On Track as We Approach Retirement?

Summary

---

Podcast Summary: Jill on Money with Jill Schlesinger

Episode: On Track as We Approach Retirement?
Date: August 29, 2025
Host: Jill Schlesinger, CFP®

---

Overview

In this episode, Jill Schlesinger fields a call from Peter in New Jersey seeking advice for him and his wife as they approach retirement. The conversation covers their financial situation, retirement savings, mortgage status, Social Security timing, estate planning, and managing relationships with financial advisors. Throughout, Jill offers practical guidance with characteristic candor and empathy—breaking things down in relatable, jargon-free language.

---

Key Discussion Points and Insights

1. Peter and Wife's Retirement Profile

• Ages: Peter is 63 (turning 64); his wife is 61.
• Employment: Peter works for a company; his wife is a self-employed 1099 contractor.
• Income: Peter earns $185,000/year; wife makes $125,000/year.

Quote:

"My wife and I would like to get both of your opinions on our financial affairs as we approach retirement age."
— Peter (02:27)

2. Retirement Savings and Contributions

• Peter’s retirement plan: Contributes 10% of income to a traditional 401(k), no Roth option.

  • 401(k) balance: $580,000
  • Traditional IRA: $142,000
  • Smaller old 401(k): $15,000

• Wife’s retirement plan: Contributes $5,200/year to a SEP IRA.

  • SEP IRA balance: $86,000
  • Inherited IRA (wife): $353,000, appropriately using stretch IRA rules.

• Emergency Fund: $25,000 in cash.

3. Home Equity and Debt

• Home Value: $750,000 - $800,000
• Mortgage: None, but a $142,000 HELOC was taken for supporting their sons after college and for minor home improvements.

Memorable Exchange:

Jill: "Have they offered to help pay down that HELOC after all that help you gave them?"
Peter (laughing): "They have not offered, nor I asked."
— (05:58-06:08)

4. Social Security and Income Planning

• Pensions: None.
• Social Security (at Full Retirement Age):
  • Peter: $3,180/mo
  • Wife (at 65): $2,608/mo, but Jill recommends waiting for full retirement age.
• Peter at 70: Will get about $4,000/mo.
• Spending Need: About $10,000/mo (including travel and all expenses).

Key Guidance:

• Jill stresses the importance of delaying Social Security, especially for Peter’s wife, to maximize benefits.

"I definitely don't want her to claim early. So now when I look at the numbers... if you wait till your 70 and then we don't have to dip into your money, you don't have to keep putting money into retirement."
— Jill (08:10)

5. Advisor Relationship and Fees

• Current advisor at Merrill Lynch charges 0.75% fee; Peter describes a personal connection but is contemplating taking a DIY approach.
• Jill reassures him that managing his accounts (especially via index funds) is not "rocket science."
• Advises shifting the largest account (401k) to a self-directed setup and keeping the rest with the advisor for now.
• Suggests clear, honest conversation with advisor—honoring their relationship while moving towards more self-management.

Notable Quote:

"It isn't rocket science and I've done it for a living. ... I was there to walk through the same thing I walking through with you."
— Jill (09:26)

Script for Advisor Transition:

"I want to do this myself. ... And if I find myself that, like, it's too much for me, or, you know, if, God forbid, I drop dead and my wife doesn't want to do it, she'll have you manage it like you're still in our lives."
— Jill (11:26-11:38)

6. Tax Diversification and Retirement Strategy

• Jill notes most assets are pre-tax, so recommends building up some after-tax savings before retirement for better withdrawal flexibility.

7. Estate and Family Considerations

• Estate documents are in order: will, advanced directive, power of attorney.
• Jill lightly encourages Peter’s sons (listening to the show) to consider repaying their parents for the HELOC generosity now that they're doing well post-college.

