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- [00:00]
Jill Schlesinger
Real estate. It's been a cornerstone of wealth building for generations, but it's also often a major headache for investors. 3:00am Maintenance calls, tenant disputes, property taxes Enter the Fundrise Flagship Real estate fund, a $1.1 billion real estate portfolio built for you. We're Talking more than 4,000 single family homes in thriving Sunbelt communities, 3.3 million square feet of in demand industrial facilities, all professionally managed by an experienced team. With the Flagship Fund, you're tapping into real estate's most attractive qualities. Long term appreciation potential, a hedge against inflation, diversification beyond the stock market. Check, check, check. All without complex paperwork, massive down payments or soul sucking landlord duties. Visit fundrise.comjillonmoney to explore the portfolio. Check out historical returns and see just how easy it can be to add real estate to your investing strategy. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund's prospectus@fundrise.com Flagship this is a paid advertisement. Hi, this is Jill Schlesinger. Being a business owner means you're always on adapting, innovating and making big moves. To take your vision to the next level, you need solutions that match your pace, offering flexibility, rewards and tools to help you keep going strong. That's where the American Express Business Platinum Card comes in. A partner for navigating today's business world. You can have a flexible spending limit that adapts with your business, plus the ability to earn one and a half times membership rewards points on select purchases so you earn rewards that can take your business further. See how the American Express Business Plan Platinum Card gives business owners like you the tools and rewards to do more of what they love. Not all purchases will be approved. Terms and points cap apply.
- [02:05]
Mark
Learn more@americanexpress.com AmExBusiness welcome to the Jill on Money Show. It's Thursday, January 30th and hello. Welcome to the program. I'm so happy to be with you. I am talking to you. We're recording this on the Monday after a huge weekend of football. Holy smokes. I don't care. Everybody's all down like oh, I don't want the Eagles and I don't want the Chiefs. It's boring. This is like peak football gang.
- [02:35]
Jill Schlesinger
Get over it.
- [02:36]
Mark
And I don't care what the stats are for Patrick Mahomes. I don't care if you don't like that. Travis Kelsey and Taylor Swift are one of the plot lines. The football is fantastic. I mean, Mark, come on the air with me for this. The first game was not great, but it was great to see that Jalen Hurts of the Eagles actually showed up to play.
- [02:58]
Arthur
Yeah, I mean, the score was, you know, you would think it was a blowout, but it was close there for a while. If not for those turnovers, Washington would have had a chance.
- [03:06]
Mark
It's just the old story, baby. Unforced errors, okay? And that's the same thing with your financial life. No unforced errors. Mark, I want to tell you the funniest thing. So on Mondays, gang, what happens is I do 18 live radio hits or little segments all across the country. I mean, I only did like eight of them, or I guess eight or nine of them because I was. Had to be on the. On TV on CBS mornings. So I'm doing my hits when I get back from doing the show, and I get on the line with WCCO in Minneapolis, okay? Which I love.
- [03:42]
Jill Schlesinger
I love this station.
- [03:43]
Mark
They're great. And the anchor says to me, oh, we got a note from one of our listeners who has a question for you about the $10 million, man. Last week we aired an episode with Ed from Philadelphia. Ed had like 10 million bucks and was generating 600 grand in interest in dividends. And people I knew were gonna go berserk. So, Mark, tell me what the emails look like.
- [04:09]
Arthur
I have to say, you know, whenever we have calls like this, you expect hate mail. Yeah, but we did not get one piece of hate mail. In fact, we got a lot of emails, like, saying, kudos. Also on YouTube. A lot of comments on YouTube, like, no, no hate mail here, man. Good for this guy. He did an awesome job.
- [04:24]
Jill Schlesinger
Oh, that's so nice.
- [04:25]
Mark
Because this guy's like, did you think he was lying? And I didn't think he was lying, no. Usually we. Can we. I mean, first of all, like, what are you going to do? You're going to lie to call into a podcast? Like, don't you have better things? Like, I would hope so. But anyway, I thought that was so funny and I'm glad that we got that. Okay, so we got some emails that were from you. And I love this. And so this is from Arthur and the subject says Ed from Philly, Mark from nyc.
- [04:52]
Jill Schlesinger
Hello, Jill and Mark.
