10 Years Until Retirement, Can I Do It?

Key Points

• A 55-year-old woman, 10 years post-divorce, is seeking a financial check-in as she plans to retire at 65, emphasizing that one does not need millions to build a secure future.
• Her current financial picture includes a $103,000 annual income, with retirement savings totaling approximately $396,000 across a workplace plan (4% match), a traditional IRA, and a Roth IRA. She also has cash reserves, investments, and a home with significant equity and a low mortgage rate.
• She has two children, with college costs for her daughter fully funded via a 529 plan and a pre-paid fund. Her 92-year-old mother is financially independent with long-term care insurance and a paid-off home.
• Monthly expenses are around $5,000. She consistently saves, lives frugally but fully (e.g., cooking meals, thrifting for extra income), and plans to continue contributions for the next decade.
• The hosts affirm she is on an excellent track for retirement, with future Social Security benefits, growing savings, and manageable expenses. They highlight her as an inspiring example of rebuilding finances later in life through discipline and smart planning.

Summary

The Jill on Money Show episode features a conversation with listener "K," a 55-year-old from Florida who is reassessing her financial readiness for retirement at age 65. A decade after a divorce that left her in a difficult position, she has diligently rebuilt her finances. K earns $103,000 annually and is contributing to her workplace retirement plan with a 4% employer match, which currently holds $61,000. Additionally, she has a traditional IRA rollover with $220,000 and a Roth IRA with $115,000, to which she contributes $550 monthly. Her total retirement savings approximate $396,000. Beyond retirement accounts, she maintains a $30,000 cash reserve in a high-yield savings account, a brokerage account, I bonds, and other small investments.

K owns a home purchased in 2020 for $240,000, now valued at $315,000, with a mortgage balance of $148,000 at a favorable 2.62% interest rate. She resists paying extra on the mortgage, opting instead to direct additional funds to retirement savings. Her two children are largely independent; her son is launched, and her daughter's college education is fully funded through a 529 plan and a pre-paid college fund. K's 92-year-old mother lives independently in another state, possesses long-term care insurance, a paid-off home, and some savings, minimizing potential financial burdens.

With monthly expenses around $5,000, K lives a balanced, frugal lifestyle—cooking at home, maintaining her yard, and generating side income through thrifting and reselling items online, which helps fund personal trips and discretionary spending. She plans to continue her savings regimen for the next ten years, anticipating Social Security benefits of about $3,000 per month at retirement.

The hosts, Jill and Mark, commend K's progress, noting that her disciplined saving, manageable spending, and valuable home equity position her well for retirement. They project her savings could exceed $800,000 in a decade, combined with Social Security, to comfortably cover her expenses. K's story is highlighted as an encouraging example for listeners who may have started saving later in life, demonstrating that financial security is achievable through consistent effort, prudent planning, and living within one's means without feeling deprived. The episode concludes with an invitation for other listeners to seek similar guidance through the show's website.