We've been managing our financial lives around this for a while and have two more years to go (DW turns 63 in September, I'm 69 and thus already on Medicare). It's meant that Roth conversions are out of the question and (since we're already retired) being very careful to make sure that investments held in our taxable accounts are tax-efficient. Under "can't win for losing" though our "reward" for my wife turning 65 will be Medicare + Supplement premiums that are a multiple of her ACA premium...and my RMD's kick in right afterwards. Just hoping that ACA insurance plans are still available until we reach that finish line, as insurers are dropping out of the marketplace left and right due to the "death spiral" for ACA caused by the actions (or rather inactions) of Congress.
I see that you're UK based. As a U.S.-based investor I share your concerns and address them by using a 60:40 blend of Vanguard Total U.S. Stock Market ETF (VTI) and Vanguard Total International (VXUS). This is essentially a "homemade" equivalent of Vanguard's Total World Stock Market ETF (VT), which holds equities at global market cap weightings. VT is currently 61% U.S. and the Magnificent 7 tech stocks comprise 17.34% of its assets. For what it'w worth, Vanguard has used 40% in international stocks in all of its LifeStrategy all-in-one funds for many years and was regularly criticized for doing so during the long run of U.S. stock outperformance we've seen for the past two decades. Now they're looking like the smartest guys in the room again. For a U.S.-based investor it must be said that owning foreign stocks has historically been more of a currency play (which is why it didn't work out well during long periods of U.S. dollar strength) but with the gigantic growth of tech fueled by the AI frenzy ex-U.S. stocks have in effect become a small and mid-cap play and a way to diversify in industries towards corporations making real physical things and delivering tangible services. One could arguable do this more effectively by tilting towards small cap and/or small-cap value stocks using super concentrated funds like Avantis's AVGV but as a conservative retiree I'm more comfortable just sticking with market-cap weighted funds.
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We've been managing our financial lives around this for a while and have two more years to go (DW turns 63 in September, I'm 69 and thus already on Medicare). It's meant that Roth conversions are out of the question and (since we're already retired) being very careful to make sure that investments held in our taxable accounts are tax-efficient. Under "can't win for losing" though our "reward" for my wife turning 65 will be Medicare + Supplement premiums that are a multiple of her ACA premium...and my RMD's kick in right afterwards. Just hoping that ACA insurance plans are still available until we reach that finish line, as insurers are dropping out of the marketplace left and right due to the "death spiral" for ACA caused by the actions (or rather inactions) of Congress.
Post: A $30,000 Mistake
Link to comment from July 4, 2026
Allan Roth wrote a great piece about these funds for Morningstar: https://www.morningstar.com/funds/hidden-risks-income-life-target-date-funds?ck_subscriber_id=2905772259&utm_source=convertkit&utm_medium=email&utm_campaign=The%20Investors%20Newsletter%20-%2022225143 I agree with his conclusions: lifetime income is esssential - and annuities are a lousy way to get there because they offer no protection against the ravages of inflation and much of their income comes from return of principal. A TIPS ladder + equities is far superior.
Post: Automatic Income stream? How important to you?
Link to comment from June 27, 2026
I see that you're UK based. As a U.S.-based investor I share your concerns and address them by using a 60:40 blend of Vanguard Total U.S. Stock Market ETF (VTI) and Vanguard Total International (VXUS). This is essentially a "homemade" equivalent of Vanguard's Total World Stock Market ETF (VT), which holds equities at global market cap weightings. VT is currently 61% U.S. and the Magnificent 7 tech stocks comprise 17.34% of its assets. For what it'w worth, Vanguard has used 40% in international stocks in all of its LifeStrategy all-in-one funds for many years and was regularly criticized for doing so during the long run of U.S. stock outperformance we've seen for the past two decades. Now they're looking like the smartest guys in the room again. For a U.S.-based investor it must be said that owning foreign stocks has historically been more of a currency play (which is why it didn't work out well during long periods of U.S. dollar strength) but with the gigantic growth of tech fueled by the AI frenzy ex-U.S. stocks have in effect become a small and mid-cap play and a way to diversify in industries towards corporations making real physical things and delivering tangible services. One could arguable do this more effectively by tilting towards small cap and/or small-cap value stocks using super concentrated funds like Avantis's AVGV but as a conservative retiree I'm more comfortable just sticking with market-cap weighted funds.
Post: Sector Fund by Stealth
Link to comment from March 7, 2026