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A
Picture this. It's late at night and you finally spot it. That one product you've been looking for. You click the link, add it to your cart, and then it's time to check out. But then you realize your wallet's nowhere near you. And good luck remembering which password goes with which site. That's when you see it. The Purple Shop Pay button. One tap and just like that, your payment information is already filled in. No wallet, no logging in, just a smooth checkout. Shopify is the commerce platform behind millions of businesses worldwide, from household names to brands. Just getting started. You can get started with your own design studio using hundreds of ready to use templates to build a beautiful online store. Shopify also makes it simple to get the word out with email and social media campaigns that reach customers wherever they are. Shopify's award winning 24. 7 support is always there to help. Plus you can manage everything in one place. See fewer carts go abandoned and more sales with Shopify and their Shop Pay button. Sign up for your $1 per month trial today at shopify.com jillonmoney go to shopify.com jillonmoney that's shopify.com jillonmoney this year, I'm not missing opportunities and it starts with not missing calls because a missed call is money out the door. Quo helps you and your team share one business number, reply faster, and stay on top of every customer conversation so you never miss an opportunity to connect with your customers. That's why today's episode is brought to you by Quo, spelled Q U O. The smarter way to run your business communications. Quo isn't just a phone system, it's a smart system. AI automatically logs calls, generates summaries, highlights next steps and and can even qualify leads or respond after hours so your business stays responsive even when you're offline. Plus, it's easy to scale, add teammates, new numbers and sync your CRM in minutes. Your team can manage everything from one shared number, ensuring no messages are missed and no customer slips through the cracks. Try Quo for free plus get 20% off your first six months when you go to Quo.comJillonMoney that's Q-U-O.comJillonMoney Quo no missed calls, no missed customers welcome to the Jill on Money Show. It's Friday, February 20th and we are here talking about whatever is on your mind financially. And that might be a question about, let's say, can I retire? It may be a question of what should I factor in if I'm going to have kids Maybe it's a question about can you buy a house? Can you give up your cheap mortgage? Anything that touches a dollar is what we are interested in helping you achieve. Now remember, this is a program that is about you and your money. It is not about accumulating the most you can. All we're trying to do is help you get wherever you want to go. So if that resonates with you, get in touch with us. Go to jillonmoney.com, click the contact Us button, write us a note, and if you want to come on the air, just check the box. Mark will do everything else while you are on the website. Please do check out our subscription service. It's called Jill on Money Live. For 45 bucks for the next 12 months, you will have access to four live webinars, the back catalog of those webinars, as well as bonus audio and video content. Again, 45 bucks for the next 12 months. Our upcoming webinar in just days is with Ed Slotted. Ed is one of our favorites. He is a CPA by training. He is an expert in IRAs, Roth IRAs and retirement planning. The man is an encyclopedia. He's fantastic. He's fun. And if you want to join us live for that webinar and ask Ed your questions, all you need to do is subscribe to Jill on Money Live. Now if you just want to see the webinar once it has already taken place, you can easily do that for for 15 bucks per webinar, you can just buy a standalone webinar. Mark has decided that this is the key to our future growth. That all of you people who don't want to sign up for four of these webinars, even though it's a great deal, you'll you're going to figure out how to make Jill and Mark retire comfortably just by buying these single episode webinars. Mark, how has that worked out so far for us? Retire comfortably? I don't know about that, but yeah, they're rolling in for sure. Is it more or less than you thought? The single webinar, I would say is probably on par for what I was expecting. I'm not sure how many people are actually giving up their annual memberships just for that. Yeah, that would stink. I don't want. I don't want to cannibalize our beautiful business where we are rolling in it. Rolling in it. People rolling in it. We are not. That is a joke. But I don't care. It's fun and we gives people. I like people having optionality and that is what this show is all about. So. So speaking of optionality, let's talk to one of you, our listener, Gail, who joins us from Maryland. Hello, Gail. How are you?
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B
I am well, thank you. Looking forward to talking with you.
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Well, you got me and you got Mark too. So tell us what's on your mind.
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B
Well, I'm a relatively recent widow. My wife died last January and I'm.
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A
I'm sorry.
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B
Thank you. And I'm looking at reevaluating some of the things we've. We had our money in a, or most of our money in a financial company. I'm fairly comfortable with managing money. And I had suggested to her that instead of paying him 1%, we should consider moving the money. And he, she did not want to do that. And while she was alive, I didn't do that.
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A
Okay.
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B
But I have done some checking. In 2016, I moved $10,000 from one of my other accounts into a Vanguard Total stock fund to do a test and compare how well my guy was doing.
