Loading summary
A
Hey gang, when summertime rolls around, there's probably a lot of exciting plans. Maybe there's a big trip or you're doing something really fun. And if you're like me, sometimes this brings a heightened awareness of what you need to do to protect everyone in your life. Maybe you're wondering, if something happened unexpectedly, how would that impact my family? Well, now you can stop putting off life insurance and check it off your list with policygenius. If you it's an online marketplace where you can compare quotes from top insurers side by side for free. And their licensed team walks you through everything, coverage, pricing, all of it. So there's no guesswork. So instead of a summertime worry, it's a summertime win. You'll get that peace of mind knowing you've got the solid safety net in place. With Policygenius, you can see if you can find 20 year life insurance policy starting at just $276 a year for a million dollars in coverage. And head to policygenius.com to compare life insurance quotes from top companies and see how much you could save. That's policygenius.com Today's episode is brought to you by Alma. You know, gang, I've talked about how helpful therapy has been for me. But finding the right therapist, it's never easy. Often you just don't know where to start. And when you do look, it feels overwhelming trying to figure out who takes insurance, who who you might connect with. It's just a lot. That's why ALMA really stands out. ALMA is on a mission to simplify access to high quality, affordable mental health care. And they've built a network of over 26,000 therapists nationwide. You can browse their directory without even making an account and filter for exactly what matters to you, like insurance, specialty, background and more. And since May is Mental Health Awareness Month, it's a great time to take that that step. Clients with insurance pay $20 on average and 98% of Alma therapists accept insurance. Plus you can see your costs up front with their free estimator. Most people actually find their match on the first try and 95% connect with a therapist within a week. Over 80% of people report feeling better within six months. Get started now@helloalma.com money that's that's helloalma.com money welcome to the Jill on Money Show. It's Wednesday, May 13th, and we are here talking about your financial future. And what do I mean by that? I mean yours. That's the most important part of what we do here, we listen to what's going on in your life and then we try to help you get where you want to go. When you listen in on these conversations that we have with others, we're just talking to them. There are things that might be applicable to you and it is totally fun to be a voyeur. Believe me, Mark and I have made a career of it. But if you want specific guidance for your situation, get in touch with us. Go to jillonmoney.com in the upper right hand corner of the website there is a contact us button. Click that button and when you do that, a form will pop up. Just write whatever's going on. If you want to come on the air live, check the box. Mark will do everything else. He'll arrange to bring you on with us. While you're on the website, I encourage you to check out our subscription service. It's called Jill on Money Live. Now that is where you have access to quarterly live webinars, the back catalog of those webinars. There's bonus audio and video content. It's 45 bucks for the next 12 months. Our upcoming webinar next month, Wednesday, June 17th. Social Security Queen expert Heather Schreiber. She's amazing. And if you are going to tune into that webinar, I would love it if you could just send us your Social Security questions ahead of time. So anybody who has a Social Security question and you plan on attending the webinar or you plan on purchasing the webinar for $15 after it airs, please, please send us as many questions as you can about Social Security. Just go Jill on money.com contact us button, subject line, Social Security question. You could just go ssq. Okay, great. All right. Now let's get on with today's program. We are joined by Susan from New York. Hello, Susan. How are you?
B
I'm good. How are you? Jill?
A
We are fantastic. What can we do for you?
B
I'm reaching out to you because we are in the process of considering, you know, what our next step is in terms of our lives and retirement. And we are currently in a home that we know we can sell and NET probably about 600,000 from the equity. My investments are all pre tax in my investment accounts. So I feel sort of like a deer in headlights right now. I feel like okay to make a move and would love your advice on how to find the right financial advisor in the past and just planning for the future.
A
Amazing. First of all, Susan, deep breath. I hear the anxiety in your voice. This is now How I've become my mother. Full on. Because my mother's like, I hate texting. I can't tell how you're really feeling. Which is kind of true. Right? You're a parent. You just said that before we came on the air. So I know that, like it's true. You hear this in someone's voice. So let's talk a little bit about kind of where you stand. Susan, how old are you?
B
I'm 65.
A
And you said a we. So you have a spouse?
B
Yes, I do.
A
And how old?
B
76.
A
76. Both are retired.
B
I'm semi. I'm just in between jobs right now. I've done some freelance and I'm looking to get back into it. But with this current situation, I'd like to kind of settle this and then move forward.
A
Okay, fair enough. So what are the sources of your income right now? Are you. He's got. He's receiving Social Security, right?
B
Yes, he is.
A
And what's his Social Security benefit?
B
It's after his Medicare payments. It's 1708.
A
Okay, great. And does he receive any pension?
B
No, he does not.