- [04:53]
Mark
Your recent shows, featuring two gentlemen who have accumulated great wealth through careful saving and investing, struck a chord with me. Through some self sacrifice, I was able as a U.S. treasury employee to. To accumulate financial assets of $6.5 million. How about this? So instead of resenting their dedication to saving and investing, I can Both identify and admire their success. While I have lived above average, I was never pretentious in spending and never revealed my investing acumen to anyone. But as both of your recent guests suggested, it is often difficult to spend money. In fact, it's a struggle that I wish your podcast would address from time to time. In my case, charities who probably will never care will benefit from my hard work. Oh, first of all, charities will definitely care, Arthur. And we do cover this. And I think that this is a topic that is weirdly particular to a bunch of our listeners, which is it's hard to stop the accumulation phase and move into decumulation phase. Right. Spending. And. And if you are lucky enough that you are not going to need the money, then awesome. And if you need help figuring out how to actually manage that process, we'd love to hear from you. Truly, it really does hearten me. This is from Paula Anonymous, whose subject is love mail. You recently had two podcast episodes where both of the listeners had higher means. Thank you. As one of your higher net worth listeners, I'm glad that you sprinkled these in. Only thing I will say is that I wish you gave more permission to spend. Dude, I already. Mark, how much more can I tell people to spend? I said that I'm like, I love the spending part of it. And Paula Anonymous says we can't take it with us. Exploring what is important in your life. Family, paying for an annual vacation, a charity, a donor advised fund, education, scholarship fund, all of that. Love your show. And boy, Paula, thank you so much.
- [07:03]
Jill Schlesinger
I love this too.
- [07:04]
Mark
I really am interested in this because I also do believe that there are a lot of quiet people having these kinds of conversations among themselves. All right, let's get to some real questions, though. So this is from Rod, who says, my wife and I plan to retire in five years. We have one daughter at home and she will start college in the fall of this year. We have recently scaled back our retirement investing in anticipation of that college cost coming soon. What would you advise for us moving forward? I am 60. My wife is 55. Oh, boy. It's so weird, Mark. I've had a bunch of people who are in this situation, slightly older parents who have kids going to college, and it's a sort of a sandwich generation kind of thing. Right. Like, you've got to really think about your own retirement. You're worried about your kids. Some of them have aging parents. So this is a very common question.
- [07:56]
Arthur
This will be me. I will be 60 when Theo's starting college.
- [07:59]
Mark
Yeah, but Theo Will always have Aunt Jill, and that's lucky for him. Okay, so Rod says estimated monthly retirement expenses, $8,000. Current income for both, 230,000. Oh, so Rod's got a pension. It's either 6,600amonth or almost 6,900 per month. If I defer payments six months after I retire. That sounds pretty good. He had this would be 100% survivor to his wife. Then there's a 75% survivor to his wife. They've got 401k. She's got $700,000 in a 401k. 100,000 is Roth, and he's got a 457 with $105,000. Okay, so they reduced their contributions. Wife went from 17% to 6% just to get the match. And his contribution to the pension is 7%. It cannot be changed. He's not going to contribute to the 457. They're going to have Social Security, which is fine. It's all good. House value, 450, $80,000 mortgage at 2.7%, mark. And they've got only four years left on their mortgage. Oh, gosh. This is sort of interesting because Rod and his wife have been paying $30,000 a year for private school. So they're almost like acclimatized to high costs. But they think they're going to pay for as much as college as they go. Maybe a loan for insurance if needed. Okay, so how do we think they're doing? They're doing great. This is ridiculous because. So I'm looking at the pension options. He's 60, she's 55. So the haircut that they would have to take to go to 100% Survivor, I think is well worth it. She's five years younger. It's a woman. She'll, you know, has a good. Unless she has some health issues. If you can wait that sixth month deferral, that seems like a smart thing to do because you get a nice bump on that. The retirement accounts are great. It's fine to reduce your contribution. You guys are not going to spend a lot in retirement. That $8,000 will be covered mostly first by the pension almost. And then you wait to claim your Social Security at least till 67. And when you both wait to claim at 67, boy, does that looks great.
- [10:12]
Jill Schlesinger
So I think this looks good.
