Prepping for Retirement in a Year

With retirement just over a year away, have I covered all the necessary bases? Have a money question? Email us ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ https://www.jillonmoney.com/contact Subscribe to ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Jill on Money Newsletter⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ https://www.jillonmoney.com/newsletter/substack YouTube: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@jillonmoney⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ https://www.youtube.com/c/JillSchlesinger Instagram: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@jillonmoney⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ https://www.instagram.com/jillonmoney "Jill on Money" theme music is by Joel Goodman, ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.joelgoodman.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ http://www.joelgoodman.com/.

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• 3:37Speaker 00

  Explore the full Range Rover Sport lineup at landroverusa.com. Welcome to the Jill on Money Show. It's Friday, November 13th. This is the program that provides unconventional and hopefully entertaining insights on your money and your life, and we are here answering your financial questions. So if you have one, just go to jillonthemoney.com, click the Contact Us button, write us a note. And if you'd like to join us on the air live, all you need to do is check that box and Mark will do everything else. Hey, while you're on the website, don't forget to check out our subscription service. It's called Jill on Money Live. We have locked down, and excitedly so, our guest for year end financial planning, and

• 4:19Speaker 00

  it is a return superstar guest, Jana Davis from Abacus Wealth. We are going to conduct that webinar on Tuesday, December 1st at 7:00 PM Eastern Time, and you will be able to participate live. Listen, the world is changing so quickly. Maybe the things that we were talking about last year no longer apply this year. Maybe you've changed. If you want to join us, you've got to be a subscriber. Jill on Money Live will cost you 45 bucks for the next 12 months. You can purchase single webinars for 15 bucks after we've done them, but to do it live, it's so much more fun. And for 45 bucks, you get the back catalog and all this fun stuff, so you should check that out. And by the way, our most recent webinar with Medicare expert Marsha Mantel, unbelievable, great feedback from that.

• 5:02Speaker 00

  So thanks for everyone who joined us for that one as well. Okay, let's get on with it. We are talking to Linda from California.

• 5:09Speaker 01

  I am planning on retiring in little over a year. And as a good student, I've been trying to learn everything I can and prepare so I can actually do this. And I get a little bit of information and I start saying, okay, I'm going to do that. And then I start, wait a minute, is that really what I should be doing?

• 5:31Speaker 00

  Wait, but wait.

• 5:34Speaker 01

  I gotta call Jill and Mark.

• 5:35Speaker 00

  Oh, that's good. I'm glad you did. Linda, how old are you?

• 5:38Speaker 01

  I am 56.

• 5:40Speaker 00

  56, you're very young to think about retirement. What do you, what do you do? Do you have a job with a big fat pension?

• 5:46Speaker 01

  I do.

• 5:47Speaker 00

  Tell me about it. Tell me about it, baby.

• 5:51Speaker 01

  Yeah, I'm in education, so I will, next year I will have 30 years in, in education.

• 5:58Speaker 00

  Wow. And what will your pension be?

• 6:01Speaker 01

  Just over $10,000 a month pre-tax.

• 6:06Speaker 00

  Wow. Is there an incentive to wait?

• 6:09Speaker 01

  Well, you know, it's, yes. The pension is based on years of service, your income, and an age factor.

• 6:18Speaker 00

  So what's like the magic, like where you're, like, if you were to wait till, I don't know, what's the next hurdle, like 62 or 60, what, where does it start to really look different?

• 6:29Speaker 01

  Well, it goes up every year, between now and 62, if I, if I waited. And so that is really one of my questions that I'm struggling with is, so if I, if I wait one more year, I, just on the age factor, my pension would go up just over $8,000 for the year.

• 6:54Speaker 00

  Oh, my God. Oh, wait a minute, wait a minute. So if you're telling me you, you retire next year, right? But you wait and pull the trigger, you're telling me that it's another 666, it's like instead of 10,000 and change, it's like $10,700 a month?

• 7:12Speaker 01

  Correct.

• 7:13Speaker 00

  Do you happen to have the number at age 62, just out of curiosity?

• 7:18Speaker 01

  Um, you know, I, I've looked at that and I'm like, I just can't do it that much longer.

• 7:24Speaker 00

  Okay, okay, okay.

• 7:25Speaker 01

  It's out of my head.

• 7:26Speaker 00

  Okay, okay, okay. I think it's worth getting the number, just so we have a frame of reference, but we're not going to do it on base on that. Let's just talk about what you have now, okay? And are you married? Are you single? What's your story?

• 7:38Speaker 01

  I am single.

• 7:39Speaker 00

  Do you have kids?

• 7:40Speaker 01

  I, I have one daughter, yes.

• 7:43Speaker 00

  How old?

• 7:44Speaker 01

  23.

