Depending on when one dies, taking SS early ends up being beneficial and even if one lives longer (past the break even point) and receives less from SS the amount is usually not a huge amount. Reducing taxable income during RMD years can help avoid IRMAA as well as stay in lower tax bracket. Once RMDs kick in, you cannot convert the RMDs into ROTH – only what is excess of RMDs. The best scenario is to do your ROTH conversions prior to RMDs.
Depending on when one dies, taking SS early ends up being beneficial and even if one lives longer (past the break even point)and receives less from SS the amount is usually not a huge amount. Reducing taxable income during RMD years can help avoid IRMAA as well as stay in lower tax bracket. Once RMDs kick in, you cannot convert the RMDs into ROTH - only what is excess of RMDs. The best scenario is to do your ROTH conversions prior to RMDs.
Triple check but I believe that the Medigap insurer you originally picked stays with you if you move to another county or state (and don't change plans or companies). A few states even allow you to change companies and/or plans without underwriting or higher premiums (community pricing). Each state has an 800 SHIP (State Health Insurance. Assistance Program) hotline to connect you with knowledgeable folks.
One thing I wish I had at least considered was taking SS early to reduce the amount of taxable income when RMDs kick in. It's too for me to but it is something to consider especially if you do not think you will live into your 80's.
I do not see how these trust arrangements are any different than the various legal tactics that the wealthy and others employ to avoid paying taxes. If paying as little taxes as possible is ok so then certainly taking advantage of this should be viewed similarly. Many extremely large estates successfully avoid estate taxes by using sophisticated techniques. Dynastic wealth is becoming more extreme in the United States.
Here is a simple formula to use in deciding: The cost of the repair divided by the monthly cost/payment of a new car times the best guesstimate of how long the repaired car will go before needing another major repair. Example: Car is worth $4,000 - repair is $1000, new car payment is $300 (low) - car should run fine another 6 months -- A new car would cost $1800 for the 6 months while the old car only cost $1000. This leaves out the higher insurance costs on new car so the break even is even shorter. I never take into account the current market value of the car - just its expected utility.
Be aware that there is a big difference between a financial adviser and an investment adviser. I know a person who inherited a million dollar equity portfolio and needed money for day to day expenses (they are unemployed). The investment adviser at a large brokerage first offered a margin loan and then when the borrowing limit was reached offered to convert the equities to Treasuries to increase borrowing limit. The client did so and is now paying 11% on the margin loan to “own” Treasuries paying 4%ish. They don’t want to “give up” their inheritance. Financial literacy is harder and harder to find these days. On the cynical flip side, since I own shares in the entity offering the margin loan in my mutual funds, I am indirectly benefiting from financial illiteracy. Weird position to find oneself.
My sibling decided to switch from managing his own money at Fidelity to using Fisher Investments to manage his Fidelity assets. FI promptly sold all of his mutual and etf funds and bought 70 plus individual stocks. When I asked how the portfolio was doing compared to a passive index my sibling responded not as good but didn’t care because s/he did not want to manage the money. On top of it, s/he was surprised to learn FI was charging AUM fees even assets in the money market account. This sibling has a propensity to fall for minor scams and I have given up on trying to have him/her change course. Go figure, to each his own. Obviously, it could be an issue if s/he runs into financial difficulties in the future.
As the owner of two Audis I would advise you not to keep them to the wheels fall off. In my experience, Audis are very expensive to maintain and repair. They are nice but I don't think they are built to last.
Comments
Depending on when one dies, taking SS early ends up being beneficial and even if one lives longer (past the break even point) and receives less from SS the amount is usually not a huge amount. Reducing taxable income during RMD years can help avoid IRMAA as well as stay in lower tax bracket. Once RMDs kick in, you cannot convert the RMDs into ROTH – only what is excess of RMDs. The best scenario is to do your ROTH conversions prior to RMDs.
