Podcast Summary: "Moving From Saver to Spender"
Jill on Money with Jill Schlesinger
Release Date: February 25, 2025

In this insightful episode of "Jill on Money with Jill Schlesinger", host Jill Schlesinger and co-host Mark engage in a profound conversation with Jolene, a 61-year-old soon-to-be retiree from New Jersey. The discussion centers around the significant transition from accumulating wealth to thoughtfully spending it during retirement. Through Jolene's personal experiences and financial strategies, listeners gain valuable perspectives on navigating retirement with confidence and purpose.

1. Introduction to the Episode

The episode opens with Mark introducing the show's purpose: assisting listeners in making informed and considered financial decisions. He encourages audience participation through questions and highlights upcoming content, including a new weekend-focused podcast on investing basics.

2. Guest Introduction: Jolene's Retirement Journey

Mark welcomes Jolene to the program, highlighting her imminent retirement in April. Jolene shares her long-term commitment to diligent saving, having worked since she was 13 years old.

• Jolene: "We've been, you know, pretty diligent with savings... I've started working when I was like 13 years old, and it's just always save, save, save."
  [03:35]

3. Income Sources in Retirement

Jolene discusses her and her wife's income post-retirement, which includes significant pension benefits.

• Jolene: "Her pension is about $2,800 a month... and mine... it's going to be around $9,000 a month."
  [04:46]

Additionally, Jolene mentions her wife has started collecting Social Security.

• Jolene: "Her Social Security income is about $2,700 a month."
  [05:14]

Mark summarizes their total gross income:

• Mark: "So without you even claiming your Social Security, starting in April, you guys are going to have $14,500 a month coming in."
  [07:07]

4. Health Care Considerations

A critical aspect of retirement planning discussed is healthcare costs.

• Jolene: "It's going to be more because of, you know, the whole health insurance thing."
  [05:42]

Jolene explains her plan to manage healthcare expenses until she qualifies for Medicare.

• Jolene: "I'm budgeting about $1,900 a month for me, and then for my wife, her Medicare right now is around $850."
  [06:25]

5. Savings and Investment Strategies

Jolene provides an overview of her and her wife's savings and investment accounts:

• Primary Home: Fully paid, valued at approximately $450,000.
• Secondary Home: Valued around $1 million.
• 401(k) Traditional: Approximately $1.7 million.
• Roth IRA: About $100,000.
• Health Savings Account (HSA): Roughly $55,000.
• Brokerage Account: Approximately $1.3 million.
• High-Yield Savings: Around $350,000 as an emergency fund.
  [08:17 - 08:56]

Jolene mentions managing these accounts independently after moving away from professional management.

6. Psychological Shift: From Saving to Spending

The conversation delves into the emotional and psychological transition from being a saver to becoming a spender in retirement.

• Jolene: "It's been... growing up with... just being in that mentality of, you know, you're always worried about that rainy day because the carpet can be pulled out from underneath you at any moment."
  [19:25]

Mark emphasizes the importance of permitting oneself to enjoy the fruits of long-term saving.

• Mark: "You have to give yourself permission. If you've called us to try to have us provide that permission... you can do it."
  [19:21 - 19:25]

7. Tax Strategies and Advice

Mark offers strategic advice on managing taxes during retirement, considering Jolene's high tax bracket due to substantial income.

• Mark: "If you're in the 24% bracket, you could at least say, we'll take the money out right before you get to your 65 claiming point... make sure you take the money out and get the money out."
  [10:52]

They discuss potential Roth conversions and charitable donations as tax-efficient strategies.

• Mark: "You can gift shares... start a donor advised fund... qualified charitable distribution..."
  [13:04 - 13:45]

Jolene agrees, noting her and her wife's intention to leave money to charity rather than heirs.

8. Actionable Takeaways

• Establish a "Fun Money" Account: Create a separate account designated for discretionary spending to balance saving and enjoying retirement.
• Strategic Withdrawal Planning: Consider withdrawing from retirement accounts in a tax-efficient manner before claiming Social Security.
• Healthcare Budgeting: Anticipate and plan for healthcare expenses to avoid financial strain.
• Charitable Giving: Explore options like donor-advised funds and qualified charitable distributions for tax benefits and personal fulfillment.
• Psychological Adjustment: Acknowledge the emotional shift from saving to spending and grant oneself permission to enjoy retirement.

9. Conclusion

The episode concludes with encouragement for listeners facing similar transitions. Mark and Jill reinforce the importance of balancing financial prudence with enjoying the rewards of a lifetime of saving. They urge listeners to reach out with their questions and engage with the community for support and guidance.

• Mark: "Change your work, change your wealth, change your life. Thank you for listening."
  [22:30]

Notable Quotes:

• Jolene on Saving Philosophy: "It's been... pretty diligent with savings... always save, save, save."
  [03:35]

• Mark on Tax Strategy: "If you're in the 24% bracket, you could at least say, we'll take the money out right before you get to your 65 claiming point."
  [10:52]

• Jolene on Psychological Shift: "It's been... growing up with... always worried about that rainy day..."
  [19:25]

• Mark on Giving Permission: "You can do it. You can do it."
  [19:21 - 19:25]

This episode offers a comprehensive look into the multifaceted aspects of transitioning from saving to spending in retirement. Through Jolene's experiences and expert advice from Jill and Mark, listeners are equipped with strategies to manage their finances effectively while embracing the joys of retirement.