- [10:13]
Mark
You think it looks good, Mark? I'm kind of happy with this.
- [10:16]
Arthur
It looks good. Great. To that. Thanks to that awesome pension. 66,900amonth. The mortgage is going to be done soon, that's another 1500, plus their savings and their Social Security. Yeah, I think they're good. And they're like you said, they're used to paying money for school as it is.
- [10:31]
Mark
Yeah, that's. See, Mark, if you just learn to. If you just send Theo to private school for high school, you'll be used to it. It'll be like nothing. It'll be great. I doubt that's going to happen. Okay. Maria was listening to us talking about the Schwab Solo 401k, which is like a crazy thing because if you Open a solo 401k with Schwab, one of the things that they have said is like, we need a physical check. But Maria says, and this is like crowdsourcing advice, it's great. She goes, I have a solo 401k with Schwab. And another way to make a deposit to The Solo Roth 401k is to also have a Schwab brokerage account. And she said it can only be done by calling Schwab's 800 number with a Schwab representative. The customer service rep will ask for your ID brokerage account number, where you would like to transfer from, and the solo 401k account number to transfer to. Of course, before doing this, you can easily do an online transfer to your brokerage account first to make sure you have enough cash for your solo 401k transfer. I hope this helps for your listeners. So basically, Mark, if you have. If you're going to do a solo 401k, you probably need to just open a brokerage account. It'll make your life a lot easier.
- [11:42]
Arthur
And you still have to call an 800 number. Still sounds archaic.
- [11:46]
Mark
Yeah, you can't do it online. All right. Fred says spouse is worried about my retirement. And he writes, I've been listening to your show for about two years and I enjoy it. I'm 61. My spouse is 60. I'd like to retire in June and have a prepared financial plan that actually agrees. Okay. However, my spouse is concerned about finances and lacks confidence in the numbers. So my spouse's anxiety, it makes me pause. My spouse was forced to retire at age 56 in order to take care of her mother and aunt. Now, here's the thing. My salary nearly covers our current expenses. We are no longer saving for retirement. We have done Roth conversions for the last three years totaling $95,000.
- [12:33]
Jill Schlesinger
No debt.
- [12:34]
Mark
They own their half a million dollar home outright. They may move within five years, taking on a mortgage of 300 grand, spending 120,000 annually. That's a big number. So let's see what they got. They've got brokerage account, 470 grand. Then there is 400,000, 430,000 in her Iraq. There's an inherited 401k, 140,000, Roths, 180,000, 457 plan at 560, an HSA of 30 and a bank account with 50. So this is interesting. There is a financial advisor, remember that, Mark? So just keep that here. So the pension that he would be entitled to, which he puts at the very end, $45,000. His Social Security at his age 70, remember he's 61, is $45,000. And her Social Security, age 62, $25,000. He says the financial advisor recommended a split strategy. I don't know if I agree with that. Okay, but let's just. So 90, 150, you know, now you've got your $115,000. Okay. I mean, it looks okay, but. But here's my question. You say you're going to retire in June, and I guess if you're comfortable spending money down, you should be okay, right? Because the pension, the Social Security, you're going to spend down a lot of these assets, right? So you can do it. I think maybe what's happening is your wife, it's. I'm going to read between the lines. I wonder if you have grown children and your wife is concerned with you spending down assets. But this plan really has to work with you spending that money down. So it would have to be. I would stop doing conversions. Number one, if you're going to retire, then what I would do is start pulling money out of the assets that haven't been taxed to pay for your $120,000. But you're going to spend a lot of this down. And that's probably what's freaking her out. You know, the other thing is you mentioned about taking on a mortgage of another 300,000. I don't love that. I mean, I think this is doable, but she's probably right and the advisor's right.
- [14:59]
Jill Schlesinger
It's doable.
- [15:00]
Mark
And I'd be nervous if I were her. So unless you hate your show, your show, unless you hate your job, maybe working a couple more years could make sense. Or maybe you need to get her with somebody she can trust when the numbers are explained. Do you agree with that, Mark?
- [15:20]
Arthur
Yeah, I mean, like you said, I think it's doable, but they're gonna have to spend a lot of money if he retires this year, you know, until the pension kicks in, they're gonna be spending a lot of money. Once the pension kicks in, they'll be spending a little less money. But then they start to get to Social Security, they have about $1.8 million. So it's doable, but it's close.