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A
Okay. I love, I love a, I love a side by side comparison. This is good.
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B
Okay, so financial guy would like it.
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A
Okay, but this is 10 years. But it's all stock. Is your current portfolio that the guy's managing? It's not all stock. It's stock and bonds.
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B
It's not all stock, but it is about 80% stock.
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A
Okay, so the current, just so I get it, your current allocation is 80, 20, right?
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B
Approximately, yeah.
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A
Okay, so we should be know that over 10 years, tell us your 10,000 in the Vanguard total stock. You also reinvested the dividends, right? Yes, ma'.
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B
Am, Absolutely.
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A
Okay, so what's the value?
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B
Ten years later, it's just under $30,000. And the annual rate wound up being 14.3%.
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A
Correct. That makes that 14% annualized. Okay. Incredible, right? I mean, I don't know if we're going to get a 10 year period like that, but let's just, we'll just take that. Now tell us how the comparison went when you look at the money with the financial planner. And again, everyone listening, we're going to do apples to apples. We're going to downgrade this a little bit because the current financial planning firm, the guy is 80 stocks. 20 less like bonds, cash, compared to all stocks. So let's tell me, how did they do in terms of return?
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B
Okay, after paying him 1%, it increased by 11.57. So 12.7 if you count the other. But that's, that's still 2.
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A
I like that you're like, okay, okay, Jill, fine, but it's not great. Wait a second, wait a second. What else did this dude do for you over the last 10 years? Was there full financial planning?
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B
Actually, no. He is a cfp. But when I was talking to him, you know, once a year, he takes me to lunch for the large amount of money he gets from me.
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Yes.
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B
And he happened to mention that in 2008, which was when we moved to him just before the crash.
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A
Yeah.
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B
That he had just, at that time, finished his cfp.
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A
Okay.
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B
So I think he may not have known. I'm realizing that he probably should have done a whole lot more than just pick stocks.
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So he's a stock. So he's a mutual fund guy, basically. But nothing else? No other like, hey, hey, Gail and your wife, like, let me do, Let me model out a plan for you. Nothing like that?
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B
No. And I, I, I appreciated that because I said to him, I want to understand anything we're investing, and I don't want to do crypto. I don't want to do shorts and puts and all because I don't understand it. And he was fine. He said, okay. His mother's in her 90s, and he puts her in plain vanilla. And he put me only us only in plain vanilla. Manila also, which I appreciated.
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A
Okay. And when you look at those funds, are they index funds or are they managed funds?
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B
Now, I do have in that two stock. Well, one is a stock, which is Apple. I've heard of that.
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A
Yeah. Yeah.
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B
You've heard of that, too? Yeah. And one of them is a fund called qqq.
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A
Oh, you got the triple Q. So a NASDAQ fund. Okay.
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B
And the two of them together compromise almost 50% of my taxable money with this firm.
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A
Holy smokes. Wait a minute. So what's in the taxable account? How much?
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B
All right. 1.27.
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A
You have 600 grand in Apple in the queues.
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B
Yes.
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A
Holy smokes. What kind of risk are you taking? Mama, come on.
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B
I love Apple. I wanted to invest in Apple in the 90s, and I didn't have the money to do it when it went down.
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A
We'll have a conversation. All right, so 1. So in your taxable brokerage, there's 1.2 million, of which half is an Apple and a triple Q.
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B
That's the IRA. That's the IRA.
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A
That'S. So wait a minute.
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1.27.
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The IRA.
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IRA.
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A
And that is half in Apple and the Qs.
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B
Yeah.
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A
Okay, that's good to know. Okay, so that's the IRA. What else do you got with this guy?
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B
An IRA? About 150,000.
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A
That's just another IRA. So you said.
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B
I'm sorry. That's a Roth. That's a Roth.
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A
Okay, so we have a Roth with 150. What else?
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B
Yeah, then I have a brokerage account with him that has about 200,000. I have another fund. It was a retirement supplemental plan. And I've got just under 200,000 in that.
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A
In your brokerage account where you had said you had 200,000, is that in individual stocks or funds?
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B
It's mostly funds.
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A
Okay, got it. But I want to just point out that it's been an incredible ride with Apple and the qs. Right, but that is inside of an IRA account. We could conceivably sell it and not have any tax liability.
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B
Yes.
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A
Okay. I just want to make sure I double check on that. What is the source of your income, Gail?
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B
Okay. I am fortunate. I have both Social Security and a pension from my employer, which includes health care.
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A
Oh, my God.
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B
I'm very lucky.
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A
How much is that income right now?
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B
Yeah, the two of them together give me about $63,000 a year.
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A
And is that enough for you?
