If the retiree is relatively young in their 50s or 60s, going back to work would be my approach, and/or scaling back on discretionary spending (less travel). I am in my mid 50's and retired, and contemplating the same general thoughts...what if this happens. I believe we would adapt and change our plans as we did during our careers that got us to this early retirement. I abhor debt and being a slave to the lender, so that would be way down on the list for me personally.
Insightful. Makes so much more sense to give the money to a charity that will deploy the capital to do good in a meaningful purposeful way. It's not that taxes are bad but they sure are not aligned with one's desired choices on where they end up getting spent...
Thanks for unpacking a complicated issue. I too have started to spreadsheet my future years to avoid getting boxed into a tax penalty and giving back hard earned savings. My current spreadsheet shows me contributing to a taxable accounts from 53-56 ( currently in a 24% tax bracket), retire early in my mid 50's drop down to a 12% tax bracket - do Roth conversions up to a 22% tax bracket until SS kicks in. I loose the income from mid 50's on but my ultimate goal is to retire early , my second goal is to optimize taxes in retirement( avoid torpedo tax, not have RMD pushing me when I don't financially need to withdraw funds only to trigger taxes, and ultimately leaving generational wealth if possible to family tax free). All worthly goals - a seven figure IRA makes it possible, I have maxed out contributions for 30 years. I wish it was not so complicated but what it is is what it is, worth optimizing- thanks for the timely article. In my case these tax rules point to early retirement to avoid overpaying later in life. Some might say I am dodging taxes - I would argue I am avoiding double taxation on money I have previously saved by working hard and living below my means.
Comments
If the retiree is relatively young in their 50s or 60s, going back to work would be my approach, and/or scaling back on discretionary spending (less travel). I am in my mid 50's and retired, and contemplating the same general thoughts...what if this happens. I believe we would adapt and change our plans as we did during our careers that got us to this early retirement. I abhor debt and being a slave to the lender, so that would be way down on the list for me personally.
Post: Would You Raid the Piggy Bank or Mortgage the House?
Link to comment from December 13, 2025
Insightful. Makes so much more sense to give the money to a charity that will deploy the capital to do good in a meaningful purposeful way. It's not that taxes are bad but they sure are not aligned with one's desired choices on where they end up getting spent...
Post: Sharing the Excess
Link to comment from December 27, 2023
Thanks for unpacking a complicated issue. I too have started to spreadsheet my future years to avoid getting boxed into a tax penalty and giving back hard earned savings. My current spreadsheet shows me contributing to a taxable accounts from 53-56 ( currently in a 24% tax bracket), retire early in my mid 50's drop down to a 12% tax bracket - do Roth conversions up to a 22% tax bracket until SS kicks in. I loose the income from mid 50's on but my ultimate goal is to retire early , my second goal is to optimize taxes in retirement( avoid torpedo tax, not have RMD pushing me when I don't financially need to withdraw funds only to trigger taxes, and ultimately leaving generational wealth if possible to family tax free). All worthly goals - a seven figure IRA makes it possible, I have maxed out contributions for 30 years. I wish it was not so complicated but what it is is what it is, worth optimizing- thanks for the timely article. In my case these tax rules point to early retirement to avoid overpaying later in life. Some might say I am dodging taxes - I would argue I am avoiding double taxation on money I have previously saved by working hard and living below my means.
Post: Juggling for Retirees
Link to comment from January 21, 2023