- [15:37]
Mark
It is close. And I think that that's what happens. You know, we just started the show with the, the people who said, you know, oh, you know, we all, as a generation of savers and type of saver, you're used to putting money away, but it can be daunting when you have to spend that down. And I think that's where a lot of the anxiety comes in. So if that's someone that is, you know, feeling anxious, you're not going to make that person feel better just by saying, like, the numbers work. It may be that you have to split the difference, that maybe you say, okay, you know what, babe? Like, how about if for the next two years, I'll work till I'm 62, we'll build this up a little bit, and then maybe we could potentially think about the house. But, like, I think if you starting to move in five years and that's something you really want to do, that you're going to have to really think about whether or not you should be retiring now to prepare for that. Okay? Because I don't know where rates are going to be. I don't know where you're looking. I don't know how much of the, of the asset base you'd be willing to place plow through before you got to that point. This does really require a little bit more information. So get back in touch with us. We're happy to help you out. It's just that I'm a little nervous for you. Okay? I don't want to be too nervous. But anyway, get back in touch with us, all right? If you've got a financial question, go to jillonmoney.com, click the contact Us button. Let us know if you'd like to join us on the air live. You can check out all of our content@jillonmoney.com including our free weekly newsletter and head. Hey, don't forget, you can subscribe to Jill on Money Live. That's our subscription service. And guess what? We've got our next guest. I know a lot of you guessed this already. Ed Slott, the father of the Roth ira. He's not the father, but what could we call him? He is the cheerleader. Head cheerleader. Of the Roth conversion. I mean, we need a title for him. He is the man, the myth, the legend. Ed Slott. He's a cpa. He is a retirement plan expert and he will be joining us for our webinar Thursday, March 6th at 7 Eastern Time. You must be a subscriber to Jill on Money Live to be part of that Incredible. And I know it's going to be incredible webinar. And not only that, you'll get three more after that for the next 12 months. You'll get audio and video content. We got a lot of stuff coming that Let me tell you something. That paywall, all that stuff. Stuff that's coming on to the pay behind the paywall. It's going to look great. Can't wait till we get it. Coming soon. You can subscribe to us on the Odyssey app or wherever you find your favorite podcast. Please lift someone up. Change your work, change your wealth, change your life. Thank you for listening and we'll talk to you tomorrow.
- [18:21]
Jill Schlesinger
Real Estate it's been a cornerstone of wealth building for generations, but it's also often a major headache for investors. 3:00am Maintenance calls, tenant disputes, property taxes Enter the Fundrise Flagship Real estate fund, a $1.1 billion real estate portfolio built for you. We're Talking more than 4,000 single family homes in thriving Sunbelt communities, 3.3 million square feet of in demand industrial facilities, all professionally managed by an experienced team. With the Flagship Fund, you're tapping into real estate's most attractive qualities. Long term appreciation potential, a hedge against inflation. Diversification beyond the stock market. Check, check, check. All without complex paperwork, massive down payments or soul sucking landlord duties. Visit fundrise.comjillonmoney to explore the portfolio. Check out historical returns and see just how easy it can be to add real estate to your investing strategy. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund's prospectus@fundrise.com Flagship this is a paid advertisement.
- [19:39]
Jake Brennan
Have you heard the Disgraceland podcast? Do you know about Jerry Lee Lewis wanting to murder Elvis? Or the hip hop star who cannibalized his roommate? What about the murders Academy CDC was blamed for? Or the suspicious deaths of Brittany Murphy and River Phoenix? These stories and more are told in the award winning Disgraceland Podcast hosted by me, Jake Brennan every Tuesday, where I dive deep into the dark side of entertainment and the connection between music, history and true crime. Lomby's lead singer Debbie Harry was shocked when she saw the man's photo in the newspaper she recognized. How could she forget? He'd given her a ride years ago, a ride she'd barely escaped from with her life. And now here he was, right there on the front page, accused of kidnapping and killing at least 30 women. And now Debbie Harry finally knew his name. Ted Bundy. Follow and listen to Disgraceland on the free Odyssey app or wherever you get your podcasts.