Shownotes Transcript
Welcome to the drill on money show its wednesday, november twenty eighth. And we are here trying to provide unconventional and entertaining insights on your money and your life. Mark is still holds that one sentence still holds.
I am your host death jill lesson ger, cbs news business analyst. I'm a certified financial planner. The guy running the show is mark to lisa behind the scenes.
Sometimes part of the scene, he is the execute to producer extraordinary markets responsible for making sure that all of our content is kept up to date. And he does that at jill on money dot com. That is where everything lives.
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Everything lives there. The blogs, the other shows, the videos, resources, everything, all a jail on money dot com. So as a book market cause marked as such a great job.
It's refresh ed all the time right? Today we are going to chat with j, who is a listener from Virginia. Hello, j how are you?
Hi jen. Mark, i'm doing well.
How are you great? What can I do for you?
So i've been saving for retirement. I'm just wondering if I can redo so much on spending for retirement and um enjoy life little more.
I'm always in favor of enjoying life a little bit more. So jay, how old are you?
Forty seven?
Okay, are you married? Single divorce.
single divorce with one child, six year old.
six years old. Okay um and you're working full time.
Yes, I am okay.
How much you earn .
hundred and fifty?
What kind of retirement savings planned are you're using on that one hundred fifty thousand?
Ah so I have bought the traditional and rot. Um currently i'm putting I think fifteen thousand into the rock and then eight thousand into the traditional.
Great how much is in each of those like what is the baLance of the traditional and what is the baLance of the rough?
Uh traditional is currently uh one hundred and eighty three and the rock is uh seventy six, eight hundred.
Okay, great. And will you be entitled to a pension? No, no pension. okay. Do you have other investments as well?
Yes, I do tell .
me more so .
I have a role over from a prior job that's currently a three hundred and three thousand .
and that's all pretax, right? Yeah, okay.
got IT. And then I have a book great that's currently at one hundred and twenty nine.
Okay.
what's ih? That's forty eight thousand traditional air. That thousand nine fifty three.
wait. Yeah, two thousand dollars. okay. Yeah okay. Got IT.
And then I have the H. S. C. That's currently a thirty six thousand, two hundred.
That's good. And have you started to as IT for you in terms of savings to have any money in the bank?
And thirty thousand.
Have you done any saving for our six year old scholar? Is you're going to be is there five twenty nine account or any custodial account?
I have a five twenty nine baLancers currently twenty eight thousand. Um i'm planning to just for half of IT. Um his dad is responsible for the other half.
Okay, that's good. Are you putting money in there on an ongoing basis? Or do you just put a little bit like every once a year? How often do you the five twenty nine I do IT monthly.
So when I started, I think I put in um nine thousand in bulk and then I started doing uh three hundred, but currently i'm doing four hundred a month into the five tonight.
okay. So how much do you think this is so horribly of the six year old? But um how much do you think you need to to to spend every month like what you're doing some saving.
So know obviously your maxing out your retirement account, you are putting money in the five twenty nine, there's broken age money. There's H R A money. What's go to the other side? You'd doing a lot of saving. What do you think you spend on a monthly basis?
I think my max would be five thousand, but I think I spend less than that .
IT sounds like IT because you save a lot of money. But let's use the five number just for the heck of IT and tell me, um do you own a home?
Yes, I do.
What's that worth?
So I I think it's probably worth between six hundred and six fifty. Uh, houseless do sold at six fifty, uh, about a month ago. 嗯， 哼。
And is there a mortgage outstanding?
Yeah, I owe one hundred and thirty two currently.
So the house value went up quite a bit, obviously. yeah. And what's the interest rate on the mortgage?
Two point five.
Oh my gosh. wow. And is that fifteen year or thirty year?
I did fifteen years.
Did you do this like maybe a few years back, like covered time to and a quarter percent? yes. Okay, all right.
And so you're not going to be entitled to any pension. Um do you receive any money? I know you said you're responsible for half of education with your acts.
You receive any child support for the good for you do. Yes, what's that? So that is when you said one hundred fifty thousand, did that include child's support?
Or no IT doesn't include.
All right. So how much as the child's support.
it's seven thirty six a month?
Seven fifty six very, very particular. I'm going to just say seven, fifty a month. What happens to that money when IT comes in? Just rode into your bank account .
or do that using that goes into my bank account. I put I invest four hundred out of that into another broken age for him in addition to the four hundred I put in the five twenty nine.
How much is that is when you said the broker account? Was that the broker you're talking about.
the one hundred twenty nine thousand wanted? That's mine. So his currently has three thousand five hundred ready there.
Well, why do that instead of the five twenty nine in case he doesn't go to college?
Yeah, thinking maybe what I have would be enough for half so this would be like extra money for him.
Mark, do little cock for me. Are we talking about public university or private university for the six year old?
I'm thinking public, but I also so that he gets .
like it's ship to blah. I know what's says not okay, black blah. So a public universe so know what's a uva. It'll be about sixty thousand.