A
Okay. And are you receiving Social Security benefits or have you waited?
B
No, my. My real goal is to wait quite a while.
A
So now that's all the income. You don't have any rental property or anything like that? Right. So that we just have one Social Security check coming in at 1708amonth, right?
B
Correct.
A
Okay, got it. Pre tax retirement. Tell us what's going on there. What have you saved?
B
Mine is about 1 million 300.
A
Fantastic.
B
Sorry. And his is about 188.
A
Part of the way that you are supporting yourselves is in addition to his Social Security and your part time work, he's been pulling out of his retirement account. How much has he pulled out?
B
Oh, that's a really good question. I'm not sure. At least 20 to 25,000 for last year.
A
Okay. Okay. Let's presume you never work again just so we can like run some numbers here. So in addition to the 1,300,000 and the 188,000, do you have any other savings?
B
Just a regular brokerage account. And y. That is worth about 40 to 50,000.
A
Okay. And do you have safe money somewhere, like cash accounts?
B
Not really, no. That's where.
A
Okay, that's. Everything's pretty much in the brokerage. You've got grown kids, right?
B
Yes.
A
Okay, so we're not worrying about that. Presuming you sell this house and you grab that 600 grand, we still.
B
You have to.
A
Unfortunately you have to live somewhere. So what does that look like for you?
B
We are looking at rentals for the time being. We want to go somewhere, hold our breath. Not hold her breath. Catch our breath.
A
Yes.
B
Consider what the options are.
A
Great. Would you leave New York because you're one of those people who's like, oh, I hate the cold. We just talked to somebody who's like, I hate the cold, or like, I hate the taxes, or you want to hang around New York and pay up in taxes like the rest of us.
B
Yeah, we probably will hang around here for a while.
A
Okay. If you rented, what would you have to pay in rent?
B
Oh, at least 5,000. We've. We've already been checking it out. It's probably not going to be cheaper at the beginning.
A
I understand. But you'll have the money. But you'll have. You'll have all the money. What about your other spending? So in addition to. Let's just pretend it's five grand a month, what other spending are you doing? So what do we need to really think about for your total needs?
B
Yeah, we've considered that. I would say between an additional 4 to $5,000 more.
A
Okay, so 5 grant. So we were. Look, we're targeting 10 grand a month in need. Okay. All right. Now you're in good health.
B
Yes.
A
You're planning to claim Social Security at 70? Is that what I'm hearing?
B
I'd love to wait till then. It certainly would pay for me to do that. Or 67.
A
What's the 70 number, just out of curiosity?
B
Number is 4,066amonth.
A
When you said net 600, you did include paying taxes, like, do. Have you made more than a half a million dollars in gains on this house?
B
Yeah. We've spoken to our accountant, and he feels pretty confident. We've done a lot of work on the house.
A
Great. Great. Hooray. Yeah. Yeah. I mean, it sounds like it. Right? So that's. That's wonderful. Is there any other debt besides whatever is existing on a mortgage or anything else out there?
B
Well, I'd say on both of our credit cards, we need about $100,000 to just clear the deck.
A
When you said net 600, was that clearing the deck of the credit cards?
B
Yes, actually.
A
Okay. Okay. So the credit card is 100 grand. So you're really going to net 700, but you're going to pay off the credit card as soon as you sell, right?
B
Yes.
A
Did that credit card debt come about for some particular reason?
B
It's really the situation we've been in since There isn't a lot of cash coming in. You know, most of it for me is groceries and things of that sort. It's really frivolous stuff. So.
A
Okay, right now, if you were to go back to work, what would the amount of money be that you think you could bring in? And I would say be conservative on that.
B
Yes, I agree. I would say probably about $2,000 a week, and that's because I've been doing freelance in the past.
A
2000 a week, that's awesome.
B
Yeah.
A
Holy smokes. You could bring in 100 grand a year.
B
If I get solid work, yes. That's why I really want to get back to that, because I enjoy it.
A
Okay. Even if it were 60 grand, not 100 grand, I mean, that would be. That's a game changer for you, I got to be honest with you. So I would shoot like. Like, if you could do 60 grand, you're in good shape. Okay, so we know that in the interim, before you claim. What was your. I'm sorry, I forgot to ask one other piece of information. Social Security at your age. 67.
B
What was that, 3,280amonth.
A
Oh, it's a big difference, isn't it?
B
That's why I want to wait.
A
Yeah. Especially if you. You're healthy and you've got some longevity. Right.
B
I have a mom in her 90s, so.
A
Oh, and do you have to take care of her? Do you have to. Is that something that's like, you need to.
B
No, thankfully. She was one of those moms who worked full time.