• 7:45Speaker 00

  Launched, needs help? What?

• 7:48Speaker 01

  Um, she is starting grad school in a couple of months.

• 7:53Speaker 00

  Sorry, I'm just kidding. That was, already it sounded expensive to you, but I hope not. Is it being paid for by someone else?

• 8:03Speaker 01

  I have saved $36,000 to help her and, and trying to, on track to save another $36,000 this year, and then she's going to take out loans for the rest.

• 8:16Speaker 00

  Wait a second. How much money do you earn, Linda?

• 8:18Speaker 01

  I earn about $180,000 a year.

• 8:21Speaker 00

  And how much money is in your retirement plans, like whether they're Roth or pre-tax? What have you saved on that 180?

• 8:31Speaker 01

  Um, so I have a 403B, I should have about $250,000 in that. I do have liquid, about $332,000, which is separate from the $36,000 I have saved for her.

• 8:50Speaker 00

  Okay.

• 8:51Speaker 01

  College. I do also have some rental properties.

• 8:56Speaker 00

  Oh, hold it. Mark, rental properties, did you get that? Let's, let me do, let me go back before I do our rental properties. Your primary residence, how much would you say it's worth? Just guess.

• 9:08Speaker 01

  Uh, about a million.

• 9:10Speaker 00

  Is there a mortgage outstanding on it?

• 9:12Speaker 01

  I, I owe 218,000.

• 9:14Speaker 00

  Do you happen to know the interest rate?

• 9:17Speaker 01

  3.125.

• 9:18Speaker 00

  Okay, great. Now, let's do the rental property. Tees, plural. Rental property number one, how much is it worth?

• 9:26Speaker 01

  Well, let me explain. I have one rental property that's mine.

• 9:30Speaker 00

  Yeah.

• 9:31Speaker 01

  That I own solely, and that's worth about 900,000.

• 9:35Speaker 00

  Holy cow. What's the mortgage on that?

• 9:39Speaker 01

  Zero.

• 9:40Speaker 00

  Oh, brother. Okay, how much does that, after management or expenses of this, what is that cash flow to you?

• 9:48Speaker 01

  Uh, about $2,000 a month.

• 9:49Speaker 00

  That's not that much, considering it's a $900,000 property.

• 9:53Speaker 01

  Yeah, yeah, I'm not the, you know, I'm a sucker of a landlord.

• 9:58Speaker 00

  I've never had a landlord like you. God bless you. And then do you co-own rental property with someone else?

• 10:05Speaker 01

  Yeah, there's a few rental properties that my father owned and me and my siblings are now part owners in those since he passed, which generates about another $1,600 a month for me.

• 10:19Speaker 00

  Would you sell that $900,000 property or not?

• 10:22Speaker 01

  If I needed to.

• 10:24Speaker 00

  You don't have to, though. And you want to stay in your primary? Or do you want to, or could you move into your $900,000 rental?

• 10:31Speaker 01

  I would want to stay in my primary.

• 10:34Speaker 00

  Okay, fine. But we don't have to worry about liquidating this. You've got plenty of money, I know. You should raise the rent a little bit. Okay, so now we've got all this money. It's crazy.

• 10:45Speaker 01

  I should say, I do have, I have a brokerage account with about $60,000 in it.

• 10:50Speaker 00

  That's in addition to when you said you had liquid. That liquid, the 330, is that cash?

• 10:56Speaker 01

  It's in treasury ladders, CD ladders, and some just in a high-yield savings account.

• 11:03Speaker 00

  Oh, great. That's a nice chunk of moolah.

• 11:06Speaker 02

  What about healthcare? Will you be covered?

• 11:07Speaker 01

  I will.

• 11:08Speaker 00

  What do you suspect is your real spend per year?

• 11:12Speaker 01

  I'm estimating $124,000 a year.

• 11:16Speaker 00

  Well, you're done. You're all set. You have 10 grand a month. Worst-case scenario, if we can't convince you to work a little bit more, 10 grand a month from the pension. You got 2 grand a month from your rental, $1,600 a month from the other rentals. So, you know, it seems to me that you got $13,000, 13.6 a month pre-tax. That should kind of get you there, no?

• 11:44Speaker 01

  I think so. But so here's my question that I'm thinking about, right? Because I'm listening to you guys, I've learned about IRMA and trying to manage my taxes. So prior to learning that, I was thinking, you know, the $250,000 I have in my 403B is like bonus money. I don't need it. And then, you know, starting to recognize required minimum distributions, and when that hits, like-

• 12:08Speaker 00

  Yeah, but you're not, that's not until you're 75.