Message to Sons:

"A really great gesture ... is to at least offer, hey, you know what, mom, dad, we're making money. How about we send you 300 bucks a month until further notice until, you know, we help whittle down your HELOC?"
— Jill (13:01)

---

Timestamps for Important Segments

• 01:29: Start of listener call segment.
• 02:27 – 04:27: Peter and Jill detail retirement accounts, income, and contributions.
• 05:19 – 06:10: Deep dive into home equity, HELOC, and support to adult children.
• 06:11 – 07:16: Social Security and spending needs.
• 07:34 – 08:10: Retirement timing; Peter loves his job.
• 08:10 – 09:26: Jill recommends delaying Social Security and explains why taxable savings are useful.
• 09:26 – 12:05: DIY investing discussion; emotionally navigating advisor transitions.
• 12:30 – 13:28: Estate documents and gentle nudge to sons to help with family finances.

---

Quotes & Memorable Moments

• On advisor relationships:

  "I'm an emotional guy, so I'm emotionally attached because I just am. You know, we're friends, kind of." — Peter (10:13)

• On easing into DIY:

  "Let's start with that. And you say to him, you know what? I want to manage this. ... And if I can't do it, ... she'll have you manage it." — Jill (11:38)

• On intergenerational generosity:

  "Sons, children, offspring, give that a whirl. Dad and mom would really appreciate it, and it shows that you're actually a financial grown up." — Jill (13:23)

---

Tone

The conversation is warm, engaging, and full of Jill’s approachable, humorous, and direct style. She simplifies complex topics without “financial jargon,” invites listener participation, and wraps practical advice with encouragement for smart, responsible, and considerate financial behaviors.

---

Transcript

[Narrator/Announcer]

Need contract help for those workload peaks and backlog projects. You're not alone. Robert half found that 67% of companies surveyed said they will increase their use of contract talent.

[Jill]

That's why their recruiters leverage their experience.

[Narrator/Announcer]

And use award winning AI to quickly find the skilled candidates you want. Learn about their specialized talent in finance, accounting, technology, marketing, legal and administrative support. And at Robert Half they know talent. Visit roberthal.com talent today hey gang.

[Jill]

You know, it's one thing when I'm.

[Co-host/Producer]

At work and there are professionals doing.

[Jill]

My makeup, but when I'm home I want something different. I want simplicity.

[Co-host/Producer]

Merit is a minimalist beauty brand created to streamline your routine with clean, high performing products that are impossible to mess up. Merit is designed for people who want to look polished or without spending hours.

[Jill]

In front of the mirror.

[Co-host/Producer]

Merit makes beauty feel effortless. Merit's products are clean, vegan, cruelty free and made with skin care ingredients that support your skin long after your makeup comes off.

[Jill]

In fact, Merit makes it easy to get ready in five minutes or less. That's right up my alley.

[Co-host/Producer]

There are curated sets and essentials that.

[Jill]

Fit seamlessly into any lifestyle.

[Co-host/Producer]

Are you ready to simplify your routine? Head to meritbeauty.com and get their signature makeup bag free with your first order.

[Jill]

That's meritbeauty.com welcome to the Jill on Money Show.

[Co-host/Producer]

It's Friday, August 29th, the last Friday of the month. Wow, we got here gang. I hope you've had a great August. I hope you've been able to take some time off and recharge your batteries. Maybe while you were walking around and hiking or on the beach or in the mountains or at a lake, you were thinking about sitting something that's going on in your own financial life and.

[Jill]

You thought, I wonder what I should.

[Co-host/Producer]

Do about blank you Fill in the blank. If that's you. If somehow this August period was able to free up some space in your brain to think about the things that matter, then get in touch with us. All you need to do is go to jillonmoney.com that's our website. And in the upper right hand corner, click that Contact Us button. Write us a note and then tell us what's going on. If you if you'd like to join us live, just check the box. Mark will arrange to get you on the air. That is what he did with Peter, who joins us from New Jersey.

[Peter]

My wife and I would like to get both of your opinions on our financial affairs as we approach retirement age.

[Jill]

Okay, how old are you Peter, I.

[Peter]

Will be 64 in October.

[Jill]

Okay. Wife.

