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- [00:00]
A
Hey gang. I just made a first time ever purchase on behalf of the pod. I was so psyched because Marc 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 this year. Give a gift the goes far beyond the moment. An Invest 529 account. Whether it's a child, grandchild or someone just starting out, you're helping them save for education that can open doors for a lifetime. Invest529 is a tax advantaged way to save for college, trade school, or even apprenticeship programs. It's flexible, easy to start and you can contribute any, any amount, big or small. And because the money can grow tax free, it's a gift that really builds value over time. So instead of giving something that gets used up or set aside, give the gift that can change a Life. Start an Invest529 account today. Go to invest529.com to get started. Welcome to the Jill on Money Show. It's Monday faith February 2nd and we are here trying to answer your financial questions. If you've got one, all you need to do is go to our website jillonmoney.com when you're there, you're navigating around. Maybe you're reading the blog, maybe you're checking out some videos. Wherever you are on the site in the upper right hand corner there is a contact Us button. When you click that button a form will pop up and that form is the email that we receive. So if you're going to just send, send us an email. You don't plan on coming on the show live with us? Give us a bunch of detail if you do want to join us live Check the box. Mark will do everything else because he is the very best executive producer in the whole wide world. Gang. I just want to again, promote, promote, promote. But I am going to say this. We are getting inundated with subscriptions to Jill on Money Live for the Ed Slot webinar that is coming up at the end of this month on Thursday, February 26th. Now, I know I talk about it, but maybe you're not focused on it. Ed Slott, who is a CPA by training, became a total expert in the IRA and then the Roth ira. So he has been an incredible resource for us on this program and for the whole listenership. He has agreed to do a live webinar with US and again, February 26th. To join us live, you will need to plunk down 45 bucks. That will get you not just the Ed slot webinar, but three more after that because it's good for 12 months, right? You'll also have the back catalog of those webinars, the bonus audio and video content. You will also be able to go behind the paywall and find the Ed Slot Magic tax planning sheets. What are these? These are documents that we are putting up electronically that have all the information that you need for tax season, tax planning, the brackets, the retirement plan contributions, the effect of the new tax law that went into effect, the amount of surtax that you have to pay on net investment income, Medicare, income planning. All this is just living behind our little paywall. So Ed Slot, three more webinars, all this information, all this stuff, 45 bucks. Now, Mark, if somebody is actually interested in just watching the Ed Slot webinar after it airs, they can buy it for one time only. 15 bucks, right?
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B
That's correct. And a lot of people have already done that very thing, but they're not.
- [04:27]
A
Getting all the other benefits. It's just that one webinar. So you know, you may be missing the boat if you're being a little shy around that extra 30 bucks. I'm just saying. Just a little hint there. Now listen, gang, if you missed it on Friday, we now know that President Trump is going to nominate Kevin Warsh as the Federal Reserve chairman, who will succeed Jerome Powell. If you want more information about that, go to the website jelanmoney.com or tune in this weekend to the Money Watch show. And if you're not a subscriber of Money Watch, you should be. You can subscribe on the Odyssey app or wherever you get your podcast. But we're going to go into a deeper dive about the Fed who this guy is and most importantly, how it impacts you. Okay. Right now let's talk to listener David, who joins us from Ohio. Hello, David. How are you?
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C
Hi, Jill. Hi, Mark. How you doing?
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A
We're doing well. What's up for you?
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C
Oh, we're just struggling through the middle of life here in our 40s and trying to figure out whether some inheritance can help us out.
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A
Struggling. I don't like struggling. I'm sorry to hear that. So what, you've just inherited some money? So someone passed away. I'm sorry about that. Tell us a little bit about yourselves. The we, I imagine, is a spouse also.
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C
Yep. Me and my wife. No kids.
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A
Okay. And how old are you guys?
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C
I'm 48, she's 47.
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A
Okay, and you're both working full time?
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C
Yes.
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A
How much do you guys earn together?
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C
Around 190.
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A
Amazing. And you're using your workplace retirement plans?
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C
Yes.
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A
Tell us how much money you've salted away in those plans.
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C
In the retirement accounts, I've got 1.4.
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A
Wow. Oh, my gosh. Okay.
- [06:21]
B
Struggling, struggling.
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A
I'm a millionaire. Struggling as a millionaire.
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C
That's mixed between a Roth 401k and traditional 401k.
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A
Is it equal or one more than the other?
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C
There's about 800 in the traditional. The balances in the Roth 401K.
- [06:38]
A
That's great. Amazing. Fantastic. What else you got?
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C
My wife's 401k is 59,000. She's a teacher.
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A
Okay. Oh, she is, huh? Does she get a pension?
- [06:51]
C
She does not. It's early childhood, so she works for a company, not for, like, a school district.
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A
I always find that so disheartening. Like, okay, really, can't anybody who touches a child or an older person get a pension? That would seem very fair to me, but that's just me. I digress. Okay, so she's got 59. You got 1.4. Any money in a brokerage account?
