Jill on Money with Jill Schlesinger

Episode: Worried to Death
Release Date: July 14, 2025
Host: Jill Schlesinger, CFP®
Platform: Audacy

Introduction

In the episode titled "Worried to Death," Jill Schlesinger addresses the anxieties surrounding retirement finances. The show features a heartfelt conversation with John, a federal retiree grappling with fears of depleting his savings and the potential loss of his home. Jill navigates through John's financial situation, offering actionable advice to alleviate his concerns and provide a clear path forward.

Caller Profile: John from the South

Timestamp: [02:40] - [03:00]

John, a 64-year-old federal retiree, reaches out to the show expressing deep worries about his financial stability in retirement. Having retired five years prior, he fears that his savings may not sustain him, potentially leading to the loss of his home. John's wife remains employed with the federal government, adding complexity to their financial dynamics.

Assessing the Financial Situation

Timestamp: [03:00] - [07:41]

Jill begins by dissecting John's financial landscape:

• Income Sources:

  • John's Pension & Social Security: Gross annual income of $55,000 ([03:31] - [03:43]), netting approximately $4,060 monthly.
  • Wife's Employment: Earning in the low $90,000s, with a projected pension of around $44,000 annually upon her retirement at 62 ([03:57] - [05:23]).

• Monthly Expenses: Estimated between $7,000 to $8,000 ([04:17] - [04:32]).

• Savings & Investments:

  • Thrift Savings Plan (TSP): Over $1 million combined.
  • Emergency Fund: $79,000 in a high-yield savings account.

• Assets:

  • Home: Valued at $315,000 with an outstanding mortgage of $76,000 at a 4% interest rate, remaining for another 12-15 years.

Jill emphasizes that, based on these numbers, John and his wife are approximately meeting their monthly expenses with their combined income. However, she underscores the importance of verifying exact expenses to ensure there are no hidden oversights.

Identifying the Source of Anxiety

Timestamp: [07:49] - [10:31]

John's primary fear revolves around outliving his savings, especially with the mortgage still active. Jill reassures him by highlighting:

• Income vs. Expenses: Their current net income surpasses their estimated expenses.

• Investment Strategy Concerns: John reveals that due to market volatility, he shifted 80% of his TSP into the G Fund, limiting his investments in stocks and bonds to a mere 20%. This conservative approach, while safe, may hamper the growth needed to sustain long-term financial health.

Jill points out that halting market participation can lead to missing out on potential growth, which is crucial for funds intended to last 30 years. She advises a balanced investment approach to ensure both safety and growth.

Actionable Recommendations

Timestamp: [10:31] - [14:43]

Jill provides John with a two-pronged strategy to address his concerns:

1. Expense Tracking:

   • Objective: Gain a clear understanding of monthly expenditures.
   • Action Steps: Review credit card statements, bank records, and track all outgoing expenses for at least six months.
   • Purpose: Ensure that monthly spending aligns with current income and identify any discrepancies or unnecessary expenditures.

2. Investment Reallocation:

   • Current Issue: Over-concentration in the G Fund limits growth potential.
   • Recommended Allocation:
     • 50% in the G Fund: Provides stability.
     • Remaining 50% distributed among Stocks and International Funds: Balances growth potential with manageable risk.
   • Rationale: A diversified portfolio can better withstand market fluctuations while still allowing the retirement funds to grow adequately.

Jill emphasizes the importance of gradual adjustments to avoid sudden market impacts and advises maintaining a balanced investment strategy to support long-term financial needs.

Conclusion and Final Advice

Timestamp: [14:37] - [14:43]

Jill concludes by reinforcing that John's fears, while understandable, may stem from uncertainties rather than actual financial instability. By implementing structured expense tracking and revisiting his investment strategy, John can regain control and peace of mind regarding his retirement finances.

Notable Quotes

• Jill Schlesinger on Tracking Expenses:

  "This is not because I think you're going crazy. I think it would be worth your while to track your expenses, to give you peace of mind."
  [08:29]

• Jill Schlesinger on Investment Strategy:

  "We cannot afford to sit in the G fund because if you have 2 million, I would probably say, yeah, you could. What's a big deal? But I think that what might help you to know is that, like, mathematically, a balanced portfolio will grow enough to keep up with you."
  [10:05]

• Jill Schlesinger on Reassurance:

  "You are going to take control of this. You will absolutely be able to do that."
  [13:08]

Key Takeaways

1. Importance of Expense Awareness: Understanding and tracking monthly expenses is crucial to ensure that retirement income sufficiently covers living costs.

2. Balanced Investment Approach: Diversifying investments between stable funds and growth-oriented assets can safeguard against market downturns while promoting financial growth.

3. Open Communication: Discussing financial plans and concerns with a spouse can alleviate fears and lead to more informed decision-making.

4. Professional Guidance: Seeking expert advice can provide clarity and structured strategies to navigate retirement financial challenges effectively.

By addressing John's specific fears with tailored advice, Jill Schlesinger showcases how structured financial planning and strategic investment adjustments can alleviate retirement anxieties and promote long-term financial security.