AUTHOR: Kevin Lynch on 1/22/2025 FIRST: mytimetotravel on 1/22 | RECENT: Charles Moser on 1/23
Comments
This is a "problem" that I will not have, since neither of my children has children. I have jokingly said to them that I feel they conspired together to not give their mother and me grandchildren, so we would spend all of our money on them. I retired in January 2024, and after reading Bill Perkins' book, "Die with Zero," I have begun giving our children cash gifts. My daughter received her first gift as a lump sum, while my son asked to receive his as a monthly inflow. (He was wise enough to consider that, as a lump sum, he might spend it unwisely.) Some would say they can't do that, because they don't know whether they will need the money to support themselves, and if that is true for you, then act accordingly. However, as a 75 year old, married to a 71 year old and having a 47 year old daughter and 41 year old son, we are confident that giving cash gifts in the $10,000 - $15,000 range to both of them annually will not impact our ability to enjoy our own retirement. Should we experience a bad year or two in the markets, the gifts can be smaller those years, but as we are only taking 4% of our portfolio as income, that is also not a real concern. The majority of our income is Social Security (which covers 111% of our annual expenses) and annuity dollars, which equals @50% of our Social Security benefits, and which are 72% income tax free. Our "estate" does not require any special level of estate planning, beyond common sense. Having the benefit of having been a financial services professional for over 50 years, and having a written plan, I am set in that area. I am also a firm believer in a statement Perkins made in his book, "It's better to give with a warm hand than a cold one," referring to the joy you can experience in still being here to see the enjoyment your children receive from your gifts. Waiting until you die to give your children (or charities) gifts denies you the joy of being here when the gifts are received and being enjoyed by your loved ones.. Something to think about!
RDQ... It's always a treat to read a post written by an "insider," and I do not mean that in a pejorative way. I am referring to your actual knowledge of how insurance companies work. I would like to make a few comments about government-run health insurance for all, however, that I think bear consideration along with the opinions you made in your excellent article. Look at the fraud, waste, and abuse currently experienced in Medicare, Medicaid, and the recently highlighted SNAP programs. These are all government-run programs that waste millions upon millions of dollars annually. Consider states like California that openly abuse and misuse federal taxpayer dollars on healthcare and SNAP benefits for illegal aliens. Like you said, there will most likely not be substantial improvements in this area in your lifetime, and since I am 75 years old, I doubt it will happen in my lifetime either, but something will have to change before federal healthcare for all can be seriously considered. With the current positions held by one major political party and their focus on non-citizens and criminals being given preference over citizens, well over 50% of the country simply doesn't trust the government to run the health care system. Until that changes, health insurance for all, run by the government, is not an option.
As someone who banks online (with Capital One) and does not have access to a brick-and-mortar bank, I also maintain a local bank account solely for occasions when I need bank services, such as notarization or cash. Usually, if I need cash, I get it from a "fee-less" ATM system, at a nationally known gas station/convenience store chain, near my home. I never use ATMs at a bank, for security reasons mentioned in the article. I also keep a few thousand dollars in cash in my home gun safe, for "emergencies." As far as ever using a service to deliver cash to my hope...NO WAY. I had to chuckle about the guy in tights, possibly on a moped. Too funny.
Nice article, Jeff! Love the humor. RQ's comment made me go look up our costs. In 2025 our costs were: Me: Traditional Medicare Part B $2,200
Med Sup Plan G $1,458.12
Part D $590
Total $4,268.12 Annual or
$ 355.67 Monthly Bride: Traditional medicare Part B $2,200
Med Sup Plan G $1.134.84
Part D $590
Total $3,924.84 Annual or
$327.07 Monthly I can only assume RQ's taxable income is far greater than ours if he is paying $2,000 a month. IRMAA is not an issue in our case, as our annual Gross Income is@$134,000, but our taxable income for 2025 will be @ $45,000, after the OB3 benefits. Our income is Social Security and Annuity Income,72% of which is tax-free (annuities funded with Roth dollars.) So far, our first two years of retirement, having Medicare and Med Sup has been fairly pleasant, cost-wise. I maxed out my out-of-pocket for drug in late September, and my wife has just reached her $590 deductible limit. Costs will, of course, be higher for 2026, but still very manageable.
