Jill on Money with Jill Schlesinger: "Should I Refinance to Fixed Rate?"

Date: November 25, 2025
Host: Jill Schlesinger, CFP®
Producer/Co-host: Mark Tularcio
Episode Theme:
Jill Schlesinger tackles a series of detailed listener questions focused on smart money management: Roth conversions, retirement plan contributions, mortgage decisions in the current rate environment, estate planning with stock inheritances, long-term savings for a home, and dealing with significant credit card debt. The episode offers practical strategies and candid advice, with Jill and Mark’s signature approachable, jargon-free style.

Key Discussion Points & Insights

1. Roth IRA Conversion Versus Withdrawal for Retirement (Graham from Australia)

[02:39-05:22]

• Question: Graham, semi-retired with a sizable IRA, Roth, brokerage account, and sufficient cash, asks if he should convert IRA funds to Roth or simply withdraw them to his brokerage.
• Main Consideration: Paying taxes in a low-income year. Goal is to draw down the IRA within the 12% or 22% tax bracket.
• Mark’s Input:

  "He's got a lot of money in the brokerage account to pay the tax bill. And he's got cash. If leaving this money as a possible inheritance...the Roth is a great account to inherit. If that's not part of the plans, probably inclined to just pull it out." — Mark (05:05)

• Jill’s Advice:

  "Since you have the ability to convert, the real question is what happens to your money after you pass away. If it’s going to kids, the Roth is the better asset to inherit... No mistake to be made. Mark’s leaning more towards take the money out. I could go either way. I really am on the fence." — Jill (05:22)

2. Switching to a Roth 403(b) for Retirement Savings

[05:22-07:17]

• Question: Listener “Y,” age 54, asks about moving contributions from a traditional 403(b) to Roth 403(b), concerned about its impact on take-home pay and taxes.
• Jill’s Core Point:

  "You will [bring home less money], that's the first thing that you're going to realize…and when you file your taxes, you might find that you’ve paid more in taxes. The reason you would only do some different amount to the Roth versus the traditional is you’ve got to double check with your job to see if there’s a match." — Jill (06:20)

• Mark’s Strategy:

  "Ease into it…do 5% pretax, 5% Roth. See how it impacts the check. If it's no big deal, just keep going up until…you can just stomach it all." — Mark (07:06)

3. Should I Refinance My 10-Year ARM to a Fixed Rate Mortgage? (Anonymous)

[07:17-08:26]

• Question: Listener with a condo purchased in 2022, $88K left on a mortgage at 4.125% (10-year ARM), offered a 15-year fixed at 5.625%. Should they refi or ride out the ARM?
• Jill’s Response:

  “It’s only $88K left…You’ve got this rate of 4.125. Would you lock in at 5.625% for a 15-year right now, Mark?” — Jill
  (08:14)

• Mark’s Input:

  "I don't think so." — Mark (08:25)

• Jill’s Prognosis:

  “I think that I am a terrible prognosticator about these things. But I do think that rates are probably heading lower...before 2032, do I think you’ll have a chance to refi? Yes, I do.” — Jill (08:26)

• Takeaway: Best to wait rather than refi at a higher rate now.

4. Transferring Hershey Stock Inheritance with Minimal Tax (Dan in Alaska)

[08:26-11:28]

• Question: Dan’s elderly parents have $2M (including $500K in Hershey stock). Their will stipulates the Hershey stock remains in the family. What’s the smartest, most tax-efficient way to pass it on?
• Jill’s Strong Recommendation:

  “I say absolutely a transfer on death, like not even close. You must have it transfer on death. That will allow it to pass quickly ... You get a step up in cost basis of that Hershey’s stock, which means there should be no capital gains. You’ll inherit the stock. ... Having so much of their wealth in one stock is insane. ... And to think that they are putting that pressure on you. God bless 'em, but thanks for the money. ... I would never ever put that kind of limitation on [my heirs].” — Jill (09:57)

• Key Point: Use a Transfer on Death (TOD) registration for smooth transfer and tax benefits; diversify after inheriting.
• Memorable Rant: Jill challenges the wisdom of tying family members to inherited concentration risk.

5. Saving Toward a Condo Purchase at Age 64 (Lisa)

[11:28-14:03]

• Question: Lisa, age 64, wants to save up for a condo in ~7 years, already has $200K toward the goal, a solid income, and low expenses. Where should she save/invest as she eyes the $500-$600K target?
• Jill’s Take:

  “That’s a lot of pressure to put on yourself if you want to save…to at least be in the position to be able to do so, you would have to put more of the money in the non-retirement assets… But if you like where you live and the rent isn't so bad, just keep doing what you're doing.” — Jill (13:51, 14:03)

• Mark’s Advice:

  “I think she’s asking, like, should I invest it or keep it in cash? I certainly wouldn’t keep it in cash because seven years is a long time. ... She should be invested.” — Mark (13:51)

• Final Thought: Keep enough liquid for emergencies; invest other savings for growth over seven years; don’t feel pressured to buy if renting works.

6. Should You Sell Stocks or Tap Retirement Accounts to Pay $50,000 in Credit Card Debt? (Kimberly)

[14:03-14:53]

• Question: With $50K in credit card debt (mixed low/high rates), is it smarter to sell stock or pull from retirement savings to pay it off?
• Mark’s Stance:

  “Stock, yes. Retirement account I would avoid at all costs.” — Mark (14:45)

• Jill’s Addendum:

  “It’s not great to pull money out of a retirement account, pay tax on it, use that to pay down a credit card. ... We’d love to know more about you.” — Jill (14:53)

• Guidance: Selling securities is preferable to raiding retirement accounts; more personal details needed for a tailored answer.

Notable Quotes & Memorable Moments

• "If leaving this money as a possible inheritance…then yeah, sure, the Roth is a great account to inherit. If that's not part of the plans, probably inclined to just pull it out." — Mark Tularcio (05:05)

• "Since you have the ability to convert, the real question is what happens to your money... If it’s going to kids, the Roth is a better asset to inherit." — Jill Schlesinger (05:22)

• “Ease into it…do 5 pre-tax, 5 Roth. See how it impacts the check…” — Mark Tularcio (07:06)

• "Having so much of their wealth in one stock is insane. ... And to think that they are putting that pressure on you. God bless 'em, but thanks for the money." — Jill Schlesinger (09:57)

• “I am a terrible prognosticator about these things. But I do think that rates are probably heading lower. ... Before 2032, do I think you’ll have a chance to refi? Yes, I do.” — Jill Schlesinger (08:26)

Key Timestamps

• Listener Roth Conversion dilemma: [02:39–05:22]
• Switching Retirement Contributions to Roth: [05:22–07:17]
• Refinance Fixed Rate vs. ARM Debate: [07:17–08:26]
• Hershey Stock Estate Planning: [08:26–11:28]
• Long-term Condo Savings Plan: [11:28–14:03]
• Paying Off $50K Credit Card Debt: [14:03–14:53]

Summary Takeaways

• Roth conversions may make sense, especially in low-income years, but consider legacy goals and tax rates.
• When enrolling in Roth retirement plans at work, expect lower take-home pay, and ease into contribution shifts if unsure.
• Don’t refi from a low ARM to a higher fixed unless you need certainty—rates may improve.
• For inherited assets, use Transfer on Death to simplify transfer and maximize tax benefits; don’t get tied to family stock “legacies.”
• Seven-year home savings should be invested (not in cash), but don’t put undue pressure on yourself to buy.
• Avoid raiding retirement to pay credit cards—selling investment account assets makes more sense.
• As always, Jill and Mark recommend reviewing your specific situation—reach out for custom advice!