Dick, I don’t receive a pension, but if I did, I would have elected my survivor to get 100% of my pension payments. I know you didn’t delay SS, but I am until age 70. My wife whose SS benefit at FRA is about 30% of mine, will get my much higher 70 benefit should she outlive me. This was always part of our plan, and the generous delay credit SS provides. At age 73, SS and RMDs from our IRAs should provide ample income to live on, along with dividends from our taxable portfolio.
I’ve been at a 60/40 allocation since retiring 8 years ago. I shifted to a 50/50 allocation earlier this year due in part to: 1) large portfolio gains over the previous 2 years, and 2) reducing risk in the portfolio until starting SS at age 70 in 4 years. Though “we won the game” before retiring, I feel the current AA better reduces risk for us with fixed income investments in safe treasuries in that would easily cover our expense needs for 15 years. As part of reducing risk, I also shrunk an allocation to high yield corporate bonds within my fixed income allocation. Was holding about 20% if FI, but reduced that to 5%. I know holding HY bonds is against conventional wisdom, but our holdings in this space have performed as expected for us. I’ve always held 20% of equities in international, and am comfortable holding at that %. That holding has helped blunt some of the recent losses in US stocks recently, but no one knows if that will continue.
I dealt with this issue for a family member who passed away a few years ago. I used a tax preparer/CPA to prepare the tax return for the surviving spouse in order to determine the best way to handle those expenses. The CPA did a great job compiling the return and maximizing the deductions available- beyond what I may have figured out. I didn’t choose DIY, but having done my own returns for years, a had a good idea what documentation the CPA would be looking for and was able to get him all info for the return in one meeting, which kept his fee down (under $500). Sometimes the selective use of professionals is warranted, if not only to make the best use of one’s time.
I’ve read articles like this for a few years. I seem to recall last year check washing was prevalent, so I really only write a a few checks that are usually given directly to the service provider, or I’m dropping at the PO- though that proved unreliable 2 weeks ago for a package. Tracking showed it never left the PO. Have pending insurance claim for that one. Based on reading this, I’ll likely just stop writing checks.
I'll answer a few of these...
3) Yes. 8 years retired, DW and I are late 60's. SORR somewhat past us, as we've rebalanced our portfolio into fixed income (and largely avoided the bond meltdown a few years ago by using former employers stable value fund, which did what it needed to do), and earlier this year shifted to a 50/50 asset mix from 60/40. This wasn't really a timing thing, but I found our TDA accounts could go solely into ST bonds (laddered over 3 years), and TIPs (laddered over 5 years), with a small holding of fixed income in Roths to round out the AA. Basically have adopted Bernstein's mantra "if you've won the game, why keep playing"... Once SS starts at age 70, the spend down from the TDA could be reduced if we wish, or use it for travel and/or gifting. 5) I feel I'm purposely meandering thru retirement (8 years today!). Having control over my days has allowed me to help my aging parents over the past 6 years in ways I would not have been able to do if working. DW and I have moved to our retirement home full time 7 years ago, and found renewed purpose in rebuilding social networks and exploring new activities that make us happy and purpose. 8) We are happy with the estate we are leaving for our children and charities. We've largely simplified our portfolios, but still have some additional simplifying to do as me move into our 70's, and get into RMD years. I'm guessing even with additional simplification, DW and our children will likely employ an advisor to help with portfolio distributions (DW), and managing investments (children).
I used Turbo Tax- free from my relationship with Fidelity. Only cost was to efile my state return. Was glad I did efile, instead of mailing a paper return- I happened to catch that i owed additional state taxes due to an error I had made in reporting my quarterly estimated taxes during 2024. It wasn’t a large sum that I underpaid, but catching it yesterday avoided penalties and interest. Anyways, have always done my own taxes. I find that it help me understand the tax code better, and make good future tax planning decisions.
I’m withdrawing about 7.5% from my TIRA until I reach age 70 when I will start SS. Overall, my withdrawals are sub 4% of our entire portfolio, which is my general benchmark for withdrawals. I’ve set up an automatic withdrawal from the TIRA to create a monthly “paycheck”. Leaning on the TIRA for withdrawals now to smooth out our expected tax rate when RMDs kick in at age 73.
Comments
Wifey is very astute!
Post: The Wrong-Sided Man
Link to comment from May 9, 2025
Dick, I don’t receive a pension, but if I did, I would have elected my survivor to get 100% of my pension payments. I know you didn’t delay SS, but I am until age 70. My wife whose SS benefit at FRA is about 30% of mine, will get my much higher 70 benefit should she outlive me. This was always part of our plan, and the generous delay credit SS provides. At age 73, SS and RMDs from our IRAs should provide ample income to live on, along with dividends from our taxable portfolio.
