Always keep in mind that one million times zero equals zero.
- Manlobbi
Personal Finance Topics / Retirement Investing
No. of Recommendations: 1
As I approach 60yo and with a history of recent retirement (2022), I’ve started to trim some equities in our taxable/ brokerage accounts (which are ~9 times the size of our combined Roth & Rollover IRAs) to convert to a Treasury only MM which will fund our family needs and lifestyle.
As I recall, you can draw down from a long term Roth IRA as early as age 59.5. I am leaning toward not taking SS until at least age 67 and delaying the mandated Rollover IRA distributions until forced to do so (?72yo).
Is this how others here would approach the next decade given our situation, assuming the brokerage account holdings (and LTCG tax hit) can comfortably cover the family expenses & just let the IRAs continue to compound tax free (or delayed) as long as possible? (We also have no pension, no non-investment income, no annuity, no deferred comp in our situation, & will likely receive a meaningful inheritance over the next 3-5 years). Thanks!
No. of Recommendations: 2
The bucket is just a way to think about money but isn't anything special.
I mostly retired at 60. Probably going to get social security at 63 (wife) and 70 (me). I don't want to start my wife's this year since I want to do some Roth conversions.
What I did is that I have one bucket at Fidelity and that is largely in treasuries with maybe 25% stocks/ETFs. That is our money until I turn 70. My other bucket is at Schwab and is about 50/50 and won't use/need until 70. I actually have a 3rd bucket with some money from a government job and that is either emergency money or to be used for medical care in old age.
For fixed income I usually just buy individual treasures. Other people use bond funds, CDs, etc.
Make sure you account for state/federal taxes. I've always hated dealing with taxes and the bizarre regulations. I've screwed up my federal returns the first 2 years of retirement although got better last year. This year with help from Fidelity and Schwab I'm estimating interest/dividends for the year and using a spreadsheet to make my estimated taxes. Over at bogleheads.org they have a tax spreadsheet someone created and it might be useful.
Withdrawals need to be planned to even out the tax issues. If you spend down taxable accounts and not IRAs (tax deferred ones) you might get hit harder with taxes due to RMDs, social security and any pensions you have. It might also cause IRMAA issues.
Also if you might inherited any money from parents, etc. you need to be aware of tax issues with those as well since IRAs have to be withdrawn within 10 years.
Best to sit down and use a spreadsheet or pencil and paper and look at various scenarios.
No. of Recommendations: 0
I mostly retired at 60. Probably going to get social security at 63 (wife) and 70 (me). I don't want to start my wife's this year since I want to do some Roth conversions.
If you plan to do the ACA, you may want to delay until you're both 65. Otherwise, you may not qualify for an premium assistance for your health insurance.
That is complicated by the fact that a provision to smooth out premium assistance will expire this year, unless renewed. In which case, there will be a sharp cliff for assistance. Earn $1 over, and you get no assistance.
If that happens, I likely will take the full distribution from the inherited IRA so I can steer clear of that cliff in future years (I have to distributed that IRA within 8 years now).
No. of Recommendations: 1
If you plan to do the ACA, you may want to delay until you're both 65. Otherwise, you may not qualify for an premium assistance for your health insurance.
That is complicated by the fact that a provision to smooth out premium assistance will expire this year, unless renewed. In which case, there will be a sharp cliff for assistance. Earn $1 over, and you get no assistance.
If that happens, I likely will take the full distribution from the inherited IRA so I can steer clear of that cliff in future years (I have to distributed that IRA within 8 years now).
Fortunately, no need for ACA.
No. of Recommendations: 2
Btw, our ACA shot up 30% from last year! We have a similar premium discount/assistance but wowza, 30% ($1600/ month now)?! Are others noticing such hikes as well?! Not as “Affordable” as many folks might think!
No. of Recommendations: 2
Btw, our ACA shot up 30% from last year! We have a similar premium discount/assistance but wowza, 30% ($1600/ month now)?! Are others noticing such hikes as well?! Not as “Affordable” as many folks might think!
20% in S. Ohio.
Likely will be greater increase for 2026.
No. of Recommendations: 4
Is this how others here would approach the next decade given our situation, assuming the brokerage account holdings (and LTCG tax hit) can comfortably cover the family expenses & just let the IRAs continue to compound tax free (or delayed) as long as possible? (We also have no pension, no non-investment income, no annuity, no deferred comp in our situation, & will likely receive a meaningful inheritance over the next 3-5 years).
Not retired yet, but everything else pretty similar. Enough in taxable to live off very comfortably and intend to retire soon and do just that. Sell Berkshire when needed, keep a cash cushion of a couple years expenses. Keep taxable income low to help with ACA. We plan, the gods laugh...
No. of Recommendations: 0
20% in S. Ohio.
Likely will be greater increase for 2026.
That's just the insurance companies, yes? They raise their premiums, it is reflected on the exchanges.
In my case, my insurance was no longer offered. I selected a comparable one at a comparable price, which then flaked-out on me (evidently, they didn't have their contracts negotiated, so even though they claimed to have many of our doctors contracted, they really didn't). Ended up requesting healthcare.gov allow us to change, which they did. Paying maybe 10% more, but it's a completely different company. So not comparing apples to apples.
