Jill on Money with Jill Schlesinger Is Our Plan Solid?
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Nov 11, 2025 A listener grapples with the decision on a $600,000 inheritance in CDs versus investing it for growth. Jill dives into the complexities of IRA conversions and stock sales, addressing retirement strategies for different ages. She advises on the current unattractiveness of I-bonds due to their inflexible nature. Additionally, she highlights the advantages of starting Roth IRAs for older savers, making the case for smart long-term financial planning.
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Stability Trumps Excess Cash In Retirement
- At retirement, stable predictable income reduces the need to keep large cash hoards.
- CDs feel safe but may be tax-inefficient compared with strategic bond or brokerage placements.
Use Inheritance To Smooth Taxes And Reduce Concentration
- Consider using the $600k inheritance to do Roth conversions or sell concentrated stock to reduce future tax drag.
- Keep some cash for stability but move excess CDs into taxable brokerage or tax-free munis after checking tax-equivalent returns.
Withdraw From IRAs Before Aggressive Conversions
- If you need income now, withdraw from IRAs rather than doing large Roth conversions that consume cash.
- Use IRA withdrawals to fund living expenses and avoid unnecessary tax-burning conversions.