Jill on Money with Jill Schlesinger

Episode: Refinancing an ARM
Date: October 8, 2025
Host: Jill Schlesinger, CFP®

Episode Overview

In this advice-packed episode, Jill Schlesinger dives into an array of listener questions about money management, market timing, mortgages (including adjustable-rate mortgages and refinancing strategies), college savings via life insurance, retirement withdrawals, and the role of annuities for seniors. The tone is supportive, down-to-earth, and practical, with actionable tips for listeners facing a variety of financial crossroads. Mortgage decisions take center stage, driven by a timely listener question about refinancing an adjustable-rate mortgage (ARM).

Key Discussion Points & Insights

1. Harvesting Investment Gains

Listener: Dawn (02:00)

• Dawn, a retired long-time listener, asks when and how to harvest investment profits, expressing concern about a potential market correction and considering using gains to pay down a low-interest rental mortgage.
• Jill’s Advice:
  • Avoid market timing; don't just sell investments out of fear of a correction.
  • If your asset allocation is off-target, rebalance rather than liquidate.
  • Stick to your “game plan.” Diversify and rebalance as needed.
  • Remain focused on your personal needs rather than comparing with others.
• Notable Quote:

  "If you're telling me your allocation is out of whack, then I would go ahead and reallocate... But if you're asking me should you sell a bunch of stuff just to get the gains and sit in cash, I'm not going for that."
  — Jill (03:08)

2. Using Life Insurance as a College Fund

Listener: Vanessa (04:20)

• Vanessa regrets buying life insurance to fund college for her children and wants to exit the policy.
• Jill’s Advice:
  • Life insurance is not usually an efficient college savings vehicle—529 plans are preferable.
  • Review the policy for cash value and surrender charges before acting; may be tax consequences.
  • Consult before surrendering the policy; be wary of further insurance pitches.
• Notable Quote:

  “If someone is selling you life insurance as a means to save for college… it is not an efficient way to get you where you want to go.”
  — Jill (05:31)

3. RMDs While Still Employed in Your 70s

Listener: Catherine (06:10)

• Catherine, age 73, wonders if she must take required minimum distributions (RMDs) while working part-time.

• Jill & Mark’s Advice:

  • If employed and holding only a current employer’s 401(k), RMDs are not mandatory until you leave that employer.
  • RMD obligations do apply to IRAs or prior employer plans, regardless.
  • Fidelity (or other plan provider) typically calculates RMDs, but you may opt to take distributions voluntarily if in a lower tax bracket.

• Notable Exchange:

  “As long as you're paid as an employee, you don't have to take the RMD... as soon as you stop working, that's when the clock is going to start ticking.”
  — Jill (06:49)

  "Even if you're still working, if you have an old IRA or old 401k from an old employer, you do have to take the RMDs from those accounts, right?"
  — Mark (07:31)

4. Should an 82-Year-Old Consider an Annuity?

Listener: Anonymous (08:25)

• Listener worried about mother’s finances: 82 years old, active, but spending exceeds income and assets could run out in 7-8 years.
• Considering using $200,000 from IRA to buy an immediate life annuity ($2,000/month payout).
• Jill & Mark’s Advice:
  • An annuity could help with longevity risk but seek guidance from a fee-only advisor, not someone selling annuities.
  • Preserve brokerage assets where possible; prioritize independent, conflict-free advice.
• Notable Quote:

  “The person who recommends an annuity cannot be the person who is getting paid by the annuity company... it would be better if you just paid someone...to see what the opportunities are.”
  — Jill (10:37)

5. Refinancing an ARM – Should You Wait or Act?

Listener: Eileen (11:40)

• Eileen’s 10-year ARM (at 3.125%) will adjust in 2027; wants to refinance to a fixed rate and cash out to pay a $39,000 HELOC.
• Asks whether to refinance now or wait, uncertain about future rates.
• Jill & Mark’s Mutual Advice:
  • Inclined to wait until at least early next year before refinancing, as rates could improve.
  • Model out what rates you can afford (e.g., 5.5%). Jump if you see a fixed rate you can live with.
  • Prepare, but don’t panic about missing today’s rates, which may drop closer to the ARM adjustment.
• Notable Exchange:

  “I would certainly wait till the beginning of next year... We might see mortgage rates as we speak right now, heads towards six... if you can make [five and a half percent] work, then pull the trigger.”
  — Jill (13:00)

6. 15-Year vs 30-Year Mortgage for Downsizers

Listener: Kathy, Buffalo (13:35)

• After buying a “next stage” house before selling theirs, Kathy and her husband (70 and 67) weigh a 15-year at 5% vs 30-year at 5.85% mortgage.
• Concerned about closing funds if old house doesn’t sell in time; asking whether to use Thrift Savings Plan assets temporarily.
• Jill & Mark’s Advice:
  • Choosing a 30-year enables lower payments/flexibility.
  • Focus on pricing your house to sell, even if for less, to avoid stressful financial juggling.
  • Drawing from retirement accounts is better than liquidating taxable accounts with large gains, but try to avoid last-minute fire drills.
• Notable Quote:

  “Thirty-year note. Don't go for the last dollar on the house. Tell the realtor we want to price this to sell... That's an important aspect of this transaction.”
  — Jill (15:42)

Memorable Moments & Quotes

• On Financial Comparison:

  “Don’t get spooked by someone who comes on these airwaves and says, I got tons of money, because it may not be at all relevant to you. We just care about you.”
  — Jill (01:37)

• On Financial Products:

  “If someone is selling you life insurance as a means to save for college… get in touch with us because it is not an efficient way.”
  — Jill (05:31)

• On Real Estate Timing:

  “I hate timing these real estate transactions.”
  — Mark (15:39)

Timestamps for Key Segments

| Topic | Timestamp | |--------------------------------------------------|------------| | Harvesting investment gains (Dawn) | 02:00 | | Life insurance for college savings (Vanessa) | 04:20 | | RMDs while still working (Catherine) | 06:10 | | RMD nuances; Mark’s clarification | 07:31 | | Should a senior buy an annuity? (Anonymous) | 08:25 | | Refinancing an ARM – rates & timing (Eileen) | 11:40 | | Mortgage: 15 vs 30 years and closing dilemmas | 13:35 |

Tone & Listener Engagement

Jill maintains her signature, approachable and reassuring style throughout, reinforced by Mark’s brief but insightful interjections. Listeners of all backgrounds are welcomed, and the show’s no-shame mindset invites questions both large and small.

Summary

This episode is a must-listen for anyone navigating complex mortgage decisions, contemplating investing moves in unpredictable markets, dealing with retirement distribution rules, or considering annuities in late life. Jill’s straightforward, empathetic advice demystifies intimidating topics, while real-world scenarios offer guidance relevant to many life stages.

For more financial insights or to submit your own questions, visit jillonmoney.com.