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Brought to you by Apple Card. Apple card users get 2% daily cash back on purchases made in store and online, whether it's for big ticket items or everyday purchases. When they use their Apple Card with Apple Pay. Now, that's a benefit that's just too good to pass up. You could be earning 2% daily cash back when you use your Apple Card with Apple Pay to buy Turmeric for your signature curry, 2% back on flights to visit the family in Tucson, and even 2% back on your kid's new tuba. You might even be able to get 2% back on a tuba tutor, not an Apple Card customer. You can apply in the Wallet app on iPhone subject to credit approval. Apple Card issued by Goldman Sachs bank usa, Salt Lake City Branch terms and more at Apple Co Benefits hey gang, when summertime rolls around, there's probably a lot of exciting plans. Maybe there's a big trip or you're doing something really fun. And if you're like me, sometimes this brings a heightened awareness of what you need to do to protect everything, everyone in your life. Maybe you're wondering if something happened unexpectedly, how would that impact my family? Well, now you can stop putting off life insurance and check it off your list with policygenius. It's an online marketplace where you can compare quotes from top insurers side by side for free. And their licensed team walks you through everything, coverage, pricing, all of it. So there's no guesswork. So instead of a summertime worry, it's a summertime win. You'll get that peace. Peace of mind knowing you've got the solid safety net in place. With Policygenius you can see if you can find 20 year life insurance policy starting at just $276 a year for a million dollars in coverage. Head to policygenius.com to compare life insurance quotes from top companies and see how much you could save. That's policygenius.com welcome to the Jill on Money Show. It's Thursday, May 7th and we are here answering your financial we is me, Jill and he the executive producer, Mark. He's lurking in the background. Mark. It was for many years the person I referred to but never came on the air. Then once he got his certified financial planner certification, then he slowly but surely came on the air and now it is just so natural, Mark, that you join me all the time. But sometimes you feel like you want to talk. Other times, what are you doing when you're not talking? You paying attention or are you doing something else? Eating your various mixed nuts? I hear It. See, I'm so smart. What else are you doing? Are you multitasking? Tell the truth. I'm always doing something related to the show. Yeah, for sure. All right, well, you know, sometimes it is. Or I'm playing with my calculator. Yeah. Just for fun. Numbers. Yeah, like right. So Mark and I always laugh because I'm like, Mark, you do the math while I'm talking so I can concentrate. I do take copious notes while we're talking to you guys. And if you want to come and talk to us, it's very easy. All you need to do is go to our website. That's Jill on Money. And in the upper right hand corner there is a contact us button. All you need to do is click that button. That's the form that pops up. It's the email we receive. And yeah, sure, sometimes we do some email episodes, but you know, we love talking to you live. And if you want that experience, check the box. Mark will arrange to bring you on the air. And it's so enjoyable and I promise it's very easy. We can make sure that you use a pseudonym. We can change some facts so none of your friends who you've shared this program with will know it's you. And, and beyond that, we just love hearing your voices. So that's number one. Number two, while you are on the website, don't forget to check out our subscription service. It's called Jill on Money Live. This is Mark's brainchild. It's not even mine, it's Mark's. This is where you have access to quarterly live webinars, the back catalog of those webinars. There's also some bonus audio and video content. There's the Ed Slot famous charts that are up there for 45 bucks for the next 12 months. Or you can purchase a single webinar for $15. And that has been very fruitful for many of the people who bought the Ed Slot. Remember Ed Slot. He is just the greatest guest. He is the guy who is the IRA Roth IRA cpa. He's an expert in so many tax related issues. But truly he is the Roth IRA master. And many of you decided you just wanted to buy that single webinar for 15 bucks. And you may make a similar decision. Our next webinar is next month, June 17th. It's a Wednesday and we will be joined by the queen of all things Social Security. Her name is Heather Schreiber. She is a Social Security expert. We are going to be talking about claiming ideas, ways that you can Actually be smart about your claiming strategies, ways to think about why delaying could be a really smart thing for you. But. But if you'd like to be part of the webinar in real time again, you've got to pay up for the next 12 months. 45 bucks. Otherwise you can register to just buy that single webinar right now and it will be available once it airs. So do check that out, Jill on Money Live. All right, enough about us. Let us get to you. Today we are joined by Emily, who is joining us from the Pacific Northwest. You know why I said Pacific Northwest, Emily? I didn't want to say the word O R, E, G O, N because I always scare. I'm scared I say it incorrectly. Can I give it to you and you tell me how I do? All right, you ready? Yep. Oregon.
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Oregon. Yep.
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Oregon. Okay, I got it. Okay, now, Emily from Oregon, tell us what's up. Yeah.
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B
Hey, thanks for taking my call. Jill and Mark, love your shows. So I am 53. My husband's 54. We both have worked for the U.S. government. My husband's been retired for about five years and I am retiring in the end of June. And so.
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A
So wait a second. Let's take a pause. That is amazing. So first of all, congratulations. Thank you for your service. Thank you. And how are you feeling about this?
