My wife and I fit your description as we are taking our RMDs (which requires liquidating mutual funds) and spending most of the proceeds for living expenses. Our heirs will inherit the remaining mutual fund balances when we pass away, so those funds might remain invested in stock/bonds. It would interesting to know what the estimate is of how much of Boomer wealth IS invested in equities that WILL be liquidated over the next 30 years to fund retirements. Will it be large enough to negatively affect (suppress) stock prices over that period of time??
I can identify with this story, but on a smaller scale.
Buying clothes, handbags and shoes makes my wife happy and she looks wonderful in the pretty and stylish things that she buys.
It does concern me, however, that she has given many items to Goodwill over the years that still have the sales tags on them! Ugh.
I am not without my own "faults" in this regard, however, as I presently have collected approximately 80 1/48 and 1/72 diecast metal modern military fighter jet models in the last 11 years (I am 81) that I absolutely love! I spend several hours of most days admiring them.
It makes me sad that I know that I must sell my beloved model airplane collection in the next few years ($ for my heirs) in order to prepare for my "last flight into the great beyond."
My wife and I did the same thing as you both did. She is 4 years younger than me and started taking her SS benefit at age 62 in 2011. At the same time, I claimed ONLY my spousal benefit at age 66 (I retired the previous year at age 65) so collected benefits on her earnings record for 4 years. Then in 2015 I claimed MY SS benefit at age 75 for a full 32% more than my FRA benefit amount! I am 81 now am very happy that my wife will collect my 4-year delayed SS benefit as her survivor benefit when I precede her in death, whenever that happens. :-)
"He immediately called his bank person, who assured him that the muni interest would not cost him any tax dollars."The bank person made a big mistake by saying that, unless they made it clear that they only meant that the Muni income would not be DIRECTLY taxed by the federal government.
Thanks Rick and Dan for clarifying this. So I believe you are saying that most of your senior federal income tax filers were able to take advantage of the $6,000 Senior Deduction and most did not itemize deductions, but instead took the Standard Deduction because it was so large:
"For the 2025 tax year (taxes filed in 2026), seniors over 65 can claim a total standard deduction of $23,750 for singles and $46,700 for married couples filing jointly (if both are over 65), combining the base deduction, the additional 65+ amount, and the new $6,000 per-person senior bonus."Only wealthier tax filers were unable to take advantage of ANY of the $6,000 Senior Deduction if their MAGI was over $175,000 single/$250,000 married filing jointly.
Rick:
I thought the $6,000 "Senior Deduction" was available to all seniors, regardless if they itemize deductions or take the standard deduction: see
https://www.cnbc.com/2025/07/01/senate-big-beautiful-bill-touts-tax-help-for-seniors-on-social-security.html
Comments
My wife and I fit your description as we are taking our RMDs (which requires liquidating mutual funds) and spending most of the proceeds for living expenses. Our heirs will inherit the remaining mutual fund balances when we pass away, so those funds might remain invested in stock/bonds. It would interesting to know what the estimate is of how much of Boomer wealth IS invested in equities that WILL be liquidated over the next 30 years to fund retirements. Will it be large enough to negatively affect (suppress) stock prices over that period of time??
Post: The Market’s Unpredictability
Link to comment from June 13, 2026
I think your last paragraph is spot on!
Post: Would You Be Miserable?
Link to comment from June 9, 2026
FYI (from my youth): I LOVE Twinkies!!
Post: Would You Be Miserable?
Link to comment from June 9, 2026
I can identify with this story, but on a smaller scale. Buying clothes, handbags and shoes makes my wife happy and she looks wonderful in the pretty and stylish things that she buys. It does concern me, however, that she has given many items to Goodwill over the years that still have the sales tags on them! Ugh. I am not without my own "faults" in this regard, however, as I presently have collected approximately 80 1/48 and 1/72 diecast metal modern military fighter jet models in the last 11 years (I am 81) that I absolutely love! I spend several hours of most days admiring them. It makes me sad that I know that I must sell my beloved model airplane collection in the next few years ($ for my heirs) in order to prepare for my "last flight into the great beyond."
Post: The Ping
Link to comment from June 5, 2026
Oops, I claimed MY SS benefit in 2015 at age 70, not age 75.
Post: Rethinking the “Right” Time for Social Security
Link to comment from April 23, 2026
My wife and I did the same thing as you both did. She is 4 years younger than me and started taking her SS benefit at age 62 in 2011. At the same time, I claimed ONLY my spousal benefit at age 66 (I retired the previous year at age 65) so collected benefits on her earnings record for 4 years. Then in 2015 I claimed MY SS benefit at age 75 for a full 32% more than my FRA benefit amount! I am 81 now am very happy that my wife will collect my 4-year delayed SS benefit as her survivor benefit when I precede her in death, whenever that happens. :-)
Post: Rethinking the “Right” Time for Social Security
Link to comment from April 23, 2026
"He immediately called his bank person, who assured him that the muni interest would not cost him any tax dollars." The bank person made a big mistake by saying that, unless they made it clear that they only meant that the Muni income would not be DIRECTLY taxed by the federal government.
Post: Tax Free Income Trap, Dealing With MAGI
Link to comment from April 22, 2026
I love your last sentence! :-)
Post: The condo, HOA, senior citizen conundrum
Link to comment from April 20, 2026
Thanks Rick and Dan for clarifying this. So I believe you are saying that most of your senior federal income tax filers were able to take advantage of the $6,000 Senior Deduction and most did not itemize deductions, but instead took the Standard Deduction because it was so large: "For the 2025 tax year (taxes filed in 2026), seniors over 65 can claim a total standard deduction of $23,750 for singles and $46,700 for married couples filing jointly (if both are over 65), combining the base deduction, the additional 65+ amount, and the new $6,000 per-person senior bonus." Only wealthier tax filers were unable to take advantage of ANY of the $6,000 Senior Deduction if their MAGI was over $175,000 single/$250,000 married filing jointly.
Post: Taxes Season 3
Link to comment from April 13, 2026
Rick: I thought the $6,000 "Senior Deduction" was available to all seniors, regardless if they itemize deductions or take the standard deduction: see https://www.cnbc.com/2025/07/01/senate-big-beautiful-bill-touts-tax-help-for-seniors-on-social-security.html
Post: Taxes Season 3
Link to comment from April 12, 2026