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- [00:00]
A
Hey gang. I just made a first time ever purchase on behalf of the pod. I was so psyched because Marc and I don't do a lot of promotional materials, but I was able to create a branded sweatshirt. Yep, a Jill on Money branded sweatshirt with vistaprint. Now I'm not usually good at these things, but vistaprint made it simple to bring this idea like, oh, wouldn't it be cool if Mark and I could create some sweatshirts that we'll try out and maybe the listeners would want to get them as well. They've got these great design tools, they have fast shipping, human support if you need a little guidance along the way. Because the sweatshirts were so easy to execute. Now I'm thinking about doing some other stuff. Maybe there's some baseball caps or I don't know, other fun stuff that you guys would want. You'll let us know. There's a reason that over a million people trust Vistaprint for their small business print needs. Vistaprint print your possible right now new customers get 20% off with code new20@vistaprint.com when you're ready to start a business, it it can feel overwhelming. There's paperwork, legal stuff, websites, email compliance. It's a lot. But with Northwest Registered Agent you don't have to think about all those details. They don't just help you file an LLC and send you on your way. They help you build a real business identity. From day one, Northwest Registered Agent has been helping small business owners for nearly 30 years. They're the largest registered agent and LLC service in the US with with over 1500 corporate guides. Those are real people who actually know your local laws and can walk you through what you need. They don't sell your data, they don't outsource services, and privacy comes standard. Don't pay hundreds or thousands of dollars for what you can get from Northwest. For free, visit northwestregisteredagent.com jillfree and start using free resources to build something amazing. Get more with Northwest registered agent@northwestregisteredagent.com Jill Free welcome to the Jill on Money show. It's Monday, March 16th and we are here to help you make better, sometimes less bad financial decisions. If you've got something on your mind, if there's a question about priorities, if there's a specific tax question that has now come up because it is tax season, get in touch with us. Go to our website jillonmoney.com, click the contact Us button. It's in the upper right hand corner wherever you navigate on our Website and write us a note if you'd like to join us live on the program. Check the box. Mark will do everything else. Don't forget to sign up for the free weekly newsletter. Comes out every Friday. And check out our other show. It's called Money Watch. We drop that one on the weekends. Today we are talking to Amber, who joins us from Texas. Hello, Amber. What's going on?
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B
Hi, Jill. I have a question about can I quit my job because my husband believes that with his income alone, we would be okay with retirement?
- [03:08]
A
The answer is yes. Let's move on. Mark, we do have another. Okay, just. Bye. Bye. Okay, fine. Amber, how old are you?
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B
38.
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A
How old is your husband?
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B
40.
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A
Okay. And you have kids?
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B
No kids.
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A
No kids. So really, can I quit? Can we survive? Can we absorb everything? Do you want to quit? Do you hate your job? I mean, isn't that sort of an important place to start?
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B
Yes.
- [03:34]
A
Yes, it's an important place to start, or yes, I hate my job?
- [03:38]
B
Yes, I am not enjoying my job anymore.
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A
Okay. All right, fair enough. And is it just the job, or. I mean, you want to quit and then find something else, or do you want to quit and like, oh, I'm done. I'm 38. I can retire.
- [03:53]
B
I know I can't actually retire at 38. I would like to have maybe a long gap of figuring something else out or going back to school, who knows?
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A
But okay, just like you're bummed out, it's not working for you, let's. Let's try to figure out a solution. So how much does your husband earn?
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B
$81,000 a year.
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A
And how much are you earning right now?
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B
About $84,000 a year.
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A
So pretty close. Okay, well, let's talk about what you guys have saved up to be able to potentially make this transition. So are you both using a retirement plan?
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B
Yes.
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A
What have you saved up, Amber, in your retirement?
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B
I have $78,000 in my work retirement plan. About $5,000 of that is Roth.
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A
Any other assets that you have saved up?
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B
I have a Roth IRA, about $120,000.
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A
Great. Okay, what else?
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B
We have a. So that's my retirement assets.
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A
Yeah. What about his.
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B
His retirement assets? He has in his pre tax work, $95,000. And then in his Roth IRA, $84,000.
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A
Okay. And a brokerage or not?
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B
We have a brokerage of about $240,000.
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A
Yowza. That's nice. How did you save so much?
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B
We sold a house and then haven't really bought a second house.
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A
I see. So you're renting right now?
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B
Yes.
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A
How much is your rent?
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B
Very low.
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A
How low?
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B
Like $500 a month.
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A
We stop it. Okay. Okay. And is that sustainable, or do you have to. Do you think you might have to tap the brokerage account to buy stuff?
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B
Eventually we're going to buy a house, but we've got maybe a year or two, and this is working out really well.
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A
Okay, so then, I mean, all that money in the brokerage account, if you wanted to. Amber, if you wanted to take some portion of that and say, okay, I'm going to pay for graduate school or I'm going to take a break or I'm going to find something else, you guys would be willing to do that?
