Wrapping It Up

As best as I can tell, I’ve transitioned into the early stage of my life’s fourth quarter. Certainly, I could be at the tail end of my third quarter and, not to be presumptuous, there’s a chance that I’m closer to the end of the fourth quarter without realizing it.

At this stage, there’s no new financial wisdom for me to share with HumbleDollar readers. The Forum and Article archives are filled with much better advice than I could give. What I can do is provide a wrap up of “My Money Journey” from my current vantage point.

I don’t tinker much with finances these days. I believe I’ve finally assembled what one advisor I respect (an old friend of Jonathan’s) calls “a beautiful, globally diversified portfolio of low-cost mutual index funds.” I’m letting it run on autopilot for the most part. Speaking of advisors, I don’t have one at this point. As HumbleDollar author David Gartland put it a couple years ago, “I feel better finding out I made a mistake with my money, rather than learning someone else made a mistake for me.” I’m sure I make some sub-optimal decisions, but I don’t feel confident that I’d come out ahead by shelling out for the significant annual cost (1% of Assets Under Management or more) of an advisor. At least not yet.

Here in the fourth quarter, tax considerations and complexity loom larger than they used to. I do our relatively simple taxes using TurboTax. A significant percentage of my assets is held in my old company’s 401(k) plan. Although this currently doesn’t present much of a problem, I recognize that a time bomb is ticking…set to go off in a decade when RMDs kick in. At some point, I do expect that engaging a fee-only advisor and a tax expert will be the wise course of action, especially since my wife is not interested in being hands-on in these areas. Having an advisor and tax professional should also make it easier to do Qualified Charitable Distributions. But that’s down the road.

Possibly the most significant marker that I’ve entered life’s fourth quarter is that I’ve applied for Social Security. I’m 63, but with a wife who’s a few years older and only eligible for a spousal benefit, it makes sense for us both to begin receiving benefits at her Full Retirement Age (FRA). I know there have been all kinds of debates regarding timing of Social Security benefits here at HumbleDollar, but this approach works for us.

I’ve been working part-time since retiring from a 38-year engineering career in September of 2023.  Taking Social Security now has an impact, since I’m below my FRA. From July to December of this year, I must have monthly earnings of less than $2040 to maintain benefits. I’m not ready to completely give up my part-time work but I’ll reduce my hours to stay under the earnings limit. I work from home and enjoy it well enough, but have more important things to do these days. My wife Lisa and I have been babysitting my 6-month-old grandson 20 or more hours each week.

Last year my wife and I updated our wills, which had sat unchanged for 25 years. The “kids” no longer needed my sister to be their guardian in the event my wife and I both pass. Account beneficiaries have been reviewed and updated as required to directly transfer most assets upon death rather than going through probate. Like many HumbleDollar readers, I maintain an Instructions on My Passing document for my spouse. This year I hope to make significant enhancements to it.

Jonathan’s actions after his cancer diagnosis demonstrated his strong concern that his family would be okay, at least financially, after he passed away. While my timetable doesn’t appear to be as pressing as his was, in a similar vein I want to have things in order as well.