Jill on Money with Jill Schlesinger Debt Pay Off Questions
14 snips
Oct 28, 2025 Retired at 66, Scott from Delaware seeks advice on tackling his debts while contemplating Social Security strategies. He reveals his financial situation, including a mix of savings accounts and lingering loans. Jill highlights the importance of prioritizing higher-interest debts, particularly his HELOC. They discuss balancing income with expenses and Scott's future cash flow. Jill emphasizes strategic withdrawals and managing spending in retirement phases, crafting a concrete plan for immediate action to enhance his financial stability.
AI Snips
Chapters
Transcript
Episode notes
Use Tax-Aware 401(k) Withdrawals
- Take modest 401(k) withdrawals to stay in the 22% tax bracket and fund near-term expenses.
- Use withdrawals to pay high-rate debt and keep cash reserves rather than overspending the proceeds.
Retiree With Part-Time Working Spouse
- Scott retired four years ago at 66 and his wife still works part-time to support their lifestyle.
- They hold about $1.85M pre-tax, $213k Roth, $68k HSA, and limited cash.
Clear High-Rate Balances First
- Prioritize paying off the HELOC (7.75%) first and consider eliminating the higher-rate car loan next.
- Use targeted withdrawals and set aside tax funds before paying down debt.