Mark: As with most things in life the "right answer" is usually..."It Depends." I waited until age 70 to claim my EARNED social security benefit for a numbers of reasons.
I wanted my wife, who is 4 years younger than me, to get the maximum possible benefit, after my death.
I was gainfully employed, and my income far exceeded to limits needed to avoid benefits being impounded.
We were in fairly good health.
My job was as an academic, so physical issues were not present in my calculations. My spouse did not work outside the home for the last 40 herts of our 51 year marriage.
We saved for retirement, paid off all consumer debts, and made we had no mortgage payments in retirement.
Although my father died at 53 (service connected illness - after 32 years in the US Army) my mother lived to 82, her mother to 89 and her father to 98. My dad's mother died at 64 (lung cancer, although a non-smoker) and his dad at 62, but from an auto accident. Another example of this is found when people ask their advisor, "Should I pay off my home?" Not unlike the question, "When should I claim my social security benefits?" It Depends! For some folks, having a paid for home is a must as they contemplate retirement. For others, not so much. If you have no heirs to leave the property to, the desire to have it paid off is not as strong for many folks. In our case neither child will relocate to where our home is located, so having a reverse mortgage was ideal for us. It accomplished the goal of zero mortgage payments for life and also provided a tax free source of cash, in the line of credit, for use as needed or desired. As far as advisors responses, they are often influenced by the manner in which the advisor is compensated. It they are a fee only, NON -AUM compensated planner, their answer is often YES...if it helps you sleep better at night. If they are AUM Compensated planner, the answer is usually NO..but not because it is the right answer for you, rather because your taking hundreds of thousands out of your account lowers their compensation. So once again...IT DEPENDS! Good luck and enjoy your social security benefits...whenever you take them. YOU EARNED THEM.
I have written a “letter” to my wife entitled, “What Do I Do Now?” it is a comprehensive listing of all financial accounts, account numbers, passwords, etc. it also lists the location of all documents, legal and otherwise. it gives instructions on end of life issues. Including funeral instructions. it also includes name and contact info on all advisors, and attorney and banker. Lastly, it includes recommendations on what to do in a variety of different situations. Basically, I prepared everything I have recommended to clients over 40 years in financial services.
I have never had any issues with QCDs, but the website instructions could definitely be clearer. What irritated me was the recent decision made by VG to eliminate the ability to write QCDs from a checkbook on your URA account. Now you have to go back to requesting the check, having it mailed to you, and you remailing it to your charity. no real reason given, just the announcement. Not something I can’t live with but it made zero sense to me.
Another advantage of ETFs over Mutual Funds is the ability to buy ETFs with smaller investments. Example is Vanguard. In Non-IRA accounts many funds have $3,000 minimums. The ETF equivalent does not. Vanguard Personal Advisors Service has been encouraging transferring MFs to ETFs for at least the past 5 years. All my holdings are in ETFs.
Mark: Excellent question. My response...stay the course. When you have your retirement income 100% guaranteed (in our case, through social security and annuities), market fluctuations, while irritating, have no direct impact on your day-to-day lifestyle, but they do sometimes interfere with your ability to enjoy life. Although our income is not affected by market fluctuations, it remains very difficult for me to watch our portfolio decline significantly once you are retired. When that happens, I remind myself of 2020, when a $260K loss in March-May resulted in a recovery by year's end and resulted in positive results for the year.
Excllenet point...but who acually has that much cash set aside? Some I am sure..but not many. Most couldn't take the FOMO of having that much cash sitting "idle."
