AUTHOR: Harold Tynes on 1/10/2025 FIRST: Olin on 1/10/2025 | RECENT: Michael1 on 1/13/2025
Comments
Thanks for the article. I am an AARP tax preparer and today this is out of scope for our preparers. I will give it a year to fully cook and see how the details pan out. My early read showed some conflicting instructions. Maybe it can be something I can consider for my grandkids.
I’ve used a DAF at Fidelity for about 15 years. No fees, $50 minimum gifts to charity and easily works with my other taxable investments at Fidelity. I use appreciated stocks to fund my DAF. I am not old enough for QCDs, yet, but the flexibility that the DAF gives me to make periodic or one-off gifts is a great advantage.
I keep a healthy portion of my investments in small cap and international index funds. They did well last year and, so far, this year. The last time I rebalanced was during 2022, I mixed more towards international as my portfolio had grown in US large cap beyond my targets.
I have noticed that, as well. Also, my tax situation is too complex for dinkytown. I am getting a better understanding of my taxes using excel1040.com. They have 2025 & 2026 models.
Very thoughtful post. I can't think of a scenario where saving more is bad. I would suggest that debt paydown should be a significant part of the glidepath to retirement. The economics may not be perfect but I will always know the interest I am paying on debt while my return on investments will be foggy. Another issue to consider is the mix of taxable, tax-deferred, and no-tax investments. Many variables here. Current tax rate and future tax rate of the mix is the most important. Those RMD's can drive you into another layer of taxes. Are you able to fund a Roth today? Will you need to use investment funds for an early retirement? Will you need taxable assets to pay the taxes on a Roth conversion. I consider this art, not science. Keep your head in the game and respond to changes in investment trends and tax rates. The answer from years ago may not work today or tomorrow.
You are correct. On the other hand, RMDs create similar issues. That’s why I do Roth conversions within a range of my estimated tax rate while I am taking RMD’s. Today, I only have my investment income and pensions. Next year, I will have SS added to that. Then at 73 I will have RMDs. The rate moves up during that time and I fill the gap with Roth conversions.
I’ve been involved with PE for over 25 years. I’ve seen the reporting that the big firms provide and know that their valuation methodologies involve projections that often do not come to pass. The 2% fee and 20% cut of gains is very rich for those that balk at 1% fees. I did a study of returns in my companies PE fund portfolio. 1/3 lost the entire investment, 1/3 broke even and 1/3 hit the ball out of the park. I’ve never invested in a PE fund and never will. I have invested in PE owned businesses where I had access to financials and some say in how things were done. I’ve had some very successful exits and one failure. I would never recommend 401k investments in PE.
Comments
Thanks for the article. I am an AARP tax preparer and today this is out of scope for our preparers. I will give it a year to fully cook and see how the details pan out. My early read showed some conflicting instructions. Maybe it can be something I can consider for my grandkids.
Post: Trump Account
Link to comment from February 22, 2026
I’ve used a DAF at Fidelity for about 15 years. No fees, $50 minimum gifts to charity and easily works with my other taxable investments at Fidelity. I use appreciated stocks to fund my DAF. I am not old enough for QCDs, yet, but the flexibility that the DAF gives me to make periodic or one-off gifts is a great advantage.
Post: Why I use a Donor-Advised Fund
Link to comment from February 22, 2026
I keep a healthy portion of my investments in small cap and international index funds. They did well last year and, so far, this year. The last time I rebalanced was during 2022, I mixed more towards international as my portfolio had grown in US large cap beyond my targets.
Post: Sell America
Link to comment from February 15, 2026
William, I am with you. Simpler is better. Once I am done with self-employment and Roth conversions, maybe in two years, I can "set it and forget it."
Post: Yes, I am a NIIT wit
Link to comment from February 11, 2026
I have noticed that, as well. Also, my tax situation is too complex for dinkytown. I am getting a better understanding of my taxes using excel1040.com. They have 2025 & 2026 models.
Post: Yes, I am a NIIT wit
Link to comment from February 11, 2026
Very thoughtful post. I can't think of a scenario where saving more is bad. I would suggest that debt paydown should be a significant part of the glidepath to retirement. The economics may not be perfect but I will always know the interest I am paying on debt while my return on investments will be foggy. Another issue to consider is the mix of taxable, tax-deferred, and no-tax investments. Many variables here. Current tax rate and future tax rate of the mix is the most important. Those RMD's can drive you into another layer of taxes. Are you able to fund a Roth today? Will you need to use investment funds for an early retirement? Will you need taxable assets to pay the taxes on a Roth conversion. I consider this art, not science. Keep your head in the game and respond to changes in investment trends and tax rates. The answer from years ago may not work today or tomorrow.
Post: Should You Stop Contributing To Your IRA?
Link to comment from February 11, 2026
In the small sample of the folks I deal with at AARP, the larger standard deduction and the senior deduction are generating larger refunds.
Post: 2025 Tax Return Time – Overview of Changes
Link to comment from February 10, 2026
As a Vanguard ETF customer, this is good news. They have great products in this space and I will continue to use them.
Post: Vanguard Funds Fee Cut
Link to comment from February 3, 2026
You are correct. On the other hand, RMDs create similar issues. That’s why I do Roth conversions within a range of my estimated tax rate while I am taking RMD’s. Today, I only have my investment income and pensions. Next year, I will have SS added to that. Then at 73 I will have RMDs. The rate moves up during that time and I fill the gap with Roth conversions.
Post: Are Roth conversions now more complicated?
Link to comment from January 23, 2026
I’ve been involved with PE for over 25 years. I’ve seen the reporting that the big firms provide and know that their valuation methodologies involve projections that often do not come to pass. The 2% fee and 20% cut of gains is very rich for those that balk at 1% fees. I did a study of returns in my companies PE fund portfolio. 1/3 lost the entire investment, 1/3 broke even and 1/3 hit the ball out of the park. I’ve never invested in a PE fund and never will. I have invested in PE owned businesses where I had access to financials and some say in how things were done. I’ve had some very successful exits and one failure. I would never recommend 401k investments in PE.
Post: Private Equity Investing
Link to comment from January 22, 2026