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C
Yeah, about 380.
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A
Does that include the inheritance you just received?
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C
Yes. Some of it is in a brokerage. The other is in an Iraq.
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A
Oh, okay. So when you gave me the $1,400,000, did that include the inherited IRA?
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C
No.
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A
Okay, so the brokerage has $380,000. What's in the inherited IRA?
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C
$330,000.
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A
Oh, that's a lot of money. Okay. And did this just happen? In other words, are you going to be subject to having to take that money out over the next 10 years?
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C
Yeah. So we. We took the last remaining RMD from my parents. My Mother last year. She died last year. So this year's the first year. We're gonna have to take our own RMD over the next 10 years.
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A
Got it. Okay, so now my next question for you is, do you guys own your home?
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C
It's not paid off, but it's only about $30,000 left.
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A
What's it worth?
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C
260, 270.
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A
You guys want to stay there? You like where you are?
- [08:16]
C
We'll probably end up moving, but roughly the same size and price of house, maybe a little bit more.
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A
Okay, so what is your game plan in terms of work? How long would you like to be able to work? Like, what do you think is even, you know, I understand you got an inheritance, so that might have changed it a little bit, but what do you. What's your hope in terms of work?
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C
Well, I was kind of hoping that this might be my last year.
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A
What?
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C
Yeah.
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A
What are you gonna do with yourself? You're so young.
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C
I know. It's one of those things. I've. I've got 25 years with the same company that I started with when I graduated college, and I'd like to. I mean, they've been good to me, but it's just. It's getting more and more, you know, conglomerated and all that kind of stuff, and I just. The stress is high, and I want to get out of it. I. I'd rather spend time doing things that I have ignored for the past two decades.
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A
Okay, I get that. So let me ask you a question. If you were to retire at the end of this year, would your wife keep working?
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C
Yes.
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A
So she would be 50 a year. Okay. And would you do anything, like, part time? Would you do something? Do you have a skill that would be easily transferable somewhere else where you wouldn't have to work quite as hard? What do you think?
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C
I find something. My goal was to do something that maybe would get me anywhere from 20 to 30 grand a year just to help offset expenses.
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A
Okay, great. But she would be able to have. You'd be able to get her health insurance, right?
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C
Yes.
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A
Great. Okay, that's. That's important. You will not be entitled to a pension either, right?
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C
I have a small one at 55. I'll get 3,700 a year.
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A
Oh, I'm so excited that it's about the right month. And that wouldn't be so small.
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C
No.
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A
Okay, so it's a coffee budget. What about if you're, like, looking ahead and, you know, I know you don't have kids, so what about the amount of spending you're doing now. Can we, can we assume you'll spend the same amount of money going forward?
- [10:20]
C
The plan would be for the next 10 years or so until I hit 59 and a half, that we'll spend around 60,000 to 65,000 a year.
- [10:29]
A
So what you're hoping, just so I'm framing this the right way, is that between you and your wife and you know, obviously we're going to take some money out of that inherited ira, right? So we're going to take some money out of that. So let's say your wife's income, your part time or other income, plus the inherited IRA for the next 10 years, you're going to cover your expenses, right?
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C
Yes.
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A
Then your next idea is when you're 59 and a half, you start tapping your traditional account, right?
- [10:57]
C
Correct.
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A
You use that traditional account. You maybe even just use it up, who cares? You're going to spend some money down, it won't matter. And then when you guys are at Social Security age, you'll both have, you know, your Social Security income, you'll have the Roth assets and that's kind of where we are, right?
- [11:17]
C
Yep.
- [11:17]
A
Okay, I can get aboard this. I mean, one thing that's interesting is of that inherited IRA, the 10 year rule doesn't have to be equal, Right. It doesn't have to be equal amounts that come out of that over the next 10 years. Fine, if it is, but you know, you just have to get out. The nice thing is that, you know, based on you, if you retire, what might be interesting is that you do drop down in tax bracket. Kind of like this usually doesn't happen, but maybe you will because you just don't have that much income. Right. If you had, you know, her 50, a 25 and a little bit more, you might be in the 12% bracket, which is incredible. Right. Like you will have socked away money, you know, sort of solidly in 22 and pulling money out at 12, which does not usually happen. So this sounds pretty good, the amount of money when we say 60 or 65 grand a year, of course we have to inflate that every year. That'll be a bigger number. But ostensibly all of your assets should be growing as well. And you do have the brokerage account. And I think this works. Mark, do you think this works? I mean, oddly enough, for a guy who's 48, I'm like, I can't believe it, but I think it works.
- [12:26]
B
Well, it works because they have money saved even before the inheritance. They have money Saved and they don't spend a lot of money. And, you know, the wife's going to keep working and Dave's going to do something. So it's not like he's going from what he's making now to zero. So, yeah, I do think it works.