• 12:10Speaker 01

  I know. But then I thought, well, wait a minute. Would it be smarter, first I was thinking, let me, I'll start converting that to Roth 403B when I retire, retirement account, whatever you call it. And then I thought, well, would it be smarter to delay my pension for a year, in my first year of retirement, pull from my 403B, and then get that extra 600 and some dollars a month by waiting a year?

• 12:40Speaker 00

  And maybe do it two years. I'm sort of, I mean, there's a possibility here that you could, I mean, I don't know what these numbers are, but you could empty out the 403B, pay the tax that's due each of the next two years, use that money to live on, be done. You don't even have minimum, you're done with your required minimum distributions. Fantastic. By the way, don't be putting any, like, you don't even need to worry about putting money into the 403B at this point for the next year.

• 13:08Speaker 01

  So I have been paying an extra $1,000 a month on my mortgage and stuff.

• 13:12Speaker 00

  Stop doing that immediately.

• 13:14Speaker 01

  I will tell you, last month I didn't. From listening to you, it was my first time. I'm like, okay, I'm not going to pay extra this month.

• 13:19Speaker 00

  Listen, I want to tell you something. First of all, you're awash in assets. And right now, just keep your money on hand. I don't even know, how much longer do you have on the three and an eighth mortgage right now?

• 13:32Speaker 01

  I have nine years left.

• 13:34Speaker 00

  Okay, calm down, please. You know what? I want to tell you something. I'm in the exact same place as you. I have like a little bit of, like, I have a couple hundred thousand dollars left on a mortgage, and I know that you're like, I just want to pay it off. Just resist that. Resist that urge. I really think that your idea, you see, you actually are so smart, because essentially, by the time you get to Medicare, because you're going to have your health insurance, you're very lucky, right? Then, once you switch to Medicare, we want you to make sure that there's, like, there's not as much income. So, fine. And if we need to make income disappear, by the way, you know, that rental income counts. You know, it does count towards IRMA. I'm not saying it's like the worst thing in the world, but I bet you're in a pretty high tax bracket right now, because you have your

• 14:19Speaker 00

  180, you have the money from your rental, and then you have the other rentals. So you must be in a, in 32%?

• 14:28Speaker 01

  Correct.

• 14:29Speaker 00

  Yeah. And you're California. So, I mean, I think that it would be great to be, pop yourself down into the 24%. Is there some reason to keep the rental for your daughter?

• 14:42Speaker 01

  You know, it's, my father bought properties, fixed them up, and then rented them out. So it's the mindset that I was raised with. When you buy something, when you buy property, you hold on to it. So, yeah, that's the only reason.

• 14:56Speaker 00

  The longer you can delay, the better you're going to be for this pension. But you can, you can float this. And then, anything you want, if you want to help your daughter pay for this, you can afford to do that. You really can. I love this game plan. Do you have your estate documents done?

• 15:11Speaker 01

  I do, but I need to update them. I did them about 10 years ago.

• 15:14Speaker 00

  Yeah, when your daughter was like 13 years old, and you're like, okay, who's going to take care of her? So now, if she got all of your money in one fell swoop, would that be okay? Could she manage it?

• 15:24Speaker 01

  Yeah, I think she could. She's a pretty amazing young lady.

• 15:28Speaker 00

  Okay. All right. Well, make sure you educate her about this, because she is the heiress, and that, you know, she knows what she's doing. If you've got a financial question, don't wait till the very end of the year to start your financial planning for year-end. It's now. Now is the time, gang. And whatever's on your mind today, isn't it better to really address that head-on by getting in touch with us, rather than waiting till after the whole holiday season? Let's do it right now. So go to jillonthemoney.com and click the Contact Us button. Okay, it is Friday. We want to thank Joel Goodman, who composes our music, Mark Talarzio, our executive producer and king of all things web, the wonderful people at Odyssey. And by the way, you can subscribe to us on the Odyssey app or wherever you find your podcasts. If you wouldn't mind, try to do something nice for someone else today. Change your work, change your wealth,

• 16:11Speaker 00

  change your life. Thank you for listening. We'll talk to you on Monday. This episode is supported by What Should I Do With My Money, an original podcast from Morgan Stanley. Hear real people sit down with their financial advisors to work through the questions too big to tackle alone, like diversifying concentrated stock, investing in private markets, adding crypto to your portfolio. The strategies are complex, the emotions are real. Search for What Should I Do With My Money to listen in.

• 16:43Speaker 03

  The world is changing faster than most career advice can keep up with. It's true. Industries are shifting, jobs are disappearing, and new ones are just showing up that didn't exist five years ago, five minutes ago, whatever. I am Susie Welch, and I'm becoming you. We talk about how to find the work that genuinely calls you and actually pays you what you want to be paid, even in today's marketplace. When you find that intersection, the possibilities are bigger than you think. Listen to Becoming You wherever you get your podcasts.