Great work, achnk53, at bringing closure to so many loose ends! Although my tax returns are no longer trivial (18 pages, this year, for the IRS), my tax planning is simple. To estimate investment income, I rely on year-end account statements. Mine include both the total income by type for the just completed year and projections by month for the coming year. To be on the safe side, I estimate future investment income to be a few percent larger than projected or previously received. An RMD, withdrawals of tax-deferred funds, and capital gains considerations are also factored in as income. The AARP/dinkytown tax calculator is a great tool and what I use to estimate future taxes: https://www.aarp.org/money/taxes/1040-tax-calculator/ . (If you use it, be sure to expand the entry prompts by clicking the down arrows to the right of the page.)
Thanks, Mike, for this welcome first post. You didn't ask, but I will answer as a childless reader. I don't have regrets either. I knew from an early age that parenting did not interest me. Over several decades, others patiently tried to dissuade me. "Oh, you'll change..." I don't think I would have been a good parent, but I seem to have been a good mentor. My choice of an academic career continuously provided the opportunity to interact meaningfully with young people.
Thanks, Bogdan, for those tips. As you allude to, it's also important to begin, in mid- to late-career, thinking differently about tax efficiency with respect to tax-deferred accounts. For those fortunate to have significant assets, keeping the bulk of one's fixed income in tax deferred accounts becomes increasingly favorable with age. That has to do with both the size of future RMDs and that fixed income interest is considered regular income. IRMAA considerations may also enter in.
Dana, thanks for the update. This new move seems to position you well for increased social connection -- the neighbors, the vibrant community, the Airbnb, even the new puppy. In that sense, it seems like a smart move. It would seem responsible too, by being affordable, walkable, and potentially helpful to your daughter. Maybe even by being a dwelling in which you can successfully age in place? Your writing conveys much enthusiasm for the purchase even considering the cons. My hope is for you to enjoy your new home and associated projects, and to think of them as fruits of your saving and career.
I save the annual income source report to my tax folder, just in case of an audit and the report disappears online. Virtually all the cash in my taxable Fidelity account is in FDLXX. In 2025, ninety-seven percent of its income came from Treasurys, and the fund yielded only 0.05% less than their default money market (SPAXX).
Thanks, Ken, for this update. Your article is exactly the kind I previously enjoyed so much on this site, and that I posted about yesterday in RDQ's "ladies" piece. Good luck to you on winding down your work life. I am five years older and like you so often aware of those "more important things to do". That said, I still work a half day each week and look forward to the cognitive and physical demands of the job.
I still read Humble Dollar, but find the topics and posts have become repetitive. Bogleheads is where I prefer to visit. What I most loved about the early years of this site -- those wonderfully personal tales of financial journeys -- seem rare these days. I agree with some of the commenters below that this site does seem to have a gender bias. My user name is purposely gender neutral and I hope that my postings have always been seen to be as well.
I wholeheartedly agree with your analysis, RDQ. The analysis should also extend, I would argue, to the selection of supplemental Medicare coverage, specifically, the choice between regular and high-deductible plans. For Plan G, with my state and insurer, the cost savings of a high deductible plan is currently $2,329 a year and the maximum annual difference in out-of-pocket costs, between the regular and high deductible plans, is $2,667. In the three years I've had a high deductible Plan G, I've been in good health and have saved around $7,000 in premiums. The cost savings seems not unlike a form of health savings account. Of course, consideration of one's overall health and ability to pay future deductibles should factor in decisions to choose a high deductible plan.
I've witnessed the 4% rule in practice. After inheriting a non-spouse IRA in my forties, my required RMDs have averaged 3.75% over the last two decades. Even with the much higher (>5%) required RMDs of recent years, the IRA has grown more than 50% in value since I inherited. Of course, growth depends on investment type, market conditions, etc. Had I realized this and my future tax liability sooner, I would have withdrawn more agressively in the early years -- but taxes are a good problem to have!
Unlike many, I still use cash and have long kept several weeks worth of spending money in my wallet. As for gold and silver coins, I have yet to part with an inherited hoard. And those of us in rural areas prone to long electricity outages and without generators have lots of adaptation skills; I would likely fare as well as anyone with survival in your Level 3 scenario. But lose the internet and try to cope with disruptions to one's financial life, paying bills, access to accounts, etc? I'm not sure I could endure cyber attacks or want to untangle the resulting mess.
Comments
Great work, achnk53, at bringing closure to so many loose ends! Although my tax returns are no longer trivial (18 pages, this year, for the IRS), my tax planning is simple. To estimate investment income, I rely on year-end account statements. Mine include both the total income by type for the just completed year and projections by month for the coming year. To be on the safe side, I estimate future investment income to be a few percent larger than projected or previously received. An RMD, withdrawals of tax-deferred funds, and capital gains considerations are also factored in as income. The AARP/dinkytown tax calculator is a great tool and what I use to estimate future taxes: https://www.aarp.org/money/taxes/1040-tax-calculator/ . (If you use it, be sure to expand the entry prompts by clicking the down arrows to the right of the page.)
