AUTHOR: Cheryl Low on 11/13/2024 FIRST: luvtoride44afe9eb1e on 11/13/2024 | RECENT: Jonathan Clements on 11/25/2024
Comments
Thanks for another great post, Dennis. We have several people close to us who don't take care of their health, and it's been difficult to see them go through health issues. Two passed away last year, and one earlier this year.
Small efforts in exercise and diet can reap health benefits. For example, we've heard "sitting is the new smoking". Dr. James Levine, of the Mayo Clinic-Arizona State University, noted that "luckily, the detriments of sitting can be negated by standing up and moving around". In another recent study on the benefits of small doses of physical activity, researchers at the University of Utah School of Medicine found that people who got up and moved around for at least two minutes for every hour of sitting had a 33 percent lower risk of dying.
The doctor is Jordan Grumet, and I'm a big fan of his writing. I'm just starting his book, ThePurpose Code. When did you retire? I like your answer, Oct 1, 2000. In Jordan's words. "The goal isn’t to escape work entirely. The goal is to spend more of your life doing the kind of work that feels meaningful, exciting, and aligned with who you are—whether or not you earn a paycheck from it."
We strived to maintain a well-diversified core portfolio in index ETFs, and didn't invest in many individual stocks. (See William Housley's article 'When is an index fund not an index fund'.) https://humbledollar.com/forum/when-an-index-fund-is-not-an-index-fund/ Outside of a mortgage, we didn't carry debt or overextend ourselves...and we had an emergency fund. After the 2017 Tax Cuts and Jobs Act (TCJA), we paid off our remaining mortgage for peace of mind.I keep a top 5 investments list in case there's a correction. I invested some of our cash during the 2020 and April 2025 market corrections. During previous market corrections, we continued to hold for the long term.I wish I'd invested more in my Roth 401K over the years, even if only $1-2K.
We lived in our home for 25+ years and were looking at a similar capital gain and potential IRMAA costs. Fortunately, we were able to locate most of the invoices, but it took months. Lesson learned. For our new home, I diligently keep a file of any capital improvements.
I agree your analysis is a good start, and I would add the following:
If possible, pay off major debt (car, home, cc > 30 days) before retiring.
consider taking SS later than FRA (age 66-67) up to age 70. Each month you wait increases your SS. If married, maybe consider delaying SS for the person with the higher amount.
create or increase your emergency fund.
create or increase your contributions to a Roth IRA.
consider working part-time in retirement.
have a plan for where you will live at one or more stages in your retirement and the associated costs (i.e., a home has maintenance, insurance, property taxes...rent payments will increase...CCRCs generally require an upfront payment). Same goes for transportation.
understand healthcare premiums/costs as well as long-term care costs. Exercise and eat healthy...every little bit helps. Some people don't realize their Medicare premium ($206.50 in 2026) is deducted from their SS check...or that they could pay ~$100/month + copays for Medicare Advantage or $250-$285/month for Medigap. And then there's drug costs.
increase your financial literacy.
Covering monthly expenses is a necessary start, but there are many unexpected expenses (and inflation) throughout retirement.
We place a monthly order with Amazon's subscribe & save, which saves us 5%-15% depending on the item. We charge it on our Amazon Prime credit card and receive 5% rewards on our purchases after the discount (requires a Prime membership). We charge groceries on our AAA Advantage Visa and receive 5% rewards at grocery stores and 3% rewards at wholesale clubs (CostCo).
I completed the Excel1040 spreadsheet for our estimated 2025 taxes and it looks good. I still have to double-check if I entered all our income, but so far all the calculations are as expected, including the OBBBA changes.
Bill, thanks for posting the link for the tools - the Excel1040 spreadsheet is exactly what I was looking for. As you mentioned, it includes the 2025 OBBBA changes. I like that I can enter each of our income sources and the spreadsheet will add up the data and put it on the 1040. Makes it a lot easier to update later when there are changes.
Comments
Thanks for another great post, Dennis. We have several people close to us who don't take care of their health, and it's been difficult to see them go through health issues. Two passed away last year, and one earlier this year. Small efforts in exercise and diet can reap health benefits. For example, we've heard "sitting is the new smoking". Dr. James Levine, of the Mayo Clinic-Arizona State University, noted that "luckily, the detriments of sitting can be negated by standing up and moving around". In another recent study on the benefits of small doses of physical activity, researchers at the University of Utah School of Medicine found that people who got up and moved around for at least two minutes for every hour of sitting had a 33 percent lower risk of dying.
