AUTHOR: Kevin Madden on 12/23/2024 FIRST: wtfwjtd on 12/23/2024 | RECENT: John T on 1/4
Comments:
Time is the greater threat, for sure. I invest in my health by running 4 times a week, strength training at least once a week (I don't enjoy this as much), sleeping 7+ hours per night, eating fairly healthily, drinking moderately, maintaining strong relationships (for mental health!), walking the dog, playing with grandchildren, and by doing adventure travel a few times a year (e.g., bikepacking, hiking, climbing), which also requires training before the trip.
The only potential flaw I can think of is that, given your very conservative approach, your investments might underperform, leaving less money for your heirs. But since you'd have to give up some safety/security, it's probably not for you. I'm talking about investing more in the broader equity market instead of dividend oriented stocks.
Thanks for commenting. He's looking to max out the 22% bracket and he's 76 years old. The "time needed for the conversion to pay off" does seem to be the question in hand. Not sure how to calculate it.
I retired at 62 and am starting wife's SS at 65 and mine (higher wage earner) at 70. Have started a couple small pensions and are using #'s 3-6 to supplement spending needs. Doing some Roth conversions to fill up 12% bracket. I monitor the portfolio enough to ensure the projected balance will never fall below an amount I feel we need for contingencies. The one thing I would have done differently is put more money into a Roth IRA instead of a traditional IRA (or started Roth conversions earlier). Having more funds available for tax-free withdrawals prior to starting Medicare can help you qualify for more Premium Tax Credit for insurance purchased from the Healthcare Exchange.
I am in a similar situation and look forward to what others share about choosing between Roth and HSA accounts for withdrawals. My one comment, though, is I don’t think it matters much how the funds in the Roth and HSA are currently invested. For example, if you wanted to make your withdrawal from the HSA but prefer holding the short term government bond fund, you could purchase the bond fund in your Roth account.
Comments:
Time is the greater threat, for sure. I invest in my health by running 4 times a week, strength training at least once a week (I don't enjoy this as much), sleeping 7+ hours per night, eating fairly healthily, drinking moderately, maintaining strong relationships (for mental health!), walking the dog, playing with grandchildren, and by doing adventure travel a few times a year (e.g., bikepacking, hiking, climbing), which also requires training before the trip.
Post: Focusing on the Real Threat
Link to comment from January 8, 2025
The only potential flaw I can think of is that, given your very conservative approach, your investments might underperform, leaving less money for your heirs. But since you'd have to give up some safety/security, it's probably not for you. I'm talking about investing more in the broader equity market instead of dividend oriented stocks.
Post: Obsessed with a financial stress-less retirement
Link to comment from January 6, 2025
I second this recommendation.
Post: 2025 Retirement Countdown by Dana/DrLefty!
Link to comment from January 1, 2025
Just be aware the $2,000 cap is limited to drugs on the insurance company's formulary.
Post: 2025 and Medicare Rx
Link to comment from January 1, 2025
Thank you for sharing an update on your nomadic life. It is a gift to those of us who only dream of embarking on such an exciting journey.
Post: Retirement on the Road
Link to comment from January 1, 2025
I’ve never thought to list the common things I don’t have. Great idea!
Post: Four Questions
Link to comment from December 28, 2024
Thanks for commenting. He's looking to max out the 22% bracket and he's 76 years old. The "time needed for the conversion to pay off" does seem to be the question in hand. Not sure how to calculate it.
Post: Roth Conversions with Capital Loss Carryforward?
Link to comment from December 23, 2024
I retired at 62 and am starting wife's SS at 65 and mine (higher wage earner) at 70. Have started a couple small pensions and are using #'s 3-6 to supplement spending needs. Doing some Roth conversions to fill up 12% bracket. I monitor the portfolio enough to ensure the projected balance will never fall below an amount I feel we need for contingencies. The one thing I would have done differently is put more money into a Roth IRA instead of a traditional IRA (or started Roth conversions earlier). Having more funds available for tax-free withdrawals prior to starting Medicare can help you qualify for more Premium Tax Credit for insurance purchased from the Healthcare Exchange.
Post: Bridge the Gap
Link to comment from November 14, 2024
Makes sense. To my knowledge, receipts do not need to be submitted/filed. They are needed if audited, though.
Post: The Luxury of Choosing Tax-Free Cash from a Roth IRA or HSA….but Which One?
Link to comment from November 13, 2024
I am in a similar situation and look forward to what others share about choosing between Roth and HSA accounts for withdrawals. My one comment, though, is I don’t think it matters much how the funds in the Roth and HSA are currently invested. For example, if you wanted to make your withdrawal from the HSA but prefer holding the short term government bond fund, you could purchase the bond fund in your Roth account.
Post: The Luxury of Choosing Tax-Free Cash from a Roth IRA or HSA….but Which One?
Link to comment from November 12, 2024