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B
Yes.
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A
Okay. That's huge. How much do you guys. How much do you guys spend right now in terms of. I mean, I know the rent's so cheap, but, like, how about everything all
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B
told with rent, about $5,000 a month.
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A
And neither of you would be entitled to a pension down the line, right?
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B
There are so many pensions. My husband has a pension at 62. I have a small. If I quit my job, a small pension at 62.
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A
Okay, but that's just the two of those two pensions and your husband's pension at age 62. What does that figure today? Is it for this job or something previous to this job?
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B
For this job, anticipating. He works until like 60, I believe, or 62.
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A
And how much would that be, do you know?
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B
$3,450 or so.
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A
So. Or so. I like that. All right, so that's a huge help, right? I mean. Yeah. And now before, you were renting at $500 a month, I'm just trying to sort of factor in, like, even if you did a couple years here in the future, if you were to buy a house, number one, how much of that two, 40 do you think we'd need to tap? And number two, like. Like how much do you think it costs to kind of live your lifestyle with a house? Because, you know, you've done it before. So I'm just wondering what that would be like.
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B
I'm not quite sure. I. Last we. When we had our house, we had a really great mortgage, and it was in a perfect time of like 2% rates, and it was like maybe an extra $2,000 of a mortgage.
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A
Okay. So then it was like 7,000. And now if you had to do it and buy in and prices are up and mortgage rates are higher, probably be more like, I don't know, let's call it 9 or 10, right?
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B
Yeah.
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A
Okay. All right, that's fine. Doesn't mean you can't. And also, by the way, a huge help of this process, looking ahead is saying, hey, we are going to have this pension. I mean, that's a real number. Right. And that future pension can help defray some of the pressure you might feel around, like, well, what if I'm not putting money in retirement and what if I'm not on track and what if I take a step back in income? Like, all those things can be a load on you emotionally, but maybe in reality, because we have that future pension, maybe you can do this. And what about family? Do you think you might have to take care of parents, aging parents, bust out siblings who you love, but just, you know, you're gonna have to help out or anything like that?
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B
No, I think we're more likely to inherit something on some. On my husband's side, but nothing for.
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A
Okay, so let's say that you took off. Let's say you quit today. All right. And you took off two years. Right. Do you think you'd want to take a chunk of this money and go back to school? Do you think you just want to take your time and find something different to do?
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B
I would want to find something different as I. Yes. Find something different.
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A
Okay. All right. I mean, look, he's making $84,000. And how much is he putting into retirement right now? What percentage?
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B
He's doing like 25. It's pretty. He's aggressively saving. But if I quit my job, he's telling me this is his calculations.
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A
Yeah.
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B
That if he. We just put in like $12,000. So that's like 15.
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A
Yeah.
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B
We would be okay to go to retirement at 62 with enough to retire about $2 million.
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A
Okay, let's say he just says, I'm going to 15 for the next couple of years. Let's take this as a two year project that you definitely can do. He is right that, like, there's no doubt if he just pulls back and says, okay, let me go to 15% or even 10% just for a couple of years. Because, Amber, I think just listening to you and hearing you, I just don't hear in your voice that, that you are somebody who will make $0 for the rest of her life. I just don't hear that. Am I right?
- [09:53]
B
Yeah, it's true.
- [09:55]
A
Okay, so in that case, like, we're not talking about a forever thing. He is right. Like, we can take, you can pull back, can take. And even if you said, all right, you don't have to live like monks. You can say, we're going to go back to where he. He'll pull back to 15%. You take some of the money from the brokerage. How much money do you have? Like in the bank savings, emergency savings. What do you have going there?
- [10:17]
B
About $60,000.
- [10:19]
A
All right, so even if you said, all right, we're just going to take 20 grand out of our emergency reserves, we'll make sure we have that, we can still live our lives. I think the answer to the question is can I quit? The answer is sure, but the next step is can you quit forever? Living. Living exactly how you want. Not so sure, because here, here are the variables. The variables are that you do this for two. You do the rent thing for $500 a month for the next couple of years, and then you're like, you know what? I want my own place. Love living like this way, but we want our own place. Then you're gonna want cash flow, and you're gonna maybe have a larger lifestyle because of that. In which case, then, so you go back to work and you figured it, you figured it out. I mean, again, if today I said, what are you going to do with yourself? And you say, I don't know, I'm thinking about this, that, and the other thing. Well, you know, if you worked part time and you just did something kind of even just for fun, my guess is that you could probably bring in 30 or 40 grand. And you know what? That'd be fine if that's all you made going forward. If you did, you said, oh, I hate my life. I hate my job. You don't. Guys don't have a huge life. So you're right. But any. At the. At the point where you may want more, you may want to buy a home, you may want to make different decisions, then you would make changes accordingly. But for today, can you quit? Yeah, I think so. You're going to. Are you going to get benefits from his job?
