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Michael1

Formerly a career Army officer and then external affairs executive for a Fortune 100 company. In addition to personal finance and investing, I like reading, traveling, being outdoors, and strength/movement training and coaching. Now nomadic and can be found someplace or in between places.

    Forum Posts

    Comments

    • You’ve gotten some useful comments already. Do you need all that in municipal bonds, or could part of it be in normal taxable bonds? I suspect your gross income is such that on an after tax basis your net yield is higher with taxable bonds. I know you like the tax free aspect of munis, but if it’s causing you to end up with less net income, that may be a bit of an illusion. Also, moving some to a broad taxable bond fund would increase your diversification. For that reason, even if the net income difference were neutral, I would consider expanding the kind of bonds you hold.  I suspect you could also hold more stocks, especially since you foresee most of this going to heirs, but you asked specifically about your bond strategy. 

      Post: Does my bond strategy make sense?

      Link to comment from November 12, 2026

    • Have you ever taken funds out of the account? Maintenance mode is one thing, but I’m curious as to how much the managers can reduce gains that arise when you need them to send you cash.

      Post: Is Direct Indexing Useful?

      Link to comment from November 11, 2026

    • Haha, perhaps the bard would welcome the imitation. We have a fair amount of foreign tax credit so this seems like something we should care about.

      Post: Tax Software 2026

      Link to comment from November 8, 2026

    • Thanks for mentioning the foreign tax credit. I was almost ready to make the switch.

      Post: Tax Software 2026

      Link to comment from November 7, 2026

    • Thanks

      Post: Tax Planning After the Election

      Link to comment from November 7, 2026

    • Thanks Mark

      Post: The Leap of Faith

      Link to comment from November 7, 2026

    • Sounds to me like you had your priorities right. Well done.

      Post: Full Asking Price

      Link to comment from November 6, 2026

    • Bill, since you’re clearly watching the topic, would you expect changes mostly to taxes on ordinary income, or would you say a change to capital gains taxation is also likely?

      Post: Tax Planning After the Election

      Link to comment from November 6, 2026

    • Yes we’re thinking similarly. The product we’re considering would pay us for 5 or 10 years.

      Post: The Leap of Faith

      Link to comment from November 6, 2026

    • Good article Mark. To answer your question first, I didn’t have any trouble learning to spend. I did do a fair amount of research and figuring (no spreadsheets though) so knew where we stood. For context, we’re total return investors and have no problem selling assets to generate cash flow. To add to the annuity subtopic, we’re considering a single premium immediate annuity(s). It would provide guaranteed income until social security starts, and locks in today’s historically high interest rate on a portion of our portfolio. We would fund it from taxable assets so most of the monthly payment would be considered return of premium and therefore not taxed. We haven’t talked to a salesperson; this is a self-generated idea. As I said we’re total return investors, and it weren’t for current interest rates we probably wouldn’t consider the SPIA. But right now I’d say it’s more likely we do it than not. 

      Post: The Leap of Faith

      Link to comment from November 5, 2026

    Articles

    Retirement on the Road

    Michael Perry   |  Jan 1, 2025

    WE’VE BEEN TAKING stock of our nomadic life. We’re quite happy living as we are. But we’re also conscious that things could change at any time for multiple reasons, and we’re ready to shift gears if needed.
    We aren’t exactly “living the dream”—because being nomadic was never our dream. We hadn’t even thought about it until a few months before we started our travels. We officially uprooted ourselves—meaning we sold our Houston home—after we’d been away from the place for most of the first year of my retirement.

    Our Nomadic Life

    Michael Perry   |  Jun 5, 2024

    WE’RE IN OUR SECOND year as nomads, having sold our Texas home and driven away from our storage unit in November 2022. In the few years before that, we often talked about where we wanted to move, but could never quite decide.
    When I retired in 2021, we traveled for most of the next 12 months. At the end of it, we still hadn’t decided where we wanted to live, but we knew we wanted a change,

    Running Up the Tab

    Michael Perry   |  Dec 9, 2023

    A FEW DAYS AGO, I RAN the numbers on our likely 2023 taxes, and reached two conclusions: We have a small refund coming—and we should find a way to pay more taxes.
    How can both be true? I project that our 2023 taxable income will be well below $190,750, which is the top of the 22% tax bracket for those married filing jointly. Getting taxed at 22% strikes me as a good deal, given the likelihood that we’ll be taxed at an even higher rate later in retirement.

    Taking Back the Wheel

    Michael Perry   |  Nov 11, 2023

    WE FLEW BACK TO the U.S. last week from Madrid, and were reunited with our car of 12 years. After selling our house in late 2022 and going nomadic, we had headed to Europe six months ago, opting to have our 2008 Lexus SUV professionally stored.
    In an earlier article, I recounted the thought process behind this decision. Suffice it to say, we chose this option largely because we had no firm plans for when we’d need our car again,

    Free to Roam

    Michael Perry   |  Oct 6, 2023

    LIKE MANY WHO THINK about where they’d like to retire, we’ve always had a vague list of wants: comfortable climate, walkability, good health care, access to cultural events and outdoor activities, friendly tax regime, reasonable cost of living, that sort of thing.
    I wrote previously about feeling stuck for many years in a place where we didn’t want to stay, but also not really having one place where we felt drawn to settle, whether for a few years or permanently.

    A Basis for Decisions

    Michael Perry   |  Aug 1, 2023

    I’VE WRITTEN BEFORE about harvesting tax losses and using them to offset the gains from selling other investments. We have a bit of a sprawling portfolio, with numerous small positions and lots of embedded capital gains.
    Gradually harvesting gains would simplify the portfolio and make it more tax-efficient. And if we do so during these early retirement years, while our income is low, and if we can partially offset those gains with realized losses,

    Fork in the Road

    Michael Perry   |  Feb 20, 2023

    IT HAS BEEN THREE months since we closed on the sale of our home and drove away from the storage unit that contains everything we couldn’t donate, sell, give away or take with us. It was a big decision to have no fixed abode, and we feel great about it.
    We’re about to move our rambling lifestyle across the pond to spend some time in the U.K. and continental Europe, and we have no return date in mind.

    Profiting From Losses

    Michael Perry   |  Feb 10, 2023

    WE TRIMMED THE TAXES we owed on investment gains in 2021 by using losses we’d realized during 2020’s stock market swoon. Now, 2022’s market decline has allowed us to repeat this process, once again offsetting capital gains with tax losses that we’d earlier harvested.
    My wife and I haven’t just saved on taxes, however. The sales have also allowed us to reposition our taxable portfolio away from active management and toward more of an indexing bent.

    Too Much Cash?

    Michael Perry   |  Nov 17, 2022

    I’VE SPENT THE PAST seven or eight years lamenting our cash position, both the interest it was earning and the size of it. The former was too little, the latter too much.
    Some years ago, we sold an investment property with the idea of buying another somewhere we might potentially retire. But as I noted in a recent article, we’ve never been able to settle on where that would be. We were also constantly thinking we were going to move or be moved away from the Houston area,

    Free in the World

    Michael Perry   |  Nov 1, 2022

    YESTERDAY EVENING we went under contract to sell our home of the past 10 years, by far the longest I’ve ever lived in one place. In our neighborhood, the average time on the market is currently 33 days. We’d been on the market for one day and the offer was over asking. We credit this to taking good care of our home, and having a sharp listing agent and staging consultant.
    This experience, and what we learned from it,

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