Boy you really kicked a hornet's nest here! Debt is a pretty serious subject to many here. And I expect we've all known folks that have been hurt by their debt. I had a HELOC for a long time, it was used to pay for a kitchen remodel. I was in no position to save up for it at the time. I retired the HELOC when I took out a second mortgage. That's a long story... IMHO, debt is a tool. Like any other tool there are right ways and wrong ways to use it. Generally, I'm opposed to debt, but I've used many 90-365 days same as cash loans, car loans, as well as the home loans. What I'm really opposed to are subscriptions. I despise paying a monthly or annual fee without any clear value being delivered (exception is a magazine or newpaper, those are great if you read them, and cancel them if you stop). In terms of the $50-75 annual fee to maintain it, that's pretty cheap. If you are conservative and only spend $4000/mo, $75 is 15 basis points. No way if that were a monthly fee. If you lose your job and think you need a loan to support your family, you should be darned sure that you are still employable. Bottom line for me is; If you don't know how or when you'll be paying back a loan, you shouldn't get one.
Hi Rob,
I'm hearing that you have too much income and pay too much taxes. Not really a problem in my view.
At 35% I wouldn't do a conversion either. I would want to find a way to reduce RMDs. It may be too late for you, but my best suggestion is to ramp up your gifting. In addition to charity, you can give a certain amount to others, for me it is my children. I think the max is around $30,000 each for you and your spouse per year. A small amount like that probably won't impact your tax bracket. I look at it that my residual funds will go to them anyway, and this reduces the potential tax bomb.
Of course, make sure to keep enough to cover your needs, especially long term care. Sorry, no criticism from me. Best wishes to you and your family.
John
HI Rachna,
My two cents.
I worked with a CFP who set up my accounts with Schwab. I was disappointed with the service, especially when it came time to leave. I have moved almost all my accounts (six of them) to Vanguard. I like using the website, I like the reporting, and I especially like the low management fees. Haven't really found I need the customer service because the web-portal is above average. I have moved to all ETFs after having a bent toward mutual funds for the last 20 years. I'm not yet retired, but months away, so I'm not exactly in your position. Due to planning complexities, I've wanted to have a planner looking at my portfolio. I've worked with two different planners that used an AUM model (Assets Under Management). I've now moved to a fee based arrangement. They got me access to a tool called Right Capital which does many of the things I wanted for visibility. I'd only give the tool a "C" grade, and my planner is young, but knowledgeable. I pay less that a 25% of the AUM costs for a portion of my portfolio, and I've rolled everything together in a single view. This is a flat monthly fee regardless of the value of my holdings. I didn't know that fee based was an option until I listened to a podcast on Morningstar. Good luck, and I hope this is just a little bit helpful. Let me know if you have any questions, but I don't spend a ton of time on this forum. John
These terms are relative. In my mind, to be wealthy accounts for your excess of assets over liabilities. I would not consider $1,000,000 net worth to be wealthy, because that is too common, lol! I would also suggest that wealth is a completely monetary/property representation.
Rich on the other hand can be many aspects of life, especially quality of life. This can be work, family, faith, and others. To be rich in these I would call success, regardless of wealth. You can also be rich in possessions which may be the most common connotation. In many cases people rich in possessions are also heavily in debt. IMO that doesn't make them any less rich.
I'd rather be rich. But not in possessions, in faith, respect, and talent. It is a sense of satisfaction and success. Wealth on the other hand is a charge to protect and preserve and grow that wealth. As many might agree, that can be a stressful challenge!
Hi Jonathan,
Thank you for your transparency and your site. You don't know me, and I don't know you, but this is the internet.
Your strength is palpable. I will pray for more pain free time for you. At risk of sharing beliefs not universally popular, I sign off... God bless you,
John Verlautz
At 64 I fatigue easily. Still active, but not nearly the energy from say 15 years ago. At 62 my wife is retired, so I plan to work with benefits until 67 when she is eligible for Medicare. She has a handful of health issues. I am fairly healthy, so we aren't currently chasing expensive health care concerns.
I enjoy working, and have a good job with great co-workers, an excellent boss, and a good company.
Recently I've increased my travelling and would like to continue that, but I cannot travel at the speedy pace I had 10 years ago.
My widowed mother passed away recently leaving a moderate inheritance. I don't think I'd quit work even if I had received enough to do so, and I certainly didn't. But it is comforting to have a cushion, reserve funds.
All that to say that today, my vision (dream?) of retirement is in no way close to what I imagined during most of my working years because of the energy loss. I feel flexibility is key. It's impossible to plan around every contingency, nor expect every curveball that comes your way. If you are retired, be grateful for that, and do your best to enjoy every day you are given. If you are working, be thankful for that, and use the opportunity to build relationships. Regardless of your personal situation, carpe diem, be active yet restrained, generous yet frugal, and intentionally seek joy in all circumstances.
