Jill on Money: "Major Move Before Retirement"

Episode Date: November 24, 2025
Host: Jill Schlesinger
Featured Caller: Vicki from the Mid-Atlantic region
Theme: Facing a Major Move Before Retirement and Its Financial Impact

Episode Overview

In this episode, Jill takes a listener call from Vicki, who is grappling with the repercussions of a large cross-country move made for family, only to find herself considering another major relocation as retirement nears. Vicki and her husband are struggling to balance their retirement security, property values, and the emotional toll of family-driven decisions. Jill offers practical, cautionary advice and helps break down the numbers, modeling possible scenarios for Vicki’s next steps.

Key Discussion Points & Insights

1. Background: The Big Move and Its Fallout

• Vicki previously called the show about moving from the Mid-Atlantic to the Western U.S. to be closer to family.
• Shortly after arriving, the family moved again, leading Vicki and her husband to feel isolated and reconsider their location.
• Vicki: “I moved out to the west part of the United States to be near family, and then they moved back from.” (04:00)

2. Current Financial Snapshot

• Ages: Vicki is 66, her husband is 69.
• They bought their Western U.S. house for $825,000, no mortgage.
• Current estimated sale value: around $760,000.
• Retirement assets:
  • Husband: $1.2 million (traditional/pre-tax)
  • Vicki: $500,000 (traditional/pre-tax)
  • Roth IRA: $26,000
  • Brokerage/CDs: $96,000 earmarked for moving/new home
• Social Security:
  • Vicki: $18,000/year (already collecting)
  • Husband: Waiting until 70, projected $57,000/year
• Pension: Husband will receive ~$58,000/year (before deductions), net expected ~ $40,000.
  • Pension has a cost-of-living adjustment, but capped: “1% below inflation if it’s over a certain amount.” (11:04)

3. The Dilemma: Stay, Buy, or Rent?

• Vicki and her husband want to move back East, ideally the Southeast, to be close to family.
• Jill and Vicki examine options for buying versus renting, and how the financials shake out considering their preferred price range ($925K–$1.1M), reluctance to carry a mortgage, and desire to avoid a large drawdown of retirement assets.
• Vicki: “The house that we, you know, it’s not a cheap area. It’s really expensive.” (17:28)

4. Retirement Income and Spending Realities

• Combined Social Security and net pension could provide roughly $100,000/year net (after taxes/healthcare).
• Jill presses: “Can you guys live on 100 grand a year net? That’s my question.” (07:43)
  • Vicki: “Net net, right now? Yes. If we move and get a house, we will probably have to get a mortgage.” (07:58)

5. Home Purchase Scenarios & Risks

• Buying at the higher ($1.1M) end strains their savings, especially if they need to withdraw from pre-tax accounts.
• Jill highlights the importance of liquidity: “You’re young and you could live a long time...” (10:18)
• Concern over the “income-related monthly adjustment amount (IRMAA)” for Medicare if large retirement account withdrawals are necessary for home purchase, which could push them into costlier Medicare brackets.

6. Jill’s Recommendations

• Rent First: “You would never do [buying] immediately, by the way. You would first rent and make sure you like where you were living, and you’d rent for a little while.” (11:20)
• Be Conservative: Emphasizes potential pitfalls in assumptions about home sale/purchase prices, the impact of health events, and the risk of overstretching.
• Avoid a Mortgage if Possible: Prefers no mortgage at this stage; any mortgage should be manageable and only if property prices are at the low end.
• Consider Lower Cost Areas: Entertained the idea of moving “three hours away where the cost of living is substantially less.” (19:13)

7. Emotional and Psychological Impact

• Both Jill and Vicki acknowledge the emotional toll of repeated moves and uncertain future, especially when family’s plans are shifting and unclear.
• Jill: “At a time in your life when you’re going through these big transitions, it is very, very, very hard to say I’m on the hook for this thing.” (20:06)
• Notable empathy: Jill says, “I don’t trust your family and where they’re moving. And I think that if you did [buy immediately], at least we could have like, an interim year or so.” (16:23)

Notable Quotes & Memorable Moments

• On Family Moves:
  • “I moved out to the west part of the United States to be near family, and then they moved back from.” – Vicki (04:00)
  • “I’m still stuck on the idea of moving across the country for my child. And I get there and my child moves back. I’m just, I’m gobsmacked by that...” – Jill (21:06)
• On Financial Hesitation:
  • “As soon as you said 1.1 that my antenna went up, trust me, so did mine.” – Jill and Vicki (18:54)
• On Calculated Risk:
  • “I think it works like by the book. I think it can work. But life is so weird...” – Jill on the feasibility of taking on a mortgage or depleting retirement savings. (15:00)
• On Rental vs. Purchase:
  • “If you sold your house and you rented for a year, so what? Throw the money away for a year? Even if you know it’s going to take you a while to find a house.” – Jill (18:03)
• On Lower-Cost Options:
  • “Maybe three hours is a perfect amount of time.” – Jill, reframing the idea of being near—but not too near—family. (19:19)

Timestamps for Key Segments

• 03:12 – Vicki introduces her situation and dilemma.
• 04:00–05:00 – Family background and the move’s motivation.
• 05:46–06:50 – Discussion of house value, assets, and current financial standing.
• 07:43–09:05 – Social Security, pension details, and budget realities.
• 09:20–10:18 – Challenges with the Southeast real estate market.
• 11:04 – Pension cost-of-living adjustment explained.
• 13:21–15:00 – IRMAA & retirement drawdown conversation.
• 16:23–18:03 – Jill outlines a cautious rental-first plan.
• 18:58–19:45 – Discussion of lower cost of living area as an alternative.
• 20:06–21:06 – Emotional impact and closing remarks.

Takeaways and Actionable Advice

• Go Slow: Rent first after selling, then decide on buying after thoroughly evaluating costs, location, and lifestyle.
• Protect Liquidity: Minimize large withdrawals from retirement accounts to preserve financial flexibility.
• Don’t Chase Family: Stability and your own happiness should come first—the family may move again!
• Budget Realistically: Truly analyze if income streams can support new housing and living costs, including taxes/healthcare.
• Be Open to Alternatives: A slightly less desirable location with a lower cost of living may ensure long-term financial safety.

Final Thoughts

Jill’s signature style is reassuring but firmly realistic, emphasizing financial prudence and thoughtful sequencing of big life changes. The episode is a strong reminder that money decisions—even in retirement—must allow for life’s inevitable twists: “Life is so weird and so by the book with a calculator in hand. Do I think this can work? I do. Do I think there are so many variables? …If everything doesn’t go great, then I think we’ve got some issues.” (15:00)

For anyone considering a major life or location change in retirement, Jill’s advice: Go slow, keep your options open, and be ready to adapt.

[All timestamps in MM:SS refer to the main (non-ad/intro/outro) content.]