[Peter]

My wife will be 60, is 61 right now. She'll be 62 in March. She considers retiring at 65. I have no plans.

[Jill]

Are you both working for companies? Are you self employed? Do you work together? What's your story?

[Peter]

I work for a company and my wife is self employed. She's a 1099 independent contractor.

[Jill]

Okay, and how much does she make?

[Peter]

125,000.

[Jill]

Great.

Awesome. Does she make retirement contributions into her own retirement plan on that money?

[Peter]

Yes, Jill, she does have a SEP and she contributes approximately $5200 annually.

[Jill]

And how much do you earn, Peter?

[Peter]

185,000.

[Jill]

That's great.

Okay, and from that income, that 185 for this year. Are you making contributions into a retirement plan for yourself?

[Peter]

I do. I con. I contribute 10% right now to our company. 401K.

[Jill]

Okay.

And traditional or Roth are you using.

[Peter]

It's traditional. We don't have the Roth option yet. I've been asking for that, but we do not have that option yet.

[Jill]

How much Money's in your 401k total?

[Peter]

Total. My 401 is $580,000 in my 401k.

[Jill]

And your wife's SEP?

[Peter]

My wife's SEP is $86,000.

[Jill]

Okay, good.

Any other retirement accounts? Old ones, kicking around. Anything else you got?

[Peter]

Yes. Okay, so I have a traditional IRA, yesterday's value, 142,000. We have traditional inherited IRAs on my wife's end of $353,000.

[Jill]

Just when did that person die? What year?

[Peter]

Like 10 years ago. Okay, so she's already taking required minimum distributions on that.

[Jill]

Okay, so she's able to do the stretch ira, which is good.

[Peter]

Yeah.

[Jill]

Okay, great.

What other assets are there?

[Peter]

I also have $15,000 in a 401k at my job that is managed by a census.

[Jill]

So is it like a 1% charge? Is it a. Is a commission, do you know?

[Peter]

Yes, it's. I pay a reasonable, I think reasonable 0.75% advisory fee.

[Jill]

Okay, that's good. And so he has the traditional ira, the inherited IRA and the SEP ira.

[Peter]

He has everything that we own other than our checking account. And I'm not sure I'm doing the right thing.

[Jill]

Okay, well, what do you mean? He can't. He. Is he taking a management fee on your retirement account on your 180, on your, on your 401k?

[Peter]

Yes, it's self directed.

[Jill]

Okay, and how about money in Emergency Reserve Fund?

[Peter]

$25,000 cash okay, how about your house?

[Jill]

How much is it worth?

[Peter]

House is worth approximately 750 to 800,000.

[Jill]

Is there a mortgage that remains?

[Peter]

There is no mortgage, but there is $142,000 HELOC.

[Jill]

What's that for?

[Peter]

My wife and I got very generous when our two sons graduated from college.

[Jill]

Oh, good, Here we go.

[Peter]

We helped them out, not knowing that they were going to get a job, and now they have wonderful jobs. You know, we did some home improvements, but nothing, nothing extravagant.

[Jill]

How old are the kids now? They're adults.

[Peter]

And launched both adults 25 and 27.

[Jill]

Have they offered to help pay down that HELOC after all that help you gave them?

[Peter]

They have not offered, nor I asked.

[Jill]

I know. I'm just. I'm making fun. Of course they didn't offer.

[Peter]

And they're going to hear this, so that's okay.

[Jill]

That's okay.

It's. It's good. It's good for them, especially if they have good jobs, you know, let's talk a little bit about what you're thinking around your retirement. Are either of you going. You be entitled to any pension benefits from old employers?

[Peter]

There are no pension benefits.

[Jill]

Tell us about your Social Security. So give us, at Social Security, full retirement age. What's your benefit and what's her benefit?

[Peter]

My full retirement will be 3180. And if my wife holds true to her plans and retires at 65, her Social Security would be 2608.

[Jill]

But we wouldn't. We would still have her wait till her full retirement age. Do you know what that number is?

[Peter]

You know, I don't know that.