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B
You know, I got all the feelings. I'm happy, I'm sad, I'm excited. I'm like, woo, it's coming.
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A
Yeah, it is. Okay, so next month this is happening?
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B
Yeah. Yes, next month. End of next month. So, yeah. So I've been maxing out my TSP for the past handful of years and I'm curious, should I be? I know it's short term, but the next couple months be continuing to max out as much as I can on my tsp, or should we be saving a little bit more in cash so we have some more liquidity coming into the next short term?
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A
Okay, so your husband's been retired for five years. Does he have another job or he's like retired, retired.
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B
He's retired, retired. But he does do a little bit of a few side jobs. So he has a teeny bit of income.
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A
How much is his income and how much is his pension?
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So his income is probably like $20,000 a year and his pension is $3,200 a month.
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A
Okay, and what will your pension be, Emily?
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B
Mine will be about $4,000 a month.
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And how much are you guys spending right now?
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B
You know, right now we're spending about 5,000. Is probably a good average. We're working on a house, so we're spending a little bit more, but long term.
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But I wish. I wish you could see my face. I had the biggest smile on my face because I'm so happy that basically both of your pensions cover all of your needs, which is incredible. Amazing. Okay, so let's go through and tell us a little. So that's going to happen. You'll have $7200 a month coming in. His pension, your pension. You'll pay some tax on it. Right. And then you'll live your life. Tell us about the money you have saved so far.
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Okay, so in Both of our TSPs, we have about 2 million. In our combined TSPs, with about 10 to 15% of that in a Roth TSP, in a couple brokerage accounts, we have about $80,000 in there. Stocks and bonds.
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Yep.
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We have. We Both have Roth IRAs with combined balances about 450,000.
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Good Lord. What are you going to do with all this money? Okay, keep going.
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Yeah. About 100,000 in emergency savings and then about 115,000 in CDs.
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You said you're building a house?
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We're not building. We bought a house. And we're. My husband. I will say my husband is redoing all of it to. Hopefully we can sell.
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How much is the house worth?
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We're guessing about 250, once all said and done.
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And is there a mortgage?
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B
No.
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Okay. And this is not the house you live in. Correct. This is your investment. This is your fixer upper.
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B
Okay, fixer upper.
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What's the current. What's your primary residence worth?
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Probably about 475.
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Mortgage or no mortgage? Let me guess. No mortgage.
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No mortgage.
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Mm. You guys have kids?
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We don't.
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That's why you have all this money?
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Yes.
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I don't really know what you're gonna do with all your money. I really don't. It's gonna be amazing. Is there anything else that you want to do with this money? Do you wanna buy a second home? Do you wanna have some? I don't know, like, you're in Oregon. You could, like, buy a house in Hawaii. I don't know. What. What are we gonna do with all this money?
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Yeah. Yeah. That we've. We've talked about maybe investing somewhere else, just with a, you know, a small cabin cottage thing.
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You can't spend money. You have so much money. So what's my question? Do you need to. Should you keep putting money into retirement funds? Like, you're not going to spend the money you have. This is crazy. It's amazing. Okay, so if the question you right now, are you using a Roth for your contributions? Emily?
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Yes, I am.
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I mean, you can, it's fine. You don't have to. You have plenty of money. You have savings account, you have CDs, you know, you're. How much money do you need to spend on the house to get it in shape to sell?
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Probably another 50,000.
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So just, you can use money from your. Like, I wouldn't even. I don't really even care. I mean, you could, you could sell some of your stocks in your brokerage account. Does everything have a lot of, you know, use your savings and you can replenish your savings. You sound like you're great savers. So you could always sell some in the brokerage. Like, don't sweat it. Do not sweat it. Like, what's happening right now with your surplus cash flow? Once you've put money into your retirement account, what else. Where are you putting the extra money right now?
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It's going in the brokerage and the savings and the CDs.
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Okay.
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And that's it.
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I mean, I don't think you need to worry about putting more money in retirement. If you want to, it's fine. But, you know, since you're using Roth, it's perfectly reasonable to just kind of, you know, keep using it a little bit. It's a month, so it doesn't really matter. But I would say once you're retired, um, I think what you should try to do is, you know, don't sweat. If you have to spend 50 grand from savings and then the CDs come due, you replenish your savings and then, you know, your brokerage, your savings, your CDs, it can all be like kind of one big pile of money that's already been taxed. And then, you know, you don't. You may be a net saver when you retire. It is possible. Do you know what I mean? Because you're going to have money that is coming in, it's taxed. Do you think you'll do some part time income stuff?
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I will, yeah. Yep.
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Do you have an idea about what you'll earn?
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Probably somewhere between the 10 to 20,000 a year.
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So I mean, you guys can just use whatever you earn in part time income to just, you know, replenish the savings account. And then you're going to sell the house anyway. So you're going to have another 250 that flows through. If you want to use that to maybe not even Invest, but to just have fun, like blow it on a cabin or something. Fine, just do it. Don't even think twice. Yeah. What's with the investment property? Do you guys feel like you don't have enough and you needed more? What's. What's with that? I mean, you really don't need it.