Comments
This is a "problem" that I will not have, since neither of my children has children. I have jokingly said to them that I feel they conspired together to not give their mother and me grandchildren, so we would spend all of our money on them. I retired in January 2024, and after reading Bill Perkins' book, "Die with Zero," I have begun giving our children cash gifts. My daughter received her first gift as a lump sum, while my son asked to receive his as a monthly inflow. (He was wise enough to consider that, as a lump sum, he might spend it unwisely.) Some would say they can't do that, because they don't know whether they will need the money to support themselves, and if that is true for you, then act accordingly. However, as a 75 year old, married to a 71 year old and having a 47 year old daughter and 41 year old son, we are confident that giving cash gifts in the $10,000 - $15,000 range to both of them annually will not impact our ability to enjoy our own retirement. Should we experience a bad year or two in the markets, the gifts can be smaller those years, but as we are only taking 4% of our portfolio as income, that is also not a real concern. The majority of our income is Social Security (which covers 111% of our annual expenses) and annuity dollars, which equals @50% of our Social Security benefits, and which are 72% income tax free. Our "estate" does not require any special level of estate planning, beyond common sense. Having the benefit of having been a financial services professional for over 50 years, and having a written plan, I am set in that area. I am also a firm believer in a statement Perkins made in his book, "It's better to give with a warm hand than a cold one," referring to the joy you can experience in still being here to see the enjoyment your children receive from your gifts. Waiting until you die to give your children (or charities) gifts denies you the joy of being here when the gifts are received and being enjoyed by your loved ones.. Something to think about!
Post: Skipping a Generation
Link to comment from November 21, 2025
RDQ... It's always a treat to read a post written by an "insider," and I do not mean that in a pejorative way. I am referring to your actual knowledge of how insurance companies work. I would like to make a few comments about government-run health insurance for all, however, that I think bear consideration along with the opinions you made in your excellent article. Look at the fraud, waste, and abuse currently experienced in Medicare, Medicaid, and the recently highlighted SNAP programs. These are all government-run programs that waste millions upon millions of dollars annually. Consider states like California that openly abuse and misuse federal taxpayer dollars on healthcare and SNAP benefits for illegal aliens. Like you said, there will most likely not be substantial improvements in this area in your lifetime, and since I am 75 years old, I doubt it will happen in my lifetime either, but something will have to change before federal healthcare for all can be seriously considered. With the current positions held by one major political party and their focus on non-citizens and criminals being given preference over citizens, well over 50% of the country simply doesn't trust the government to run the health care system. Until that changes, health insurance for all, run by the government, is not an option.
Post: Four things you might want to consider when thinking about paying for healthcare.
Link to comment from November 21, 2025
As someone who banks online (with Capital One) and does not have access to a brick-and-mortar bank, I also maintain a local bank account solely for occasions when I need bank services, such as notarization or cash. Usually, if I need cash, I get it from a "fee-less" ATM system, at a nationally known gas station/convenience store chain, near my home. I never use ATMs at a bank, for security reasons mentioned in the article. I also keep a few thousand dollars in cash in my home gun safe, for "emergencies." As far as ever using a service to deliver cash to my hope...NO WAY. I had to chuckle about the guy in tights, possibly on a moped. Too funny.
Post: Cash Delivered to Your Door: What Could Possibly Go Wrong?
Link to comment from November 21, 2025
Nice article, Jeff! Love the humor. RQ's comment made me go look up our costs. In 2025 our costs were: Me: Traditional Medicare Part B $2,200 Med Sup Plan G $1,458.12 Part D $590 Total $4,268.12 Annual or $ 355.67 Monthly Bride: Traditional medicare Part B $2,200 Med Sup Plan G $1.134.84 Part D $590 Total $3,924.84 Annual or $327.07 Monthly I can only assume RQ's taxable income is far greater than ours if he is paying $2,000 a month. IRMAA is not an issue in our case, as our annual Gross Income is@$134,000, but our taxable income for 2025 will be @ $45,000, after the OB3 benefits. Our income is Social Security and Annuity Income,72% of which is tax-free (annuities funded with Roth dollars.) So far, our first two years of retirement, having Medicare and Med Sup has been fairly pleasant, cost-wise. I maxed out my out-of-pocket for drug in late September, and my wife has just reached her $590 deductible limit. Costs will, of course, be higher for 2026, but still very manageable.