[Jill]

So that's at 65. That, that 26. Okay, that's correct. How much money you guys need to live on?

[Peter]

I'm going to give you the same number that I gave our Merrill lynch broker about five months ago when he did a projection for us. I'm going to say $10,000 a month. And that includes travel and everything? That includes everything.

[Jill]

Okay.

At this point, do you have any, any idea about. You said, you know, you. You're going to hopefully retire whenever you retire, but are you really thinking about retirement in, like, three years or five years? Like, what's the most likely scenario for you?

[Peter]

Let me start by saying I love what I do. I'm five miles from home, and I could work till. I could work till I'm 70. So I'm not looking to stop working. I just. I just love what I do. And I. I need to do something. I'm very fortunate.

[Jill]

Okay.

So I'M not that concerned. Then theoretically, I'm just like putting this out there that essentially if your wife said in four years and she wants to retire when she's 65, you guys would not really need for her to claim her Social Security at that point because you hopefully will still be working, right?

[Peter]

Yes, that's correct.

[Jill]

Okay, that's good. Because I don't want her to claim early at all. I definitely don't want her to claim early. So now when I look at the numbers, you know, you need 10 grand a month. You're probably. If we wait for her full retirement. Do you happen to have your Social Security estimate at age 70?

[Peter]

It was closer to 4,000. About $4,000, yeah.

[Jill]

Okay, that's great. So if you think about it like, if you wait till you're 70 and then we don't have to like dip into your money, you don't have to keep putting money into retirement. By the way, that. That's actually not what I would suggest. The most important thing for you guys to do between, you know, sort of in the next six years is to build up some money that's already been taxed because you have a lot of money that is pre tax. There's no way to make that go away. Right now you really can't convert because there's no non retirement asset to pay the tax that's due.

[Peter]

Understood.

[Jill]

The question really is, you know, do you want to keep working with this broker or not? 0.75 is not terrible. It really isn't. It's just a drag that, like, I mean, do you feel comfortable doing it yourself?

[Peter]

Not to minimize the title and the job. I don't believe it's rocket scientists and I can do it. I did it before I had a broker.

[Jill]

Okay.

It isn't rocket science and I've done it for a living. It really isn't. You know, part of what I think about when I was really the best at doing my job as a, as a certified financial planner, as a money manager and a planner, is that I was there to walk through the same thing I walking through with you. It's like I'm talking this through with people. And the real reason I think I had value was to kind of look forward and do a lot of projections. So here's what I'm going to guess, that you're the dude at Merrill lynch said you're fine because you're going to have money coming in and as long as you're working till you're age 70, you're going to have plenty of money. And, you know, at that moment, you're going to start pulling money out of these accounts, and you. You'll be okay. Is that what he said?

[Peter]

Exactly.

[Jill]

But how do you feel about extricating yourself from this person? Like, how are we going to do that?

[Peter]

You know, I'm an emotional guy, so I'm emotionally attached because I just am. You know, we're friends, kind of. And I would. I would peel something away, and I would ask you what I should peel away first.

[Jill]

Well, tell me, where is the retirement plan held? The current. Your current 401k, where is that held?

[Peter]

It's managed by a census, and that money gets transferred to Merrill Lynch.

[Jill]

But if you. If it were in a census and you just had. Could you just pick, you know, mutual funds and index funds?

[Peter]

Yes. Yes.

[Jill]

You know, if you have a menu of. Of index funds that, through a census that you can use, that's what I would start with, because that's the biggest chunk of your money anyway. That's the 300. That 580 grand. That to me is like, now we put that together, now we have 580 plus the 15. So let's just call it. You have 600 grand. Let's start with that. And you say to him, you know what? I want to manage this. I really do. I feel comfortable with it. You can keep the traditional ira, you can keep the inherited ira, you can keep the SEP ira, but I want to do this myself. And he's going to flip on you, just to be honest with you, but be very clear. I love you. You've been great to me. It's been fun. I really want to do this myself. And if I can't do it and. And if I find myself that, like, it's too much for me, or, you know, if, God forbid, I drop dead and my wife doesn't want to do it, she'll have you manage it like you're still in our lives. How's that?

