Summary of "Two Academics Facing Unstable Time" Episode of Jill on Money with Jill Schlesinger

Podcast Information:

• Title: Two Academics Facing Unstable Time
• Host/Author: Audacy
• Release Date: July 15, 2025

Introduction

In this episode of Jill on Money with Jill Schlesinger, host Jill Schlesinger engages in a heartfelt and insightful conversation with Mandy from Ohio. Mandy seeks guidance on navigating financial uncertainties arising from recent legislative changes affecting job stability in higher education, coupled with upcoming inheritance. The episode delves deep into financial planning, retirement strategies, and contingency measures to ensure financial security amidst potential career shifts.

Guest Background and Financial Overview

Mandy and her fiancé both work in higher education, facing instability due to new legislation impacting tenure. Mandy’s fiancé is currently on the tenure track, while Mandy holds a more secure staff and research position. They are planning to marry next summer and jointly own a home valued at approximately $410,000.

• Ages: Mandy is 31, and her fiancé is 33.
• Housing: They have a 30-year mortgage with $237,000 remaining at an interest rate of 5.875% after refinancing from 6.5% (09:23).

Current Financial Situation and Challenges

Mandy outlines their current financial landscape:

• Fiancé’s Income:

  • Base Salary: $71,000 (excluding potential summer courses which add approximately $6,000 per course based on enrollment) (05:49).
  • Pension: Contributes 14% of her salary to Ohio School Teacher Pension Program, matched by the university. She is vested after 34 years, currently having accumulated a pension value of around $40,000 (07:00).

• Mandy’s Income:

  • Base Salary: $73,000.
  • Additional Income: Approximately $5,000 annually from teaching extra classes, presentations, workshops, and talks (06:20).

• Joint Assets:

  • Savings and Cash: Mandy has $64,000 in savings and checking, while her fiancé has $37,500 (11:21).
  • Brokerage Account: Mandy manages a brokerage account with $368,000, primarily invested in ETFs, under the guidance of a financial advisor charging 1% quarterly fees (11:23).

• Debt: No outstanding loans due to full scholarships and covered tuition during PhD studies (11:13).

Notable Quote:

"You have a lot of money already. You really do." — Jill Schlesinger (17:48)

Retirement and Investment Strategies

Both Mandy and her fiancé have robust retirement plans:

• Fiancé’s Retirement:

  • Pension Plan: Ohio School Teacher Pension Program with a 14% contribution matched by the university.
  • Roth IRA: Contributes $200 monthly.

• Mandy’s Retirement:

  • 401A Plan: Contributing 10%, with the university matching approximately 11.76% (08:17).
  • 457 Plans: $150 monthly to Roth 457B and $350 monthly to Traditional 457B.
  • Roth IRA: Maxing out annually with a current balance of $34,800 (08:46).

Notable Quote:

"You're putting so much money away." — Jill Schlesinger (17:48)

Inheritance and Future Planning

Mandy anticipates receiving an inheritance of approximately $200,000 from selling inherited land, expected by the end of the next month. She is contemplating whether to allocate this inheritance to her brokerage account or increase contributions to her 457 plans.

Brokerage Account Details:

• Current Balance: $368,000.
• Investment Strategy: Primarily ETFs with decent returns.
• Advisor: Reviews financial goals biannually, discussing goals and investment options (12:35).

Financial Strategy: Jill advises maintaining the brokerage account for liquidity and potential future needs, especially considering the inheritance. She emphasizes the importance of having accessible funds to navigate potential job losses without necessitating immediate major financial decisions like selling their home.

Notable Quote:

“It should give you a lot of comfort.” — Jill Schlesinger (15:00)

Financial Planning and Advice

Jill provides comprehensive financial advice tailored to Mandy and her fiancé’s situation:

1. Emergency Funds: With $100,000 in combined cash reserves and a substantial brokerage account, they are well-positioned to handle unexpected financial disruptions.

2. Job Instability: Jill reassures them that their current savings and investment strategies provide a solid safety net. She suggests that if Mandy’s fiancé changes careers, they can adjust retirement contributions accordingly without jeopardizing their financial stability.

3. Retirement Adjustments: If the fiancé’s job changes result in reduced income, reallocating contributions from the pension fund to other retirement plans like Roth IRAs or 401A can maintain their retirement savings trajectory.

4. Inheritance Utilization: Jill recommends keeping the inheritance in the brokerage account to preserve liquidity, allowing flexibility in financial planning and ensuring they can address any immediate needs or investment opportunities.

Notable Quote:

"You really have. We would just have to look at your cash flow, you know, and so it wouldn't be you." — Jill Schlesinger (17:48)

Future Plans and Contingencies

Mandy and her fiancé contemplate the possibility of one or both stepping down from full-time positions in the future to pursue personal interests or passion projects. Jill advises focusing on their strong financial foundation and cautions against making hasty changes without ensuring financial stability.

Key Points:

• Flexibility: Their substantial savings and investment portfolio provide the flexibility to support lifestyle changes without compromising financial security.

• Financial Discipline: Continuing their disciplined saving and investment habits will further strengthen their position, allowing them to make life choices based on desire rather than financial necessity.

Notable Quote:

"You really have done a great job." — Jill Schlesinger (20:16)

Conclusion and Key Takeaways

Mandy and her fiancé exemplify proactive financial planning in the face of career uncertainties. Their comprehensive approach to savings, retirement planning, and investment ensures they are well-prepared for potential challenges. Jill Schlesinger’s expert advice underscores the importance of maintaining liquidity, adjusting retirement contributions as needed, and leveraging their strong financial base to navigate future uncertainties.

Final Thoughts:

• Strong Financial Foundation: Their disciplined saving and investment strategies provide a robust safety net.

• Flexibility and Planning: Being prepared to adjust financial plans based on career changes ensures long-term stability.

• Expert Guidance: Utilizing financial advisors for strategic planning enhances their ability to make informed decisions.

Notable Final Quote:

"You really have. We would just have to look at your cash flow, you know, and so it wouldn't be you. ... You're so young. If I... forget about the brokerage, the hundred grand in cash, the money in the retirement accounts. You guys have done an incredible job." — Jill Schlesinger (19:44)

This episode serves as a valuable resource for anyone facing financial uncertainties, highlighting the significance of strategic planning, disciplined saving, and adaptable financial strategies to ensure long-term financial well-being.