AUTHOR: David S on 2/14/2026 FIRST: Dan Smith on 2/16 | RECENT: William Dorner on 2/23
Comments
Adam point outs out there are many ways to set up trusts to distribute assets to children or grandchildren, and every family's circumstances are different. But first you must decide if you prefer to have your children inherit your assets when you die or help them out while you are alive. For me, I will derive no satisfaction seeing the benefits and the impact of my gifts when I am dead. Assuming I die in my late 80s or 90s, and my 3 children are in their 50's and 60's, the are likely well past the age of needing funds to have a meaningful impact on their families lives. As such, we have decided to help them while they are younger and building their lives, with assistance on homes, child care, etc. The same goes for charitable gifts, give now and witness the impact while you're alive,
Several years ago, after leaving a company-sponsored health plan, my wife and I needed ACA coverage for the two years before we became eligible for Medicare. We received little or no subsidy as I recall because of our income and were paying roughly $2,200 per month for the least expensive Bronze plan, which also carried about a $16,000 family deductible. I understand comparable coverage can cost considerably more today.
It was a huge shock. At the time, most of my frustration was directed at the insurance companies because we were paying enormous premiums for coverage we rarely used. But that is, of course, how insurance works. You are protecting yourself against a potentially catastrophic medical expense, even if you hope never to collect on the policy.
Then, once we entered Medicare, the two-year IRMAA lookback kicked in—and not in a good way.
As much as I dislike paying the additional premiums, the basic concept is difficult to argue with: people with higher incomes are asked to pay more. If you have been a diligent saver and investor and now receive a steady stream of dividends, interest, capital gains and other income, there is a good chance you will be affected by the IRMAA tables. Even tax-exempt municipal-bond interest counts when IRMAA income is calculated. I would still rather be in that position than the alternative.
Thank you for sharing something so personal. I have found in retirement there is substantially more quiet time that inadvertently allows you to look back in time and think or dream about what could've been or what may have been missed. What a gift in this letter your father left for you, and we too are fortunate that you shared this.
The moment I see that commercial I click off. Maybe not a total scam or illegal but borderline and certainly a bait and switch. Unfortunately they are taking advantage of those who do not understand all the fine or t and may not be in tune to what actual life insurance is.
Aaron, I agree with you, and I am a big believer in donating now to help those in need now. If you have funds earmarked for charity, why wait 20-30 years to give it away in your will? It's satisfying to witness the impact of these donations now while alive. And this is true whether you use a DAF or not. As far as the mechanics of making the donations, I start with an online portal and donations are generally sent by the DAF trustee in a week or less. It's a pretty seamless process.
As mentioned it wasn't until I was older when I was on my own that I figured it out. Growing up, thought everything was hunky dory and vaguely remember fights about money but whose parents didn't fight about money now and then? I think it's the "keeping up with the Jones" that'll get you every time.
I think it is fine to be proud of what you've accomplished. I am, but at the same time I don't go around broadcasting it. I feel fortunate that I am able to have a comfortable retirement. In many respects, I exceeded my own expectations of myself and this creates a sense of pride. My motives were greatly affected by witnessing what my parents were going through growing up and into my 20's and 30's. They were terrible with money, didn't save, and had miserable retirements. I did not want that to be me. As a result, I saved as much as I could, I worked my ass off, took on tough assignments, moved my family 5 times for better opportunities which led to greater financial outcomes. The pride for me is really knowing that I made this journey and it meant something. And I do not discount being in the right place at the right time, having great teammates along the way, and of course some luck!
Dan, part of the value proposition of charging this 60 bps fee is to offer other ideas for diversification, such as these private investment opportunities. It is up to me to pull the trigger or not, so I avoid plenty of these. There is not a commission on these types of offerings at least not the ones I an in. If I choose to invest they earn the 60 bps as part of the overall relationship. The manager of these funds, who are not part of the RIA, whether it is private equity, real estate, private credit, typically get a management fee and when the partnership distributes earnings, they typically get 20% of the profit and the investors receive 80%, but as I mentioned this can take several years before distributions. I have heard horror stories where well known investment firms, the names we all know, have marketed hedge funds and complicated investments called structured notes and those can have hefty fees and lousy results. I think the key is to understand what you are investing in and make sure it is consistent with your level of investment knoweldge. If you can't understand how it makes money, walk away.