What he has right now, we'll be about sixty thousand and twelve years.
but that's not enough even to pay for half because right now, you know even if you're in state, it's like twenty twenty five. So if you needs a little more than that.
don't you think um yeah I mean, I think um if you can build IT up to like say 4 yeah then maybe you could pump the brakes on that yeah .
that's what i'm thinking。 So I tell you what I would do is I would first of the seven, fifty a month that you are getting in child's support. I do would just literally turn around and put that in the five twenty nine plan, all of IT. And I would do that for, you know, a few more years, like a mark said, try to get to four ash, you know, and then you can stop and then you can redirect. But that I think that is a nice easy thing, like r seven fifty straight into the child's support costs, straight into the five twenty nine plan. Now your next question was, hey, I have now put away a bunch of money into retirement, right? So we have i'm just looking at this, the three or three so you have three hundred five thousand that hasn't been tax plus the one eighty three and then we have the routh of seventy six and forty eight um well, when do you think you want to retire, jay?
I was thinking, fifty.
fifty.
what you going to do? What did you say fifty or sixty? sixty?
Oh, sixty. I thought he said fifty. So sixty of retirement. So the question is, can you tap the breaks on your retirement?
Well, you say, you say in the in the email, your subject, can I reduce enjoy life a little bit more like are you feeling 才 you know uncomfortable for you？
No, I just it's like i'm putting so much away and I don't live enough to just for life like travel.
Here's what I, here's what I do. Easy solution, you're maxim out your four N K at work. You do most of IT roth some of the pretext, and you're doing the roth ira.
I would forget the rah I R. ray. Take that seven thousand dollars a year. Use IT on yourself. Enjoy yourself. Take your child on a vacation to substitute for not to in a rough I R A, make all of your all all of your four and k contributions. Make them all rough.
right? I love that idea. So you're doing fifteen rough a traditional s are any reason why you have to your company match and you have to do some amount traditional?
So would much either way, they match four percent. I just was trying to reduce my, uh, taxi ble incomes so I could do the worth area.
Yes, so you don't have to guess what? Forget doing the raw, I am forget IT o because you have a rough through work so don't do the roth I array. Do the maximum amount will go into your you know twenty three thousand dollars.
I guess I don't even know what that is for next year. It's probably twenty and five, so twenty three five um next year and you can stop doing your rough contribution totally and you could like relax a little bit. Here's what I think. I think that you're saving, saving, saving because that is how you like. That is your that's who you are because when you said five thousand dollars a month, IT doesn't sound like you're giving yourself permission to spend the money.
So I think that what we could say is if you just put money into your rough for one k through work, right, just use the roof, let them do their match, keep doing that for thirteen more years, put the child's support money in the five twenty nine until lists to forty grand, and live your life, and if there's extra money, pop IT into the broker account, don't even think twice about IT. You're fine. But you know what I can't solve for you, I can't solve that.
You will not give yourself permission to spend money. You have to do that. So I love the idea that mark said that you now have a seven thousand dollar budget to have something fun.
Like, what do you want to do that fun? Go on a vacation. Go on a long weekend.
Do something crazy. Seven grand. Just blow IT. Have fun. Can you do that? I think so.
We'll see.
I went to the report back. Do you have your estate documents done?
Yes, I do.
And you have life insurance.
yes. How much have I have A A million um that I bought term and then I have one hundred and fifty from work.
Okay, perfect.
By the way. By the way, jay, for for the next thirteen or so years, if you just keep maxing out that for one k at work, you know you're going to have at least two million dollars when you retire and the .
house is going to be paid on. Don't forget.
considering what you spend on a monthly basis, you're going to have more than enough exactly include in social security.
Yeah so you're in good shape, but you have to give yourself permission. jay. We can give you we can tell you that financially, the gardeners are up.
You have done a great job, but give yourself permission to enjoy yourself a little bit. Will you come on? You work hard. Your entitled. I think you .
should take that kid .
on a disney crews oh my god, that sounds horrible. Like a vacation.
You just saw one of those commercials.
And I like, god, I don't think you would ever go on a cruise. It's just like, no way. There's not even, not even close.
I'm R. A. J. Thank you so much for getting in touch with us. If you are in your forties and you've plug away and your on track, isn't there some case to be made that you should have some fun? We would like to make that case for you. So if you feel like that to you, and you need the permission structure that the girl and money show can provide, we'd love to do that for you. Just good to our website, gilan money.
点 com click to contact us but and write is a note and um maybe even check the box to come on here you could even put in in the subject line， please grant permission for fun right? Come on this life and the saving is like sometimes again, you know you doing a great job, we have a wonderful community. Even if you're not on track, maybe you are also entitled to have some fun.
IT is not all you know. We don't have to be. You don't have to deprive yourself like there are times where you have to delay your gratification and there are also times where you kicked some s you have put the money away. You're a lot of some fun, so we're happy to grant you permission. It's like the opposite of every other personal finance podcasts where I spend your money.
Have some fun for bitner sakes if you've got a question again, gill on money to com, contact us, sign for the free weekly news letter, check out our service gill on money library of access to quarterly live webinars bonus content the back cabot, all all four thirty five dollars, all right, lift someone up. Change your work, change your wealth, change your life. Thanks for listening. I'll talk you tomorrow.
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