I used a spreadsheet to determine breakeven point for FRA vs 70. It was around 82 years. Since no male in my family had lived past 73, I took it at FRA, age 66. I have a no COLA pension, and our combined SS and the pension have been more than adequate for our expenses. We have only used savings for major capital expenses like cars (2) and a kitchen remodel. Despite that, savings have more than doubled since retirement. Now 80 and wife 81, we have no regrets.
I totally agree Jonathan. As the central IT director, I could get 10 compliments from customers and one critical response. Guess which one I took home with me at the end of the day? Our organization wrestled with the central IT or decentral IT question for years. It made for a toxic political environment. Sometimes a customer would send a harshly critical letter to senior management about me and my department. Even if the criticism was unfair or unfounded, I realized I could learn from it because people never criticize your strengths. It is always your weaknesses. I might defend myself or my department, but I used this as an opportunity to improve our weaknesses.
Good article. Thanks Ken. Since retirement 14 years ago, I have done a variety of things that interest me and I believe help keep my mind sharp. I am on the board of 2 retiree organizations, participate in ministries at my church and have done a number of presentations to large groups. All of that is stimulating to the mind, and I do not believe I am slipping, although I might be the last to know. lol. I am also physically active with walking, golf and exercises. I do not drink and try to eat a healthy diet, although I do have a sweet tooth. My mother died at 89 and was mentally sharp up to the end. She had a phobia that resulted in a mental health evaluation at age 88. She aced the cognitive test and was their star patient. I just turned 80, an age I never thought I would reach. The odds of cognitive impairment increase dramatically at this age. However, I feel very blessed with my situation, and look forward to tomorrow.
Good article John! Thanks for sharing.
When I retired in 2010 at age 66, 89% of our savings was pre tax in TIRAs. I considered Roth conversions but opted not to do so. I read an article a few years ago talking about the impact of the sunset of the 2017 tax law. That really got my attention. I began doing large Roth conversions each year since. These triggered IRMAA penalties and pushed me into 24% tax bracket. I have reached the point where my QCDs exceed my RMDs, so will only do a small Roth conversions up to the point just before IRMAA penalties began. The net of all this is our TIRA allocation will only be 15% at the end of the year. Everything else is in Roth and taxable. I do not intend to use any of the Roth but it will be a great inheritance for our children. I have no idea whether the 2017 tax law will expire or continue. But I am glad we did all of these Roth conversions.
Great article Dick. I am 79 and wife is 81. We live in our home of 51 years which has 2 acres which has been well maintained. However, maintaining our property requires more maintenance than I am capable of. Nonetheless, we steadfastly hope to live here as long as we can. However, that can be a lot shorter than we hoped for. Your article is a good guide if we ever have to go down that path. Regards,
John
Jonathan, Thanks so much for this and other articles you continue to write. It seems you have done your research and have chosen the best path forward. Wishing you much more time and the opportunity to do the things you and your family will find the most pleasure in. Blessings to you and your family. John
A wise man once told me that answers are easy but questions are hard. A good lawyer will ask the relevant questions to make sure whatever legal document you need has covered all the bases. It is not obvious to us lay people what all the questions are.
Comments:
Great! Good to see a little humor.
Post: More leading economic indicators.
Link to comment from September 26, 2024
I used a spreadsheet to determine breakeven point for FRA vs 70. It was around 82 years. Since no male in my family had lived past 73, I took it at FRA, age 66. I have a no COLA pension, and our combined SS and the pension have been more than adequate for our expenses. We have only used savings for major capital expenses like cars (2) and a kitchen remodel. Despite that, savings have more than doubled since retirement. Now 80 and wife 81, we have no regrets.
Post: Quinn asks himself, Is delaying Social Security to age 70 the right decision?
Link to comment from September 23, 2024
I totally agree Jonathan. As the central IT director, I could get 10 compliments from customers and one critical response. Guess which one I took home with me at the end of the day? Our organization wrestled with the central IT or decentral IT question for years. It made for a toxic political environment. Sometimes a customer would send a harshly critical letter to senior management about me and my department. Even if the criticism was unfair or unfounded, I realized I could learn from it because people never criticize your strengths. It is always your weaknesses. I might defend myself or my department, but I used this as an opportunity to improve our weaknesses.
Post: Never Quite Enough
Link to comment from September 21, 2024
This sounds like a good alternative with less volatility and exposure to tech. Thanks for the suggestion.
Post: A Cautionary Tale: The S&P and the Perilous Sequence of Returns by Steve Abramowitz
Link to comment from September 17, 2024
Good article. Thanks Ken. Since retirement 14 years ago, I have done a variety of things that interest me and I believe help keep my mind sharp. I am on the board of 2 retiree organizations, participate in ministries at my church and have done a number of presentations to large groups. All of that is stimulating to the mind, and I do not believe I am slipping, although I might be the last to know. lol. I am also physically active with walking, golf and exercises. I do not drink and try to eat a healthy diet, although I do have a sweet tooth. My mother died at 89 and was mentally sharp up to the end. She had a phobia that resulted in a mental health evaluation at age 88. She aced the cognitive test and was their star patient. I just turned 80, an age I never thought I would reach. The odds of cognitive impairment increase dramatically at this age. However, I feel very blessed with my situation, and look forward to tomorrow.
Post: The Persistence of Memory by Ken Cutler
Link to comment from September 17, 2024
Great list Michael. All good, but especially #19.
Post: Signs of the Times
Link to comment from July 18, 2024
Good article John! Thanks for sharing. When I retired in 2010 at age 66, 89% of our savings was pre tax in TIRAs. I considered Roth conversions but opted not to do so. I read an article a few years ago talking about the impact of the sunset of the 2017 tax law. That really got my attention. I began doing large Roth conversions each year since. These triggered IRMAA penalties and pushed me into 24% tax bracket. I have reached the point where my QCDs exceed my RMDs, so will only do a small Roth conversions up to the point just before IRMAA penalties began. The net of all this is our TIRA allocation will only be 15% at the end of the year. Everything else is in Roth and taxable. I do not intend to use any of the Roth but it will be a great inheritance for our children. I have no idea whether the 2017 tax law will expire or continue. But I am glad we did all of these Roth conversions.
Post: Driven by Taxes
Link to comment from July 17, 2024
Great article Dick. I am 79 and wife is 81. We live in our home of 51 years which has 2 acres which has been well maintained. However, maintaining our property requires more maintenance than I am capable of. Nonetheless, we steadfastly hope to live here as long as we can. However, that can be a lot shorter than we hoped for. Your article is a good guide if we ever have to go down that path. Regards, John
Post: Pluses and Minuses
Link to comment from July 6, 2024
Jonathan, Thanks so much for this and other articles you continue to write. It seems you have done your research and have chosen the best path forward. Wishing you much more time and the opportunity to do the things you and your family will find the most pleasure in. Blessings to you and your family. John
Post: Looking Different
Link to comment from July 6, 2024
A wise man once told me that answers are easy but questions are hard. A good lawyer will ask the relevant questions to make sure whatever legal document you need has covered all the bases. It is not obvious to us lay people what all the questions are.
Post: Case Closed
Link to comment from March 8, 2023