lump sum is like between 5 and $600,000. But let me listen to this. Some days. This is what Tracy says. Some days I feel as though I should just take the basic annuity. I need assistance running the numbers as to what my best option could be. Would it be best to roll over both lump sums into the Fidelity account? The basic plan, rolling over the lump sum, taking lesser annuity, plus my Social Security would cover my monthly expenses. I look forward to your thoughtful and insightful guidance. Love your show. So, Mark, I have an Idea what I would do. Okay, remember this is somebody who is single and you know, kind of it's 70 years old. I think there's like the monthly expenses would be covered almost either way with this choice, right? So either if you have a lesser annuity amount of 4,500 plus the Social Security basically covers completely. So the question is, how much will it give you peace of mind to have that nine grand a month just come in? How much will it bug you if you drop dead three days after you receive it, that nobody else is going to get that money? Because there's the funny thing with an annuity, it's usually based on just your life, right? A straight line annuity. And because you're not married and you don't have kids, no one else will get it. But maybe you don't care. So if you don't really care and you want to make your life easy, you can take that annuity amount. If you'd say like, like to have some of the annuity income and some of that peace of mind, but you can take the another chunk of money and half a million and pop it right into your retirement account with fidelity, then that's fine too. I guess it really depends on like how you feel. If something were to happen to you and you died suddenly after receiving an annuity, that whatever that annuity amount was would just go away. As opposed to having a chunky lump sum that gets put into an account that somebody or even a charity would inherit. So, Mark, which way are you leaning?
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C
Yeah, I mean, without knowing more info, I like the idea of just getting that straight annuity, 9,000amonth, knowing all my needs are covered right then and there. And you know, there's still a Social Security, there's still a million dollars in the rollover. But you know, if, if there's a real, you know, if there's a favorite niece or nephew or something, then, you know, I can be convinced otherwise.
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B
Yeah, I, I could go. I agree. I, I could totally see either way. So it's like, oh, I want to like have. I. I just don't want to think anymore. I, I really am interested because one of the things that I think this one sentence is really important, important to listen to. Some days I feel as though I should take the basic plan annuity because I think you want that peace of mind, but get back in touch with us. And I think you're not going to go wrong either way. This is from Rich Subject. This is important. Jill and Mark, you have to keep watching season two of hijack. It has gotten so good. Keep the faith and keep watching. You're welcome. Lol.
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Rich.
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I did keep watching.
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I did too. Me too.
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B
And do you agree with Rich?
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Yeah, it's definitely gotten better. I'm not done, actually. No, that it only comes out weekly because it's on Apple tv, so you can't sit there and binge it. But I'm up to date. Yeah, it's gotten much better. I'm hooked.
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B
Yeah. I mean, listen, I. I am. I'm in. He's amazing. So let's just be clear that he is so good. And I'm very. I'm always happy to watch him, you know, essentially read a telephone book. So that's good. It's not as good as the first season. It's gotten a little convoluted still, but I'm caught up as well. Also, paradise coming back on Hulu. Are you watching that? You do watch that.
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C
I don't know that I know. We are watching Shrinking.
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B
We're a big fan of that's so good. All right, gang, if you've got streaming requests and suggestions for us, then please let us know. And you can do that at Jill on money.com and clicking the contact us button. You can also use that exact same button to actually just ask us a financial question. We'd love to hear from you. You can subscribe to us on the Odyssey app or wherever you find your favorite podcast. Please leave us a rating and review. Wherever you listen. Put your hands metaphorically on someone's back. Come on. Someone needs a little bit of a hug. Someone needs a pat on the back. Maybe you do it for real. Always ask permission, gang. I'm a hugger. I always ask people. You okay with with me giving you a hug? It's kind of smart to do. Change your work, change your wealth, change your life. Thanks for listening. We'll talk to you tomorrow. Hey, gang. I just made a first time ever purchase on behalf of the pod. I was so psyched because Mark and I don't do a lot of promotional materials, but I was able to create a branded sweatshirt. Yep, a Jill on Money branded sweatshirt with Vistaprint. Now, I'm not usually good at these things, but Vistaprint made it simple to bring this idea like, oh, wouldn't it be cool if Mark and I could create some sweatshirts that we'll try out and maybe the listeners would want to get them as well. They've got these great design tools. They have fast shipping, human support. If you need a little guidance along the way because the sweatshirts were so easy to execute. Now I'm thinking about doing some other stuff. Maybe there's some baseball caps or, I don't know, other fun stuff that you guys would want. You'll let us know. There's a reason that over a million people trust Vistaprint for their small business print needs. Vistaprint print your possible right now, new customers get 20% off with code new20@vistaprint.com.