Want to Retire but Have Concerns

Summary

Podcast Summary: "Want to Retire but Have Concerns" Jill on Money with Jill Schlesinger | Released April 25, 2025

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Introduction In this episode of Jill on Money with Jill Schlesinger, host Jill Schlesinger delves into the complexities and anxieties surrounding retirement planning. Focusing on real-life scenarios, Jill provides actionable advice to help listeners navigate their financial futures with confidence. The episode centers around a call from Rhoda Morgenstern, a 66-year-old professional contemplating retirement amidst economic uncertainties.

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Listener Profile: Rhoda Morgenstern's Retirement Scenario

Timestamp: [03:04]

Rhoda Morgenstern from the Twin Cities reaches out for guidance on her retirement plans. At 66 years old, Rhoda is currently working three days a week and aims to retire by late spring (May or June). Her husband, aged 68, is mostly retired and has already claimed his Social Security benefits.

Financial Overview:

• Income:

  • Rhoda: $80,000 annually from a part-time role.
  • Husband: $44,912 pre-tax from Social Security benefits.

• Assets:

  • Rhoda's IRA (rolled over from a 401k): $685,000.
  • Husband's IRA: $800,000.
  • Stock Brokerage Account: $87,000.
  • 401k Current: $14,000.
  • Series I Savings Bonds: $12,000.
  • Cash On Hand: Approximately $10,000.

• Liabilities:

  • Mortgage: $160,000 remaining on a $700,000 house.

• Future Inheritance:

  • Expected to receive around $500,000 in the coming years, comprising property valued at approximately $700,000 (expected to receive half) and cash totaling between $220,000 to $250,000.

Notable Quote:

"I have an IRA that I've rolled over from my 401 that is $685,000." — Rhoda Morgenstern [05:15]

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Retirement Concerns and Goals

Rhoda expresses a desire to transition fully into retirement soon, possibly by May or June. She highlights the flexibility her current job offers and her reluctance to extend her working life unnecessarily. However, she faces concerns about whether her accumulated savings and future inheritance will sufficiently cover her expenses, especially in light of economic fluctuations and market unpredictability.

Notable Quote:

"I'm thinking I'd like to wind down some soon. Like before. Like summer or May or June? Yes." — Rhoda Morgenstern [04:22]

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Jill Schlesinger’s Analysis and Advice

Jill commends Rhoda on her substantial retirement savings and prudent financial planning. She breaks down Rhoda’s financials to assess the feasibility of early retirement:

1. Retirement Income:

   • Rhoda's Social Security: $35,735 annually ([08:11]).
   • Husband's Social Security: $44,900 annually ([08:19]).

2. Monthly Expenses:

   • Approximately $11,000, translating to around $7,000 net from Social Security, leaving a shortfall of about $4,000 to cover monthly expenses.

3. Asset Liquidity and Allocation:

   • Jill emphasizes the importance of keeping a portion of retirement funds uninvested to ensure liquidity ([09:00]). She suggests maintaining around $50,000 in cash to cover essential expenses and reduce the need to liquidate investments during market downturns.

4. Inheritance Planning:

   • The anticipated inheritance provides additional financial security. Jill advises Rhoda to stay in touch for guidance on managing this inheritance, especially concerning the potential rental property.

5. Mortgage Considerations:

   • With a $160,000 mortgage remaining on a $700,000 home, Jill recommends evaluating whether paying off the mortgage before retirement is feasible, which could significantly reduce monthly expenses.

6. Work Flexibility:

   • Jill suggests negotiating with Rhoda's employer to gradually reduce work hours, providing a smoother transition into full retirement ([10:45]).

Notable Quotes:

"You've put yourself in a place where you can do what you want to do." — Jill Schlesinger [11:00]

"Maybe there's a third way. And maybe we run the numbers and you can feel better about it." — Jill Schlesinger [12:02]

Timestamp Highlights:

• [05:15-06:33]: Detailed breakdown of Rhoda’s financial assets and future inheritance.
• [07:58]: Discussion on monthly expenses and income sources.
• [09:00-10:48]: Strategies for asset allocation, risk management, and work transition.

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Conclusion and Final Recommendations

Jill reassures Rhoda that her financial situation is solid, emphasizing that with her current savings and anticipated inheritance, she is well-positioned to retire comfortably. She encourages Rhoda to consider a gradual reduction in work hours as a safety net against economic uncertainties and advises maintaining a balance between investment growth and liquidity.