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We don't need it. It was a house we, we bought under auction and my husband retired and just thought he would take it on to work on it. And it's just been roles and responsibilities, I guess, if you will. Little investment.
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Oh, my God.
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Yep. He just, he's somebody who needs to stay busy.
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Yeah. I mean, it's incredible to me that you guys are in this place. There is nothing bad that happens to you. Obviously. We just need to. When you are 59 and a half, you want to start to pull some money out of your traditional accounts just to get the money out. Right. And it is certainly like, I don't even think you're going to take it out fast enough to get there. But, you know, you. You'll get it out. It'll be fine. I mean, again, give it. Let's just pretend that you are both 60 right now. 60 and 60 or, you know, 59 and 60 right now, you know, based on your income, you know, you are going to have income. You can't make that income go away. You'll be in the 22% bracket. You know, it might be worth your while to withdraw money from your retirement, your traditional accounts and pop into the 24% bracket. Because I do think having, you know, like you said, you only. You have like $1.8 million that's in traditional. That's just going to keep getting bigger and bigger and bigger so that by the time you have to start taking money out, it's going to be a big number. You may end up in the 24% bracket anyway. So why not take it out now? You'll build up the brokerage account and the brokerage account. Once it's becoming. Once the brokerage account is sort of not like my fun money stocks kind of account, you're just going to try to replicate what you've done in the tsp, which is you have a stock fund, a bond fund, a commod. Like you're going to be more methodical about how you invest that money and not take. It's not like the flyer account, but, you know, obviously you can take flyers because you can afford to lose some money, but you're in such good shape that I. The only thing I can tell you is that for right now, your. Your looming liability is just a tax bill on the untaxed retirement accounts. So as you approach the time horizon, just, you know, start thinking, okay, we got to get a strategy. We'll get the money out. We'll pay at the 24% bracket. We'll do our thing. It'll just replenish savings every year, and maybe you'll spend more money in retirement, maybe you won't. But do not. Look, don't even. Whatever you. If you were to buy another property, it doesn't have to be for investment. It could simply be just to have something fun for you guys. It's really okay. Okay. Can you give yourself permission for that?
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I think, yes, I can. I can.
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All right, all right. I love that. My last question is that, I mean, you're so young, both of you. You guys have wills just so that someone's getting all this money after you guys pass away.
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You don't have all that stuff. We have health care. We have a health care proxy in place. We got some beneficiaries for all of our accounts, but we don't have the will trust.
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You should probably just do a will and just, you know, you have stuff like the non. But, yeah, let's get that done. Just tidy it up, and you're in great shape. I'm so excited for you. One month is just no time at all. And, you know, your biggest question is going to be like, what should I make for lunch? That's your big, huge question. Like that you're. You're moving away. I'm very excited for you. I thank you so much for getting in touch with us. And we'll. We'll look forward to seeing where you buy that next house once you get this. This investment property sold. And maybe you won't, but maybe you will. Hey, if you're like Emily and you're retiring in your 50s, I want to hear from you. I want to know what's going to happen next and how you. And like she said, oh, I have a lot of feelings. Like, I think it's really scary and interesting and exciting and very interested to hear how you guys are managing that. So if you are thinking about it, if you're worried about it, if you are thinking about something very different, should you take a new job? Are you thinking about whether you should buy or sell a property? Are you wondering how to help your adult children who don't seem to be able to get ahead in the same way you did? We would love to hear from you, go to jillonmoney.com click the contact Us button, write us a note, and if you'd like to join us on the air, just check the box. Mark will do everything else. Don't forget that while you're on the website, subscribe to our free weekly newsletter, which comes out on Fridays. And by the way, you can also subscribe subscribe to us on the Odyssey app or wherever you find your favorite podcast. Don't forget my friends, do something nice for someone else today. Change your work, change your wealth, change your life. Thank you for listening and we'll talk to you tomorrow.
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Nerds.
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Today's episode is sponsored by NerdWallet's Smart Money podcast. Ever Google a money question and end up 12 tabs deep with 12 different answers? This podcast is your shortcut back to clarity. NerdWallet's Smart Money podcast breaks down financial decisions with a team of trusted journalists. They explain the why behind decisions like investing, home buying and choosing credit cards. With clear research backed insights. No jargon, no misinformation. Make your next financial move with confidence. Follow NerdWallet's Smart Money podcast on your favorite podcast app. Hi, my name is Lloyd Lockridge and I'm the host of a new podcast from Odyssey called Family Lore. In this podcast, I'm going to have people on to tell unusual and sometimes far fetched stories about their families.
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I've heard my whole life that she indebted the margarita and then we're going
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to investigate those stories and find out how much of it is true.
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A
He gets a patent one month before the Wright Brothers.
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Oh my God. Please follow and listen to Family Lore, an Odyssey Podcast available now on Apple Podcasts, Spotify or wherever you get your shows.