You’re right about that. I should have specified better. The penalty I was worried about was my Medicare Part B payment, which would be higher, because my IRMAA would be to high, and since they calculate from two years prior returns the IRS would use my return from when I turned 63. The RMD wouldn’t affect my SS Benefits, but would put me in a higher tax bracket. This way my SS payments are much higher, my Part B payments stayed at the minimum, and my future RMDs should remain in the 12% bracket.
I chose to wait until I my FRA. I’m assuming I will live past the break even point (79/80). But the real reason I waited was to rollover a large amount of my IRA into a Roth, so as to avoid being in a higher tax bracket when I’m forced to take my minimum distribution at age 74. If I started collecting at 62 my SS would have been penalized because of my Rollovers.
If you got out of the market because of incredibly high valuations on both stocks and real estate why would you get back in now? The valuations haven’t changed. Stand by your convictions and be happy with your 4.25%.
I’m a bachelor also Doug and I agree with you wholeheartedly. I bought a house back in 1992. Kept it for 22 years. I made a nice profit, but when I subtracted the interest, upkeep and stress it wasn’t worth it. If I had it to do all over again I’d have rented.
i agree with Richard though. It’s easy to live this lifestyle as a bachelor. But being married and especially having kids it’s a different story. I’d make the sacrifice for my children.
I had a similar experience with the drug Reglan I was taking it for a Gastroparesis problem.
The problem was the depression came on so slowly that I couldn’t pinpoint the reason for it. Fortunately a coworker saw the change in me and told me to quit taking Reglan for awhile. Three days later I was me again. It was like Dorothy opening the door when she landed in Oz. Everything was in color again.
The strange thing was the Reglan did little to nothing for my Gastroparesis. Fortunately the Vagus nerve regenerated over time. Now I’m weary of taking any drugs. Even aspirin.
But even that’s only been four years. Growth has been on a run, but value will have its day and that might not be too far off. Compare returns in ten years and you might be surprised.
Comments
I’ll probably get a lot of downvotes for this, but who cares.
Post: The “Mean Girls”/Junior High Bullies at HumbleDollar
Link to comment from January 10, 2026
You’re right about that. I should have specified better. The penalty I was worried about was my Medicare Part B payment, which would be higher, because my IRMAA would be to high, and since they calculate from two years prior returns the IRS would use my return from when I turned 63. The RMD wouldn’t affect my SS Benefits, but would put me in a higher tax bracket. This way my SS payments are much higher, my Part B payments stayed at the minimum, and my future RMDs should remain in the 12% bracket.
Post: Social Security – Why I Chose FRA
Link to comment from December 27, 2025
I chose to wait until I my FRA. I’m assuming I will live past the break even point (79/80). But the real reason I waited was to rollover a large amount of my IRA into a Roth, so as to avoid being in a higher tax bracket when I’m forced to take my minimum distribution at age 74. If I started collecting at 62 my SS would have been penalized because of my Rollovers.
Post: Social Security – Why I Chose FRA
Link to comment from December 27, 2025
The greatest wealth is to live content with little : Plato
Post: Frugality, Minimalism, and Aligning Values
Link to comment from November 15, 2025
If you got out of the market because of incredibly high valuations on both stocks and real estate why would you get back in now? The valuations haven’t changed. Stand by your convictions and be happy with your 4.25%.
Post: Getting Back into the Market Now
Link to comment from May 24, 2025
One word. “Plastics”!
Post: Don’t Assume You Know
Link to comment from March 2, 2025
I’m a bachelor also Doug and I agree with you wholeheartedly. I bought a house back in 1992. Kept it for 22 years. I made a nice profit, but when I subtracted the interest, upkeep and stress it wasn’t worth it. If I had it to do all over again I’d have rented. i agree with Richard though. It’s easy to live this lifestyle as a bachelor. But being married and especially having kids it’s a different story. I’d make the sacrifice for my children.
Post: Home Free
Link to comment from January 16, 2025
I had a similar experience with the drug Reglan I was taking it for a Gastroparesis problem. The problem was the depression came on so slowly that I couldn’t pinpoint the reason for it. Fortunately a coworker saw the change in me and told me to quit taking Reglan for awhile. Three days later I was me again. It was like Dorothy opening the door when she landed in Oz. Everything was in color again. The strange thing was the Reglan did little to nothing for my Gastroparesis. Fortunately the Vagus nerve regenerated over time. Now I’m weary of taking any drugs. Even aspirin.
Post: My Ozempic Nightmare
Link to comment from December 11, 2024
But even that’s only been four years. Growth has been on a run, but value will have its day and that might not be too far off. Compare returns in ten years and you might be surprised.
Post: A Foolish Option
Link to comment from August 19, 2024
You can’t judge a fund over a one year time period. Ten years from now you may regret getting out.
Post: A Foolish Option
Link to comment from August 19, 2024