I urge you to share, RDQ, with all four of your children. I suspect it will remove a huge, perhaps subconscious, load from your shoulders. My father began sharing his financial information with me, an only child, when I was in my 20s. Then, I hated it, as he reviewed his accounts and investment deliberations in great detail; I barely had the patience to listen. I also never counted on inheriting (the step family situation was fluid), and these talks did not alter my savings path. Over time, I grew to respect my father for sharing. I learned much, too. As his eventual executor, my understanding of his finances made my work that much easier. I already had a checklist. And the best part was that my father asked what I would do were I to inherit. We spoke of philanthropy and it pleased him to know that his money would be put to good use. He passed two decades ago, but I feel him with me to this day as I realize my giving plans.
I agree with you, RDQ, in not taxing unrealized gains. I wonder, however, could changes to the US capital gains tax laws result in more taxes collected overall? Billionaires, as I understand, borrow against appreciated assets rather than selling them, to avoid taxes. Imagine if they sold the assets instead, they would be paying the government and not the banks and perhaps in the process easing some of the country’s budget woes. I made the “mistake” decades ago to buy and hold tech stocks. This has led to concentrated positions in my taxable account that I would prefer to liquidate were it not for tax considerations. I would begin selling immediately, to lowers risks, if capital gains on equities were, for example, taxed like qualified dividends and not as income. Given the current tax code, and assuming I continue to hold, the government will never collect on my gains because of the stepped-up basis upon death.
To me, the "defense dividend" (aka reductions in military spending), Budget Enforcement Act, and rising income tax rates of the 1990s all factored large in reducing US government debt. I would be reluctant to attribute the budget surplus at the turn of the millennium solely to increased productivity and the stock market. The concept that a new economic paradigm had taken hold then turned out not to be the case. And now we have increased military spending, have little to no budget enforcement, and declining tax rates.
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!
Comments
I urge you to share, RDQ, with all four of your children. I suspect it will remove a huge, perhaps subconscious, load from your shoulders. My father began sharing his financial information with me, an only child, when I was in my 20s. Then, I hated it, as he reviewed his accounts and investment deliberations in great detail; I barely had the patience to listen. I also never counted on inheriting (the step family situation was fluid), and these talks did not alter my savings path. Over time, I grew to respect my father for sharing. I learned much, too. As his eventual executor, my understanding of his finances made my work that much easier. I already had a checklist. And the best part was that my father asked what I would do were I to inherit. We spoke of philanthropy and it pleased him to know that his money would be put to good use. He passed two decades ago, but I feel him with me to this day as I realize my giving plans.
Post: Time to share our financial info with children?
Link to comment from June 9, 2026
I agree with you, RDQ, in not taxing unrealized gains. I wonder, however, could changes to the US capital gains tax laws result in more taxes collected overall? Billionaires, as I understand, borrow against appreciated assets rather than selling them, to avoid taxes. Imagine if they sold the assets instead, they would be paying the government and not the banks and perhaps in the process easing some of the country’s budget woes. I made the “mistake” decades ago to buy and hold tech stocks. This has led to concentrated positions in my taxable account that I would prefer to liquidate were it not for tax considerations. I would begin selling immediately, to lowers risks, if capital gains on equities were, for example, taxed like qualified dividends and not as income. Given the current tax code, and assuming I continue to hold, the government will never collect on my gains because of the stepped-up basis upon death.
Post: Billionaires, taxes and you
Link to comment from May 27, 2026
To me, the "defense dividend" (aka reductions in military spending), Budget Enforcement Act, and rising income tax rates of the 1990s all factored large in reducing US government debt. I would be reluctant to attribute the budget surplus at the turn of the millennium solely to increased productivity and the stock market. The concept that a new economic paradigm had taken hold then turned out not to be the case. And now we have increased military spending, have little to no budget enforcement, and declining tax rates.
Post: Inflation and Innovation
Link to comment from May 23, 2026
Thank you, Andrew, for this reflection. I'm curious -- do you think your father wanted the essay to be found?
Post: My Father: The Peace He Never Found
Link to comment from May 21, 2026
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