Our early retirement income goal is inflation adjusted 100% of working wage which includes joint social security (covering monthly fixed expenses) starting at 70. Our retirement spending strategy to use max SS wage cap number (Unless congress eliminates the tax cap) as an inflation adjusted, income spending goal in retirement. The SS tax wage cap is based on the National Average Wage Index (NAWI) vs. Consumer Price Index (CPI-U). The NAWI outpaces CPI-U by about 1%.
real purchasing power over time, rather than just keeping up with literal inflation.
From Jonathan's pointers on simplicity and tax efficiency some time ago we separated the bulk holdings of Two fund international and domestic stock funds in a taxable account to claim the Foreign Tax Credit (or deduction). Roth account to One fund which doesn't benefit from tax credit. Taxable stocks VTIAXVANGUARD TOTAL INTL STOCK INDEXVTSAXVANGUARD TOTAL STOCK MARKET INDEX Roth VTWAXVANGUARD TOTAL WORLD STOCK INDEX
The LTC deductions must also exceed the standard tax deduction make a difference on your taxes. To claim this medical expense deduction you must itemize on schedule A to utilize tax-deferred IRA or 401K dollars to pay for long term care (LTC) expenses on your taxes that exceeds 7.5% of your Adjusted Gross Income (AGI).
VMLUX – 75%VANGUARD LTD TERM TAX EXEMPT ADMIRAL CL7012 Bonds with an Average duration 2.6 years30days SEC yield as of 12/04/2025 3.05% AVBIL – 25%VANGUARD 0-3 MONTH TREASURY BILL ETF26 Bonds with an Average duration 0.1 years 30days SEC yield as of 12/04/2025 3.86% A
Here is a Bogleheads link for more info on the Fixed Percentage Withdrawal.
It shows a comparison of the fixed vs inflation adjusted withdrawals. https://www.bogleheads.org/forum/viewtopic.php?t=430990
Thanks for alerting us to one more cost associated with having Fidelity accounts! I need to pay closer attention to Fidelity fees vs. the more investor-friendly Vanguard. Here is an interesting article on hidden Fidelity costs. Family FirstHow the owners of Fidelity get richer at everyday investors’ expense
Comments
Our early retirement income goal is inflation adjusted 100% of working wage which includes joint social security (covering monthly fixed expenses) starting at 70. Our retirement spending strategy to use max SS wage cap number (Unless congress eliminates the tax cap) as an inflation adjusted, income spending goal in retirement. The SS tax wage cap is based on the National Average Wage Index (NAWI) vs. Consumer Price Index (CPI-U). The NAWI outpaces CPI-U by about 1%. real purchasing power over time, rather than just keeping up with literal inflation.
Post: What is the right percentage?
Link to comment from August 15, 2026
From Jonathan's pointers on simplicity and tax efficiency some time ago we separated the bulk holdings of Two fund international and domestic stock funds in a taxable account to claim the Foreign Tax Credit (or deduction). Roth account to One fund which doesn't benefit from tax credit. Taxable stocks VTIAX VANGUARD TOTAL INTL STOCK INDEX VTSAX VANGUARD TOTAL STOCK MARKET INDEX Roth VTWAX VANGUARD TOTAL WORLD STOCK INDEX
Post: Jonathan’s Parting Thoughts: No. 8
Link to comment from August 8, 2026
I will pay the Roth conversion taxes quarterly or in the conversion quarter with form 2210 (Annualization) Thank You for the post!
Post: Don’t Let a Roth Conversion Trigger a Penalty
Link to comment from July 11, 2026
The LTC deductions must also exceed the standard tax deduction make a difference on your taxes. To claim this medical expense deduction you must itemize on schedule A to utilize tax-deferred IRA or 401K dollars to pay for long term care (LTC) expenses on your taxes that exceeds 7.5% of your Adjusted Gross Income (AGI).
Post: How do you prepare for the long term care cost as retiree?
Link to comment from June 28, 2026
VMLUX – 75% VANGUARD LTD TERM TAX EXEMPT ADMIRAL CL 7012 Bonds with an Average duration 2.6 years 30days SEC yield as of 12/04/2025 3.05% A VBIL – 25% VANGUARD 0-3 MONTH TREASURY BILL ETF 26 Bonds with an Average duration 0.1 years 30days SEC yield as of 12/04/2025 3.86% A
Post: Where to Keep Cash
Link to comment from December 6, 2025
Here is a Bogleheads link for more info on the Fixed Percentage Withdrawal. It shows a comparison of the fixed vs inflation adjusted withdrawals. https://www.bogleheads.org/forum/viewtopic.php?t=430990
Post: Spending It
Link to comment from January 20, 2025
Thanks for alerting us to one more cost associated with having Fidelity accounts! I need to pay closer attention to Fidelity fees vs. the more investor-friendly Vanguard. Here is an interesting article on hidden Fidelity costs. Family FirstHow the owners of Fidelity get richer at everyday investors’ expense
- By Tim McLaughlin - REUTERS
- Filed Oct. 5, 2016, noon GMT
https://www.reuters.com/investigates/special-report/usa-fidelity-family/#:~:text=Fidelity%20Investments%20is%20owned%20by,the%20private%20venture%20capital%20arm.Post: Fidelity Brokerage Cash Interest Rate Changes
Link to comment from January 11, 2025
Ken, Thank you for the well-written article about your Parent's Retirement. It's an inspiration to recognize the need to chronicle my family history.
Post: My Parents’ Retirement
Link to comment from October 2, 2024