Podcast Summary: "What Is a Safe Withdrawal Rate?"

Podcast Information:

• Title: Jill on Money with Jill Schlesinger
• Host/Author: Audacy
• Description: Host Jill Schlesinger, CFP®, addresses challenging and sometimes controversial financial and investing topics in plain language. Each week, Jill engages with listener calls and interviews guests to provide surprising insights and actionable advice to help listeners make the most of their money.
• Episode: What Is a Safe Withdrawal Rate?
• Release Date: June 17, 2025

Introduction to the Episode

The episode begins with Jill Schlesinger discussing the current economic climate and the upcoming Federal Reserve policy meeting scheduled for June 17, 2025.

Key Points:

• Federal Reserve Policy Meeting: Jill notes the anticipation surrounding the two-day Fed meeting, expressing uncertainty about potential rate cuts. She mentions a slowing economy but does not expect immediate changes in rate policies.

  "I really don't think they're gonna do anything... Maybe they should. I don't know." (02:30)

• Promotion of Financial Services: Jill encourages listeners to reach out for personalized financial advice through her website, jillonmoney.com, and highlights the "Money Watch" sister broadcast for deeper financial insights.

Main Topic: Safe Withdrawal Rate

The core of the episode centers on determining a safe withdrawal rate for retirement, sparked by listener emails seeking personalized advice.

Listener Question from Charles

Charles's Inquiry:

• Age: 65
• Situation: Retiring with children, concerned about maximizing retirement spending.
• Question: What is considered a safe withdrawal rate, given his more conservative stance compared to the standard 4% rule?

Jill's Response:

• Standard 4% Rule: Jill acknowledges the historical success of the 4% withdrawal rate but suggests a more conservative approach might be prudent for some.

  "I'm a little bit more conservative. That said, the 4% has worked very well." (05:15)

• Adjusting Withdrawals: She advises flexibly adjusting the withdrawal rate based on annual market performance—taking 4% in good years and reducing to 3.5% in down years to maximize longevity.

  "Maybe in a down year you take a little bit less, maybe take three and a half percent." (05:45)

• Personal Comfort: Emphasizes the importance of aligning withdrawal strategies with personal comfort levels and financial goals.

  "I like when people live nice and big and, you know, within their means." (06:30)

Listener Story from Jan

Jan's Situation:

• Retirement: Jan is retired with a state pension of $79,000, which exceeds her expenses.
• Assets: Owns two multifamily properties valued at $2.2 million (one paid off, the other with a $233,000 mortgage).
• Investment: Holds a traditional 457 plan worth $675,000.
• Concern: Tax implications for her children inheriting her accounts, considering required minimum distributions (RMDs).

Jill's Advice:

• Roth Conversion: Jill discusses the potential benefits and considerations of converting traditional accounts to Roth, emphasizing the importance of having separate funds to pay taxes.

  "So if you choose 3 1/2% as a safe withdrawal rate and I end up with a little bit more money, fine." (07:20)

  "It’s not such a big deal... they can use more conservative numbers." (08:10)

• Tax Strategies: She suggests pulling money from accounts to cover taxes if there aren't sufficient separate funds, and reassures that converting to a Roth might not be necessary unless there are substantial funds available.

  "But I like when people live nice and big and, you know, within their means, of course." (09:00)

Listener Question from David

David's Inquiry:

• Current Position: Federal employee in Washington D.C. with six years of military experience.
• Concern: Considering leaving his well-paying federal job due to political uncertainties and seeking advice on transitioning without a degree.

Jill's Response:

• Comparative Analysis: Jill advises David to compare private sector jobs directly with his current role, considering both salary and pension benefits.

  "Look around and one way to look at the difference between the pay and the pension is to try to compare apples to apples." (10:00)

• Private Sector Opportunities: She highlights that federal employees often find higher salaries in the private sector but lose pension benefits, suggesting a thorough evaluation of total compensation.

  "A lot of federal employees... they'll make more money in salary, but they'll lose that pension benefit." (10:45)

• Personal Consultation: Encourages David to reach out for a detailed discussion to explore his specific situation further.

  "I'd really like to talk this through." (11:20)

Appreciation and Testimonial from Ralph

Towards the end of the episode, Jill and her co-host Mark receive a heartfelt testimonial from Ralph, a seasoned financial advisor.

Ralph's Testimonial:

• Impact on Practice: Ralph expresses how the "Jill on Money" podcast has significantly enhanced his professional skills by using caller interactions as case studies.

  "Your questioning technique has become a model for my own client interactions." (12:00)

• Personal Gratitude: He commends Jill and Mark for their empathetic and insightful approach to financial planning, which has deepened his understanding of the human aspects of the profession.

  "Your work makes a real difference in how we serve our clients and approach this important work with deep appreciation." (13:00)

Hosts' Response:

• Jill and Mark's Reaction: Both hosts express their gratitude and emotional response to Ralph's kind words, highlighting the rewarding nature of their work.

  "It speaks to a million different things, but it's why I love doing this show so much." (13:08)

  "Ralphie put me on the payroll, man." (13:04)

Conclusion

Jill wraps up the episode by reiterating the importance of community and support among listeners. She encourages ongoing engagement through questions and participation in future shows.

"If you've got a question and you would like to join us on the air, just go to Jill on money dot com, click the contact us button, and if you want to join us, check the box." (14:20)

She also promotes additional resources available on their website, including other podcasts, radio shows, videos, and a weekly newsletter curated by Mark.

Notable Quotes:

• "I'm a little bit more conservative. That said, the 4% has worked very well." — Jill Schlesinger (05:15)
• "Your questioning technique has become a model for my own client interactions." — Ralph (12:00)

Key Takeaways:

• The standard 4% withdrawal rate is generally effective but may be adjusted based on individual comfort and market conditions.
• Personalized financial strategies are crucial, especially when considering factors like inheritance, taxes, and pension benefits.
• Transitioning careers from the federal sector to private industry requires a careful comparison of total compensation, including pensions.
• Community feedback and testimonials highlight the real-world impact of financial advice and the importance of empathetic client interactions.

For More Information:

• Visit jillonmoney.com to connect with Jill and access additional financial resources.
• Subscribe to the "Money Watch" podcast for deeper dives into financial planning topics.