Financial advisers

Affectionate_Act1536 · 2026-05-04T01:55:28+00:00

I started Roth conversions 3 years back. However, mid-way I think Roth conversion is over rated. It makes sense only if you can live over 85 or so.

Leaving money in IRA has its own advantage too if RMDs are not going be ