Reset After Military Career

Summary

Podcast Summary: Jill on Money with Jill Schlesinger

Episode: Reset After Military Career
Release Date: July 9, 2025
Host: Jill Schlesinger, CFP®
Guest: Sam from Washington D.C.

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Introduction

In this episode of Jill on Money with Jill Schlesinger, host Jill Schlesinger engages with Sam, a military veteran approaching retirement after 30 years of service. The conversation centers around Sam's financial planning as he transitions from military life to civilian life, his upcoming move to North Carolina, and the financial strategies involved in purchasing his in-laws' house.

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Sam's Background and Retirement Plans

Sam introduces himself as a 52-year-old military veteran from Washington D.C., preparing to retire in a year. He plans to relocate to North Carolina to buy his in-laws' house while his parents transition to independent living facilities.

Sam (03:26): "I'm going to retire in one year from the military after being in for 30 years... moving down to North Carolina and buy my in-laws' house."

Financial Overview

Sam outlines his pension and disability benefits, detailing two pension streams: one estimated at $128,000 annually with a cost-of-living adjustment (COLA) and another approximately $50,000 annually based on his disability rating due to his status as a cancer survivor.

Sam (04:54): "I have to wait until the final. I'll have two pensions. The one pension will be about 128 a year with a COLA and then there will be another one that I think will be about 50 a year based on my disability rating."

Jill commends Sam for his resilience and robust financial planning, emphasizing the importance of understanding pension details and disability benefits.

Retirement Savings and Investments

Sam shares his savings portfolio, including:

• CDs: $340,000 from a previous home sale.
• Thrift Savings Plan (TSP): Approximately $680,000, with a portion being non-taxable.
• Roth IRAs: His wife has $430,000, and he has $435,000.
• Traditional IRAs: Minimal balances of $9,000 and $8,000 respectively.
• I Bonds: $10,000.
• E*TRADE Stocks: Around $9,000 in long-held stocks like Apple, Intel, and Southwest Airlines.

Sam (11:26): "I have about nine grand. Maybe it was Intel and Southwest Airlines."

Jill highlights the strength of Sam's retirement accounts, recommending maintaining liquidity to avoid market volatility risks, especially for funds needed within the next year.

529 Plans and Education Funding

Sam discusses his 529 plans for his three children, totaling over $420,000. He strategically allocated funds to cover his daughter’s private school tuition and anticipates utilizing the remaining funds for his son's college education.

Sam (09:11): "I have 529 plans for all three kids, but I have a little over 420,000."

Jill underscores the importance of these plans in securing his children's education expenses, allowing Sam to allocate his savings effectively without dipping into retirement funds.

House Purchase and Financing Strategy

Sam plans to purchase his in-laws' house in North Carolina for approximately $870,000. His primary concern involves avoiding gift taxes by ensuring the purchase price remains below $1 million, considering his in-laws' original purchase price and the potential capital gains tax implications.

Sam (11:41): "The house will be empty for a handful of months there, then you can do the work."

Jill advises using Sam's CDs and inherited taxable brokerage account to fund the down payment while conserving some funds for home improvements, such as a new master bathroom estimated at $100,000.

Utilizing a VA Loan

Jill recommends leveraging a VA loan to minimize financing costs, given Sam's military background. She explains how VA loans can offer favorable terms, potentially reducing monthly payments and fees.

Jill (16:34): "You're going to end up with a very small VA loan. I don't think it's going to be a very big one at all."

Sam considers financing a portion of the house, estimating monthly mortgage payments around $2,147, complemented by property taxes and homeowners insurance to reach a comfortable $4,000 monthly housing expense—consistent with his current rent.

Sam (19:26): "A $400,000 30-year fixed-rate mortgage... would be about $2,147."

Cash Flow and Expense Management

Currently, Sam and his wife manage expenses totaling approximately $20,000 per month, including private school tuition, which they plan to eliminate once they move to North Carolina and transition their son to public school.

Sam (19:58): "We're pushing out about 20 a month."

Jill reassures that their combined annual income post-retirement—$160,000 from Sam's pensions and $120,000 from his wife's earnings—should comfortably cover their expenses.

Jill (20:01): "So let's just say the 20,000... you’re paying the 20,000 out of cash flow. How much are you making right now?"

Recommendations and Action Plan

Jill provides a comprehensive action plan:

1. Conserve Cash: Ensure sufficient liquidity for the home purchase and renovations.
2. Finance Appropriately: Utilize a VA loan to minimize out-of-pocket financing.
3. Manage Investments: Make the inherited brokerage account more liquid to avoid market risks.
4. Future Planning: Consider drawing from retirement accounts strategically as they approach slower income periods.

Jill (17:49): "This is what I think should happen. To do this transaction, you are going to conserve some of the cash... free up the T. Rowe Price inherited brokerage account a little bit more liquid so you don't have risk."

Health and Legal Preparedness

Sam touches on his health journey, highlighting the importance of having medical directives and legal documents in place, especially given his international medical treatments.

Sam (23:30): "I have all of my documents in place. Right. I have my will and my power of attorney and my healthcare proxy."

Jill emphasizes the significance of these preparations, reinforcing their role in comprehensive financial planning.

Closing Remarks

Jill encourages listeners undergoing significant life transitions, like retirement or relocation, to seek personalized financial advice. She reiterates the value of community and support in managing financial burdens.

Jill (24:05): "If you are looking at any kind of big transition like this, it doesn't have to be a retirement. At any transition. Get in touch with us. We can help think this through with you."

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Key Takeaways

• Comprehensive Financial Planning: Diversifying income streams through pensions, disability benefits, and retirement accounts is crucial for a stable retirement.
• Strategic Use of Loans: Leveraging VA loans can significantly reduce financing costs for veterans.
• Educational Funding: Proper allocation of 529 plans ensures children’s education expenses are covered without jeopardizing retirement savings.
• Liquidity Management: Maintaining liquid assets for major transactions prevents financial strain and mitigates market risks.
• Health and Legal Preparations: Ensuring all medical and legal documents are in place is essential for safeguarding one's future and family’s well-being.

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Notable Quotes

• Sam on Retirement Plans:

  "I have to wait until the final. I'll have two pensions. The one pension will be about 128 a year with a COLA and then there will be another one that I think will be about 50 a year based on my disability rating."
  [04:54]

• Jill on Financial Security:

  "Don't worry. This is what I think should happen. To do this transaction, you are going to conserve some of the cash to do your bathroom ahead of, like the actual consummation of the sale."
  [17:49]

• Sam on Health Journey:

  "I'm five years post stage 3A rectal cancer."
  [05:30]

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Conclusion

This episode provides an insightful look into the financial considerations of retiring from a long-term military career, highlighting the importance of strategic planning, leveraging available benefits, and ensuring liquidity for major life transitions. Jill Schlesinger offers valuable guidance tailored to Sam's unique situation, serving as a beneficial resource for listeners facing similar life changes.

Transcript

[Jill Schlesinger]

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[Jill Schlesinger]

Welcome to the Jill on Money Show. It's Wednesday, July 9th and we are here answering your financial questions. And they can run the gamut. I mean we get a lot of questions about am I on track, how's retirement. But we also get a ton of questions about buying a home, remodeling a home, thinking about selling my home. We get questions about how to manage finances for your kids. Kids. So many things that touch money in your life. If there is an issue that is arising and I know it's summer and you don't feel like dealing with it, but maybe now's a good time. Maybe you can clear some stuff off and just help yourself by getting in touch with us. All you need to do is go to jillonmoney.com, click the contact us button. It's in the upper right hand corner wherever you are on the website. And when you do that, a form will pop up. That is the email form that we receive. And of course we do email episodes from time to time. But I love it when you come on the air live. It is so much fun. It is by far the best part of my week talking to you guys. I know I don't get my hair and makeup done but it doesn't matter because that TV thing, it's not like that immediacy of having a conversation with someone, learning about them, trying to help them figure out the best way forward to reach their own goals and objectives. So just check the box. We can change your name. We can protect you. Come on the air with us. It's so much fun. We really do love it. While you're on the website, don't forget to sign up for the free weekly newsletter. Check out all the content that lives on the site. Just bookmark jillonmoney.com it'll be easier for you. Okay. Today we are talking to Sam who joins us from the Washington D.C. area. Hi Sam, how are you?

[Sam]

Good. Well, good morning and thank you for having me on Jill.

[Jill Schlesinger]

Of course. What's happening? Well, how can we help you out?

[Sam]

Well, I wrote into Mark and to you and talked to you about how I'm going to retire in one year from the military after being in for 30 years.

[Jill Schlesinger]

Wow.

[Sam]

And then we're going to move down to another state, to North Carolina and buy my in laws house and are they still alive? Yes, sorry, they're. They're moving to one of these facilities. Good question.

[Jill Schlesinger]

Thank you.

[Sam]

To where they go into like an apartment and. And then they step up.

[Jill Schlesinger]

Oh, so it's like one of those interesting places where you can live independently but if you need more care there is facility to do so. Right. There's a way to do that.

[Sam]

Correct.

[Jill Schlesinger]

So you said a we because you have a wife I imagine and, and it's her parents home. So how old are you guys?

[Sam]

So I'm 52 and she is also 52 and she's an NJG like yourself also named Jill.

[Jill Schlesinger]

Really? I like that. Is she also in the military?

[Sam]

No, she's a family nurse practitioner.

[Jill Schlesinger]

Oh, is she going to also retire when you do?

[Sam]

No, she's going to work and I plan to work as well, but I just haven't found a job yet.

[Jill Schlesinger]

Okay, so when you retire in one year after 30 years in the military. Thank you for your service. I should be very clear to say that. What will your pension amount be?

[Sam]

I think I have to wait until the final. I'll have two pensions. The one pension will be about 128 a year with a cola and then there will be another one that I think will be about 50 a year based on my disability Rating. I. I'm a cancer survivor, so I have a lot of issues from the radiation and the chemotherapy. I think a lot of that will amount to a higher disability, but I won't know about that until the very end. So I'm not really, first of all.

[Jill Schlesinger]

So how are you feeling? You okay? Cancer survivor?

[Sam]

Yes, I'm in good shape. I'm five years post stage 3A rectal cancer.

[Jill Schlesinger]

Oh, my God. Unbelievable. Congratulations for getting through that. That's not an easy. That's not an easy journey.

[Sam]

Thank you. Luckily, I had really great doctors and my wife was unbelievable and taking care.

[Jill Schlesinger]

Of me, and she's a nurse practitioner. Although I understand that a lot of medical people not so great with their own family members, but she stood up. She made it happen.

[Sam]

It was awesome.

[Jill Schlesinger]

Oh, my God. So I just want to make sure I understand this. The 50 grand a year is because you are a cancer survivor or because. Or is there some linkage to.

[Sam]

No.

[Jill Schlesinger]

Developed cancer because you were in the military?

[Sam]

No.

[Jill Schlesinger]

So.

[Sam]

So what they do is the va, when you're leaving the military, you go through a whole process where they look at your medical records and then they determine, based on all the different ailments you have, what percentage of disability and what your rating will be.

[Jill Schlesinger]

I see.

[Sam]

And I think. I mean, if it depends. I mean, I could be anywhere from 20, probably 2300amonth to 4000amonth based on the different rating statuses.

[Jill Schlesinger]

Do you think it's going to be the higher end or should we not even think about that? Should we just say. Let's. Should we just say that instead of 50 grand a year that it's 30 grand a year?

[Sam]

Yeah, that's probably a safer bet because it's. You don't want to assume any of that.

[Jill Schlesinger]

Right. So between. And those are lifetime payments. Right. The 128 with a cola. The DI also has cola.

[Sam]

Yes.

[Jill Schlesinger]

So, all right, so you have this big chunk of money and your wife is going to continue to. To work even after you move to North Carolina. Right. She'll just get it. What do you think? Again, let's be conservative. What do you think she would earn in that new job in North Carolina?

[Sam]

Let's call it 120 to make. To be conservative.

[Jill Schlesinger]

Okay. Do you guys have some kids?

[Sam]

Three. Three. That.

[Jill Schlesinger]

How old are they?

[Sam]

Well, the first one is 23 and he is out. He went to a service academy and he's out 21, who's entering her senior year in college, but not.

[Jill Schlesinger]

But not a service person. No academy Correct. You know, I'm going for like free college right here.

[Sam]

Oh, yeah, the academy was great.

[Jill Schlesinger]

Okay.

[Sam]

Then I have a 13 year old who's going to start 8th grade.

[Jill Schlesinger]

Oh, my God. What happened there in between? You took a break and then you said, well, no, let's do it. Okay, eighth grade. And so your GI bill was for the. The senior in college or the. Are you saved? Like, how are you managing that between those two kids?

[Sam]

So I gave all but a couple of months to the second one, the girl, and saved a couple months for my son. Because it's unclear, some schools, if you walk in the door. If it's a state school, you walk in the door with a GI bill, you'll pay in state tuition all four years. Some schools are not that way, but I've kept it just in case. And then she just did a semester abroad, so there were a handful of months that she didn't use when she was abroad. So he'll have. I think we'll get about a semester out of him for him left over after I'm done with her.

[Jill Schlesinger]

How do you plan to help pay for the rest of the school that's not covered by that semester? The three and a half other semesters out of your savings or do you have a 529 plan? What are you thinking about for that?

[Sam]

I have 529 plans for all three kids, but I'm not because I'm the manager of it and it's. I have a little over 420,000.

[Jill Schlesinger]

Holy smokes. So you can't even, like, I mean, maybe if your 8th grader goes to a private school, you'll burn it up. Right.

[Sam]

And that's for my. My daughter's at a private school.

[Jill Schlesinger]

Okay. All right. Very good. Okay. So this is great. So the kids are really taken care of.

[Sam]

Yes.

[Jill Schlesinger]

So what else have you guys done in terms of your own savings? So you've got these big pensions. You're going to go. You're going to do this house purchase and sell your DC area? Like, are you. What. I just want to make sure I understand this. You're going to sell the D.C. area and move for the 8th grader to a new school?

[Sam]

No. So he will finish eighth grade and then we'll move him just before high school.

[Jill Schlesinger]

That's bold. Is he going to be mad about that?

[Sam]

Hopefully not.

[Jill Schlesinger]

You haven't told him yet?

[Sam]

Oh, he knows. He knows.

[Jill Schlesinger]

He's so he's. We're not. We're not breaking the news here on this podcast as you Listen in the car.

[Sam]

No, no, no. And he's, he's in a private school now that ends at eighth grade. So he transition to another school.

[Jill Schlesinger]

Okay, tell me about the saving that you have done.

[Sam]

Okay, so we don't own a home. We rent and we did own a home until 21 and we sold. So I have in CDs from that I have about 340,000. And then for, but for retirement savings and thrift savings plan we've got about 680,000. Of that 100. About 113 is not taxable. And then my wife has a Roth IRA of about $430,000 and I have a Roth IRA of about 435. She has traditional IRA of about 9,000. I have traditional IRA of about 8,000. And we have an I bond for 10 grand and a couple of stocks in E trade that we've had forever.

[Jill Schlesinger]

Fun money.

[Sam]

Well, we were given them when we got married and we just never.

[Jill Schlesinger]

And one was called Apple and that was a good one. No, I'm hopeful for you. How much is the E Trade account worth?

[Sam]

About nine grand. Maybe it was intel and Southwest Airlines.

[Jill Schlesinger]

All right, one good, maybe one not so good. Okay, so a lot of money saved, which is fantastic. How much will the purchase of the house in North Carolina be?

[Sam]

Okay, so this is where I'm not completely sure. I think It'll be about 870.

[Jill Schlesinger]

Okay.

[Sam]

Maybe a little more than that. The price keeps changing every day. The issue that we're concerned about is my father in law, you know, does not want to. I don't want to put him in a situation where he's selling below the market value because I don't want him to have to pay. And he doesn't want to pay.

[Jill Schlesinger]

Gift tax.

[Sam]

The gift tax. Right.

[Jill Schlesinger]

Okay, fine.

[Sam]

Yeah. And so, you know, I watch the price every day, of course, and I'm going crazy because the price.

[Jill Schlesinger]

Don't, don't go crazy, don't go crazy. It's not worth it. It's not going to be a big deal. Did your in laws buy this house a long time ago at a much lower price?