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B
Pretty much. Because my RMD, I obviously am taking RMDs.
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A
Why obviously? How old are you? I forgot to ask.
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B
I'm 78. 78.
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A
Oh, my God, you sound fantastic.
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B
I'm in very good shape. I'm very fortunate.
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A
Okay, so you got to take RMDs. So you do. So the RMDs are about how much right now?
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Running with all the. All the things that have the RMDs. 63 to 65,000.
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So 63 for your Social Security, pension, plus another 60 some in RMDs.
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Yes.
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A
So you really. I mean, so you're living on the 63,000 Social Security and pension, plus the 60 some thousand that's coming from the required minimum distributions. That's plenty of money for you, right? You're good.
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B
Yes.
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A
Okay. And so right now, do you. Do you have kids?
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B
My wife had children. They're my bonus children. One of whom I'm still involved with. One of whom I didn't expect to maintain any contact after her mother died. She was not happy with the lesbian relationship.
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A
It happens. She's a little. She gotta get over that. But okay.
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B
Right. And she was my executor and power of attorney and all that sort of stuff, so I had to redo all of that.
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A
But there is one. But there is another kid who you're close with?
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B
Yes, surprisingly I am. And unfortunately, she doesn't have much money since.
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A
Okay.
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B
So I support for her, but that's fine.
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A
I, I, but, but so is, is it your intention at this point, once you redo your, your estate, how are you viewing what, what you have and how you want? I mean, you're, you're not going to spend all of your money. So how are you going to manage this?
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B
Well, I divided it up because we bought the house together, we paid off the house together, we put things together. Her children got her r IRA when, when she died.
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Okay.
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But the other part, I'm considering that to go to her children and my sibling.
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Okay, so you have one, you have one sibling and who has a couple kids or so. Okay, got it. Are you at all charitably inclined? I am.
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B
And in fact, for 2026, I'm planning on doing two. QCD.
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A
QCD, yes. So that's a qualified charitable distribution. That's why I was going to ask you about that because with that million, 1.2 million in your IRA, you can take up to, you don't have to do this, but you could take up to $111,000.
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B
Right.
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A
And gift it to a charitable, directly to a charity. And that's a nice way to kind of start whittling things down a little bit, especially if you are charitably inclined. It's a great way to give money away.
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B
I know. I'm planning on in large part. Obviously, one of the things that wanted to talk about it is that Irma thing.
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A
Oh, come on, stop it, stop it. Mark, tell, just, I mean, all right, okay. Let's have an IRMAA thing for a second. Okay, so Gail. Yeah, hold on. I just have to give everybody a quick Medicare income planning moment.
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B
Yes.
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A
Okay, so Gail has piles of money, and she hasn't had piles of money, but you have, you have a lot of income. Right? And because of those required minimum distributions, which, as you can see, gang, Gail's 78, healthy, but she's got $1.2 million in an IRA account, which is pushing $60,000 a year out to her in income, which means her total income of like 120something,000 puts her into, let's call it the highest bracket would be the 24% bracket. Okay? Now what happens in Medicare planning is, is that very few people understand this until you get there is that when you make a bunch of money, there is a surcharge that is levied and it doesn't exactly match up with the tax brackets, which is a pain in the Neck. But I put it out here to tell you that if you are single and you have income, let's say 137,000 to 171,000, that range, which is exact. Maybe about where you are, Gail, I
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B
think, yeah, pretty close.
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A
You have to pay a surcharge for Medicare Part B and D of 240 bucks a month. And so this just proves to me that you can be a millionaire and care about paying $3,000 a year at this extra expense. See? See what I just proved to you? Now, let's not quibble over this. So what do you do to get rid of that? You try to drive down your income. And. And the only way you can drive your income down is to get money out of that retirement account. Right. And that's why the QCD could be very helpful. Right?
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B
Yes.
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A
But are we really going to worry about the. We're not going to worry about Irmaa, are we? Come on. Well, you got plenty of money. What are you worried about?
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B
I just hate to pay twice as much.
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A
Oh, my God. I mean, this is in line with everything she said so far. She doesn't want to pay the advisor. I mean.
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B
Okay, so first of all, okay, he's
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A
not giving you value, which is fine. If you feel comfortable running the money, that's fine. I'm going to make a few observations. Okay. Okay. So, oh, by the way, what's your house worth right now?
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B
About 560,000. It's a condo and it's fully paid.
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A
Okay. And you can stay there as you get older. You're good.
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B
I have to go out feet first.