A
Okay.
B
And I mean, I help her. I take her to appointments sometimes, but sure, sure.
A
Like daughterly things. Not like, financial things.
B
Self sufficient financially, thankfully.
A
Oh, my God. Amazing. Will you inherit some money when she passes away, do you think?
B
Yes.
A
A lot or a little?
B
Several hundred thousand, I believe.
A
Okay. Okay. That's a little buffer, right? The excitement. Jill, in your voice. Oh, my God, this is a problem. I've got to tell you something. I told you, Mark, what my mother said when I was on the air, and I evidently smiled when I was talking about my father's death on the air. And my mom's like, why did you smile when you were talking about Daddy? I didn't know I did, but I may have. I just want to say, because I was thinking about this period of time when. When my sister and I were dealing with my father's illness and we were like, share. We had this Google document that, like, took over the world. Like, we had every single, like, medication, every doctor's meeting Everything. So I was smiling kind of thinking about how crazy we were about it. But it did help anyway. Okay, I digress. So several hundred thousand dollars. Okay, here is what it sounds like. You sell the house, you clear the credit card. Great, fantastic. Until you make that 60 grand again. Did you make any, did you earn any money this year?
B
This year? 20. 26 or 20.
A
Yeah. Have you? Six. Have you earned any? No. And so right now the source of your income is just his Social Security and whatever you pay from his retirement account. Right.
B
And I've started pulling a little bit from mine as well.
A
Don't pull from yours, pull from his. His is the one I'm more interested in. He's older. We know we have to get the money out. You're gonna sell this house. You probably had that nice property tax, that salt deduction. You got the 40 grand this year, so that's good for last year. Your tax bracket is going to be pretty low until you get start working again. If you said to the accountant, look, we want to take all the money out of my husband's retirement account, all of it's going to come out at the 22% bracket. The 22% bracket ends at 211. 211. 4. You take all the money out, you pay it at 22%, just get it out and then you can live on that money. That money would simply go from your husband's account into the brokerage account and he would just fill it up just to give you a nice base. Then stop pulling from your account. You, you can live on that money. And frankly if the 188, I mean because you're in New York, so you are going to pay real tax. So let's just say that, you know, you end up with 1:25. That's being overly conservative on taxes. You end up with 125. There's your 10 grand a month that you can live on. Okay, right there. Next year we're going to find out whether or not you're really working enough so that you don't have to take any money out of your account. Because if you have that, we get the money. We know his money has to come out anyway, so you might as well just get it out while you don't have a lot of income. If all of a sudden your part time income is now $60,000 and he's got his Social Security, you pull a little bit of money out of your retirement account to fund the difference, you're okay, you're fine and you don't even have to. In fact, I, I would suggest that maybe when you sell the house, we use that. I mean the only reason I would put.
B
That's one of the reasons we were thinking about.
A
Yeah, I would, I would. I mean the thing is like let's not pull from your account at all. Let's hold on off on that. I was going to say we want, we want to get money out of your account, but you know what, forget it. We have plenty of time because you're young. So let's do this. Sell the house, get the money out of his account. Just because we know it's going to come out. You put that money aside and then the, the $600,000 that comes out of the house proceeds goes into the brokerage account. Do you work with an advisor or are you managing this yourself?
B
No, we've been doing it ourselves because I was sort of burned in the past and that was one of the questions I had for you. You know, I've gone on websites as you recommended for a fee based financial professional. But it's just, I want to just pick someone out of the sky. So I didn't know if you had any.
A
Well, we'll talk about this offline. I may have somebody that I know where you live, so I might know somebody who could help you out. So I think that what you would want to do is use that 600 grand plus your whatever years, your brokerage. I'm not even including the money we're pulling out of his account because that money's going to be spent. Okay? We're going to spend that money. That's what you're going to live on. We need 10 grand a month. You only need that for a couple of years and that's your Runway to see. Hey, can I make some extra money or not from my part time work? And you may still. And maybe you just keep stretching it out. Like even if you made 30 grand this year, 60 grand next year, it's just some money that comes in, you can tap into the brokerage account to pay and then by the time you're 70, you know, you still have $5,700 a month coming in at that time. So we do need to get more money out. But you will have the ability at that point, I hope it's 70, but you can take some money out very slowly from your retirement account because you know you're going to have to take it out anyway. So maybe we start using that a little bit to fund the difference if you need it, if you don't need it. And your part time income is amazing and you're just kicking butt and you're making 100 grand a year from age 66 to 72. You can just leave everything as is. It's fine.
B
Wow.
A
It's fine. But I think selling the house is a great idea because usually we're like, sell the house. And people are like, no, we love it.
