I found the following Gallup article which finds that retirees are more financially comfortable than nonretirees expect to be and that the expectations vs. reality gap is persistent over time. Interesting read. Why Americans Are Pleasantly Surprised in Retirement Reasons given for the gap are 1.) lower expenses after retirement, 2.) Medicare covering more than expected, 3.) Social Security being far more important than nonretirees assume and, 4.) the lack of confidence in Social Security that nonretirees exhibit. [Summarized by Copilot]. There is also a PDF at the end of the article showing the questions asked and the answer trends going back to 2002.
"I’d talked myself into a completely different plan: forget the repair, go and find a replacement."I have these debates with friends and family (and in my head) about the repair vs. replace decision as well, but I struggle with what happens if you 'forget the repair'. Do you sell the car for $6500? After all, you now have a $1500 liability on an $8000 car, highlighted by the amber dash light. Short of somehow hiding the fact that repairs are needed, an informed buyer should discount the value of the vehicle accordingly. I seem to personally always perform the needed repairs and then independently decide its "time" to buy another car based on overall age and reliability or, just because I want to. So far, I have never been able to justify not repairing a vehicle or at minimum disclosing the need.Genuinely curious because I often hear the comment that it's just not worth repairing but, in my mind, buying vs. repairing are two separate decisions unless the repairs represent a near total loss (e.g. wreck or transmission/engine replacement on an old vehicle). Ken
I would like to think not but I really don't know. During the GFC, the last prolonged downturn, I was entering my peak earning years, had a fairly solid position at my company, and was aggressively invested but with a much smaller portfolio. I didn't panic then but my I'm sure my concern back then was keeping my current income/job. Now I have been retired for 18 months with no earned income and a much larger portfolio. I believe our investments are positioned to weather a downturn and still provide the needed income, but I just don't know how I will feel when that downturn comes. Enjoying seeing everyone's thoughts on this. Ken
Under this hypothetical scenario, unrealized gains would be taxed each year like current income, correct? If so, we would also expect the IRS to issue refund checks in years investors have unrealize losses. A billionaire example: In 2022, Jeff Bezos had ~$50M in unrealized losses on his Amazon stock. Assuming a 23.8% maximum rate on capital gains per Google, the IRS would have owed him $11.9M that year. Imagine the public outrage when the government writes that check!
It might make sense to include Roth earnings in the IRMAA calculation. However, the contributions were included in income/MAGI when you put the funds in. Including it again at withdrawal would be double dipping. This would be similar to how your brokerage account is treated; you invest with after-tax funds and then only earnings are included as income/MAGI when withdrawn. Ken
I told my kids the worst thing that can happen on your first trip to a casino is winning. Fortunately, none of them shows the slightest interest in gambling, so far. They also understand the odds are against them, much like picking individual stocks. Ken
My "plan" is that portfolio growth and social security COLA will keep up with inflation. Research also shows that real spending may also decline with age (the retirement spending smile). We have only been retired a short time so we shall see, but I am interested in others lived experience. Ken
Interesting. We are delaying social security to reduce future RMDs! We are drawing down our IRAs for living expenses while we wait for social security, thus reducing our IRA balance. Ken
Dan, this is my first year as an AARP tax preparer in Fort Wayne, IN. I would characterize the experience as eye-opening. It has been educational for me to get out of the finance/retirement nerd bubble and see how others view the world, both financially and otherwise.
We are one year into retirement and have about five years' worth of cash and short-term bonds so no immediate concerns. I will rebalance into stocks next week to get back to target allocations. We rebalance quarterly per our investment policy statement. The IPS forces us to mechanically sell high(er) and buy low(er) every quarter and eliminates second guessing.
Comments
I found the following Gallup article which finds that retirees are more financially comfortable than nonretirees expect to be and that the expectations vs. reality gap is persistent over time. Interesting read. Why Americans Are Pleasantly Surprised in Retirement Reasons given for the gap are 1.) lower expenses after retirement, 2.) Medicare covering more than expected, 3.) Social Security being far more important than nonretirees assume and, 4.) the lack of confidence in Social Security that nonretirees exhibit. [Summarized by Copilot]. There is also a PDF at the end of the article showing the questions asked and the answer trends going back to 2002.