Comments
Boy you really kicked a hornet's nest here! Debt is a pretty serious subject to many here. And I expect we've all known folks that have been hurt by their debt. I had a HELOC for a long time, it was used to pay for a kitchen remodel. I was in no position to save up for it at the time. I retired the HELOC when I took out a second mortgage. That's a long story... IMHO, debt is a tool. Like any other tool there are right ways and wrong ways to use it. Generally, I'm opposed to debt, but I've used many 90-365 days same as cash loans, car loans, as well as the home loans. What I'm really opposed to are subscriptions. I despise paying a monthly or annual fee without any clear value being delivered (exception is a magazine or newpaper, those are great if you read them, and cancel them if you stop). In terms of the $50-75 annual fee to maintain it, that's pretty cheap. If you are conservative and only spend $4000/mo, $75 is 15 basis points. No way if that were a monthly fee. If you lose your job and think you need a loan to support your family, you should be darned sure that you are still employable. Bottom line for me is; If you don't know how or when you'll be paying back a loan, you shouldn't get one.
Post: Advice I give to anyone who’ll listen!
Link to comment from January 31, 2026
Hi Rob, I'm hearing that you have too much income and pay too much taxes. Not really a problem in my view. At 35% I wouldn't do a conversion either. I would want to find a way to reduce RMDs. It may be too late for you, but my best suggestion is to ramp up your gifting. In addition to charity, you can give a certain amount to others, for me it is my children. I think the max is around $30,000 each for you and your spouse per year. A small amount like that probably won't impact your tax bracket. I look at it that my residual funds will go to them anyway, and this reduces the potential tax bomb. Of course, make sure to keep enough to cover your needs, especially long term care. Sorry, no criticism from me. Best wishes to you and your family. John
Post: Tell me my error in thinking
Link to comment from January 16, 2026
HI Rachna, My two cents. I worked with a CFP who set up my accounts with Schwab. I was disappointed with the service, especially when it came time to leave. I have moved almost all my accounts (six of them) to Vanguard. I like using the website, I like the reporting, and I especially like the low management fees. Haven't really found I need the customer service because the web-portal is above average. I have moved to all ETFs after having a bent toward mutual funds for the last 20 years. I'm not yet retired, but months away, so I'm not exactly in your position. Due to planning complexities, I've wanted to have a planner looking at my portfolio. I've worked with two different planners that used an AUM model (Assets Under Management). I've now moved to a fee based arrangement. They got me access to a tool called Right Capital which does many of the things I wanted for visibility. I'd only give the tool a "C" grade, and my planner is young, but knowledgeable. I pay less that a 25% of the AUM costs for a portion of my portfolio, and I've rolled everything together in a single view. This is a flat monthly fee regardless of the value of my holdings. I didn't know that fee based was an option until I listened to a podcast on Morningstar. Good luck, and I hope this is just a little bit helpful. Let me know if you have any questions, but I don't spend a ton of time on this forum. John
Post: Schwab or Vanguard?
Link to comment from January 16, 2026
I think "wifey" is a term of endearment. It sounds like Langston both likes his spouse and appreciates her. Delightful!
Post: Social Security – Why I Chose FRA
Link to comment from December 21, 2025
These terms are relative. In my mind, to be wealthy accounts for your excess of assets over liabilities. I would not consider $1,000,000 net worth to be wealthy, because that is too common, lol! I would also suggest that wealth is a completely monetary/property representation. Rich on the other hand can be many aspects of life, especially quality of life. This can be work, family, faith, and others. To be rich in these I would call success, regardless of wealth. You can also be rich in possessions which may be the most common connotation. In many cases people rich in possessions are also heavily in debt. IMO that doesn't make them any less rich. I'd rather be rich. But not in possessions, in faith, respect, and talent. It is a sense of satisfaction and success. Wealth on the other hand is a charge to protect and preserve and grow that wealth. As many might agree, that can be a stressful challenge!
Post: Are you wealthy or just rich?
Link to comment from December 20, 2024
Hi Jonathan, Thank you for your transparency and your site. You don't know me, and I don't know you, but this is the internet. Your strength is palpable. I will pray for more pain free time for you. At risk of sharing beliefs not universally popular, I sign off... God bless you, John Verlautz
Post: Staying Alive
Link to comment from December 20, 2024
At 64 I fatigue easily. Still active, but not nearly the energy from say 15 years ago. At 62 my wife is retired, so I plan to work with benefits until 67 when she is eligible for Medicare. She has a handful of health issues. I am fairly healthy, so we aren't currently chasing expensive health care concerns. I enjoy working, and have a good job with great co-workers, an excellent boss, and a good company. Recently I've increased my travelling and would like to continue that, but I cannot travel at the speedy pace I had 10 years ago. My widowed mother passed away recently leaving a moderate inheritance. I don't think I'd quit work even if I had received enough to do so, and I certainly didn't. But it is comforting to have a cushion, reserve funds. All that to say that today, my vision (dream?) of retirement is in no way close to what I imagined during most of my working years because of the energy loss. I feel flexibility is key. It's impossible to plan around every contingency, nor expect every curveball that comes your way. If you are retired, be grateful for that, and do your best to enjoy every day you are given. If you are working, be thankful for that, and use the opportunity to build relationships. Regardless of your personal situation, carpe diem, be active yet restrained, generous yet frugal, and intentionally seek joy in all circumstances.
Post: Dream Retirement – Is it fading away?
Link to comment from November 1, 2024