Post: Health Insurance Double Take
Link to comment from November 21, 2025
Mark: As with most things in life the "right answer" is usually..."It Depends." I waited until age 70 to claim my EARNED social security benefit for a numbers of reasons.
- I wanted my wife, who is 4 years younger than me, to get the maximum possible benefit, after my death.
- I was gainfully employed, and my income far exceeded to limits needed to avoid benefits being impounded.
- We were in fairly good health.
- My job was as an academic, so physical issues were not present in my calculations. My spouse did not work outside the home for the last 40 herts of our 51 year marriage.
- We saved for retirement, paid off all consumer debts, and made we had no mortgage payments in retirement.
Although my father died at 53 (service connected illness - after 32 years in the US Army) my mother lived to 82, her mother to 89 and her father to 98. My dad's mother died at 64 (lung cancer, although a non-smoker) and his dad at 62, but from an auto accident. Another example of this is found when people ask their advisor, "Should I pay off my home?" Not unlike the question, "When should I claim my social security benefits?" It Depends! For some folks, having a paid for home is a must as they contemplate retirement. For others, not so much. If you have no heirs to leave the property to, the desire to have it paid off is not as strong for many folks. In our case neither child will relocate to where our home is located, so having a reverse mortgage was ideal for us. It accomplished the goal of zero mortgage payments for life and also provided a tax free source of cash, in the line of credit, for use as needed or desired. As far as advisors responses, they are often influenced by the manner in which the advisor is compensated. It they are a fee only, NON -AUM compensated planner, their answer is often YES...if it helps you sleep better at night. If they are AUM Compensated planner, the answer is usually NO..but not because it is the right answer for you, rather because your taking hundreds of thousands out of your account lowers their compensation. So once again...IT DEPENDS! Good luck and enjoy your social security benefits...whenever you take them. YOU EARNED THEM.Post: The Messy Human side of Social Security Claiming
Link to comment from November 18, 2025
I have written a “letter” to my wife entitled, “What Do I Do Now?” it is a comprehensive listing of all financial accounts, account numbers, passwords, etc. it also lists the location of all documents, legal and otherwise. it gives instructions on end of life issues. Including funeral instructions. it also includes name and contact info on all advisors, and attorney and banker. Lastly, it includes recommendations on what to do in a variety of different situations. Basically, I prepared everything I have recommended to clients over 40 years in financial services.
Post: Untangling finances
Link to comment from November 2, 2025
I have never had any issues with QCDs, but the website instructions could definitely be clearer. What irritated me was the recent decision made by VG to eliminate the ability to write QCDs from a checkbook on your URA account. Now you have to go back to requesting the check, having it mailed to you, and you remailing it to your charity. no real reason given, just the announcement. Not something I can’t live with but it made zero sense to me.
Post: Disappointed (and annoyed) with Vanguard.
Link to comment from October 24, 2025
Another advantage of ETFs over Mutual Funds is the ability to buy ETFs with smaller investments. Example is Vanguard. In Non-IRA accounts many funds have $3,000 minimums. The ETF equivalent does not. Vanguard Personal Advisors Service has been encouraging transferring MFs to ETFs for at least the past 5 years. All my holdings are in ETFs.
Post: Mutual Funds Vs. ETFs Which do you prefer and Why?
Link to comment from October 24, 2025
Mark: Excellent question. My response...stay the course. When you have your retirement income 100% guaranteed (in our case, through social security and annuities), market fluctuations, while irritating, have no direct impact on your day-to-day lifestyle, but they do sometimes interfere with your ability to enjoy life. Although our income is not affected by market fluctuations, it remains very difficult for me to watch our portfolio decline significantly once you are retired. When that happens, I remind myself of 2020, when a $260K loss in March-May resulted in a recovery by year's end and resulted in positive results for the year.
Post: The Gnashing of Teeth
Link to comment from September 22, 2025
Excllenet point...but who acually has that much cash set aside? Some I am sure..but not many. Most couldn't take the FOMO of having that much cash sitting "idle."
Post: The Gnashing of Teeth
Link to comment from September 22, 2025