I once represented a guy who'd spent his long career in car sales. He told me that "in the old days" some dealers would bug the salesman's office. So when the salesman left to go "run this by my manager," they could listen in on any conversation in the office. It was obviously helpful if they heard the wife tell the hubby, "This is the car I want---buy it!"
Julie, I'll share how I've done it for the last few cars we've bought---and this goes back a while as we don't buy them very often! First step is to research models online and narrow it down to 1 or 2 or 3 that look most promising. We then go to the closest dealer(s) and do a test drive. That locks in our choice. Then from home I send an email to the "internet manager" for every dealership for the chosen brand within about a 100 mi. drive. I tell them the model I want, the options packages, and the acceptable colors. I ask what they have in stock that fits these criteria and to email me their best "out-the-door" price. Two cautions: First, they really want your phone number. I never give it and say I'll do everything via email. That saves a bunch of time and provides a record in writing of what was said (and promised). Second, insist on an "out-the-door" price, meaning with all taxes, fees, etc. You will pretty quickly narrow it down to 2 or 3 dealers who are the most aggressive on pricing. I've usually ended with a bidding war of sorts between them, and it results in the best price. Once the deal is done, drive to the dealership and pay for and pick up your new car. Make sure it's exactly the one you bargained for, with the exact same options, etc. Enjoy your new car!
Thank you, Andrew, for this description of Jonathan's formative influences. It all rings so true. Jonathan was a model of "paying it forward." I had been a reader and a fan of his for many years, so when he first accepted an article of mine for HD, it was an honor and a thrill. As I continued to submit my amateurish offerings, I had the incredible luxury of being edited by one of the very best. That process taught me so much, and I will forever be in Jonathan's debt. Andrew
John, thanks for another great article. One question: Towards the end, in the paragraph about the safe harbor, after explaining it, you say: "But a large Q4 conversion can blow past that cushion fast, which is exactly when the withholding trick earns its keep."Can you please clarify? I thought the safe harbor was exactly that---if your estimates have totaled at least that amount, it doesn't matter if you have a large chunk of additional income---you still avoid the penalty. So how do you "blow past that cushion fast"?
Maybe I'm not following you, but MAGI (AGI + tax exempt interest, etc., added back in) is calculated before deductions are subtracted. ACA uses MAGI, not taxable income (which is what you later get after subtracting deductions). So your itemized deductions, no matter how large, don't reduce or eliminate your MAGI. Check your 1040, line 11a (AGI), and then farther down, line 15 (taxable income).
Comments
I once represented a guy who'd spent his long career in car sales. He told me that "in the old days" some dealers would bug the salesman's office. So when the salesman left to go "run this by my manager," they could listen in on any conversation in the office. It was obviously helpful if they heard the wife tell the hubby, "This is the car I want---buy it!"
Post: Buying a car in retirement
Link to comment from July 19, 2026
Thanks for the very thorough analysis.
Post: Buying a car in retirement
Link to comment from July 19, 2026
Julie, I'll share how I've done it for the last few cars we've bought---and this goes back a while as we don't buy them very often! First step is to research models online and narrow it down to 1 or 2 or 3 that look most promising. We then go to the closest dealer(s) and do a test drive. That locks in our choice. Then from home I send an email to the "internet manager" for every dealership for the chosen brand within about a 100 mi. drive. I tell them the model I want, the options packages, and the acceptable colors. I ask what they have in stock that fits these criteria and to email me their best "out-the-door" price. Two cautions: First, they really want your phone number. I never give it and say I'll do everything via email. That saves a bunch of time and provides a record in writing of what was said (and promised). Second, insist on an "out-the-door" price, meaning with all taxes, fees, etc. You will pretty quickly narrow it down to 2 or 3 dealers who are the most aggressive on pricing. I've usually ended with a bidding war of sorts between them, and it results in the best price. Once the deal is done, drive to the dealership and pay for and pick up your new car. Make sure it's exactly the one you bargained for, with the exact same options, etc. Enjoy your new car!
Post: Buying a car in retirement
Link to comment from July 14, 2026
Jack (and the original recommender), thanks for the link to Advisor Perspectives and the Bernstein/McQuarrie article. Another one I enjoyed by the same two gents is this one: The Many Utilities of Retirement - Articles - Advisor Perspectives
Post: About that inflation in retirement
Link to comment from July 12, 2026
Thank you, Andrew, for this description of Jonathan's formative influences. It all rings so true. Jonathan was a model of "paying it forward." I had been a reader and a fan of his for many years, so when he first accepted an article of mine for HD, it was an honor and a thrill. As I continued to submit my amateurish offerings, I had the incredible luxury of being edited by one of the very best. That process taught me so much, and I will forever be in Jonathan's debt. Andrew
Post: The Making of Jonathan Clements
Link to comment from July 11, 2026
John, I appreciate your response and clarification. Your articles have been very helpful and I hope you keep at it.
Post: Don’t Let a Roth Conversion Trigger a Penalty
Link to comment from July 9, 2026
Yep, I think you must be right on that. I've always used last year's number so haven't worried about it.
Post: Don’t Let a Roth Conversion Trigger a Penalty
Link to comment from July 9, 2026
John, thanks for another great article. One question: Towards the end, in the paragraph about the safe harbor, after explaining it, you say: "But a large Q4 conversion can blow past that cushion fast, which is exactly when the withholding trick earns its keep." Can you please clarify? I thought the safe harbor was exactly that---if your estimates have totaled at least that amount, it doesn't matter if you have a large chunk of additional income---you still avoid the penalty. So how do you "blow past that cushion fast"?
Post: Don’t Let a Roth Conversion Trigger a Penalty
Link to comment from July 9, 2026
Thanks, John, for your comment and clarification. Much appreciated.
Post: A $30,000 Mistake
Link to comment from July 4, 2026
Maybe I'm not following you, but MAGI (AGI + tax exempt interest, etc., added back in) is calculated before deductions are subtracted. ACA uses MAGI, not taxable income (which is what you later get after subtracting deductions). So your itemized deductions, no matter how large, don't reduce or eliminate your MAGI. Check your 1040, line 11a (AGI), and then farther down, line 15 (taxable income).
Post: A $30,000 Mistake
Link to comment from July 4, 2026