[Peter]

Perfect.

[Jill]

I think that's easy to do. Now, the one thing is, he might crank your fee on you. He might say to you, well, you know, I have you in at 0.75, because he got more than a million bucks here. He might say that. And then you just say, well, tell me what the fee is going to be, and I'll make a decision.

[Co-host/Producer]

Maybe I'll do.

[Jill]

Maybe I'll move everything out. Maybe, you know, like, that's going to be another conversation point. I think that. Listen, when I was on the other end of those conversations it sucks.

Okay?

As the person who was the money manager and got that call, it really is a bummer. But the reality is it's become easier and easier to manage money. And if you're comfortable with it, then I think it's fair to say to this person, look, it's been great, and he's made a lot of money from you, and you're not breaking up. Totally. You're saying, literally saying, I want to try this, and if it doesn't work, I'm coming back to you with my hat in my hand.

[Peter]

Very good.

[Jill]

What about estate documents? All done.

[Peter]

Estate planning is done. Will advance directive, power of attorney.

[Jill]

Okay, let me just have a little message to Peter's sons who are listening. Peter, you got your sons to listen, which I love.

[Peter]

They will listen.

[Jill]

Do they have any college loans?

[Peter]

One doesn't. One has a few. A couple of thousand dollars. Under $5,000 left.

[Jill]

So, guys, your folks did a lot of nice things for you. You know what would be a really great gesture and for any young people listening, is to at least offer, hey, you know what, mom, dad, we're making money. How about we send you 300 bucks a month until further notice until, you know, we help whittle down your HELOC? Wouldn't that be a nice offer to make? Because 300 is not a terrible amount. 300's like. That's a number. That's like a real number. But it shouldn't. I don't know how much they make, but if they've got jobs and life is good, I would just. Sons, children, offspring, give that a whirl. Dad and mom would really appreciate it, and it shows that you're actually a financial grown up.

[Co-host/Producer]

If you've got a financial matter that you want to kick around with us, just go to jillonmoney.com, click the contact us button, write us that note, and check the box. If you'd like to join us live, we'd really love to have you join us. It's so much more fun when we have you live. You can subscribe to us on the Odysee app or wherever you find your favorite podcast. It is Friday. We do our thing. Thank yous on Fridays. Our music is composed by Joel Goodman. Mark Tulario is the executive producer and king of all things web, and we are distributed by Odyssey. Try to lift someone up. Change your work, Change your wealth, Change your life. Thank you for listening and we'll talk to you on Monday.

[Shopify Advertiser]

Starting your own business can be intimidating. Suddenly you're wearing all the hats, designer marketer, customer support, Shipping expert It's a lot. That's where Shopify comes in. Shopify is the global commerce platform powering millions of businesses around the world and 10% of all e commerce in the US Shopify has your back. With hundreds of ready to use templates, you can launch a beautiful professional online store that looks and feels like you need content. Shopify's AI tools can help you write product descriptions, headlines, even enhance your product photos. Want to grow your reach easily? Create email and social media campaigns to meet your audience wherever they're scrolling. And with Shopify's world class support, you'll have expert help for everything. Turn your big business idea into With Shopify on your side, Sign up for your $1 per month trial and start selling [e-mail] Odyssey podcast. Go to shopify.com Odyssey podcast shopify.com Odysseypodcast.

[Erin Moriarty]

In 2013, two brutal murders left the city of Davis, California, paralyzed in fear.

[Peter]

The victims were an elderly couple. It was up close and personal.

[Erin Moriarty]

I'm 48 Hours correspondent Erin Moriarty. I thought I had seen it all until I encountered the mastermind behind those murders.

[Jill]

He's. I think the word is psychotic.

[Erin Moriarty]

This is fifth grade. 15 inside the Daniel Marsh murders follow and listen to 15 inside the Daniel Marsh Murders on the free Odyssey app or wherever you get your podcasts.