B
It's hard, it's emotional. But the reality is we don't need it anymore and it's in great condition. So, you know, it's just finding a rental that's honestly the challenge now.
A
Yes, of course. I mean, and, and again, it's like we. When you live in a, if you live in a place where there is high cost of living and high housing costs, it is hard to find. But you would go, I assume you could go into like the neighboring area with the not so good schools so that you can hopefully get a somewhat cheaper rent. That's what I'm guessing.
B
But what about Roth? Like, is there any. No, nothing.
A
You're done. Forget it. You're going to pull the money out of this account as you need it and you're going to pay tax on it. That's how you're going to do it. You're not going to use your cash to, to, you're not going to burn up your cash to do a Roth conversion. What about your. Okay, let's do a few other things. What about your estate planning? Got it.
B
We do, we have our wills, not trust. Wills and power.
A
Good.
B
That.
A
Perfect.
B
I do want to figure out, and I guess maybe that's another conversation, you know, planning kids in the future.
A
No, come on, you have done such a good job. I know you have. I can tell from your voice. But what I'm going to tell you is that we need to take care of you in the future. If you want to do something like, okay, here's when you can be okay. I want to help my kids out. Sure. But we got to secure you guys first.
B
I agree. I agree.
A
Okay, that's good. So, Susan, go sell your house. Take a deep breath. Take the money out of his retirement account. Pay the tax that's due, use that money to live on. Take the money that the net proceeds from the house, roll it into the brokerage account and then you'll be happy to hopefully work with somebody who can at least walk you through what your options are. I think everyone would agree that if you could wait till 70, that would be a great thing for you to do. Okay, thank you. All right, Mark, are you satisfied with this? I feel like this is a good one because many times we're trying to tell people, just sell your house. We need the liquidity here as a case in point. Point. So if you are in that situation, you got a bunch of equity in your house. House prices are up 50% in the last six years. Maybe you want to extract that equity and do something with it. Then get in touch with us. Go to jillonmoney.com, click the contact us button. Of course, let us know you'd like to come on the air by checking the box. Then Mark will do everything else. Check out all the content that lives on the website. You can subscribe to us on the Odysee app or wherever you find your favorite podcast. Please 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. Hey, gang, you know I've changed my tune on Bitcoin. Meaning I know that a lot of you are bitcoin curious, and that's okay. I know you're not putting all of your money into this. If you've been curious about bitcoin, but haven't made the jump yet. Cash App makes it easy. You can set up automatic purchases with zero fees or buy larger amounts also with zero fees. Start small or go bigger. It's designed to be simple either way. So whether you're just learning or ready to try it out, it's built to meet you where you are for a limited time. New customers can get $10 added to their balance. Just use code CASHAPP10 when you sign up. And don't forget this part. Send at least $5 to a friend in the first two weeks. Terms apply. Cash App is a financial services platform, not a bank. Banking services provided by Cash App's bank partners. Bitcoin services provided by Block Inc. Brand for additional information, see the Bitcoin disclosures at Cash App slash Legal Podcast
C
Understanding power requires more than headlines. I'm Peter Hamby, host of the Powers that Be, a podcast from Puck, examining politics, economics and media. To provide context, analysis and clarity without sensationalism, we ask how power operates, who benefits, and what's at stake. If you want to move beyond breaking news to deeper understanding, join us on the Powers that Be. New episodes every weekday. Follow the Powers that Be wherever you get your podcasts.
In this episode, Jill Schlesinger welcomes Susan from New York, a listener in her mid-60s facing classic late-career and early retirement decisions—how to handle the sale of a longtime home, manage pre-tax retirement funds, address credit card debt, navigate upcoming Social Security choices, and search for trustworthy financial advice. As always, Jill offers practical, clear-headed guidance, balancing emotional realities with the financial facts, all in her signature direct and empathetic style.
Short-term (Before Susan Returns to Work):
Credit Card Payoff:
Income Bridge:
On Anxiety and Big Financial Decisions:
On Selling the Home:
On Work as Security:
On Social Security Strategy:
On Managing Withdrawals:
On Roth Conversions:
On Supporting Kids:
Jill is, as ever, deeply practical but compassionate—firm on numbers but gentle on anxieties. The conversation is warm, sometimes humorous, and always focused on actionable next steps, directly addressing listeners’ questions without jargon or judgment.
This conversation candidly addresses the fears and technicalities of late-in-life transitions—showing that while the numbers matter, so do the emotions and hopes driving the decisions.
For anyone considering retirement housing changes, balancing pre-tax assets, or wrestling with the timing of Social Security and work, this episode delivers both empathy and clarity—classic Jill on Money.