Jill on Money with Jill Schlesinger Can We Make Our Dream a Reality?
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Oct 23, 2025 Should you drain your retirement accounts to buy a dream vacation home? A couple debates the pros and cons, weighing two upcoming pensions against their current savings. They explore Social Security strategies and the risks of depleting retirement funds, particularly longevity and tax implications. Jill urges caution, suggesting safer alternatives like renting or selling their primary home. The takeaway? Financial stability looks promising but requires prudent decisions.
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Bridge Income With Strategic Withdrawals
- Take retirement withdrawals strategically after pensions start to stay in a lower tax bracket.
- Use retirement distributions to fill income gaps before claiming Social Security to maximize lifetime benefits.
Pensions Change Retirement Math
- Two predictable pensions greatly reduce longevity risk compared with relying solely on investments.
- But lack of a COLA on one pension means future purchasing power may erode over time.
Keep Low-Rate Primary Mortgage
- Keep a low-rate mortgage with a fixed low interest if you plan to stay in the primary home.
- Avoid selling a home with a favorable low-rate mortgage unless necessary for cash or lifestyle reasons.