Your net worth is not that high if it's tied up in your house. I know real estate in Australia is expensive, but if you are wealthy your financial assets should be at least five or six times the value of your primary residence.
I have a grand consolidated spreadsheet across my five accounts. About 56 different common and preferred stocks: 50%
Cash: 19.8%
4-week T-bills: 23.2%
2-year T-bills: 6.2% Well, now you know. If the market crashes, I will definitely be a buyer.
The US tax system works best for retirees with high incomes who take advantage of tax breaks like the favorable rate for dividends and capital gains. You can be single, have an income of $450K, and pay $75K in Federal income tax. Of course, there's state income tax, property tax, IRMAA - maybe another $50K at most.
As a highly skilled investment/tax nerd, I know all the stuff the CFP guys are likely to say, and some people have in fact consulted me. You're right, they won't listen. I told one 65-year-old retired woman that she was headed for trouble - she was taking 5% withdrawals and paying 1% AUM to a financial management firm. An unfavorable stock market could wipe her out, and I told her that. She needs the money to live in our retirement community, and doesn't want to move out.
"In my friend’s case, her father left her his house. But because the property still had to go through probate, she could not immediately access his bank accounts or other assets. For over a year, she had to use her own money to pay the mortgage, insurance, taxes, and maintenance on the home just to keep the property from falling into foreclosure." This is wrong. While the estate is in probate, you can use estate assets to pay estate expenses. What kind of estate lawyer did she have? You file for probate, you get appointed executor, your lawyer gets a tax ID for the estate, and you go to the bank, show them the executor certificate, and the bank converts the decedent's account to an estate account identified by the estates tax ID. The executor can then write checks to pay estate expenses, which offset estate income on the 1041.
One interesting thing about Enron is that some of the employees with 100% of their savings in company stock knew that the company was fraudulent. Evidently, they thought they could join the fraud and make a ton of money for themselves.
Yes, financial fraud can be high profitable, but there are risks....
At my place, we have a fleet of trucks. We need some new vans - our current vans are pre-2010 - and we're trying to scrounge up some used vans that won't cost much. The trucks and backhoe are newish, but we had to take 7-year financing on them, and we're paying $70K a year in loan payments.
Comments
I actually upsized when I retired. I went from 440 square feet to 1500 square feet. Yes, everyone's situation is different.
Post: Thinking about downsizing? Think seriously
Link to comment from June 21, 2026
I have sufficient income in retirement to pay, so self-funding is a no-brainer for me.
Post: How do you prepare for the long term care cost as retiree?
Link to comment from June 21, 2026
Your net worth is not that high if it's tied up in your house. I know real estate in Australia is expensive, but if you are wealthy your financial assets should be at least five or six times the value of your primary residence.
Post: What’s in your portfolio ?
Link to comment from June 16, 2026
I have a grand consolidated spreadsheet across my five accounts. About 56 different common and preferred stocks: 50% Cash: 19.8% 4-week T-bills: 23.2% 2-year T-bills: 6.2% Well, now you know. If the market crashes, I will definitely be a buyer.
Post: What’s in your portfolio ?
Link to comment from June 16, 2026
The US tax system works best for retirees with high incomes who take advantage of tax breaks like the favorable rate for dividends and capital gains. You can be single, have an income of $450K, and pay $75K in Federal income tax. Of course, there's state income tax, property tax, IRMAA - maybe another $50K at most.
Post: …..taxes and you
Link to comment from June 12, 2026
As a highly skilled investment/tax nerd, I know all the stuff the CFP guys are likely to say, and some people have in fact consulted me. You're right, they won't listen. I told one 65-year-old retired woman that she was headed for trouble - she was taking 5% withdrawals and paying 1% AUM to a financial management firm. An unfavorable stock market could wipe her out, and I told her that. She needs the money to live in our retirement community, and doesn't want to move out.
Post: The Quiet Failure of Good Advice
Link to comment from June 5, 2026
"In my friend’s case, her father left her his house. But because the property still had to go through probate, she could not immediately access his bank accounts or other assets. For over a year, she had to use her own money to pay the mortgage, insurance, taxes, and maintenance on the home just to keep the property from falling into foreclosure." This is wrong. While the estate is in probate, you can use estate assets to pay estate expenses. What kind of estate lawyer did she have? You file for probate, you get appointed executor, your lawyer gets a tax ID for the estate, and you go to the bank, show them the executor certificate, and the bank converts the decedent's account to an estate account identified by the estates tax ID. The executor can then write checks to pay estate expenses, which offset estate income on the 1041.
Post: The Financial Stress a Simple Document Could Have Prevented
Link to comment from May 24, 2026
What about state and local income tax? How would that work?
Post: Should Retirees Get a Temporary Flat Tax Window on IRA and 401(k) Withdrawals?
Link to comment from May 24, 2026
One interesting thing about Enron is that some of the employees with 100% of their savings in company stock knew that the company was fraudulent. Evidently, they thought they could join the fraud and make a ton of money for themselves. Yes, financial fraud can be high profitable, but there are risks....
Post: The Company You Keep
Link to comment from May 20, 2026
At my place, we have a fleet of trucks. We need some new vans - our current vans are pre-2010 - and we're trying to scrounge up some used vans that won't cost much. The trucks and backhoe are newish, but we had to take 7-year financing on them, and we're paying $70K a year in loan payments.
Post: The Rent is Too Damn High!
Link to comment from May 16, 2026