Post: Tools/calculators for monthly retirement cash flow and tax estimation
Link to comment from April 10, 2026
Thanks, Mike, for this welcome first post. You didn't ask, but I will answer as a childless reader. I don't have regrets either. I knew from an early age that parenting did not interest me. Over several decades, others patiently tried to dissuade me. "Oh, you'll change..." I don't think I would have been a good parent, but I seem to have been a good mentor. My choice of an academic career continuously provided the opportunity to interact meaningfully with young people.
Post: Financial regrets about parenthood?
Link to comment from April 6, 2026
Thanks, Bogdan, for those tips. As you allude to, it's also important to begin, in mid- to late-career, thinking differently about tax efficiency with respect to tax-deferred accounts. For those fortunate to have significant assets, keeping the bulk of one's fixed income in tax deferred accounts becomes increasingly favorable with age. That has to do with both the size of future RMDs and that fixed income interest is considered regular income. IRMAA considerations may also enter in.
Post: Tax Efficiency
Link to comment from April 4, 2026
Dana, thanks for the update. This new move seems to position you well for increased social connection -- the neighbors, the vibrant community, the Airbnb, even the new puppy. In that sense, it seems like a smart move. It would seem responsible too, by being affordable, walkable, and potentially helpful to your daughter. Maybe even by being a dwelling in which you can successfully age in place? Your writing conveys much enthusiasm for the purchase even considering the cons. My hope is for you to enjoy your new home and associated projects, and to think of them as fruits of your saving and career.
Post: A Big Little Move (by Dana/DrLefty)
Link to comment from March 30, 2026
I save the annual income source report to my tax folder, just in case of an audit and the report disappears online. Virtually all the cash in my taxable Fidelity account is in FDLXX. In 2025, ninety-seven percent of its income came from Treasurys, and the fund yielded only 0.05% less than their default money market (SPAXX).
Post: Treasury Tax Reporting
Link to comment from March 29, 2026
Thanks, Ken, for this update. Your article is exactly the kind I previously enjoyed so much on this site, and that I posted about yesterday in RDQ's "ladies" piece. Good luck to you on winding down your work life. I am five years older and like you so often aware of those "more important things to do". That said, I still work a half day each week and look forward to the cognitive and physical demands of the job.
Post: Wrapping It Up
Link to comment from March 27, 2026
I still read Humble Dollar, but find the topics and posts have become repetitive. Bogleheads is where I prefer to visit. What I most loved about the early years of this site -- those wonderfully personal tales of financial journeys -- seem rare these days. I agree with some of the commenters below that this site does seem to have a gender bias. My user name is purposely gender neutral and I hope that my postings have always been seen to be as well.
Post: Where are the ladies?
Link to comment from March 26, 2026
I wholeheartedly agree with your analysis, RDQ. The analysis should also extend, I would argue, to the selection of supplemental Medicare coverage, specifically, the choice between regular and high-deductible plans. For Plan G, with my state and insurer, the cost savings of a high deductible plan is currently $2,329 a year and the maximum annual difference in out-of-pocket costs, between the regular and high deductible plans, is $2,667. In the three years I've had a high deductible Plan G, I've been in good health and have saved around $7,000 in premiums. The cost savings seems not unlike a form of health savings account. Of course, consideration of one's overall health and ability to pay future deductibles should factor in decisions to choose a high deductible plan.
Post: Focus on the real healthcare financial risk in post age 65 retirement
Link to comment from March 24, 2026
I've witnessed the 4% rule in practice. After inheriting a non-spouse IRA in my forties, my required RMDs have averaged 3.75% over the last two decades. Even with the much higher (>5%) required RMDs of recent years, the IRA has grown more than 50% in value since I inherited. Of course, growth depends on investment type, market conditions, etc. Had I realized this and my future tax liability sooner, I would have withdrawn more agressively in the early years -- but taxes are a good problem to have!
Post: Forget the 4% rule.
Link to comment from March 19, 2026
Unlike many, I still use cash and have long kept several weeks worth of spending money in my wallet. As for gold and silver coins, I have yet to part with an inherited hoard. And those of us in rural areas prone to long electricity outages and without generators have lots of adaptation skills; I would likely fare as well as anyone with survival in your Level 3 scenario. But lose the internet and try to cope with disruptions to one's financial life, paying bills, access to accounts, etc? I'm not sure I could endure cyber attacks or want to untangle the resulting mess.
Post: Why I Own Gold Bars
Link to comment from March 12, 2026