Jill also reminds listeners of the importance of keeping estate documents updated and staying engaged with financial advisors to adapt to any changes in personal circumstances or market conditions.

Notable Quote:

"Change your work, Change your wealth, change your life." — Jill Schlesinger [End]

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Key Takeaways for Listeners

1. Comprehensive Financial Assessment: Understanding all income sources, assets, and liabilities is crucial for informed retirement planning.
2. Liquidity Management: Maintaining accessible funds can provide security against market volatility and unforeseen expenses.
3. Gradual Transition: Reducing work hours before full retirement can ease the emotional and financial shift.
4. Future Planning: Anticipated inheritances or windfalls should be strategically managed to enhance financial stability.
5. Continuous Engagement: Regular consultations with financial advisors and staying informed through resources like Jill’s podcast can greatly benefit retirement readiness.

Listeners seeking personalized advice can visit jillonmoney.com to connect with Jill and her team for tailored financial guidance.

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This summary captures the essence of Rhoda Morgenstern's call and Jill Schlesinger's comprehensive advice on navigating retirement concerns. By addressing both current assets and future expectations, the episode provides a roadmap for listeners considering their own retirement plans amidst economic uncertainties.

Transcript

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[Jill Schlesinger]

Welcome to the Jill on Money Show. It's Friday, April 25th and we are here holding some hands, assuaging some frayed nerves, trying to help you cope with the news cycle and trying to understand how what's happening in the economy might impact your own personal financial plans. If you're feeling a little bit tenuous, if you just want another set of ears and eyes on a situation, go to our website jillonmoney.com click the contact Us button, write us a note, and if you want to join us on the air live, just check the box. Mark will do everything else while you're on the website. Make sure you bookmark it. We change the content all the time. We've got another podcast. It's called Money Watch on Saturdays and Sundays. We've got a blog, We've got resources, We've got videos. All of that is there, as well as the free weekly newsletter comes out today. Every Friday, Mark does such a Great job assembling stories you may have missed throughout the week. Okay, right now we are about to talk to the famous Rhoda Morgenstern. Okay, Rhoda from the Twin Cities. Hello, Rhoda. What's going on? How can we help you out?

[Rhoda Morgenstern]

Hi, good morning. Well, you can help me out by giving me some advice.

[Jill Schlesinger]

Okay, let's do it.

[Rhoda Morgenstern]

I was a little more confident about my request a couple weeks ago.

[Jill Schlesinger]

Weren't we all?

[Rhoda Morgenstern]

And was feeling a lot better about life. But, yeah. And especially, particularly the last week has been a little rough.

[Jill Schlesinger]

Okay, so, Rhoda, what's going on? Are you working? Are you retired? What's happening?

[Rhoda Morgenstern]

I am working, but want to retire. I'm 66 years old.

[Jill Schlesinger]

Okay.

[Rhoda Morgenstern]

And I'm working three days a week. And, yeah, I've been paring down my schedule in hopes of retiring, and my husband is mostly retired.

[Jill Schlesinger]

How old is he?

[Rhoda Morgenstern]

He is 68.

[Jill Schlesinger]

Will you be entitled to a pension or does he receive any pension?

[Rhoda Morgenstern]

No, Neither.

[Jill Schlesinger]

Okay, got it. And did your husband claim Social Security yet?

[Rhoda Morgenstern]

Yes, he has.

[Jill Schlesinger]

How much does he earn?

[Rhoda Morgenstern]

He earns 44,912.

[Jill Schlesinger]

I love that. You know that right off the tip of your tongue. That's pre tax. Or is that net?

[Rhoda Morgenstern]

That is pre tax.

[Jill Schlesinger]

Okay, got it. And right now, what's your game plan? Were you thinking, like, you're gonna wind down now? Do you wanna wind down, like, okay, I'm done. I wanna have a nice summer. What's the timing that you're considering?

[Rhoda Morgenstern]

I'm thinking I'd like to wind down some soon. Like before. Like summer or May or June? Yes.

[Jill Schlesinger]

Okay. All right.

[Rhoda Morgenstern]

Possible.

[Jill Schlesinger]

How much money do you earn? Three days a week?

