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This message comes from Jill on Money sponsor Charles Schwab. Independent financial advisors focus on building a relationship with you that goes beyond your portfolio. As fiduciaries, they must act in your best interest always. The relationship they have with you will be based on transparency and trust, and they're committed to bringing you advice that fits your values. That's why Schwab is proud to support them. Visit find your independent advisor.com Today's episode is supported by what Should I Do With My Money? An original podcast from Morgan Stanley. And like Jill on Money, this podcast makes understanding money and getting advice about what to do with it less intimidating. You'll hear candid conversations from people just like you who have money questions just like yours. They talk to experienced financial advisors about their goals, worries and dreams, asking questions like can I retire early? Like really early? How do I leave a financial legacy for my special needs child? Menopause is making me feel wacky and it's shifting how I think about my money. Help. The conversations can get emotional, but they're always practical. Find what should I Do with My Money? On your preferred podcast player and feel empowered and supported when it comes to managing your life and finances. Welcome to the Jill on Money Show. It's Wednesday, October 29th and we are here answering your financial questions, trying to help you kind of parse out what is going on in your financial life. And sometimes this is a very emotional conversation that you could be having. Sometimes you're all very clinical and you are such do it yourselfers. You've got everything covered. It's okay. You don't have to have your act together to come on the air. You just have to have something going on that needs another set of ears and eyes. Mark and I have both ears and eyes. We are also both certified financial planners. So we love hearing from you. Just go to our website jillonmoney.com click the contact us button, write us a note. If you'd like to join us live, check the box and Mark will do everything else. Hey, don't forget to sign up for the free weekly newsletter and also check out our other podcast. It's called Money Watch. We drop our episodes for Money Watch on the weekends. On Saturdays and Sundays, we do a little deeper dive into some of the the building blocks of your financial life. And we talk to people. Some of them are just starting out, some of them are young. But most of all we just love hearing from anyone there out there who's got something going on. So we kind of parse it out for both shows okay, so that's the money watch show. You should subscribe to that as well. Okay, let's do some emails. Let's rock and roll. This is from Ellie, who writes. Can you address travel spending? Yes, I would love to. It's one of my favorite categories of spending. All right. Ellie says I'm in my mid-50s and my husband is in his early 50s. They travel three times a year to Europe to spend time with his aging parents for the last five years. Oh. It's an end of life timeline for his mom who never saw Alzheimer's coming. I'd like to be kind, but it's expensive to rent Airbnbs on top of economy plane tickets. We have foregone family vacations for years except to visit his family. My family lives locally. There's also considerations for me to be the sole parent of three active teenagers while he's gone for over 50 days per year. Potentially more going forward, even though since the pandemic, I don't work. Now he's preparing to quit his startup job and go on COBRA before finding private insurance. His savings are. She's saying his and not hers, like, you know what I mean. It sounds like Mark that they have very separate lives. Anyway, his savings are modest as his early salary has been used to cover costs. He recently bought a new car. I disagreed with this. My Social Security is larger than his. I've worked for more years. Or she means her future Social Security. College is covered by 529s. Covered by us and my parents who are now deceased. Okay. House is paid for. He's done a great job managing our portfolio with a major firm to cover costs going forward, including health care. My husband is now asking me to take some money of the primary assets of my own inherited savings. My response has been that we can live off the dividends of our shared accounts plus. Plus my accounts and still have a lifestyle above prior expectations for another 30 years with a great safety net, but not enough to support expensive habits. My sense is that I may need to start working with a professional sooner than later for my own financial well being. Can you help? I got a bad.
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I think that last sentence is the key.
