AUTHOR: James Mcglynn on 11/25/2024 FIRST: stelea99 on 11/25/2024 | RECENT: James Mcglynn on 11/26/2024
Comments
After writing about Roth conversions similarly for 10 years and converting from traditional IRA's it's quite possible I paid too much in taxes because I was single and in a higher tax bracket than now currently filing as a couple. However a 10 year bull market for my Roth feels like a fair offset. And recently re-watching the movie Armageddon when Bruce Willis states the demands for saving the earth that " they dont want to pay taxes again - ever" sounds like my version of Roth money.
Reading the many comments complaining that Roth accounts should be taxable is pretty bizarre. 90% of all IRA $'s are traditional and 10% are Roth -similarly for 401k's. During my working years I only had traditional 401k and IRA. The advent of Roth accounts was an opportunity to create accounts that "pay taxes in advance" so seemed very attractive -even though paying the taxes was no fun. For those that think it is unfair then convert your account and pay the unpalatable tax today. What about 529 plans, cash value life insurance, HSA accounts?
Delving into TIPS and TIPS ladders I stumbled upon Allan Roth's personal experiment building a TIPS 30 year ladder about 4 years ago. It is a good read. But it highlights the volatility IF purchasing 30 year TIPS - duration can still hurt. While he bought when Yields to Maturity were high they have continued to rise in the long end. I think most would prefer not to have such volatility especially as there is no end in sight for the deficits. And in my 60's thirty year bonds aren't that appealing anyway!
When TIPS had real yields to maturity of 0% or 1% they made no sense. Now that yields can be 2% or 3% they are much more interesting. I have been buying individual holdings with a 2% yield to maturity minimum in my deferred accounts and can hold to maturity. If they get cheaper can buy more. Im worried how high longer dated yields can go if Treasury has to attract investors so focusing on shorter maturity. Very easy to buy at Schwab.
Ten years ago I bought a One-America Hybrid LTC policy which embodies the concept of "self-funding". The policy is essentially a second-to-die life insurance policy. I put down a lump sum and pay an annual premium to ensure the benefits never expire. If not completely spent for LTC the remaining funds will be paid to survivors. The premiums are fixed. They are not inflation-adjusted. The benefits will be non-taxable. Having this policy on my balance sheet protects the rest of my investment portfolio. I wrote the policy myself and did for a handful of other friends. I am no longer working but the policy is in force and there have been no rate increases as the policy was not underpriced at the start.
Actually that is why I wrote this. I am with United Healthcare and their "Renew Active" program covers my pickleball membership. I hear that in January that might be dropped. If it is dropped I plan to look for coverage that will pay for my pickleball membership. Because Medigap can be changed "at anytime" i will be able to look for other coverage at that time.
Comments
After writing about Roth conversions similarly for 10 years and converting from traditional IRA's it's quite possible I paid too much in taxes because I was single and in a higher tax bracket than now currently filing as a couple. However a 10 year bull market for my Roth feels like a fair offset. And recently re-watching the movie Armageddon when Bruce Willis states the demands for saving the earth that " they dont want to pay taxes again - ever" sounds like my version of Roth money.
Post: Traditional or Roth
Link to comment from August 29, 2026
Happy 69th birthday Rick! I see this article is 2 years old. The gift that keeps on giving.
Post: Reaching Two-thirds of a Century!
Link to comment from August 25, 2026
Reading the many comments complaining that Roth accounts should be taxable is pretty bizarre. 90% of all IRA $'s are traditional and 10% are Roth -similarly for 401k's. During my working years I only had traditional 401k and IRA. The advent of Roth accounts was an opportunity to create accounts that "pay taxes in advance" so seemed very attractive -even though paying the taxes was no fun. For those that think it is unfair then convert your account and pay the unpalatable tax today. What about 529 plans, cash value life insurance, HSA accounts?
Post: Income taxes on retirees with Social Security
Link to comment from August 17, 2026
Delving into TIPS and TIPS ladders I stumbled upon Allan Roth's personal experiment building a TIPS 30 year ladder about 4 years ago. It is a good read. But it highlights the volatility IF purchasing 30 year TIPS - duration can still hurt. While he bought when Yields to Maturity were high they have continued to rise in the long end. I think most would prefer not to have such volatility especially as there is no end in sight for the deficits. And in my 60's thirty year bonds aren't that appealing anyway!
Post: Taking a Loss?
Link to comment from August 3, 2026
Https://humbledollar.com/forum/social-security-spousal-benefits/ I wrote this in March on HD.
Post: Spouses SS benefits don’t always equal half workers benefit.
Link to comment from July 31, 2026
Schwab doesnt show a tips ladder but www.tipsladder.com shows specific cusips to build one. Then buy at Schwab.com.
Post: Treasury Inflation Protected Securities (TIPS) are a Generational Bargain Right Now
Link to comment from July 28, 2026
When TIPS had real yields to maturity of 0% or 1% they made no sense. Now that yields can be 2% or 3% they are much more interesting. I have been buying individual holdings with a 2% yield to maturity minimum in my deferred accounts and can hold to maturity. If they get cheaper can buy more. Im worried how high longer dated yields can go if Treasury has to attract investors so focusing on shorter maturity. Very easy to buy at Schwab.
Post: Treasury Inflation Protected Securities (TIPS) are a Generational Bargain Right Now
Link to comment from July 27, 2026
Ten years ago I bought a One-America Hybrid LTC policy which embodies the concept of "self-funding". The policy is essentially a second-to-die life insurance policy. I put down a lump sum and pay an annual premium to ensure the benefits never expire. If not completely spent for LTC the remaining funds will be paid to survivors. The premiums are fixed. They are not inflation-adjusted. The benefits will be non-taxable. Having this policy on my balance sheet protects the rest of my investment portfolio. I wrote the policy myself and did for a handful of other friends. I am no longer working but the policy is in force and there have been no rate increases as the policy was not underpriced at the start.
Post: How do you prepare for the long term care cost as retiree?
Link to comment from June 23, 2026
Thanks for the heads up. In January I have heard some plans will be labeled premium and will not be covered.
Post: Medicare Open Enrollment and Medigap
Link to comment from November 26, 2024
Actually that is why I wrote this. I am with United Healthcare and their "Renew Active" program covers my pickleball membership. I hear that in January that might be dropped. If it is dropped I plan to look for coverage that will pay for my pickleball membership. Because Medigap can be changed "at anytime" i will be able to look for other coverage at that time.
Post: Medicare Open Enrollment and Medigap
Link to comment from November 25, 2024