Jill Schlesinger (4:29)

It would be great if you could.

Mark T. O'Connor (4:30)

Convert if you were in a slightly lower tax bracket than you're in right now. But again, if you are going to convert, I might do it after you're done with your part time salary. This is a great situation though. You're in wonderful shape. And by the way, if you don't want to convert, you can just wait till you're done working and then start pulling some of the money out of the 457 plan. Kind of depends on how much money you spend also. So get back in touch with us. I'd love to have you on the air.

Jill Schlesinger (4:54)

This is a Great case to talk about.

Mark T. O'Connor (4:56)

George writes that his mother passed away a few years ago and he said she left a small trust of about $200,000 that has grown to about $400,000 today. The trust was intended to help support my sister who resides in an assisted living environment. The money has been invested in a diversified bunch of mutual funds with the assistance of a financial advisor. I am the trustee and distribute some money periodically to enhance my sister's quality of life. My question is, if my sister were to survive me, I have nobody able to step into the role of trustee. What resources may be available to assist with the trust after I pass? Well, first of all, George, I would talk to the financial advisor that you're working with and see if there are some trust services that could be available to you through wherever you clear this account. Otherwise, you may want to talk to a local bank and they could serve as the successor trustee to you. Or I'm just wondering, are there any kids, anyone else in your life that you think could do this? You're not asking someone to manage the money, but you are asking them to do what you're doing doing, which is, you know, sort of generally administer the trust on behalf of your sister. So there are organizations that will do it, but it will cost money, of course. But otherwise, maybe there's someone else in the family that could help take over. Hopefully somebody who's in a younger generation. Okay, next up, a note from Paul who says he loves the show. He writes, I'm 69 years old, still working, but will at least semi retire soon. We have about a million dollars in cash that needs to be invested. We don't need the money for five years, probably even longer before we need to use it, if ever. What do you recommend? I'm risk averse. So it has led to this money never being invested at this point. How does one get past the worry about losing money when investing it? Thank you. I'm not sure anyone gets over this, Paul. So we're all in this together. We all have this regret about our timing, but we're never gonna time the market really well. And if you are investing for the long term and you don't, There are two parts of this conversation. One is the asset allocation. How much would you be putting in stocks versus bonds versus cash versus other asset categories? And if you really hate risk, then I would encourage you to consider a portfolio that doesn't put as much money in risky assets like stocks. So maybe if for somebody who is 69, we would think about a 50.

Jill Schlesinger (7:28)

50 portfolio 50 higher risk, 50 lower risk.

Mark T. O'Connor (7:32)

Maybe you would go 60, 40, maybe you'd have 60% in bonds and 40% in stocks or even 70, 30. And the other aspect of this is the fear of putting all your money into the market at the exact wrong time, which is market timing. But we all are fearful of that. So in that case you might dollar cost average and put a little bit of money to work every month until you get the million dollars invested. I think to really help you with the process of retirement or semi retirement.

Jill Schlesinger (8:02)

It would really be helpful for you.

Mark T. O'Connor (8:03)

To understand how is your money going to last you throughout these years. Do you have a source of income besides Social Security? What other assets have you saved? Do you have pensions? All these things might make you feel better because maybe you're in better shape than you even really think. Maybe you even want to get in touch with a financial planner. You can go to letsmakeaplan.org for a CFP or the National association of Personal Financial Advisors. That's napa.org this next note is from Laura who says, I'm looking for help with a pension. A previous employer has offered former employees to roll over our pension or leave it be. I'm just not sure about what I should do. Currently the Investment accounts are a 401k worth $105,000. A traditional IRA, it's worth $179,000. A Roth IRA of $40,000, $8,000 in a brokerage account and $2,000 in T bills and savings bonds. I've got about $10,000 in checking and savings. Our investment accounts are 85% in the S&P 500 index, 10% in bond funds, and then the rest in a mix of international, extended, small cap. Okay, so here are the pension options. The pension at age 46 would be a lump sum of $38,000. At age 62 would be a lump sum of $93,000 or monthly payments of 488 to $607 a month and goes on and on. So Laura's married, 46 years old husband also has a Roth with about $4,000 in it. Do you happen to have a recommendation on whether to keep this pension or roll it over to a traditional ira? I appreciate any input and thank you in advance. Well, Laura, you know what, I'm just thinking that this is not a huge amount of money. So I think just to keep things easy, I might take the pension, roll it over to a traditional IRA and move on the dollars. In the future they may be Actually, mathematically better for you, but maybe having the money today consolidated in one account.

Jill Schlesinger (10:07)

Is a better way to proceed.

Mark T. O'Connor (10:09)

So I think I'm going to keep it simple, roll it over, and then invest it according to that risk tolerance that you have in place. This is from Charles. I'm 75 years old, completely debt free. I'm going to downsize my house. Last spring, the house was valued at $550,000. I have $600,000 in regular and Roth IRAs combined. My annual income, which is Social Security and a pension, is at $82,000. My credit rating is wow high, 796 to 800. My current house is on the market for $575,000. If I can't wait until my current house is sold, should I take out a mortgage of $400,000 and pay that mortgage off after I've sold my house? Eek. I don't love this. Let's just wait till your house sells because I don't think you need to do this. I really don't love the idea of having lots of liability mortgage or two houses at the same time. At this point in your life, I would just wait and play it safe. I know other people would do it differently, but not me. I'm a wimp. I'm sorry. And this last note is from Carter, who says two years of 1099s connected to my required minimum distributions were not filed in 2022 and 2023. What is the best course of action? Ah, this is an easy one. The best course of action is to file amended returns. And I might do that with a.

Jill Schlesinger (11:37)

CPA or a tax expert.

Mark T. O'Connor (11:39)

Maybe not do it myself if that feels a little too confusing.

Jill Schlesinger (11:42)

But. But it's very easy to do and.

Mark T. O'Connor (11:44)

I'm sure it's not going to be a big change for you.

Jill Schlesinger (11:46)

Okay.

Mark T. O'Connor (11:47)

All right, that's it. That's the program. If you have a question, don't forget, you can always find us@jillonmoney.com that is our website. You click the contact us button, write us a note, and if you want to join us on the air live, just click the box and Mark will do everything else. While you're on the website, check out all the content that lives there. We love when you do that. Send us notes no matter what day or night. You can subscribe to us on the Odysee app or wherever you find your favorite podcast. Please leave us a rating and review wherever you listen and of course, lift someone up. Change your work, change your wealth, change your life. Thanks for listening. We'll talk to you tomorrow.

Jill Schlesinger (12:28)

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Mark T. O'Connor (13:37)

Moff Podcast, we share stories that are funny, strange, heartbreaking and above all, true. I myself have been married for 56.

Jill Schlesinger (13:46)

Years, unfortunately to four different women.

Mark T. O'Connor (13:53)

It turns out the people I was looking for all my life is what you people would call nerds. Follow and listen to the moth on the free Odyssey app or wherever you get your podcasts.