Post: A bleak picture for retirement in the future?
Link to comment from September 3, 2026
"I’d talked myself into a completely different plan: forget the repair, go and find a replacement." I have these debates with friends and family (and in my head) about the repair vs. replace decision as well, but I struggle with what happens if you 'forget the repair'. Do you sell the car for $6500? After all, you now have a $1500 liability on an $8000 car, highlighted by the amber dash light. Short of somehow hiding the fact that repairs are needed, an informed buyer should discount the value of the vehicle accordingly. I seem to personally always perform the needed repairs and then independently decide its "time" to buy another car based on overall age and reliability or, just because I want to. So far, I have never been able to justify not repairing a vehicle or at minimum disclosing the need. Genuinely curious because I often hear the comment that it's just not worth repairing but, in my mind, buying vs. repairing are two separate decisions unless the repairs represent a near total loss (e.g. wreck or transmission/engine replacement on an old vehicle). Ken
Post: Tempted by the Shiny and New: Another HD Car Post
Link to comment from July 5, 2026
I would like to think not but I really don't know. During the GFC, the last prolonged downturn, I was entering my peak earning years, had a fairly solid position at my company, and was aggressively invested but with a much smaller portfolio. I didn't panic then but my I'm sure my concern back then was keeping my current income/job. Now I have been retired for 18 months with no earned income and a much larger portfolio. I believe our investments are positioned to weather a downturn and still provide the needed income, but I just don't know how I will feel when that downturn comes. Enjoying seeing everyone's thoughts on this. Ken
Post: Would You Be Miserable?
Link to comment from June 9, 2026
Under this hypothetical scenario, unrealized gains would be taxed each year like current income, correct? If so, we would also expect the IRS to issue refund checks in years investors have unrealize losses. A billionaire example: In 2022, Jeff Bezos had ~$50M in unrealized losses on his Amazon stock. Assuming a 23.8% maximum rate on capital gains per Google, the IRS would have owed him $11.9M that year. Imagine the public outrage when the government writes that check!
Post: Billionaires, taxes and you
Link to comment from May 30, 2026
It might make sense to include Roth earnings in the IRMAA calculation. However, the contributions were included in income/MAGI when you put the funds in. Including it again at withdrawal would be double dipping. This would be similar to how your brokerage account is treated; you invest with after-tax funds and then only earnings are included as income/MAGI when withdrawn. Ken
Post: Tax Free Income Trap, Dealing With MAGI
Link to comment from April 21, 2026
I told my kids the worst thing that can happen on your first trip to a casino is winning. Fortunately, none of them shows the slightest interest in gambling, so far. They also understand the odds are against them, much like picking individual stocks. Ken
Post: Stock Market Contest
Link to comment from April 4, 2026
My "plan" is that portfolio growth and social security COLA will keep up with inflation. Research also shows that real spending may also decline with age (the retirement spending smile). We have only been retired a short time so we shall see, but I am interested in others lived experience. Ken
Post: Coping with inflation in retirement, what’s the plan?
Link to comment from March 30, 2026
Interesting. We are delaying social security to reduce future RMDs! We are drawing down our IRAs for living expenses while we wait for social security, thus reducing our IRA balance. Ken
Post: Something to Think About
Link to comment from March 29, 2026
Dan, this is my first year as an AARP tax preparer in Fort Wayne, IN. I would characterize the experience as eye-opening. It has been educational for me to get out of the finance/retirement nerd bubble and see how others view the world, both financially and otherwise.
Post: Debriefing
Link to comment from March 28, 2026
We are one year into retirement and have about five years' worth of cash and short-term bonds so no immediate concerns. I will rebalance into stocks next week to get back to target allocations. We rebalance quarterly per our investment policy statement. The IPS forces us to mechanically sell high(er) and buy low(er) every quarter and eliminates second guessing.
Post: Any concern?
Link to comment from March 28, 2026