- [12:40]
A
It's. It's amazing. And so what are you going to do with all your free time? And thank God, you know, it's like, you're not going to be like, oh, I just. I'm going to just meet with my gr. You know, take care of my grandchildren. Because you don't have that. So what are you going to do?
- [12:53]
B
One thing he's doing very soon, he's going to the Olympics.
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A
Oh, really?
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C
Yep.
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A
That's so cool.
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B
What's your sport?
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A
Why?
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B
Are you going with something in particular?
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A
Yeah, I love the Winter Olympics. Always.
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C
We're going to watch curling.
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A
We're all. Stop it. You are not.
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C
We are. We're all curlers here. Yep.
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A
What? This is the best news ever. This is fantastic curling. I have a. I mean, we have to have Jill on money. Let's do like an overlap of Jill on Money listeners who love curling. I like it during the Olympics. It does seem to appeal to someone like me. I like to aggressively sweep. So why do you love curling?
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C
My wife and I met there. We started about 12, 15 years ago. And it's just a fun group of people. You get to drink basically while you're. While you're playing, and then the winners. The winners buy the losers beer and then the losers reciprocate.
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A
So are you saying to me that really the reason you like curling is because it is one of the few Olympic sports that you can also be drinking while you're doing. You're not drinking while you're playing ice hockey or downhill.
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B
Downhill skiing.
- [13:59]
A
Right. Downhill skiing. Bad to drink during that. I am very excited about this. What do I know? What should I know about curling? What do we need to know about curling that is like, oh, no, Jill, it's really. Is a sport. Why is. Why is it a sport not an activity?
- [14:14]
C
It's a sport that's easy to get started in and try, but it's really difficult to master. Getting the, the stone to go exactly the right distance, getting communication between your teammates on when they have to sweep and how they have to sweep takes a lot of practice. And it's basically an upper body sprint when you're sweeping.
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A
Absolutely amazing. I love it. I can't wait. Will you send us a picture from the Olympics so that we can just look at it. We will not post it, I promise. But we just want to see what it looks like to be at the Olympics curling event. And it's so exciting. I'm so happy for you.
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B
With beverage and maybe a Negroni in hand.
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A
Oh, yes.
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C
Yep. Yeah, we'll be in Cortina, so it'll be exciting.
- [15:01]
A
Oh, gosh, it's going to be amazing. So. Okay, we are very excited for you. You can go ahead with this game plan and you know, listen, if, if you make a little bit of more money, might give you yourself a little like in other words, it's not 25. If you make more like 30 or 40, it's going to take a little bit of the pressure off, but you can still do it. So go give your notice and have some fun curling. And thanks for getting in touch with us, David. Mark, it's maybe a first, our first professional curler observation right here. He's not really a pro, but he is a fan. Are other curler fans out there? Let us know if you have a question. If you've been working someplace 20, 30, 40 years and you just kind of a little fried, you want to figure out can something happen that's different? Get in touch with us. Go to jillonmoney.com click the contact us button. Write us a note. When you want more for your business, it's not just about a logo or even a name. It's about your full business identity. That's why you need to know about Northwest Registered Agent. You really do get more more privacy, more guidance and more free resources all in one place place. Northwest Registered Agent has been helping entrepreneurs launch and grow businesses for nearly 30 years. They're the largest registered agent and LLC service in the US with over 1500 corporate guides. Those are real people who actually know your local laws and can help every step of the way. You can build your business identity fast and access thousands of free guides, forms and step by step tools even before creating an account. And once you do sign up, you get lawyer drafted, operating agreements, bylaws, resolutions and more at no cost. Plus, privacy is automatic. They never sell your data and everything is handled in house to help protect your identity. Don't wait, protect your privacy, build your brand and get your complete business identity in just 10 clicks and 10 minutes. Visit northwestregisteredagent.com jillfree and start building something amazing. Get more with Northwest registered agent@northwestregisteredagent.com Jill.
- [17:20]
D
Free I'm Emma Greed, host of Aspire with Emma Greed, a podcast where I sit down with people who don't just dream big, they build big. From culture shaping voices like Mel Robbins to leaders redefining success like Tracee Ellis Ross, to game changing entrepreneurs like Mark Cuban, Aspire is about mindset, ambition and doing the work that actually moves the needle. If you're ready to raise your standards and take charge about the life and career you're building, Aspire is where you start, follow and listen to Aspire with me, Emma, Greed and Audacy podcast available wherever you get your podcasts.
- [17:51]
A
And of course, if you'd like to join us live, check the box. Mark will do everything else. Don't forget to sign up for the free weekly newsletter comes out every Friday. We encourage you to do that cause it also gets you our blog. And as you know, you can subscribe to us on the Odyssey app or wherever you find your favorite podcast. You can also get our sister broadcast Money Watch on that same exact app. Lift someone up. Change your work. Change your wealth. Change your life. Thank you for listening and we'll talk to you tomorrow.