Comments
Adam point outs out there are many ways to set up trusts to distribute assets to children or grandchildren, and every family's circumstances are different. But first you must decide if you prefer to have your children inherit your assets when you die or help them out while you are alive. For me, I will derive no satisfaction seeing the benefits and the impact of my gifts when I am dead. Assuming I die in my late 80s or 90s, and my 3 children are in their 50's and 60's, the are likely well past the age of needing funds to have a meaningful impact on their families lives. As such, we have decided to help them while they are younger and building their lives, with assistance on homes, child care, etc. The same goes for charitable gifts, give now and witness the impact while you're alive,
Post: K-shaped Economy
Link to comment from July 18, 2026
Several years ago, after leaving a company-sponsored health plan, my wife and I needed ACA coverage for the two years before we became eligible for Medicare. We received little or no subsidy as I recall because of our income and were paying roughly $2,200 per month for the least expensive Bronze plan, which also carried about a $16,000 family deductible. I understand comparable coverage can cost considerably more today. It was a huge shock. At the time, most of my frustration was directed at the insurance companies because we were paying enormous premiums for coverage we rarely used. But that is, of course, how insurance works. You are protecting yourself against a potentially catastrophic medical expense, even if you hope never to collect on the policy. Then, once we entered Medicare, the two-year IRMAA lookback kicked in—and not in a good way. As much as I dislike paying the additional premiums, the basic concept is difficult to argue with: people with higher incomes are asked to pay more. If you have been a diligent saver and investor and now receive a steady stream of dividends, interest, capital gains and other income, there is a good chance you will be affected by the IRMAA tables. Even tax-exempt municipal-bond interest counts when IRMAA income is calculated. I would still rather be in that position than the alternative.
Post: A $30,000 Mistake
Link to comment from July 5, 2026
Thank you for sharing something so personal. I have found in retirement there is substantially more quiet time that inadvertently allows you to look back in time and think or dream about what could've been or what may have been missed. What a gift in this letter your father left for you, and we too are fortunate that you shared this.
Post: My Father: The Peace He Never Found
Link to comment from May 24, 2026
The moment I see that commercial I click off. Maybe not a total scam or illegal but borderline and certainly a bait and switch. Unfortunately they are taking advantage of those who do not understand all the fine or t and may not be in tune to what actual life insurance is.
Post: The $9.95 scam…
Link to comment from February 28, 2026
Aaron, I agree with you, and I am a big believer in donating now to help those in need now. If you have funds earmarked for charity, why wait 20-30 years to give it away in your will? It's satisfying to witness the impact of these donations now while alive. And this is true whether you use a DAF or not. As far as the mechanics of making the donations, I start with an online portal and donations are generally sent by the DAF trustee in a week or less. It's a pretty seamless process.
Post: Why I use a Donor-Advised Fund
Link to comment from February 21, 2026
I am 66, my plan exactly!
Post: Keep it Simpler
Link to comment from February 21, 2026
As mentioned it wasn't until I was older when I was on my own that I figured it out. Growing up, thought everything was hunky dory and vaguely remember fights about money but whose parents didn't fight about money now and then? I think it's the "keeping up with the Jones" that'll get you every time.
Post: If you have done well, be proud.
Link to comment from February 18, 2026
You can be proud and humble at the same time. I know I am.
Post: If you have done well, be proud.
Link to comment from February 16, 2026
I think it is fine to be proud of what you've accomplished. I am, but at the same time I don't go around broadcasting it. I feel fortunate that I am able to have a comfortable retirement. In many respects, I exceeded my own expectations of myself and this creates a sense of pride. My motives were greatly affected by witnessing what my parents were going through growing up and into my 20's and 30's. They were terrible with money, didn't save, and had miserable retirements. I did not want that to be me. As a result, I saved as much as I could, I worked my ass off, took on tough assignments, moved my family 5 times for better opportunities which led to greater financial outcomes. The pride for me is really knowing that I made this journey and it meant something. And I do not discount being in the right place at the right time, having great teammates along the way, and of course some luck!
Post: If you have done well, be proud.
Link to comment from February 16, 2026
Dan, part of the value proposition of charging this 60 bps fee is to offer other ideas for diversification, such as these private investment opportunities. It is up to me to pull the trigger or not, so I avoid plenty of these. There is not a commission on these types of offerings at least not the ones I an in. If I choose to invest they earn the 60 bps as part of the overall relationship. The manager of these funds, who are not part of the RIA, whether it is private equity, real estate, private credit, typically get a management fee and when the partnership distributes earnings, they typically get 20% of the profit and the investors receive 80%, but as I mentioned this can take several years before distributions. I have heard horror stories where well known investment firms, the names we all know, have marketed hedge funds and complicated investments called structured notes and those can have hefty fees and lousy results. I think the key is to understand what you are investing in and make sure it is consistent with your level of investment knoweldge. If you can't understand how it makes money, walk away.
Post: Keep it Simpler
Link to comment from February 16, 2026