pension

Pension Lump Sum or Annuity?

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We start the show this week with Joe from Chicago, who thankfully has a good BS detector. His alarm went off after his “advisor” suggested he take out a whole-life insurance policy for his nine year old son. This was a crazy one!

Next up was Janet from California who is in the process of weighing some options regarding her pension plan. Lump sum or annuity? What are some of the factors that should be considered?

When you’re interviewing people on a regular basis, sometimes there’s an instant connection.

It happened when I met Chris Guillebeau and it happened when I met Sam Conniff Allende, author of Be More Pirate: Or How to Take on the World and Win.

It was like reconnecting with a long-lost friend, which of course made for a very fun chat.

In his tiny, sleek, little book, Conniff Allende unveils the innovative strategies of Golden Age pirates, drawing parallels between the tactics and teachings of legends like Henry Morgan and Blackbeard with modern rebels, like Elon Musk, Malala, and Banksy.

Featuring takeaway sections and a guide to building your own pirate code 2.0, Be More Pirate will show you how to leave your mark on the 21st century.

1. Rebel — Draw strength by standing up to the status quo.
2. Rewrite — Bend, break, but most importantly, rewrite the rules.
3. Reorganize — Collaborate to achieve scale, rather than growth.
4. Redistribute — Fight for fairness, share power, and make an enemy of exploitation.
5. Retell — Weaponize your story, then tell the hell out of it.

Whatever your ambitions, ideas and challenges, Be More Pirate will help change the way you live, think, and work today, and tomorrow. So what are you waiting for? Join the rebellion.

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"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.

Finding an Advisor and the Zero Tax Bracket

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We’re kicking things off this weekend with David from Kentucky who is trying to evaluate the services he has been receiving from a major investment firm. Is he better off meeting with a fee only planner?

Next was Dianne from Connecticut who is trying to narrow down some options regarding her pension from the State of New York.

Let’s be honest...nobody likes paying Uncle Sam. I mean come on, who really wants to pay a big, fat tax bill?

That’s why you always hear me preaching about the power of Roth accounts. In a perfect world, we’d all be able to find a way into the 0% tax bracket.

While that’s unlikely, there are people out there trying to make it possible.

Today’s guest in hour two, David McKnight, has long warned that taxes in the future are likely to be dramatically higher than they are today. Given that, we need to dramatically change the way we approach retirement.

In his latest book, The Power of Zero: How to Get to the 0% Tax Bracket and Transform Your Retirement, McKnight aims to provides you with a road map of how to get to the 0% tax bracket, virtually eliminating the tax risk, which, if not addressed, will easily consume a solid portion of your retirement savings.

Unfortunately, if you’re like most Americans, you’ve saved the majority of your retirement assets in tax-deferred vehicles like 401(k)s and IRAs. If tax rates go up, how much of your hard-earned money will you really get to keep?

In The Power of Zero, David McKnight provides you with a step by step roadmap on how you can get to the 0% tax bracket, effectively eliminating tax rate risk from your retirement picture.

Why is the 0% tax bracket so powerful? Because if tax rates double, two times zero is still zero! The day of reckoning could be fast approaching. Are you ready to do what it takes to experience the power of zero?

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"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.

Considering a Job Offer

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When considering a job offer, there are many factors to consider, perhaps none more important than the retirement plan. That's what we're discussing on the latest bonus call with Tom from the Bay Area.

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My Book, IRA Contributions and Rescuing Retirement

Okay, it’s time for a BIG announcement. My very first book, The Dumb Things Smart People Do with Their Money, is now available for pre-order!!

Do you have a “friend” who is super smart, has a great career, holds a graduate degree, has even saved a chunk of money for retirement, but who keeps making the same dumb mistakes when it comes to money? Is this “friend” you?

The book reveals thirteen costly mistakes you’re probably making right now with your money without even knowing it. Drawing on heartfelt personal stories (yes, money experts screw up, too), I argue that it’s not lack of smarts that causes even the brightest, most accomplished people among us to behave like financial dumb-asses, but simple emotional blind spots.

Click here for all the info on how and where to place your order. Thank you for the support!!

Now on to the latest radio show where we kicked things off with Virginia from Buffalo who is trying to solve a good problem. When is it time to stop contributing to her IRAs? Is there such a thing as having too much saved?

At a time when Congress can’t seem to agree on much, lawmakers are acknowledging that the main retirement savings vehicle, the 401(k), needs some fixing. Before you get too excited, the changes being considered are more like touch ups, rather than a complete renovation.

Early conversations include: requiring plan sponsors to let participants know how much their total savings would translate into monthly income; a repeal of the age limit on IRA contributions; a more liberal approach to pooled 401(k) plans, which would help more small businesses offer retirement benefits to their employees; and the option to use a portion of a tax refund to fund retirement.

While none of these ideas represents a game-changer for retirement savers, it would be the first major enhancement since 2006. But if lawmakers wanted to seek a more radical approach, they would consult with Teresa Ghilarducci and Tony James, co-authors of Rescuing Retirement: A Plan to Guarantee Retirement Security for All Americans, who claim that "The U.S. experiment with 401(k)s and IRAs, launched in the early 1980s, has failed miserably to deliver on its promises."

Ghilarducci, a labor economist and leading expert in retirement security, and James, Executive Vice Chairman of the investment firm Blackstone Group, have a detailed, well-researched and more extreme recommendation for rescuing the U.S. retirement system. It starts with a concept called a “Guaranteed Retirement Account” (“GRA”), which would be offered to every worker, "from Uber drivers to CEOs."