[Sam]

Yeah, they bought it in 12 and I think according to Zillow they paid about 450 or something for it. And they paid it off. They bought it.

[Jill Schlesinger]

Okay. The reason why I'm asking that is that when they sell, it would be nice if we could keep the price under a million simply so they don't have to pay the tax that's due because I'm sure that they could gin up like, okay, we paid 450, but we put 50 grand into it. You know what I mean? Like, they'll figure out how to raise the cost basis a little bit and then if you just, if you give them a million bucks and then it's fine. And then they're under that $500,000, that's exclud from capital gains on the sale of the house, which would be good for them.

[Sam]

Right.

[Jill Schlesinger]

Okay, now so let's just say it's 900, 950, whatever. So your idea to finance this is the CDs, the 340 that's in CDs, is that right?

[Sam]

Yes. And what I'm calling about too is that I plan to put in a new bathroom, master bath in the house. I didn't write that to Mark.

[Jill Schlesinger]

Okay. It's okay. You're allowed to get. You're allowed to have a new bathroom.

[Sam]

Okay, well that's great. And I would like to do that. And so I'm not sure if I should. How to finance that. Right. So should I put all 340 on the house as a down payment and then pull out? Oh, so in addition, I'm sorry I didn't mention I have another 400. Sorry. Of taxable money that was part of an inheritance that I received.

[Jill Schlesinger]

And wait a second. In that inheritance, now that it's worth about 400. Did you inherit it a long time ago or is there a tax liability embedded in that 400?

[Sam]

So I inherited it in 21 and then I put it in the market right away.

[Jill Schlesinger]

Okay, so you're going to have some. You're going to pay some taxes, Correct? Okay, not huge, but some. How much will the master bath cost?

[Sam]

Well, I don't know. I'm banking. Maybe I was going to conservatively. I was saying 100,000 just to make it worse case scenario.

[Jill Schlesinger]

Okay, that's fine. It's not so worse. Okay, so here's what we got. Just so I understand, we buy this place. Do you care when this transaction occurs for your parent? I mean, you can always do the transaction sooner rather than later. And then they get the cash and just stay there for a year and rent free, if you would like.

[Sam]

Yeah, but I'm paying rent here and so I'm trying to. They're trying to help me out a little bit. And they are. What's, what's nice about the whole thing is they're moving in late October to their new place and I'm not going down there to North Carolina until June.

[Jill Schlesinger]

So June 26, right?

[Sam]

Correct. So the house will be empty for a handful of months there, then you.

[Jill Schlesinger]

Can do the work.

[Sam]

Correct.

[Jill Schlesinger]

Got it. Okay, I got it. The whole. But you want to consummate the transaction in October, Theoretically. So they have the money or not?

[Sam]

I'd prefer to wait because I want to make sure when I go for apply for the loan I want to use a VA loan. And in order to do that you can save some money if you have any disability at all. So Even like a 10% or 1%, I believe they will waive a lot of the fees.

[Jill Schlesinger]

Oh.

[Sam]

And so my mother in law told me, hey, I'll help you out and I'll wait until we get that figured out. And I believe once I apply for it, I'm eligible letter. That's hey, you're going to get something and I can use that to apply for my loan.

[Jill Schlesinger]

Okay. So that's great. So we just need out of the 340 of the CDs and the $400,000 in the T row price inherited account. We just need to keep 100 grand out for the master bath. And also like maybe even a little more maybe keep like let's say 100, 740 out so that we can do the move and the you know, stuff. Right. You're going to have some stuff. So let's say that out of the 740 total, that 140 is kept out. And then you're going to finance some amount of this. Do you know what the pricing looks like on a VA loan? Ish. Kind of sort of or not really.

[Sam]

No.

[Jill Schlesinger]

Okay. I'm just interested. I mean, so right now you have plenty of money obviously, right?

[Sam]

Okay.

[Jill Schlesinger]

You're going to end up with a very small VA loan. I don't think it's going to be a very big one at all. If even if you bought it for a million bucks and you know, we financed a half a million. What's your rent right now?

[Sam]

My rent is 4,000.

[Jill Schlesinger]

This is not going to be hard for you to absorb this.