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Okay, here's the thing. I think you should work with a financial professional. Right now I am getting a really massive vibe that you guys are not on the same page. So here's a couple of questions to ask. Number one is, will your husband participate with this professional? Because if not, I don't know if this is going to work. Right. I think you need someone a Fee only planner who's not going to sell you anything, who's going to walk you through what you have, what's available, and the best path forward. Like you said, I mean, we're talking about an end of life timeline. But it may be that your husband cannot do exactly what he would like to do to take care of his parents. Does he have siblings who can help? Is there another way where he can maybe go, you know, he can travel for some of it and then he can, you know, come back and maybe he can cut down on the frequency of trips? I don't know what the actual situation is, but there's something lingering where I feel like because you guys are not on the same page, it is time to hire a professional, as in right now. You didn't mention any of the numbers that are associated with any of these accounts, but I don't love the sound of this. And your husband and you have to get on the same page. I think one way to do that, obviously, would be to seek the help of a fee only financial planner. Okay. Christine is 67. She says, I'm still working. I've scaled back a lot. Can you tell me the benefit of moving my traditional IRA and SEP to a Roth at this time? Okay. I think you're talking about converting from your traditional IRA or SEP to a Roth. And you could do that if you had a pile of money to pay the taxes that are due. The benefit of doing this may be that you can, you know, while you're making less money, maybe you're not even collecting Social Security, you, you can convert at a lower tax rate, income tax bracket than you would have just a few years ago. I'd have to know a lot more about you to understand whether or not this makes sense because again, you gotta have the money to pay the tax that you have that is due. And the big benefit of doing a conversion now is that you're able to do this, let's say between now and, say, age 75, when the government will force you to take money out of those traditional IRAs and SEP IRAs. So there's a great benefit of doing it. Whether you should depends on a lot of other factors. So get back in touch with us, Christine. Okay. Mary writes online CDs. I need to purchase a CD, but I am petrified of doing so with an online institution. Even though they show higher interest rates. I want to spend, let's say, 20 to $40,000. I don't want to pay service charges or maintenance fees. I have no intention of an early withdrawal. I would appreciate your expert advice on these online only banks. I don't want to lose my money. I mean. Listen, Mary, if there is FDIC insurance associated with this online bank, you should be fine. You really should be. So. I don't. I mean, I know it seems scary, but if you go to like one of these aggregation sites like DepositAccountsel.com or if you go to Bankrate.com they'll pull together all the different CDs. Okay? There's no CD that is going to be showing on their, on these banks. That is going to be non fdic. In short. Okay, but if you feel better, you'll probably see that in a lot of their. In a lot of these accounts. What they'll show you is there will be a, you know, like a list of different companies and some of them are going to be more familiar than others. I think that you can totally do this and you shouldn't be so scared. I would only make sure that you have FDIC insurance and then you should be fine. You really should be. Nothing else to worry about besides that. Keith says, I am having difficulty as to where to put my next dollars, either brokerage or Roth thrift savings plan. I'm not sure if I can retire early, maybe 57 or 58, but if I keep saving about $1,500 a month, I think that I can retire early at age 51. Okay, so Keith is 35 years old and he says, I know from a tax perspective, the Roth is the way to go every time, but I want to hear your take of the pros and cons of a taxable brokerage account versus a Roth thrift savings plan. Now listen up. Mark, you ready? Age 35, salary 67 grand. Has got $100,000 in his thrift savings plan so far. $25,000 in a Roth HSA is $13,500 high yield savings account and CD is about 20 something thousand dollars. If I do 5% into a thrift savings plan maxing out Roth IRA and HSA, it's $1,550 a month with a 5% match. I understand about paying taxes and dividends each year with a brokerage. So would that be dumb to invest in the brokerage instead of the Roth? Okay, Mark, hsa, Roth ira, Thrift Savings plan. Is there a case here for the ability to put money in a taxable brokerage? And he's thinking about retiring at 57, 58.
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That's the only reason why I think about the brokerage for early retirement, he's going to need money that he wants to get his hands on. If that's not part of the equation, I would say just stick to the tsp. I actually remember this guy. I know what he does. He's a federal worker, so he will have a pension down the road. But you know, just knowing that he wants to retire potentially in his early 50s, that's, that's where the brokerage comes into play.
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Right? If you really said like my, you know, if you really can like say I can hit it at 51, then have a little money outside, then why don't we, why we. We don't have to do one or the other. Why don't we do both, Put a little in both and build that up. But I love the thrift savings plan. I certainly love a Roth. Okay, Mark, I love this. This is all in caps. So you know how anxious this person.
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Been a lot of these lately.
