Podcast Summary: Planning Around a Diagnosis

Jill on Money with Jill Schlesinger
Date: December 3, 2025

Overview

In this episode, Jill Schlesinger takes a listener call from Wes, who is navigating the financial challenges of supporting his mother-in-law recently diagnosed with Alzheimer’s, while also balancing his own family’s long-term needs. Jill guides Wes through practical financial planning in the context of caregiving, uncovering how an unexpected diagnosis can dramatically reshape retirement and life priorities.

Key Discussion Points & Insights

1. Setting the Stage: Family and Financial Situation

• Wes’s Context: Wes, calling from the Midwest, planned for possible early retirement but has recently shifted priorities due to his mother-in-law's Alzheimer's diagnosis.
  • Mother-in-law's Needs: Currently living independently, but family is arranging for her to move into a facility with 24-hour staff and memory care.
  • Facility Costs: Starts around $50,000/year, escalating to $75,000/year as services increase.
  • Mother-in-law's Resources: $20,000 in the bank, $20,000/year from Social Security, minimal savings.

Quote at 02:34:

"She did some pricing on that and it starts around $50,000 a year and then it goes up... She only has Social Security income and hardly anything in savings, so she's going to need some help with this." – Wes (B)

2. Financial Support Analysis

• Family Support: Wes’s wife and her sister help, but Wes’s household will assume the larger financial share due to their more stable finances. The projected split is:
  • Social Security: $20,000
  • Sister’s contribution: $10,000
  • Wes’s family: $20,000 (totaling $50,000 for care)
• Both Wes and wife are working: Wes (58) earns $80,000; wife (51) earns $130,000.
• Two children: In middle and high school. $20,000 saved for each in 529 education accounts.

3. Deep Dive Into Assets and Liabilities

• Retirement Contributions: Both are maxing out contributions (including catch-up).
• Emergency Fund: $100,000 in cash.
• Retirement Accounts & Brokerage:
  • Wes: $273,000 inherited IRA, $112,000 traditional IRA, $20,000 Roth, $156,000 401(k), $107,000 in brokerage.
  • Wife: $80,000 401(k), $24,000 Roth IRA.
• No pension eligibility, no debt (mortgage and loans paid off).
• House is valued at $200,000.

4. Jill’s Advice & Action Steps

• Adjusting Cash Flow: Jill recommends reducing or suspending non-essential contributions (529 plans, catch-up retirement contributions, brokerage) to redirect cash flow towards care expenses.
• Emergency Reserve: Prioritize channeling bonuses and unallocated income into the emergency fund.
• Time Tracking: For the initial 90 days of the new care arrangement, meticulously track spending to adjust projections accordingly.
• Maintaining Flexibility:
  • Use mother-in-law’s Social Security and cash first.
  • Avoid tapping into inherited IRA if possible.
• Impact on Retirement: Plan for the possibility of having to work longer, but reinforce that the family’s financial foundation is sound.

Quote at 07:16:

"Something's going to have to give... the give is going to be how much you're putting away into your 529 plans and... your brokerage because the excess cash flow... is going to be necessary to funnel that for your mother-in-law." – Jill (A)

Quote at 09:12:

"All in the emergency reserve fund. Build that up. Let's say that mom goes into a facility starting in, I'm going to just say January. I really want you guys to just for 90 days to track where the money's going and see how you're doing." – Jill (A)

5. Estate Planning and Insurance

• Estate Planning:
  • Drafts of estate plans exist but remain unsigned. Wes’s wife is an attorney but too busy to finalize them.
    • Jill emphasizes urgency: “Get that done. Also, do you have life insurance, the two of you?” (10:52)
• Life Insurance:
  • Adequate policies now in place, recently boosted through Policygenius.

Quotes:

• "The cobbler's kids got no shoes... Get that done." – Jill (11:27)
• "I want a will. I want a durable power of attorney, and I want a health care proxy. Please do that." – Jill (11:52)

Notable Quotes & Memorable Moments

• Perspective on mortgage paydown:

"Sometimes when I say to you, don't be so quick to pay down a mortgage, this is one of those weird situations where... you could have had the access to cash. These are the kinds of situations where you say, 'Ah, you know what? Actually, I wish I had that money back that I paid the mortgage down with.'" – Jill (10:04)

• Family realism:

"The alternative is you say, all right, Mom's going to… live in with us and we're gonna start getting care in the house—which is like, that's invasive. And... at some point… it puts a tremendous burden on the family. And you got young kids, so you gotta still deal with that. So I think you're gonna be okay." – Jill (07:39)

• Reassurance:

“It’s a rotten situation, man. I’m sorry.” – Jill (09:01)

• Funny moment on estate planning:

“We’ve had a draft together for at least five years now.” – Wes (11:04)
“What?” – Jill (11:05)

Timestamps for Key Segments

• [02:04] – Wes introduces family’s situation and diagnosis
• [04:32] – Discussion of cost split and relative financial strength
• [05:39] – Full outline of Wes’s assets and retirement planning
• [07:16] – Jill's initial advice on what needs to ‘give’ in their budget
• [09:12] – Jill’s recommendation for an emergency reserve and 90-day spending check
• [10:49] – Extended advice on working longer and the impact of past financial decisions
• [10:57] – Estate planning procrastination and the importance of getting it done

Takeaways & Final Thoughts

• Life-altering diagnoses necessitate swift and sometimes uncomfortable shifts in financial priorities.
• Flexibility, clear-eyed tracking, and willingness to interrupt or suspend savings goals (temporarily) can keep family finances stable.
• Estate planning and adequate insurance are absolutely critical—no matter how busy.
• Jill’s signature blend of empathy and directness helps listeners see complexity with clarity—and provides comfort in tough choices.

If you have your own financial conundrum, visit jillonmoney.com and click "Contact Us" to be featured on a future episode.