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B
Yes.
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A
Okay. What. What scares you about this whole thing right now?
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B
It seems like it's always a bad economy.
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A
This one is. But it's kind of like, how miserable are you? Yeah. Are you like, if you're miserable, man, I don't want you to do something when you're so miserable. I really don't. I feel like that's a lot, you know, to say because you don't. You're not stuck in a place where you have to do something you don't have. In other words, you. You don't have Five kids, You don't have a million dollar house, you don't have a lifestyle. That's crazy. You happen to be in this incredible spot. $500 a month in rent. You know, I know you're relying on family, that's fine. But like, to me, this would be the time to do it. Because if you wait longer, then, you know, your money starts, you know, your income starts creeping up, then you're really never going to feel like you can do it. If you're miserable, why not? Why not do it and figure out what you want to do next? And if you feel really uncertain, you can kind of, you know, you can do your job. I presume you're the kind of person who sort of continues to do your job no matter what. So maybe it's like, I'll do my job and I'll start really actively looking. You have to just feel comfortable doing this. But from the financial point of this, I think you got this. You guys are not in a situation where you've taken on a huge lifestyle that you need to support. So I think it's doable. Mark, do you agree with that? I do. I mean, you know, we're not talking about quitting for the next 25 years. This is more about doing a pivot. And yeah, they have the ability, the flexibility. Thankfully, they have very affordable housing and that gives them the ability to do this, really. Exactly. So I say go ahead and do it. I mean, I'm sure that your husband's going to be like, see, I told you. But that said, even so, just as the spouse, when you want to give somebody permission, it is nice to sort of say, like, I get this is like a hard decision. Even if we can do it financially, it's emotionally a hard decision for someone who now you've probably been working for, you know, 15, 20 years, and now it's like, oh, my God, can I, could I, could I really stop? And the answer is you can stop for a time and figure out what happens next. You can reset from where you are and go in a different direction. And if that means you make less money, good news is I think you can afford that again. I'm sure you've heard the show. There are a lot of people out there who are doing some wacky things in their financial lives, taking on tons of obligations. You guys are not in that place. You know, you've done a good job of saving so far. The saving grace here is that, you know, there are many families, even couples, that can live on a salary of $84,000. But because your housing costs are low and because you don't do a lot of other stuff, you're in great shape. Give yourself some grace. It is not easy to make these kinds of changes, and I completely get that. And what you need to do is just give yourself the space. And maybe for your husband, if he listens to this episode, that he can sort of say, give you some space to do it and not be, you know, I'm so sick of you complaining all the time. Just quit. Then just be like, I know it's tough. It is hard to make these decisions. These are big life decisions. But luckily, I think you guys are in a place that you can do this. I really do. We're all aboard. And when you find your new job, get back in touch with us and we'll figure out, like, what to do next. How does that sound?
- [15:13]
B
That sounds great.
- [15:14]
A
Jill, Amber from Texas, thank you so much for joining us. You see, gang, you could need a reset. And in your 30s, because you're on a track, this is actually the moment where you realize, like, oh, I kind of don't love what I'm doing. And hopefully in, in this kind of situation where there's assets and no debt and no obligations, you can do it. Maybe you too, as you listen to this, you can do it. Whether you're 38 or 58 or 78, maybe there is something different you can do in your life. Get in touch with us so we can hold your hand through the process. Go to Jill on money dot com. Click the contact us button, write us a note, and if you'd like to join us on the air, check the box. Mark will do everything else. And since we're talking about resets, why not buy the book the Great Money Reset? In that book, I outline 10 bold steps to turn the chaos of change into opportunity. So check that out. You can subscribe to us on the Odyssey app or wherever you find your favorite podcasts. And as always, we do ask that you lift someone up. Change your work, change your wealth, change your life. Thank you for listening and we'll talk to you tomorrow. Finding a skilled hire takes more than just reviewing a resume. As AI raises the bar on how experience is presented. Hiring managers need better ways to evaluate skills and fit. That's where Robert Half can help their recruiters combine their expertise with award winning AI to review what's behind every application. Quickly learn how they can find find you specialized talent in finance, accounting, technology and more At Robert Half. They know talent. Visit roberthalf.com talent today. Hey there, Poodle and Maddie here from Reality Gays. Do you love reality shows about a bunch of women with matching hair extensions trying to fight against the patriarchy of the Mormon Church? Who doesn't? The Secret Lives of Mormon Wives is back on Hulu. And Taylor Frankie Paul has returned with her mother, Mormon Minions, and we are recapping all the drama on Reality Gays. This show has us fully overstimulated. It's messy, it's Mormon, it's everything. Follow and listen to Reality Gays wherever you get your podcast.