Jill on Money with Jill Schlesinger

Episode: Wife Questioning Asset Allocation
Date: November 26, 2025
Host: Jill Schlesinger, CFP®, with co-host Mark
Guests: Peter and Donna, retired couple from the Bay Area

Episode Overview

In this episode, Jill takes a call from Peter and Donna, a retired couple in their late 60s from the Bay Area. The core theme centers around a disagreement between the spouses regarding the appropriate risk level and asset allocation in their retirement portfolios. While Peter feels comfortable with their current allocation and has a more optimistic outlook, Donna is anxious their portfolio may be too risky at this stage in life. Jill and Mark dig into their finances, motivations, and emotional responses, aiming to blend the need for financial security with peace of mind.

Key Discussion Points & Insights

1. Peter and Donna’s Financial Snapshot (04:49–11:56)

• Ages and Retirement Status

  • Donna: 69, Peter: 68, both retired
  • No pension; intend to claim Social Security at age 70 (combined ~$98,000/year)

• Spending

  • Meticulously track spending; all-in about $16,500/month

• Assets

  • Traditional IRAs: $1.12 million
  • 401(k): $832,000
  • Roth IRAs: $90,000
  • Taxable brokerage: $938,000
  • High-yield savings/CDs: $700,000 (current living expenses)
  • Series I Bonds: $23,000
  • HSA: $36,000
  • Upcoming Lump Sum: Final $250,000 buyout payment (pre-tax) next year

• Real Estate

  • Primary home: $3.4 million (with $225,000 remaining mortgage at 2.25%)
  • Second vacation home: $1 million ($286,000 mortgage at 3.125%)

• Other Notes

  • Adult children are independent; no big expected expenses
  • Estate documents are in place

2. The Core Marriage Disagreement: Asset Allocation Anxiety (10:10–18:13)

• Donna’s Concern:

  • Worries their investments are "too far out there" for their age and retirement status.
  • Sees their reliance on traditional accounts and worries about potential market swings.
  • Admits to sometimes "forgetting cash is out there as a buffer." (15:39)
  • Quote: “I do worry that we're too far out there for the point that we are in retirement, you know, early retirement. But we are retired... I’m just nervous that we’re hanging out there. Too far.” (10:19)

• Peter’s Perspective:

  • More comfortable with risk, supported by their broker (who sides with Peter).
  • Argues they have nearly 5 years of liquid funds to weather market downturns.
  • Quote: "We essentially have close to five years of cash or readily available funds to ride out a bear problem, you know?" (14:48)
  • Willing to consider less risk if needed for Donna’s comfort, states, "We could. I just don't have a strong feeling because we seem to have enough money to cover ourselves should there be a problem." (16:27)

• Jill’s Take:

  • Acknowledges both views; underscores the need for both partners to feel secure.
  • Points out the emotional reality: “The feeling part of this matters, gang. I know you want it to just be a mathematical equation. It's not.” (23:48)
  • Warns about the emotional impact of a prolonged bear market, even with “enough” resources.

• Mark’s Input:

  • Recognizes that the couple is "definitely fine the way they are," but balance must be found since both aren't fully comfortable.
  • Suggests some form of “happy medium”—either by reducing risk or agreeing on maintaining a large and stable cash buffer.
  • Quote: “There’s got to be some sort of happy medium here. And I don’t know if that’s pulling back some of the risk or making sure that… they always replenish [the cash buffer].” (18:13)

3. Current Portfolio Breakdown (15:10–15:21)

• 65% equities, 7% bonds, 28% cash and treasuries (including high-yield savings and CDs)
• Jill confirms this is a reasonable allocation, but highlights the emotional side

4. Withdrawal Plan & Tax Strategy (18:33–21:38)

• Jill discusses optimal withdrawal strategies:

  • Pull enough from the traditional IRA each year to "stay within the 24% tax bracket," thus reducing future RMD (Required Minimum Distribution) burdens.
  • Move withdrawn funds to the brokerage or savings as new cash reserves.
  • Strongly recommends drawing down traditional accounts gradually.

• Advocates maintaining at least $500,000 in cash ("sanity money" for Donna).

  • “The broker’s probably not going to be thrilled about that because they’re going to be like, oh, you know, you don’t need so much cash, but this is your sanity money, Donna.” (20:53)

• If more income needed, sell second home as a backup plan.

5. Emotional Validation and Partnership (21:38–23:46)

• Encourages Donna's perspective; “Having enough” can mean less aggressive investing is justified.
• Jill shares her own risk tolerance: “We have plenty of money. Why are we keeping risk out there? Who cares?... If it makes my nerves feel better, I’m a 60/40 investor. Mark knows that. I really am all the way. I am married to a 60/40 investor. We could be much richer if we were more aggressive in our portfolios. We’re not.” (21:46)
• Stresses that asset allocation in retirement is not just about mathematics—it’s about comfort and sleeping at night.
• Notes that the second home is an extra safety net—they can sell it if needed.
• Applauds them for being organized with estate planning.

Notable Quotes & Moments

• On Allocation and Emotions:
  Jill: "The feeling part of this matters, gang. I know you want it to just be a mathematical equation. It's not." (23:48)

• On Maintaining Cash:
  Jill: "That is your sanity, and that's going to be where we go. So that way you don't have to pull back on the equity position... make sure that the high yield savings and the CDs doesn’t go much below half a million dollars. And I think that if it were to go, you just... you pull your money out." (20:53)

• On Partnership:
  Jill: "But I think we are in a partnership, Peter and Donna, Inc. And the partnership has to be that you're both comfortable with where you are." (21:20)

• On Compromise:
  Mark: "If they were both on board with [the current allocation], no problem. But they're both not on board... there's got to be some sort of happy medium here." (18:13)

• On Having Enough:
  Jill, sharing her own experience: "If you have enough money that you don't need to take the risk, the alternative is like, I don't need to take the risk. What do I care?" (21:46)

• Donna, on getting consensus:
  “That sounds good. I just love you guys, your advice so much. And now it’s three against one. So I’m in.” (21:38)

Timestamps for Key Segments

• Intro and holiday banter: 01:56–04:49
• Financial facts gathering: 04:49–11:56
• Asset allocation and risk disagreement: 10:10–18:13
• Mark’s happy medium suggestion: 18:13–18:33
• Withdrawal planning & tax strategy: 18:33–21:38
• Emotional considerations and wrapping up: 21:38–23:46
• Closing thoughts on risk and partnership: 23:46–end

Takeaways for Listeners

• Even with sufficient resources, both partners' risk tolerances and feelings matter in portfolio decisions.
• Maintaining a healthy liquid cash buffer can be as much about emotional safety as it is about financial prudence.
• In retirement, it can be wise to focus not just on maximizing returns but on minimizing future anxiety and tax complications.
• The solution is rarely just math—communication, compromise, and occasionally, a “sanity fund” are all part of a sound retirement plan.

For those with similar concerns:
If you and your spouse are at odds about financial risk—or want help quantifying that risk—Jill recommends getting clear on what makes both of you comfortable and setting practical guidelines for cash reserves and account withdrawals. Asset allocation isn’t just about the numbers; it’s about ensuring both partners sleep well at night.