[Rhoda Morgenstern]

80,000.

[Jill Schlesinger]

Oh, that's pretty good.

[Rhoda Morgenstern]

Well, I've been there a while.

[Jill Schlesinger]

All right, all right. I'm sure you're worth it, but that's a nice number. Okay, so. And. And they don't require you to give them much more. Like if I said to you, here it is, It's Friday, it's April 25th, and you give your notice on May 30th, or you give your notice whatever on Monday. Will they require that you work a little bit of time? Just giving them a little bit of transition.

[Rhoda Morgenstern]

They want me to finish out a project or something. But I have some flexibility with that.

[Jill Schlesinger]

Okay, good. All right. So, Rhoda, let's talk about the savings. What have you guys accumulated in terms of retirement savings and also non retirement savings?

[Rhoda Morgenstern]

So I have an IRA that I've rolled over from my 401 that is $685,000.

[Jill Schlesinger]

That's great.

[Rhoda Morgenstern]

My spouse has an IRA of 800,000. We have a stock account that is. I believe it's 87,000 today. I have a 401k current. Yes.

[Jill Schlesinger]

Okay. How much is in that?

[Rhoda Morgenstern]

14,000.

[Jill Schlesinger]

Okay.

[Rhoda Morgenstern]

And let's see. Savings, a series I savings bond, 12,000. And just cash on hand? Just. Yeah, maybe 10 grand or something like that.

[Jill Schlesinger]

Okay, so besides the stock, the brokerage account, any other investments, like a rental property or anything like that?

[Rhoda Morgenstern]

No. We do have an inheritance we'll be getting probably in the next few years.

[Jill Schlesinger]

How much do you think that is? Do you know?

[Rhoda Morgenstern]

Well, there's property that's valued around 700,000, and we probably get half of that.

[Jill Schlesinger]

Okay, so 350. Let's say 300 just to.

[Rhoda Morgenstern]

Yeah. And then probably cash of 2. 220. 2 50, something like that.

[Jill Schlesinger]

Okay. All right, so we'll say 2. I like to keep it. Let's say. Just say 500 grand in a future inheritance will be coming.

[Rhoda Morgenstern]

Yes.

[Jill Schlesinger]

Okay. How about your house? Do you own it? Do you pay? Is it paid for? Where are you in that?

[Rhoda Morgenstern]

We have a mortgage of 160,000. The house is worth about 700,000, and our mortgage is two and an eighth.

[Jill Schlesinger]

Gosh, you know how I know you're old like me? We say fractions still. Yes, I Love my fractions.

[Rhoda Morgenstern]

2.125.

[Jill Schlesinger]

Yes. Thank you. Thank you for translating for our younger folks. I appreciate that. Are you going to spend cold Twin Cities winters in that house or is there going to be some move south or any. Any plans like that?

[Rhoda Morgenstern]

Well, the property is in the south. That would be in the inheritance. So we spend time there, and we may want to hang on to that. May want to rent it. I don't know.

[Jill Schlesinger]

Oh, so maybe not the property, maybe not to be. You may not sell it. So maybe the future inheritance would be more like the 220 to 250. Sure, let's look at that. Let's just see if that'll work for you. Now you have kids, adult kids.

[Rhoda Morgenstern]

Yes. And they're launched and financially independent.

[Jill Schlesinger]

Oh, my God. It's really like. You have to say financially independent. Don't you know so many people who are helping out? It's incredible.

[Rhoda Morgenstern]

Yes.

[Jill Schlesinger]

Thank God you don't have to take a deep breath. How much money do you guys spend on a monthly basis?

[Rhoda Morgenstern]

I would say about 11,000.

[Jill Schlesinger]

Okay, 11,000. And when you finish working in, you know, days, what's your game plan on claiming Social Security? You gonna wait till you're 60?

[Rhoda Morgenstern]

Yes, I will wait till my full retirement age, which is July 1st. And that will be 35,735.

