Medicare gap insurance for a couple is about $10,000 a year, almost 40% of the average Americans SS benefit. Medicare Advantage may have low to no premiums, but you get from them what you pay for. General Averages by Beneficiary Type
All retired workers: ~$2,090 per month
All beneficiaries (including retirees, disabled workers, dependents, and survivors): ~$1,938 per month
Great story. We’ve always been frugal when it comes to everyday things, such as groceries. Why pay over $5 a gallon of milk when Costco or BJs sells it for under $3. But not on bigger important things, like helping the kids buy a home, going on vacation, or buying something where quality is important. As one commenter mentioned they did, we’ve already prepaid a 12 day trip the end of November/early December to Italy, Zurich and Germany to see their holiday celebrations. Booked first class flights for us and my son and his spouse. Train tickets (one from Milan to Zurich through the Alps) and certain events are already paid for. So it appears frugality and spending can exist.
My kids will each inherit a large after tax amount as well as a large (but much smaller) share of my rollover IRA. They will have to withdraw their IRA $ over 10 years, and if it increases their taxes, they can pay the tax bill from their inheritance. It made sense for me to fund traditional 401k because of a very high income and tax bracket. That extra money compounded over time made the traditional contributions a much better plan. My wife will have to deal with RMD’s if I go first, but at VG they list the amount to be withdrawn yearly so that will be easy. That may push her into IRMAA tier 1 at some point (Widow tax) but she will be able to pay those premiums.
My wife and I have relatively small Roth IRAs because I was in a very high tax bracket.. I always contributed the max to my 401k and my employer matched 50% of the total. This worked great when I was working. I put the $18k plus $6k in, for $24k, and my employer put in another $12k. Now I have to take a larger RMD along with SS for both of us, and some dividends, most of which are qualified. We have no pensions. Last year our final tax was 6% of MAGI, and this was with a 6 figure income, so the taxable 401k was the best choice for us.
Yes, believe it. For those who struggle financially, it is not because of imprudent behavior, so it cannot be done with prudent behavior. You can’t get blood from a stone.53% of Americans carry credit card balances to cover essential living expenses like food, housing, and utilities.
Key Debt and Usage Statistics
Covering Essentials: A recent Achieve survey shows that over half of consumers rely on credit cards because everyday costs outpace their income.
Long-Term Debt: Out of those carrying a balance for essentials, 25% have been in debt for six months or longer.
Income Breakdown: Lower-income households face heavy strains; data shows that roughly 59% of Americans earning under $50,000 a year carry credit card debt from month to month.
General Balances: Overall, about 46% to 47% of all American cardholders carry a credit card balance from month to month rather than paying it off entirely
Heidi, keep in mind that once you reach Medicare age, if you go with regular Medicare, which I recommend, plan for those costs also. My wife and I pay over $10,000 a year in premiums for part B coverage. Medicare deducts part B costs from your monthly check, and if you buy ‘gap’ insurance to cover the 20% cost Medicare B doesn’t cover, you pay that directly to the insurance company. We use United Healthcare in Massachusetts, which requires UHC to provide more benefits than it offers elsewhere. When we were Florida residents 2 years ago, UHC didn’t offer those same benefits.
FYI.
‘The recipient does not have to cash the check before the end of the year. When your IRA custodian mails the check to you and you mail it on to the charity, the distribution date counts for the year you place it in the mail, as long as the funds actually left your IRA account by December 31.
How the Timing Works
Date completed: The IRS treats the QCD as complete on the date you mail the check to the charity.
Cashing deadline: The recipient (charity) does not need to cash or deposit the check before January 1 for it to count toward that tax year's distribution.
The exception: This rule differs if you use a personal checkbook issued directly from your IRA. If you write an IRA check yourself and mail it, the charity must cash it before year-end for the funds to clear the custodian's account in time’
Comments
Medicare gap insurance for a couple is about $10,000 a year, almost 40% of the average Americans SS benefit. Medicare Advantage may have low to no premiums, but you get from them what you pay for. General Averages by Beneficiary Type
Post: A bleak picture for retirement in the future?
Link to comment from September 6, 2026
Great story. We’ve always been frugal when it comes to everyday things, such as groceries. Why pay over $5 a gallon of milk when Costco or BJs sells it for under $3. But not on bigger important things, like helping the kids buy a home, going on vacation, or buying something where quality is important. As one commenter mentioned they did, we’ve already prepaid a 12 day trip the end of November/early December to Italy, Zurich and Germany to see their holiday celebrations. Booked first class flights for us and my son and his spouse. Train tickets (one from Milan to Zurich through the Alps) and certain events are already paid for. So it appears frugality and spending can exist.
Post: The Intentional Spendthrift
Link to comment from August 31, 2026
My kids will each inherit a large after tax amount as well as a large (but much smaller) share of my rollover IRA. They will have to withdraw their IRA $ over 10 years, and if it increases their taxes, they can pay the tax bill from their inheritance. It made sense for me to fund traditional 401k because of a very high income and tax bracket. That extra money compounded over time made the traditional contributions a much better plan. My wife will have to deal with RMD’s if I go first, but at VG they list the amount to be withdrawn yearly so that will be easy. That may push her into IRMAA tier 1 at some point (Widow tax) but she will be able to pay those premiums.
Post: Traditional or Roth
Link to comment from August 30, 2026
My wife and I have relatively small Roth IRAs because I was in a very high tax bracket.. I always contributed the max to my 401k and my employer matched 50% of the total. This worked great when I was working. I put the $18k plus $6k in, for $24k, and my employer put in another $12k. Now I have to take a larger RMD along with SS for both of us, and some dividends, most of which are qualified. We have no pensions. Last year our final tax was 6% of MAGI, and this was with a 6 figure income, so the taxable 401k was the best choice for us.
Post: Traditional or Roth
Link to comment from August 30, 2026
Yes, believe it. For those who struggle financially, it is not because of imprudent behavior, so it cannot be done with prudent behavior. You can’t get blood from a stone. 53% of Americans carry credit card balances to cover essential living expenses like food, housing, and utilities. Key Debt and Usage Statistics
Post: Americans and their credit cards
Link to comment from August 29, 2026
Today many use credit cards just to get by. From AI: Why Usage Is High
Post: Americans and their credit cards
Link to comment from August 29, 2026
I’d say no. The government will issue more bonds to cover spending. Investors will want higher yields, and that will depress bond values
Post: Federal debt
Link to comment from August 22, 2026
Heidi, keep in mind that once you reach Medicare age, if you go with regular Medicare, which I recommend, plan for those costs also. My wife and I pay over $10,000 a year in premiums for part B coverage. Medicare deducts part B costs from your monthly check, and if you buy ‘gap’ insurance to cover the 20% cost Medicare B doesn’t cover, you pay that directly to the insurance company. We use United Healthcare in Massachusetts, which requires UHC to provide more benefits than it offers elsewhere. When we were Florida residents 2 years ago, UHC didn’t offer those same benefits.
Post: COBRA insurance: No need to fear the bite
Link to comment from August 15, 2026
FYI. ‘The recipient does not have to cash the check before the end of the year. When your IRA custodian mails the check to you and you mail it on to the charity, the distribution date counts for the year you place it in the mail, as long as the funds actually left your IRA account by December 31. How the Timing Works
Post: Risk and Taxes
Link to comment from August 8, 2026
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Post: Risk and Taxes
Link to comment from August 8, 2026