Post: Retirement Begins Long Before You Retire
Link to comment from September 15, 2025
The doctor is Jordan Grumet, and I'm a big fan of his writing. I'm just starting his book, The Purpose Code. When did you retire? I like your answer, Oct 1, 2000. In Jordan's words. "The goal isn’t to escape work entirely. The goal is to spend more of your life doing the kind of work that feels meaningful, exciting, and aligned with who you are—whether or not you earn a paycheck from it."
Post: What is retirement?
Link to comment from September 14, 2025
We strived to maintain a well-diversified core portfolio in index ETFs, and didn't invest in many individual stocks. (See William Housley's article 'When is an index fund not an index fund'.) https://humbledollar.com/forum/when-an-index-fund-is-not-an-index-fund/ Outside of a mortgage, we didn't carry debt or overextend ourselves...and we had an emergency fund. After the 2017 Tax Cuts and Jobs Act (TCJA), we paid off our remaining mortgage for peace of mind. I keep a top 5 investments list in case there's a correction. I invested some of our cash during the 2020 and April 2025 market corrections. During previous market corrections, we continued to hold for the long term. I wish I'd invested more in my Roth 401K over the years, even if only $1-2K.
Post: Retired Investor vs Beginner Investor
Link to comment from September 13, 2025
quick note: there's a typo in your 'After' example. Capital gains tax: $750,000 – $600,000 = $150,000
Post: Home Improvements Tax Tips
Link to comment from September 13, 2025
We lived in our home for 25+ years and were looking at a similar capital gain and potential IRMAA costs. Fortunately, we were able to locate most of the invoices, but it took months. Lesson learned. For our new home, I diligently keep a file of any capital improvements.
Post: Home Improvements Tax Tips
Link to comment from September 13, 2025
I agree your analysis is a good start, and I would add the following:
- If possible, pay off major debt (car, home, cc > 30 days) before retiring.
- consider taking SS later than FRA (age 66-67) up to age 70. Each month you wait increases your SS. If married, maybe consider delaying SS for the person with the higher amount.
- create or increase your emergency fund.
- create or increase your contributions to a Roth IRA.
- consider working part-time in retirement.
- have a plan for where you will live at one or more stages in your retirement and the associated costs (i.e., a home has maintenance, insurance, property taxes...rent payments will increase...CCRCs generally require an upfront payment). Same goes for transportation.
- understand healthcare premiums/costs as well as long-term care costs. Exercise and eat healthy...every little bit helps. Some people don't realize their Medicare premium ($206.50 in 2026) is deducted from their SS check...or that they could pay ~$100/month + copays for Medicare Advantage or $250-$285/month for Medigap. And then there's drug costs.
- increase your financial literacy.
Covering monthly expenses is a necessary start, but there are many unexpected expenses (and inflation) throughout retirement.Post: There is no magic number – and it sure isn’t $1 million
Link to comment from September 11, 2025
We place a monthly order with Amazon's subscribe & save, which saves us 5%-15% depending on the item. We charge it on our Amazon Prime credit card and receive 5% rewards on our purchases after the discount (requires a Prime membership). We charge groceries on our AAA Advantage Visa and receive 5% rewards at grocery stores and 3% rewards at wholesale clubs (CostCo).
Post: What is your credit card rewards strategy?
Link to comment from September 10, 2025
“My financial advisor asked me, ”What is your net worth?” I said, “I don’t own a net”.
Post: Laughter, the Best Medicine
Link to comment from September 9, 2025
I completed the Excel1040 spreadsheet for our estimated 2025 taxes and it looks good. I still have to double-check if I entered all our income, but so far all the calculations are as expected, including the OBBBA changes.
Post: Tax estimation tools on Bogleheads Wiki
Link to comment from September 8, 2025
Bill, thanks for posting the link for the tools - the Excel1040 spreadsheet is exactly what I was looking for. As you mentioned, it includes the 2025 OBBBA changes. I like that I can enter each of our income sources and the spreadsheet will add up the data and put it on the 1040. Makes it a lot easier to update later when there are changes.
Post: Tax estimation tools on Bogleheads Wiki
Link to comment from September 7, 2025