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

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.

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]

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]

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.

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]

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.

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.