John Harville

Comments:

• I too have amassed unneeded wealth in retirement Jonathan, but am still cautious going forward at age 83. I've heard others on this forum choosing to spend down their seemingly unneeded assets in retirement, but one can never know future needs. The X factor for retirees is health care, long term health care. I consciously decided not to purchase same years ago, a decision I do not regret today and a whole other story, but long term health care can be very expensive, especially if both you and your spouse must go in, a situation that has destroyed many a portfolio. There will be plenty of time at death to move assets to my chosen heirs.

  Post: Where It Goes

  Link to comment from April 13, 2024

• Going against the grain, I've been on about a 9 year tear to convert both my and my wife's Trads to Roths, and am just as determined as ever to finish it out, providing we both live long enough, retired 24 years, now age 83, wife 7 years younger, both in good health. My Trad is completely converted and we need three more January 1sts to finish the job for my wife's. It all started years ago with zero debt, paid off home with upwards of a quarter mil remodel costs, three new cars in the garage, many other amenities, all paid for by a 15 year bull market, with no other big ticket items to buy in today's world. Had nothing else to do with our RMDs and decided to use them for conversion Federal taxes, which was painless. Plus I've increased conversion amounts for the last 3 years into the next higher Medicare payment to get the job done quicker, also painless because SS cost of living increases have more than covered higher Medicare costs, while holding AGI to 250,000 to avoid the 3% Medicare tax. Still leaves me with near 120,000 to convert. I've heard all the arguments against doing what I'm doing, weak in my opinion, but remember the main truth in all of this.....Uncle Sam WILL get his, whether I pay it or my heirs pay it. Guessing also that my children will highly enjoy receiving a deep 9 figure inheritance completely tax free. John Harville

  Post: Called to Account

  Link to comment from January 28, 2024

• Most certainly the right thing to do Jonathan, providing you have made the decision to stay in your house long term and can afford it. What I did not hear were words such as comfort and enjoyment, because that is what you will experience. As one who also made 6 figure improvements redoing 2 bathrooms the kitchen and adding a sun room over looking our small lake, I enjoy it all as much or more now at age 83 as I did 8 years ago when undertaken. As a serious investor and one who spends a lot of time at home, I never looked at it from an investment perspective and if asked today would I do it again? The answer is unequivocally yes!

  Post: Our Money Pit

  Link to comment from January 20, 2024

• A highly thoughtful article about covering all the bases in a lifetime in a high tech world Jonathan. A lifetime that goes by at breakneck speed. Thank you.

  Post: Better and Better

  Link to comment from December 9, 2023

• An excellent and well written article Craig. In 1998 at age 58 we sold our once popular tri-level, a house necessary to go either upstairs or downstairs for a bathroom. We did so because of visiting handicapped relatives, but with one eye on our future aging as well, moving into an 11 year old ranch style home with four bedrooms and 2 1/2 bathrooms all on the the main level, with basement. Now at age 83, my world has become much smaller, with walking to the mailbox exhausting, but still gardening and still have greatly accessible living arrangements. It still may not be enough however and my next move, if it happens, will not be into my own home. Certainly your article will resonate with those who have not already taken the above precautions. While I have accomplished some decluttering, your article motivates me to take on much more serious decluttering, in the interest of making life somewhat easier for my children. Thank you Craig.

  Post: A Half-Century Later

  Link to comment from September 27, 2023

• Good points Jonathan. Not undertaking this without a lot of thought however. With zero debt, it isn't likely I'll ever be itemizing again, but will always have necessary income for the full standard deduction. No big ticket items needed or wanted at this stage of life, cash & carry anyway. Granted, medical/long term care is always the X factor at this age. Currently this couple is in good health and has excellent medical insurance coverage. Financial planner has stated we can handle it and won't be running out of money. It will take four years at todays rates to complete the mission of conversions, a long time at this age. If attained however, income drops back to retirement/pension income, once again qualifying me for zero taxed dividends of approximately $13,000 annually, plus no more RMDs. Also, rules and regs for inherited IRAs have become less friendly to heirs, with the potential to cause tax grief for my children. I'm basically paying the taxes for them, with monies I haven't needed, and don't figure to need. Risk is everywhere, all of the time. Surprises? We'll deal with them as they come.

  Post: The Gift of the MAGI

  Link to comment from December 18, 2022

• On a mission to convert all of my Trad IRA investments to Roth, I've chosen to go to the next level of Medicare from standard. This because market valuations have been reduced considerably in the 2022 downturns. You are taxed on the value of the conversion on the day you do it, making the higher Medicare premium more than worth it to me for this year. This also allows me to get the conversion job done faster, at age 82, likely nearing end of life. Valuations are predicted to be low or lower in 2023 as well, whether a recession or not, creating another good conversion opportunity. I've used my unneeded RMDs over the 15 year bull market to pay fed taxes, painless.

  Post: The Gift of the MAGI

  Link to comment from December 18, 2022

• Bought in to I bonds ETF TIPS with 40k (20k for me, 20k for wife) in August knowing that fund expenses would cause a somewhat lower return but felt it worthwhile to avoid the usual government rules & regs and with the ability to sell when desired without penalty. Also noted that I bought in near the fund's 52 week low at the time. But it's been on the decline ever since, with a collective principal loss on paper of $3,242.00 today 11/5/22. Bought in just in time to collect the Sept 1st distribution of just under $500 collectively (7.55%), to which I thought wow at the time if this goes on every month. It hasn't. Similar distributions were made for 6/1, 7/1, 8/1, but zero since 9/1. Nothing for October and apparently nothing now for November either. Buyer beware, as usual. Not sure what to think at this point and will be discussing it with my Fidelity Advisor next visit.

  Post: Should Have Waited

  Link to comment from November 5, 2022