[Jill Schlesinger]

7. He's at 44,900. So far, so good on this. So that is pretty. That's a good chunk of the money you need for your expenses, right? So eight grand, maybe it's not, you know, it's not everything you need because you have to pay some taxes on it, right? But let's say it's seven grand net, okay? And we need to generate three or four grand a month to help cover those expenses. So, you know, you've got these retirement accounts where you can do that, you know, 1.1 and a half million in retirement accounts. And when I look at that as like your base, you're golden, girl, you're golden. I'm not even. Look, and don't even worry about the inheritance. Like, I don't have to include that. But if you have a million and a half dollars, even once you pay your taxes on that, okay, you'll be able to draw, you know, let's say that after you pay a tax, you'll be able to draw three or four grand a month from those retirement accounts. That should be just fine. So here's the thing. If you're feeling. You sent this email, let's say you sent this email at the end of last year and I had said to you while the markets were like rocking and rolling, okay, And I'd say, rhoda, you're in great shape, then you would retire. And I would suggest to you that once you retire, what you would do is you would have the money outside of the markets, not invested, so that you knew that you could float that extra money, right, that $4,000 a month that you would need. So I would say to you, okay, you're in great shape. But here's the thing. You want to keep, let's say 50 grand of your retirement accounts. You want to keep that in cash and you want to make sure that you don't have too much risk in that account. Because we do want to draw that 30, you know, let's call it 35 to $45,000 a year. We're going to need that money and you can't be so risky with it. But I think if you had asked me that question at the end of December, and we've just come off of, you know, a two year combined return of more than 50% for stocks, you would have been like feeling great. So I get that you're spooked. But that would not stop me from retiring in your particular situation. If you liked your work and let's say your boss said to you, rhoda, can you give me two days for the rest of the year? What would you say?

[Rhoda Morgenstern]

Hmm, I might think about that. Yeah.

[Jill Schlesinger]

So it may be something to have in your back pocket that if you. If the. Your. If your boss is like, oh, no, we've got this projects, you might say, okay, you're giving me 80 grand for three days a week. How about I go to two days a week? And, you know, then we can. We'll be done at the end of the year. Maybe that's something that can work for both of you. Maybe that'll be enough to assuage some of your anxiety. But it's also in your back pocket. Maybe that's a nice thing. A nice sort of like, okay, I'm gonna gradually get done, but at the end of the year, boss, I'm done. Done. Keep that as a possibility. You'll deal with this inheritance in the next couple years. You get back in touch with us, and we can maybe guide you through whether or not keeping that property makes sense or whether you sell everything and you buy or you rent, whatever. We'll have more information in the future, but stay in touch with us and know that you're in really good shape. You guys have done a great job, okay? So to me, you've put yourself in a place where you can do what you want to do, but if you're a little freaked out about it and you want to work a little bit more just through the end of this year, that's fine, too. It just depends how much you really want to be done. I'm so excited for you guys. Don't forget to do your estate documents. I know everyone's good and the kids.

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[Jill Schlesinger]

Fantastic. All right. If you are like Rhoda and her husband and you're in this period, look, gang, it is nerve wracking to give up your income when there is so much uncertainty in the economy and markets. So maybe there's a third way. And maybe we run the numbers and you can feel better about it. And if you don't feel better about it, maybe there's a way to just, like, ease off a little bit. I like to call that the off ramp. And I was just saying to Mark before we came on the air that, you know, when I'm done with CBS News, I'll still have this podcast that's What I'm thinking is my off ramp that I'm going to keep doing this broadcast as long as I possibly can. There's Mark. I got to pay for Theo's school. I got so much to do and I want to make sure that I have something to do. So I'm engaged and there is nothing that I like doing more in my whole world and my whole portfolio of what I do. There's nothing I like doing more than this show. This show is the best. You guys are the best and I thank you for that every day. You guys are a gift. So if you've got a question, go to jillonmoney.com, click the contact Us button. Write us a note if you'd like to join us on the air. Check the box Mark does everything else. Don't forget to sign up for the free weekly newsletter again. Comes out today and check out all the content that [e-mail] you can subscribe to us on the Odyssey app. By the way, you can also subscribe to our weekend show on the Odyssey app. Money Watch comes out Saturdays and Sundays or wherever you find your favorite podcast. It's Friday. We do some business. Our music is composed by Joel Goodman. Mark Tularsia, the guy clapping in the background. He's our executive producer and king of all things web. We are distributed by Odyssey. Put your hands metaphorically on someone's back and someone needs a little bit of a boost. I can promise you that right now. Change your work, Change your wealth, change your life. Thank you for listening. We'll talk to you on Monday.

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