Post: Have you planned survivor income for your spouse or someone dependent on you? RDQ
Link to comment from May 6, 2025
I’ve been at a 60/40 allocation since retiring 8 years ago. I shifted to a 50/50 allocation earlier this year due in part to: 1) large portfolio gains over the previous 2 years, and 2) reducing risk in the portfolio until starting SS at age 70 in 4 years. Though “we won the game” before retiring, I feel the current AA better reduces risk for us with fixed income investments in safe treasuries in that would easily cover our expense needs for 15 years. As part of reducing risk, I also shrunk an allocation to high yield corporate bonds within my fixed income allocation. Was holding about 20% if FI, but reduced that to 5%. I know holding HY bonds is against conventional wisdom, but our holdings in this space have performed as expected for us. I’ve always held 20% of equities in international, and am comfortable holding at that %. That holding has helped blunt some of the recent losses in US stocks recently, but no one knows if that will continue.
Post: Ch-Ch-Changes?
Link to comment from May 6, 2025
I dealt with this issue for a family member who passed away a few years ago. I used a tax preparer/CPA to prepare the tax return for the surviving spouse in order to determine the best way to handle those expenses. The CPA did a great job compiling the return and maximizing the deductions available- beyond what I may have figured out. I didn’t choose DIY, but having done my own returns for years, a had a good idea what documentation the CPA would be looking for and was able to get him all info for the return in one meeting, which kept his fee down (under $500). Sometimes the selective use of professionals is warranted, if not only to make the best use of one’s time.
Post: Deducting Medical Expenses of a Decedent
Link to comment from April 28, 2025
I’ve read articles like this for a few years. I seem to recall last year check washing was prevalent, so I really only write a a few checks that are usually given directly to the service provider, or I’m dropping at the PO- though that proved unreliable 2 weeks ago for a package. Tracking showed it never left the PO. Have pending insurance claim for that one. Based on reading this, I’ll likely just stop writing checks.
Post: It’s 2025. Do you send checks by mail?
Link to comment from April 27, 2025
I'll answer a few of these... 3) Yes. 8 years retired, DW and I are late 60's. SORR somewhat past us, as we've rebalanced our portfolio into fixed income (and largely avoided the bond meltdown a few years ago by using former employers stable value fund, which did what it needed to do), and earlier this year shifted to a 50/50 asset mix from 60/40. This wasn't really a timing thing, but I found our TDA accounts could go solely into ST bonds (laddered over 3 years), and TIPs (laddered over 5 years), with a small holding of fixed income in Roths to round out the AA. Basically have adopted Bernstein's mantra "if you've won the game, why keep playing"... Once SS starts at age 70, the spend down from the TDA could be reduced if we wish, or use it for travel and/or gifting. 5) I feel I'm purposely meandering thru retirement (8 years today!). Having control over my days has allowed me to help my aging parents over the past 6 years in ways I would not have been able to do if working. DW and I have moved to our retirement home full time 7 years ago, and found renewed purpose in rebuilding social networks and exploring new activities that make us happy and purpose. 8) We are happy with the estate we are leaving for our children and charities. We've largely simplified our portfolios, but still have some additional simplifying to do as me move into our 70's, and get into RMD years. I'm guessing even with additional simplification, DW and our children will likely employ an advisor to help with portfolio distributions (DW), and managing investments (children).
Post: Ask Me a Tough One by Jonathan Clements
Link to comment from April 18, 2025
I’ve downloaded from them for 7 years. Downloads are flawless.
Post: Now taxes are filed, I have a question: How did you prepare your taxes?
Link to comment from April 16, 2025
I used Turbo Tax- free from my relationship with Fidelity. Only cost was to efile my state return. Was glad I did efile, instead of mailing a paper return- I happened to catch that i owed additional state taxes due to an error I had made in reporting my quarterly estimated taxes during 2024. It wasn’t a large sum that I underpaid, but catching it yesterday avoided penalties and interest. Anyways, have always done my own taxes. I find that it help me understand the tax code better, and make good future tax planning decisions.
Post: Now taxes are filed, I have a question: How did you prepare your taxes?
Link to comment from April 16, 2025
I’m withdrawing about 7.5% from my TIRA until I reach age 70 when I will start SS. Overall, my withdrawals are sub 4% of our entire portfolio, which is my general benchmark for withdrawals. I’ve set up an automatic withdrawal from the TIRA to create a monthly “paycheck”. Leaning on the TIRA for withdrawals now to smooth out our expected tax rate when RMDs kick in at age 73.
Post: 4% every year? even this one?
Link to comment from April 15, 2025
I think I’ll ask the server what they think is best! 😵💫
Post: Quinn’s super frugal experiment. Are you up for a challenge?
Link to comment from April 4, 2025