[Sam]

Well, so here's my question. I, you know that, that 400 that's in the T row, my IRAs are in there. I consider all of that as my retirement. Should I, should I not be afraid to take out that 400 in retirement? I have about $1,500,000.

[Jill Schlesinger]

Wait a minute. But just so we're clear, you said you have some Roth IRA money, right? But this is the 400 is a separate non retirement account, right?

[Sam]

Correct.

[Jill Schlesinger]

Okay. Don't worry about touching Any of this right now. Don't worry. This is what I think should happen. To do this transaction, you are going to conserve some of the cash to do your bathroom ahead of, like the actual consummation of the sale. You will spend $100,000 to do your master bathroom and clean up whatever you want. You know what I mean? Like, just get the stuff done. You have the money to do it. Use your CDs. Okay. Okay. Now the 400 grand in the T row, we're going to need to start freeing that up because you know you're going to need that within a year. Okay.

[Sam]

Okay.

[Jill Schlesinger]

So I think it is worth your while to consider making that money more liquid so that you can do this transaction and not be subject to the swings in the market. And what you'll do is you're going to forego some of the upside in the market because that is the. What that is really the wise thing to do. You should not have money at risk that you know you're going to need within the next 12 months.

[Sam]

Okay.

[Jill Schlesinger]

But you'll have all this other money. You've got your TSP, you got the 800 grand in the two Roth accounts, you know, so you have money available. Okay.

[Sam]

Okay.

[Jill Schlesinger]

You're going to do. We're going to need to know when you get closer to doing this transaction, what is the VA loan looking like? And then we can make a determination. It may be that we say, take the loan out. It may not be the greatest loan in the world. It may be fine, depending on where interest rates are. But let's say it's a year from now and interest rates are a little lower and you can get the loan. And as you said, there's some fees that have been waived. And now we're financing. I'm going to make it up. Let's say we're financing $400,000. Okay. You've got that note. You've got your new house.

[Sam]

Yep.

[Jill Schlesinger]

That $400,000. That loan is going to be very comfortable to you on a cash flow basis because you're used to paying $4,000 a month anyway, right? Mark, what's a $400,000 30 year fixed rate mortgage? I didn't do 30 for a reason, so just bear with me for one second. Sam, what does that cost? A $400,000 30 year fixed rate mortgage for Sam and his wife. Let's presume it's a 5% note. What's the payment on that?

[Sam]

2147.

[Jill Schlesinger]

Oh, Jill, you're so good. Okay. And then you're going to have to pay your property taxes, right?

[Sam]

Right.

[Jill Schlesinger]

And you're going to have to pay homeowners insurance. And when it's all tallied up, guess what? You're going to be spending about four grand a month.

[Sam]

Okay.

[Jill Schlesinger]

That's what it's going to be.

[Sam]

Okay.

[Jill Schlesinger]

Okay.

[Sam]

Yep.

[Jill Schlesinger]

And you're good. And you're used to paying that. No problem. What do you think your expenses are right now? Total. Like everything in everything. You love doing what you do. You. You go see your kids, like load it up for me. What are your expenses right now?

[Sam]

We're, we're pushing out about 20amonth.

[Jill Schlesinger]

Okay.

[Sam]

It's a lot. But we have the private school in there, right?

[Jill Schlesinger]

Private school is for the 8th grader or the senior in college.

[Sam]

For the 8th grader, the senior in college. That's, that's all coming out of 529. I don't even count that.

[Jill Schlesinger]

The little eighth grade guy, he's going to be in a private school, right?

[Sam]

Well, the plan is to send him to public school when we get down to North Carolina.

[Jill Schlesinger]

You're going to punish this kid? I can't believe it. He's going to move and you're not even going to put him in a fancy private school. How dare you, Sam. All right, so what will the expenses be without the private school?

[Sam]

So, well, that, that knocks off about 2,300 bucks a month.

[Jill Schlesinger]

All right, whatever. So let's just say eight. I'm going to say the 20,000. Okay, so you're paying the 20,000 out of cash flow. How much are you making right now? You're not retired yet, but how much are you earning annually?

[Sam]

With all of my housing and all that, I make about 230.

[Jill Schlesinger]

And so we know that you're going down to about 160, right?

