Episode Title: Medical Condition Has Me Pondering Retirement
Release Date: June 13, 2025
Host: Jill Schlesinger, CFP®
Podcast: Jill on Money with Jill Schlesinger
Produced by: Audacy
Introduction to Jane’s Situation
At [03:05], Jill welcomes Jane, a listener from Virginia, who is grappling with the difficult decision of whether to retire early due to a deteriorating medical condition. Jane is approaching her 54th birthday and is concerned about her ability to continue working until the traditional retirement age of 60 or 62.
Jane: "I have a medical condition that's slowly making it harder to work and live an active lifestyle." [03:12]
Personal and Family Background
Jill delves deeper into Jane's personal circumstances to better understand her financial landscape.
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Marital Status & Dependents:
Jane is partnered without children but anticipates potential responsibilities in caring for her aging parents. [04:08] -
Parents' Health:
One parent has been recently diagnosed with cancer, adding emotional and logistical strain. [04:32] -
Living Arrangements:
Jane and her partner maintain separate dwellings but effectively live together most of the time. They are considering selling one or both properties to consolidate their living situation. [04:50]
Real Estate Holdings
Jane owns two properties:
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Primary Residence:
- Value: Approximately $1.2 million, suitable for sale to developers.
- Mortgage: $500,000 at a 2.75% interest rate. [06:02]
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Vacation Home:
- Value: Around $1.2 million.
- Mortgage: $503,000 at a 2.875% interest rate. [06:24]
Jill’s Commentary:
"Why don't you just negotiate everyone's mortgage rates? You're amazing." [06:37]
Income and Savings Overview
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Current Employment:
Jane earns over $280,000 annually with additional variable bonuses between 25% to 30%. [06:44] -
Retirement Accounts:
- 401(k): $705,000
- IRA Rollover: $827,000
- Roth IRA: $12,000 (initial investment)
- Brokerage Account: $265,000
- Savings: $140,000 [07:07]
Jill’s Insight:
"That's a million and a half bucks that hasn't been taxed yet." [08:30]
Monthly Expenses and Lifestyle Considerations
Jane’s monthly budget is approximately $12,000, covering house payments and other living expenses. Jill questions whether these expenses could be reduced if Jane retires early, especially considering potential changes in living arrangements with her partner. [08:00]
Retirement Planning and Financial Strategy
Exploring Early Retirement Options:
- Rule of 55:
Jill suggests Jane explore the IRS rule of 55, which allows penalty-free withdrawals from retirement accounts if retiring in or after the year she turns 55. [15:10]
Consolidation of Retirement Funds:
Jill advises merging retirement accounts to simplify access and management, recommending Jane consider consolidating her 401(k) and IRA rollover into one account. [15:37]
Sustainability of Funds:
Jill calculates that without additional income, Jane’s $1.5 million in retirement accounts would deplete her funds in approximately 8 years at her current spending rate. [15:37]
Jane's Potential Employment:
Jane considers transitioning to a less stressful engineering role, potentially earning around $150,000 annually, which would partially cover her expenses and extend the longevity of her savings. [11:06]
Jill’s Perspective:
"If you could work and basically mostly cover your expenses at $150,000 a year, you're not quite there yet, but you could close." [12:06]
Partner’s Financial Contribution and Shared Planning
Jill emphasizes the importance of including the partner's financial contributions in the planning process. Jane notes that her partner is financially stable, contributes to savings, and is willing to continue working. [18:41]
Jill’s Advice:
"Have a conversation with your partner about what can you really contribute and consider scenario planning with a fiduciary." [15:10]
Emotional and Practical Considerations
Jill acknowledges the emotional difficulty of retiring early, especially when health issues are involved. She encourages Jane to prioritize her well-being over potential financial gains.
Jill:
"Your life matters. You're okay right now. So let's do this." [19:58]
Conclusion and Final Recommendations
Jill concludes by reinforcing the importance of personalized financial planning, especially when facing health challenges and life changes. She recommends consulting with a certified financial planner to explore all available options and create a sustainable retirement strategy.
Jill’s Closing Remarks:
"You have your one life and your one body. If your body is failing you, we're going to figure out how to make your life better." [21:09]
Key Takeaways:
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Early Retirement Considerations:
- Assess financial readiness based on current savings and expenses.
- Understand the implications of tapping into retirement accounts early.
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Importance of Comprehensive Planning:
- Include all assets, income sources, and potential expenses.
- Factor in partner’s financial contributions and shared responsibilities.
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Health and Well-being as Priorities:
- Don’t let financial metrics overshadow personal health and quality of life.
- Seek professional financial advice tailored to individual circumstances.
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Flexibility in Employment:
- Consider transitioning to less demanding roles to balance income and personal well-being.
Notable Quotes:
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Jane on Retirement Concerns:
"If I can retire early instead of, you know, trying to make it all the way to 60 or 62." [03:12] -
Jill on Life Prioritization:
"Your life matters. You're okay right now. So let's do this." [19:58] -
Jill on Financial Planning:
"Have a real conversation with your partner about, are we really combining our finances?" [15:10]
This episode offers a compassionate and practical discussion on navigating early retirement amidst health challenges, emphasizing the balance between financial stability and personal well-being. For more personalized advice, listeners are encouraged to reach out through jillonmoney.com.