Another way to look at it is to deter physicians from recommending extra care / testing (rather than patients requesting it). If my doctor suggests five additional tests, I might resist if I had to pay a portion via a revised Medigap - Pick the top three tests, doc!
Good exercise to run the numbers, RC. But these calculations have so many variables and depend so specifically on the finances of each family. The SSA payments (start date, amounts) are likely standardized for most HD readers. But issues like pensions (amount, survivor share), RMDs (size of investment accounts), and withdrawals from taxable accounts (how much in embedded LTCGs) must vary wildly. Strong argument here, too, for holding substantial Roth balances to finance the survivor's first few years after the partner's death. Tax-free withdrawals to pay for expenses can allow for planning / visibility into how future years will go and to prepare for bigger tax bills.
Yup, that makes sense. And helpful to know that you're dealing with an outlier year in the "tax valley" between full-time work and SSA/RMD income coming in. The issue of converting from trad to Roth money for inheritance purposes or for a surviving widow/widower's different rates (discussed by other HD commentors) still feels valid to consider.
I know Mr. C is an excellent and logical thinker, but I'm a bit dubious about some of the calcs. If he was in the 28% bracket while employed, that was a healthy six-figure salary. Let's assume there's a related level of expenses for a comfortable lifestyle. But if his marginal tax rate today is 12%, that's a max taxable income of around $96-98K. Two Social Security checks and a pension are below that level? And no other taxable income from investments (even at LTCG rate)? What happened to the need for cash for expenses, travel, treating grandkids, etc. The reality for many prosperous folks and HD readers is that income may actually go up in retirement. Max SSA checks, any pension, continuing part-time work, and investment sales from taxable or IRA accounts make it likely that Roth accounts pay like a slot machine. I'm all for tax diversification - and have money on both sides of the Roth/Trad street - but would be thrilled if I could get more into the already-paid-tax accounts.
I echo the applause for David Enna's website and blog. I'm leery of TIPS (solves the inflation problem, but vulnerable to other long bond concerns), but Enna's work also discusses Series I bonds brilliantly. I'm still working in my 60s, and want to gradually increase my bond holdings in my various IRAs. So, when I earn investable cash, I buy stocks in my taxable account with that money and shift a similar portion of my IRAs from stock funds to bonds. Just discovered Schwab's bond ladder tool. Pretty easy to set up and buy a five-year ladder of Treasury securities. No similar tool for TIPS yet.
This is very good news for a couple of reasons. First, ID.me is a sensible, easy-to-use verification system. Like the other comments note, I've used it for accessing IRS, TSA Precheck, and other federal data systems (especially as a former federal employee). Strongly recommend that you use the proprietary authenticator app that the system recommends. Much safer and easier to use than the text/email confirmation process. Second, the change suggests that the Treasury will continue to modernize the TD website. The archaic interface has been updated already. Will there be more to come? And, more substantively, will the Treasury update and increase our ability to purchase bonds in higher amounts? Hoping so.
And, now that you're on Medicare, your premium payments qualify as HSA eligible expenses down the road. Save the paper, and spend your money whenever you see fit - you've got documentation to justify withdrawals.
The consensus is right. Take your money and run - or roll it over - to a reputable brokerage IRA. Leaving your money in poor investment choices simply to avoid a doomsday result in unfilled litigation verges on paranoia. And the advice to get an umbrella policy is quite sensible. GEICO operates a marketplace to get policies from third party carriers. Ain't free, but ain't expensive. And it solves the (potential) problem of financial loss while giving you investment freedom. If there aren't vesting or employer match issues as discussed in the comments, this is surely a no-brainer - vote with your feet.
There are a lot of splashy daytime television ads for Medicare Advantage plans. You never see one for Medigap plans. It's sort of the same reason why you'll see a lot of marketing for fast food restaurants, but never for the Cauliflower-Broccoli Board. . . .
Comments
Just this - Yes!
Post: It’s been one year
Link to comment from September 27, 2026
Another way to look at it is to deter physicians from recommending extra care / testing (rather than patients requesting it). If my doctor suggests five additional tests, I might resist if I had to pay a portion via a revised Medigap - Pick the top three tests, doc!