[Sam]

Yes.

[Jill Schlesinger]

And your wife will have her 120. And so the question is, we can't really put everything. I'm thinking that perhaps you're going to need some of this money. What do you think you're going to want to do? Like work wise for you? Okay.

[Sam]

Yes.

[Jill Schlesinger]

You've been through this pretty traumatic thing. It's a long five years. You're now going to retire. What do you think you could count on earnings in your next chapter of your life? Sam?

[Sam]

I'm, I'm hoping, you know, about 150 or so.

[Jill Schlesinger]

All right, but even if it were like a hundred.

[Sam]

Yes.

[Jill Schlesinger]

Like. All right. And, and then we could get you to like 3, 8, 400 between the two of you. And then you're carrying the 20 grand a month, no problem, right?

[Sam]

Yes.

[Jill Schlesinger]

Okay, so that's, that's good. I just want to make sure that between now and then you're stocking away money. It's important that you make sure that your money is liquid enough for you to do this transition. I think that you're gonna, I do think it's going to make sense for you to try to finance a portion of the house. You may pay it off. You know, it's, it's highly likely that you will end up paying off this house well before that 30 year mortgage. But it did does seem to me that if you have a VA loan that is affordable, that we will be able to just knock this off in between the time that you're, you know, in your next career. And maybe when your wife decides she's going to slow down some and that we can start pulling some money out of these traditional assets, you know, because you are going to have, you know, whatever, you have a little bit of money in traditional now, both of you, but then you've got that, you know, half a million dollars in the thrift savings plan that hasn't been taxed yet. Right, right, right. We're going to use that. We're going to get that money out before any Social Security is claimed, but probably in between the time when you guys slow down income wise and we'll see how this note looks in time. But I think the way to do it is to think of your transition as we got to conserve cash. We should do the work we need. We should think about getting that T. Rowe Price inherited brokerage account a little bit more liquid so we don't have risk. And then let's look at the VA loan and determine what percentage to put down on the purchase of this house. But this all looks very good to us because you've gone through this big health scare. You have all of your documents in place. Right. You have your will and your power of attorney and your healthcare proxy. You've done all that.

[Sam]

I do. But as a side note, I would tell you when I had my surgery, I wasn't confident when I was in Singapore, which is where I had all this great treatment that they would have cared about my, my advanced medical directive. But luckily we didn't have to get there.

[Jill Schlesinger]

Wait a minute, you're just thinking that like certain cultures are going to be like, tough luck, we're going to do whatever we have to do.

[Sam]

Well, I think their laws are different.

[Jill Schlesinger]

Oh, okay. Well, that's good. To know that's true. You. You, your wife would sneak in with morphine. Don't worry. These nurses are for real. They're not. They're not messing around.

[Sam]

Well, I. Unbelievable treatment. So it's fantastic.

[Jill Schlesinger]

All right. Well, that's good to hear. If you are thinking about a big move, this takes guts. You're going to move your ninth, your eighth grader to a whole new school. This could be interesting. Who knows, Maybe the kid's going to flourish in public school. Maybe you're going to be stuck paying private school tuition. Who knows? That said, if you are looking at any kind of big transition like this, it doesn't have to be a retirement. At any transition. Get in touch with us. We can help think this through with you. We are here for you. You don't have to carry the burden on your own. Go to jillonmoney.com, click the contact us button, write us that note. And if you want to join us live, check the box. You can subscribe to us on the Odysee app or wherever you find your favorite podcast. We do ask that you lift someone up. Change your work, Change your wealth. Change your life. Thank you for listening. We'll talk to you tomorrow. Foreign 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. That's why their recruiters leverage their experience 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 at Robert Half. They know talent. Visit roberthal.com talent today.

[Sam]

Hey, I'm Ben Stiller. And I'm Adam Scott and we host a podcast called the Severance Podcast where we used to break down every episode of the TV show Severance. Severance isn't back just yet, but the podcast is. Each week we'll discuss the movies, TV shows and ideas that influence the making of Severance. We're going to talk to the incredible artists who inspire us to do what we do. The Severance podcast returns Thursday, June 26. Follow and listen everywhere you get your podcasts.