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A
Okay. God bless. My observations are as follows. You got plenty of money. You know that. You want to fire the advisor, fine. But you got to have somebody in your life who is younger than you are, who, if you lose your marbles, can help you out then. I'm not saying you're going to lose your marbles, but, like, you know, cognitively, the thing. The body is going downhill after age 60. You're, like, right now at the other side of, like, cognitive moments. Right? So you need somebody you can trust. And I don't know if it's one of your. If it's your sibling's kid or somebody, just somebody who you can say, like, have an extra set of eyes on something. So that's one thing I observe. The second thing, you have too much money in Apple and the Q's. This is insanity. So if you want to do something, what I would do is I would sell these positions out if you Want to reestablish the position in, like, the Roth and say, I'm going to hopefully never need this and just walk, watch it grow. Make the Roth IRA your fund money account. Just, just go crazy with it. You can put. As far as I'm concerned, you can take the whole Roth account, sell it out and buy individual stocks of your liking and just have fun. Okay? Let it run. Don't worry. But I do not like 600 grand in Apple and the Q's inside of your IRA. By the way, you're compounding your problem, which is there's too much growth in that account already. If you're going to grow something, grow it inside the Roth where there's not a problem. You know, you could double it and it's great. And you don't have to take the money out because it's outside of required minimum distributions, right?
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B
Yes.
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A
All right.
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B
That's part of why, in retrospect, I'm a little annoyed with my financial advisor who did not advise me of any of that sort of thing. He didn't. He also did not advise me to take money from my IRA to live on when I retired until I got my full retirement age. Yeah, well, you know, it's my decision,
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A
but, you know, so how are you going to. So, okay, so that's a couple of the things that I think are important. I think you should use the qcd, which is great. Update your documents for sure.
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B
I've done that, which is great.
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A
And yeah, I mean, you'll save, you know, it's nice to save this money. You're going to save a bunch of money every year, but you absolutely need one, one other human being with whom you share, like, your love of investing. And you can talk to, but somebody that you really trust that can help you out if you can't take care of this on your own, because otherwise we're in big trouble. Right? I don't want this to be. You know, certainly we thought the step kid would be one, but maybe not. Maybe the step kid is not so good.
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B
Bonus child, not stepchildren.
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A
Bonus children, Bonus children. Whatever you call them, whatever you want. I don't care. These kids. But you know, if it's. But maybe it's your siblings, kid, maybe it's somebody.
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B
Maybe it's your best friend that one of my friends locally who happens to be an attorney is, Is my buddy and she is now my power of attorney.
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A
Perfect.
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B
Secondary is my sister's daughter. My sister's health. She's younger than I am, but her health is much worse. So my her daughter would be more likely.
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A
Okay, well just make sure we got somebody on your side. You can always call us and check back in with us.
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B
Okay.
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A
All right, Gail from Maryland, give us a holler if you need anything else. So if you are really considering firing your financial planner, your financial advisor, whatever they call themselves, get in touch with us so we can walk through this with you. Go to jillonmoney.com, click the contact us button, write us a note and if you would like to join us on the air like Gail, click the box. Mark does everything else while you're on the website. Don't forget to sign up for the free weekly newsletter comes out every Friday, which is today. And remember that you can subscribe to us on the Odyssey app or wherever you find your favorite podcasts. Our music is composed by Joel Goodman. Mark Tularsio is our executive producer and the camera of all things wet. We are distributed by the fine folks at Odyssey. We ask that you lift someone up. Change your work, change your wealth, change your life. Thank you for listening and we'll talk to you on Monday. Hey gang. I just made a first time ever purchase on behalf of the pod. I was so psyched because Mark and I don't do a lot of promotional materials, but I was able to create a. A branded sweatshirt. Yep, a Jill on Money branded sweatshirt with Vistaprint. Now I'm not usually good at these things, but Vistaprint made it simple to bring this idea like, oh, wouldn't it be cool if Mark and I could create some sweatshirts that we'll try out and maybe the listeners would want to get them as well. They've got these great design tools. They have fast shipping human support if you need a little guidance along the way. Because the sweatshirts were so easy to execute. Now I'm thinking about doing some other stuff. Maybe there's some baseball caps or, I don't know, other fun stuff that you guys would want. You'll let us know. There's a reason that over a million people trust Vistaprint for their small business print needs. Vistaprint print your possible right now, new customers get 20% off with code new20@vistaprint.com go behind the scenes of one of TV's most watched true crime series with the 48 hours postmortem podcast where correspondents and producers take you inside each case. Every Monday, listen to a new episode of 48 Hours and then join me 48 Hours correspondent Ann Marie Green every Tuesday for a new episode of Postmortem. Follow and listen to 48 Hours on the free Odyssey app or wherever you get your podcasts.