The GRA would be portable, whether you work for a number of different companies or for yourself – and each individual would control his or her account. It would be funded by a minimum 3 percent of salary, half contributed by the worker and half by the employer.

Perhaps the most interesting part of the GRA is that it fixes some of the big problems that are prevalent in current plans, the biggest of which is that right now, saving for retirement is voluntary. The GRA would mandate retirement savings for everyone, including those who work part-time or are self-employed.

If it all sounds too good to be true, I encourage you to check out the book. I was a cynic, but after reading it and interviewing Ghilarducci and James, I’m a convert.

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"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.

Can Congress Fix the 401(k)?

Can Congress Fix the 401(k)?

At a time when Congress can’t seem to agree on much, lawmakers are acknowledging that the main retirement savings vehicle, the 401(k), needs some fixing. Before you get too excited, the changes being considered are more like touch ups, rather than a complete renovation.

Retirement Plan Options + A Large Inheritance

Happy Fourth of July weekend! Or was it last weekend? Or is it this weekend? Whatever the case, the show goes on.

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This weekend we kick things off with young Nicole from Seattle who just started a job at a local university and has a decision to make when it comes to her retirement plan. A traditional 401(k) or a defined benefit pension plan which only kicks in after she's been there for ten years? It's a tough call to make. 

Next up was Sharon from Michigan. She and her husband just inherited $400,000. What should they do with it? Pay off some debt? Invest it? 

Hour two this week features an interview with my pal and retirement guru, Mark Miller. No stranger to writing books, Mark was on to chat about his latest project, Jolt: Stories of Trauma and Transformation

Having interviewed dozens of people over the years who are hell-bent on changing their lives and careers to focus on work with more purpose and meaning, Mark began to notice a pattern: many leap-of-faith transformations begin with unforeseen traumatic life events.

Mark decided to think of these high-voltage bolts out of the blue as jolts — painful events that stop people in their tracks and then thrust them toward positive change.

The death of a child. Life-threatening illness. Plane crashes. Terror attacks. Natural disasters. Some of us never fully recover from unimaginable traumas like these, but some not only survive—they bounce back to thrive and grow.

Jolt tells the stories of people transformed by trauma, and the new paths that they pursue.

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"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.

Pension Lump Sum or Annuity?

Because there aren't that many defined benefit pension programs out there anymore, we don't get a ton of pension questions. But they do still exist, and every once in a while we'll get a question from somebody trying to decide between a lump sum or monthly payments. That's the case with Janet from California on the latest BONUS call.

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“Better Off” is sponsored by Betterment.

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Should I Take Pension Lump Sum?

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Pensions are certainly not as common as they once were, but they're still out there, and we still field a lot of questions on them. Usually the most common one is whether or not a lump sum payment is the best option. That's the case with Phil from Tennessee on the latest BONUS call.

“Better Off” is sponsored by Betterment.

Have a money question? Email us here or call 855-411-JILL.

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"Better Off" theme music is by Joel Goodman, www.joelgoodman.com.

Financial Literacy + Rent vs Buy and Pensions

We started the show this week with Wayne from Connecticut who had a very interesting buyout question regarding his pension. Should he stick with the monthly payments or take a lump sum of more than 300k? 

Next up was David from Maryland with the age-old question of renting versus buying. Just 26, David and his wife have been renting a cozy apartment that's 350 square feet. Is it time to upgrade? 

You will often hear me say that before you worry about the financial future of your kids, you need to make sure you’re taking care of yourself first. But that doesn’t take you off the hook for discussing money with your kids.

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Think of it as another one of the talks...so now in addition to the sex talk, the drug and alcohol talk, we can add the money talk. All of these conversations must occur at every stage of your child’s development, with age-appropriate messaging that the kids can absorb.

To help with your effort, this week we’re talking to financial literacy guru Beth Kobliner, author of Make Your Kid A Money Genius (Even If You're Not) and Get a Financial Life: Personal Finance in Your Twenties and Thirties

I know there are a lot of you out there listening with kids or thinking about starting a family, wondering how to have such conversations:

  • How much debt should we take on for college?
  • Should I give my teen a debit or credit card?
  • My kid wants to move back home...should I charge rent?

Those are just some examples and there’s plenty more in our discussion. 

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"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.

Listener Questions: Real Estate, Roth 401(k), Pension, Retirement Planning

Calls, calls, calls and emails, emails, emails! Today's show is all about your questions. We're so backed up that this may become a regular thing!

Hour one kicked off with Neil from Oregon who was wondering if now is a good time to buy a house. Neil currently rents but is worried if he waits much longer he may be priced out of the market. 

Next up was Brianne from the Bay Area who was looking for some pointers as she tries to help her parents get their financial lives in order. 

The final call of hour one comes from Samantha in North Carolina. Samantha is a grad student at Duke and wants to make sure she's on the right path for retirement when she retires in May. I love super young people who are already thinking about retirement! 

We kicked off hour two with Andrea from Minnesota who was wondering if it makes sense for her to start using the Roth 401(k) option at work. 

Next was Nathan from Albany, New York who is weighing the possibility of a new job. One huge factor is that his current job has a great pension plan and the potential new job does not offer a pension. 

The final call of the show comes from Ruth in Cleveland. Only 24 years old Ruth is finding herself with more cash in the savings account than she needs. What should she do? Is there a better alternative? 

Have a money question? Email us here or call 855-411-JILL.

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"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.