Ditto! To be blessed with freedom and peace of mind is so very precious. On the keeping up side, apparel purchases during my working years would top my list. The extended wearspans of retirement clothes are much more to my liking.
Congrats on your new book! Your four points may be universal to finding purpose in retirement. I could definitely apply them to my fine arts journey just as you have to your writing journey.
The quasi-state employer I worked for provides a state-negotiated health insurance. The state itself administers the plan, COBRA and also a retiree Advantage plan.
Great perspective, Michael. In the aftermath of the Oil Embargo, gasoline prices in the US peaked at $1.38 in 1981. According to bls.gov, that would be $5.28 in today's dollars. That same year, average 30-year fixed home mortgages topped out at just over 18% and unemployment was climbing to 11%. Coupled with the high inflation of the period, scary financial times indeed! (And many of us here somehow got through them.)
I considered ADA coverage for my first year of retirement, at age 63. Instead, I opted for COBRA, for multiple reasons. Topping the list was familarity and continuity. Then too, the cost savings would likely have been modest and the employment contract I had retired under allowed for a one-time $6,000 longevity bonus, pending proof of having paid at least six months of health care premiums in retirement. (The COBRA premiums were $14,400 per year, as of five years ago. Because I itemize, they were partly deductible.) Another reason I opted for COBRA was that I disliked providing personal data to yet another provider. Lastly, and this may have been poorly reasoned, I worried something would go wrong in the ADA application process, that I might be denied coverage, or that I would be without coverage however briefly. In retrospect, applying for COBRA was itself a challenge, as I did so through a state-managed system and not my employer; rather a lot of paperwork and phone calls left unanswered.
Not knowing much about direct indexing, I'm curious how the IRS considers ownership at death. Would each indexed stock need to be tracked separately on the estate tax form? As an executor, I recall many supplemental pages accompanying IRS form 706 for the ninety-nine individual assets that my father held. Probably less of a consideration nowadays with higher estate tax exclusions, but still a painful memory!
RDQ, I sleep soundly at night knowing that I could create an income stream with my 403b at TIAA. Had I annuitized that account at retirement four years ago, the annual income would have exceeded my then salary. For tax reasons, I opted not to annuitize and instead I support my spending mostly with withdrawals from a taxable account. That is still simple enough to manage for now. Time will simplify that further, what with income streams in two years from SS and in five years with RMDs from TIAA.
Thank you, Ed, for outlining your investment strategies. A very thoughtful piece.I retired four years ago, spent a full week then spreadsheet-testing various withdrawal strategies, and constructed a withdrawal plan that I follow and with which I am comfortable. Unlike you, Roth conversions hold no incentive for me. About two thirds of my savings are in taxable accounts, mostly stocks. The remaining third is largely tax deferred, in fixed income. The fixed income ought to help minimize future RMDs and, in my case, is more tax efficient. In two years, at age 70, I plan to collect Social Security and, at age 70.5, to begin qualified charitable distributions. I am taking pre-RMD distributions from my 403(b) to the extent they are not taxed in my state. I am extraordinarily grateful for my financial situation but also know that it reflects a lot of careful planning.
Comments
Ditto! To be blessed with freedom and peace of mind is so very precious. On the keeping up side, apparel purchases during my working years would top my list. The extended wearspans of retirement clothes are much more to my liking.
Post: The Art of Spending Money
Link to comment from May 18, 2026
Congrats on your new book! Your four points may be universal to finding purpose in retirement. I could definitely apply them to my fine arts journey just as you have to your writing journey.
Post: Writing a Book in Retirement: The Good, the Hard, and the Surprisingly Meaningful
Link to comment from May 16, 2026
The quasi-state employer I worked for provides a state-negotiated health insurance. The state itself administers the plan, COBRA and also a retiree Advantage plan.
Post: Retiring before age 65? COBRA vs ACA plan- important decision
Link to comment from May 14, 2026
Great perspective, Michael. In the aftermath of the Oil Embargo, gasoline prices in the US peaked at $1.38 in 1981. According to bls.gov, that would be $5.28 in today's dollars. That same year, average 30-year fixed home mortgages topped out at just over 18% and unemployment was climbing to 11%. Coupled with the high inflation of the period, scary financial times indeed! (And many of us here somehow got through them.)
Post: My Recent Fill-up
Link to comment from May 14, 2026
I considered ADA coverage for my first year of retirement, at age 63. Instead, I opted for COBRA, for multiple reasons. Topping the list was familarity and continuity. Then too, the cost savings would likely have been modest and the employment contract I had retired under allowed for a one-time $6,000 longevity bonus, pending proof of having paid at least six months of health care premiums in retirement. (The COBRA premiums were $14,400 per year, as of five years ago. Because I itemize, they were partly deductible.) Another reason I opted for COBRA was that I disliked providing personal data to yet another provider. Lastly, and this may have been poorly reasoned, I worried something would go wrong in the ADA application process, that I might be denied coverage, or that I would be without coverage however briefly. In retrospect, applying for COBRA was itself a challenge, as I did so through a state-managed system and not my employer; rather a lot of paperwork and phone calls left unanswered.
Post: Retiring before age 65? COBRA vs ACA plan- important decision
Link to comment from May 14, 2026
Not knowing much about direct indexing, I'm curious how the IRS considers ownership at death. Would each indexed stock need to be tracked separately on the estate tax form? As an executor, I recall many supplemental pages accompanying IRS form 706 for the ninety-nine individual assets that my father held. Probably less of a consideration nowadays with higher estate tax exclusions, but still a painful memory!
Post: Direct Indexing Anyone?
Link to comment from May 11, 2026
RDQ, I sleep soundly at night knowing that I could create an income stream with my 403b at TIAA. Had I annuitized that account at retirement four years ago, the annual income would have exceeded my then salary. For tax reasons, I opted not to annuitize and instead I support my spending mostly with withdrawals from a taxable account. That is still simple enough to manage for now. Time will simplify that further, what with income streams in two years from SS and in five years with RMDs from TIAA.
Post: The never ending payday
Link to comment from May 9, 2026
Thank you, Ed, for outlining your investment strategies. A very thoughtful piece. I retired four years ago, spent a full week then spreadsheet-testing various withdrawal strategies, and constructed a withdrawal plan that I follow and with which I am comfortable. Unlike you, Roth conversions hold no incentive for me. About two thirds of my savings are in taxable accounts, mostly stocks. The remaining third is largely tax deferred, in fixed income. The fixed income ought to help minimize future RMDs and, in my case, is more tax efficient. In two years, at age 70, I plan to collect Social Security and, at age 70.5, to begin qualified charitable distributions. I am taking pre-RMD distributions from my 403(b) to the extent they are not taxed in my state. I am extraordinarily grateful for my financial situation but also know that it reflects a lot of careful planning.
Post: Slow on the Draw
Link to comment from May 9, 2026
Your first full post, I think, D.J.? Keep them coming!!!
Post: California, Here They Came
Link to comment from April 30, 2026
Thank you, Andrew, for a most meaningful, grounding, and hopeful article.
Post: One World, One Kind of Work
Link to comment from April 30, 2026