Post: Keep an eye on Medigap policies
Link to comment from September 27, 2026
Good exercise to run the numbers, RC. But these calculations have so many variables and depend so specifically on the finances of each family. The SSA payments (start date, amounts) are likely standardized for most HD readers. But issues like pensions (amount, survivor share), RMDs (size of investment accounts), and withdrawals from taxable accounts (how much in embedded LTCGs) must vary wildly. Strong argument here, too, for holding substantial Roth balances to finance the survivor's first few years after the partner's death. Tax-free withdrawals to pay for expenses can allow for planning / visibility into how future years will go and to prepare for bigger tax bills.
Post: Widow’s Penalty Redux
Link to comment from September 26, 2026
Yup, that makes sense. And helpful to know that you're dealing with an outlier year in the "tax valley" between full-time work and SSA/RMD income coming in. The issue of converting from trad to Roth money for inheritance purposes or for a surviving widow/widower's different rates (discussed by other HD commentors) still feels valid to consider.
Post: Traditional or Roth
Link to comment from August 30, 2026
I know Mr. C is an excellent and logical thinker, but I'm a bit dubious about some of the calcs. If he was in the 28% bracket while employed, that was a healthy six-figure salary. Let's assume there's a related level of expenses for a comfortable lifestyle. But if his marginal tax rate today is 12%, that's a max taxable income of around $96-98K. Two Social Security checks and a pension are below that level? And no other taxable income from investments (even at LTCG rate)? What happened to the need for cash for expenses, travel, treating grandkids, etc. The reality for many prosperous folks and HD readers is that income may actually go up in retirement. Max SSA checks, any pension, continuing part-time work, and investment sales from taxable or IRA accounts make it likely that Roth accounts pay like a slot machine. I'm all for tax diversification - and have money on both sides of the Roth/Trad street - but would be thrilled if I could get more into the already-paid-tax accounts.
Post: Traditional or Roth
Link to comment from August 29, 2026
I echo the applause for David Enna's website and blog. I'm leery of TIPS (solves the inflation problem, but vulnerable to other long bond concerns), but Enna's work also discusses Series I bonds brilliantly. I'm still working in my 60s, and want to gradually increase my bond holdings in my various IRAs. So, when I earn investable cash, I buy stocks in my taxable account with that money and shift a similar portion of my IRAs from stock funds to bonds. Just discovered Schwab's bond ladder tool. Pretty easy to set up and buy a five-year ladder of Treasury securities. No similar tool for TIPS yet.
Post: Inflation Hedge
Link to comment from August 29, 2026
This is very good news for a couple of reasons. First, ID.me is a sensible, easy-to-use verification system. Like the other comments note, I've used it for accessing IRS, TSA Precheck, and other federal data systems (especially as a former federal employee). Strongly recommend that you use the proprietary authenticator app that the system recommends. Much safer and easier to use than the text/email confirmation process. Second, the change suggests that the Treasury will continue to modernize the TD website. The archaic interface has been updated already. Will there be more to come? And, more substantively, will the Treasury update and increase our ability to purchase bonds in higher amounts? Hoping so.
Post: TreasuryDirect changing login procedure to mandate ID.me later in 2026
Link to comment from August 16, 2026
And, now that you're on Medicare, your premium payments qualify as HSA eligible expenses down the road. Save the paper, and spend your money whenever you see fit - you've got documentation to justify withdrawals.
Post: COBRA insurance: No need to fear the bite
Link to comment from August 15, 2026
The consensus is right. Take your money and run - or roll it over - to a reputable brokerage IRA. Leaving your money in poor investment choices simply to avoid a doomsday result in unfilled litigation verges on paranoia. And the advice to get an umbrella policy is quite sensible. GEICO operates a marketplace to get policies from third party carriers. Ain't free, but ain't expensive. And it solves the (potential) problem of financial loss while giving you investment freedom. If there aren't vesting or employer match issues as discussed in the comments, this is surely a no-brainer - vote with your feet.
Post: When your 401(k) excludes target date funds
Link to comment from August 15, 2026
There are a lot of splashy daytime television ads for Medicare Advantage plans. You never see one for Medigap plans. It's sort of the same reason why you'll see a lot of marketing for fast food restaurants, but never for the Cauliflower-Broccoli Board. . . .
Post: Medicare Advantage Part C — Not too soon to start planning for 2027
Link to comment from August 15, 2026