Post: Something to Think About
Link to comment from April 19, 2026
Depending on when one dies, taking SS early ends up being beneficial and even if one lives longer (past the break even point)and receives less from SS the amount is usually not a huge amount. Reducing taxable income during RMD years can help avoid IRMAA as well as stay in lower tax bracket. Once RMDs kick in, you cannot convert the RMDs into ROTH - only what is excess of RMDs. The best scenario is to do your ROTH conversions prior to RMDs.
Post: Something to Think About
Link to comment from April 19, 2026
Triple check but I believe that the Medigap insurer you originally picked stays with you if you move to another county or state (and don't change plans or companies). A few states even allow you to change companies and/or plans without underwriting or higher premiums (community pricing). Each state has an 800 SHIP (State Health Insurance. Assistance Program) hotline to connect you with knowledgeable folks.
Post: What happens to Medicare Supplement coverage when moving to a different state?
Link to comment from April 19, 2026
One thing I wish I had at least considered was taking SS early to reduce the amount of taxable income when RMDs kick in. It's too for me to but it is something to consider especially if you do not think you will live into your 80's.
Post: Something to Think About
Link to comment from March 28, 2026
I do not see how these trust arrangements are any different than the various legal tactics that the wealthy and others employ to avoid paying taxes. If paying as little taxes as possible is ok so then certainly taking advantage of this should be viewed similarly. Many extremely large estates successfully avoid estate taxes by using sophisticated techniques. Dynastic wealth is becoming more extreme in the United States.
Post: Medicaid Asset Protection Trusts (MAPTs)
Link to comment from March 23, 2026
Yes, but post the new collision premium on new car compared to old car, if it even had collision coverage.
Post: How have you decided when it’s worth it to fix an old car?
Link to comment from May 25, 2025
Here is a simple formula to use in deciding: The cost of the repair divided by the monthly cost/payment of a new car times the best guesstimate of how long the repaired car will go before needing another major repair. Example: Car is worth $4,000 - repair is $1000, new car payment is $300 (low) - car should run fine another 6 months -- A new car would cost $1800 for the 6 months while the old car only cost $1000. This leaves out the higher insurance costs on new car so the break even is even shorter. I never take into account the current market value of the car - just its expected utility.
Post: How have you decided when it’s worth it to fix an old car?
Link to comment from May 25, 2025
Be aware that there is a big difference between a financial adviser and an investment adviser. I know a person who inherited a million dollar equity portfolio and needed money for day to day expenses (they are unemployed). The investment adviser at a large brokerage first offered a margin loan and then when the borrowing limit was reached offered to convert the equities to Treasuries to increase borrowing limit. The client did so and is now paying 11% on the margin loan to “own” Treasuries paying 4%ish. They don’t want to “give up” their inheritance. Financial literacy is harder and harder to find these days. On the cynical flip side, since I own shares in the entity offering the margin loan in my mutual funds, I am indirectly benefiting from financial illiteracy. Weird position to find oneself.
Post: The Silent Compounding Cost of a 1% Fee
Link to comment from May 18, 2025
My sibling decided to switch from managing his own money at Fidelity to using Fisher Investments to manage his Fidelity assets. FI promptly sold all of his mutual and etf funds and bought 70 plus individual stocks. When I asked how the portfolio was doing compared to a passive index my sibling responded not as good but didn’t care because s/he did not want to manage the money. On top of it, s/he was surprised to learn FI was charging AUM fees even assets in the money market account. This sibling has a propensity to fall for minor scams and I have given up on trying to have him/her change course. Go figure, to each his own. Obviously, it could be an issue if s/he runs into financial difficulties in the future.
Post: The Silent Compounding Cost of a 1% Fee
Link to comment from May 18, 2025
As the owner of two Audis I would advise you not to keep them to the wheels fall off. In my experience, Audis are very expensive to maintain and repair. They are nice but I don't think they are built to last.
Post: My Mistakes
Link to comment from February 26, 2025