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. . . .
Mr. Quinn's advice is interesting, and potentially seismic. Every major financial writer (Jonathan, Christine Benz, etc.) says to consider SS payments as the only automatic inflation-adjusted investment available for most folks. Pensions, annuities, stocks, bonds (save for TIPS), cash - all have uncovered inflation risk. Social Security's inflation adjustment is fundamental to the retirement plans of most people. To take that out of a plan changes, well, everything. . . .
If SSA was able to adjust for inflation in realtime, that would ease the burden (or the perception of a burden) of inflation. But the COLA change occurs the following year. The inflated expense is out the door, and the inflated reimbursement comes a year later. The time lag between outflow and resolution weighs on people.
Agreed! I enjoyed the vibe at community watch parties, bars and restaurants, and having folks over at our house to watch the games. I went five matches at the Rose Bowl during the 1994 World Cup. I live 15 minutes from the venue in Los Angeles now - couldn't be bothered to go in person this year. Much more of a money grab now.
Comments
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
Mr. Quinn's advice is interesting, and potentially seismic. Every major financial writer (Jonathan, Christine Benz, etc.) says to consider SS payments as the only automatic inflation-adjusted investment available for most folks. Pensions, annuities, stocks, bonds (save for TIPS), cash - all have uncovered inflation risk. Social Security's inflation adjustment is fundamental to the retirement plans of most people. To take that out of a plan changes, well, everything. . . .
Post: Short term and long term Social Security planning
Link to comment from August 8, 2026
If SSA was able to adjust for inflation in realtime, that would ease the burden (or the perception of a burden) of inflation. But the COLA change occurs the following year. The inflated expense is out the door, and the inflated reimbursement comes a year later. The time lag between outflow and resolution weighs on people.
Post: Inflation, prices, COLAs, retirement and the last 16 years
Link to comment from August 1, 2026
Agreed! I enjoyed the vibe at community watch parties, bars and restaurants, and having folks over at our house to watch the games. I went five matches at the Rose Bowl during the 1994 World Cup. I live 15 minutes from the venue in Los Angeles now - couldn't be bothered to go in person this year. Much more of a money grab now.
Post: FIFA Financials
Link to comment from July 25, 2026