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Subject market crash. Hello, Jill, I wanted your opinion. Do you think we're headed for a stock market crash? I worry we are heading for trouble. Thank you, John. You know, here's the problem. I don't know. Okay? I wish I could tell you that. Absolutely I know what's going to happen. I don't and nobody does. The, the real issue here is that I think what you're asking me to try to divine is something that I wish we had somebody who could do, who could do this. I wrote about this a couple weeks ago on the website. So everybody should actually go check out jillonmoney.com under the blog section. There is an article there that I put up called Markets Peak time to get in or out. I mean, could the market crash? Absolutely. Do I know for sure when it will happen? No, I don't. Do you know how you can protect yourself against a crash? You can make sure you've done everything you need to do to get out of the way of it. What do I mean by that? So John, do you. Are you still working? If you're still working, then make sure you've got your emergency reserve fund built up. Just do that. If you're not working and you're retired, your emergency reserve fund should be like one to two years. If you're really freaked out about what would happen in a crash. Well, you know, I would say then make sure that you have a, an allocation that's not too crazy when it comes to an exposure to stocks and have two years of your expenses set aside. Besides that, I would also make sure that you are not overextended in some way with your spending, are you, you know, if you're like, oh, my God, what am I going to do to protect you? Know what? You really have to understand that if you've got a long life, especially when you're thinking about this, John, let's just say you're 55 years old, you're still working, you're going to retire in five years. You could live for another 30 years. So where do I think the top and the bottom is going to be? I have no idea. So I think it's very important to remember nobody is able to predict what happens in the short term. All of us know that if you stay invested over the long term, you're probably, probably going to be okay. I don't know if you've got an allocation that is completely out of whack with what your actual risk tolerance is. So I'm going to encourage you. Market crash, all caps. Take a deep breath and get in touch with us. Let's walk through what you got. Maybe there are some things you should do ahead of time, just in case. And market doesn't have to crash. It could just actually be down. Remember this year, the market was up beginning of the year, then down almost 20% by the time April came around. Now up again. So could there be some another move down? Sure. It doesn't have to be a crash. Could just be a plain old bear market. Also not fun. Okay, last one. This is a message from Tracy, whose subject is. Thank you. Oh, I already love it. Dear Jill and Mark, I've been a regular listener since the beginning of your show. Your advice helped me understand how to manage my finances and plan for the future. I learned to change my habits and steadily improve the way I handled saving and investing. All of these years later, you guided my husband and me through our retirements earlier this year. We are confident and happy with our financial decisions, and that is in large part because of the financial education you provide. So a big thank you from the happy retirees. And they sent us a picture of their cute doggie. So adorable. And I just can't tell you how much that means to us, Tracy, to get that kind of note. It's incredible. So thank you for thanking us and for everybody out there listening. This is why we do what we do. It's a good one, right, Mark, Listening.
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Since the beginning of your show. That's a long time.
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Well, I don't know if she means the beginning of the radio show or the podcast, but even if it's the.
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Pod 10 years now.
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Oh my God. Next year. That's right. It says January of 26, 2016. That'll be, it'll be. We'll have to have a 10 year anniversary. We still have to figure out whether we're going to do a live event event or not. All right. That is it. That is the program. What a nice way to end. Thank you for that note. Really makes us so happy. And if you've got a financial question, head over to Jill on money dot com. Click the Contact Us button. Let us know if you want to come on the air by checking the box. Hey, when you sign up for the free weekly newsletter, you'll also get my blog post and so you won't miss any of these blogs that I'm writing about market tops or about estate planning or anything like that. So. And don't forget, sign up for the free weekly newsletter. That is what you should do. You can subscribe to us on the Odysee app or wherever you find your favorite podcast. Please, if you wouldn't mind, leave us a rating and review. Wherever you listen, of course. Do something nice for someone else today. Change your work, change your wealth, change your life. Thank you for listening. We'll talk to you tomorrow.
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Hear that? The next chapter of Audi performance is here. That's the sound of every interior detail refined. And that. That's the sound of Quattro all wheel drive, the all new Audi Q5, the all new A5 and Q7. Each one a statement. Performance never goes out of style. Hey everyone, I'm Josh Radner and I am so excited to tell you about How We Made youe Mother a Rewatch podcast. Looking back at How I Met yout Mother and here with Craig Thomas, who co created the show along with Carter Bay. Hi Craig. Hey Josh. Somehow it has been 20 years since the show premiered. That's. I'm going to check the math on that. Ten years since it went off the air and we thought that made this a perfect time to look back, see what the hell we did and why the show still seems to resonate with fans around the world today. Follow and listen to How We Made youe Mother wherever you get your podcasts.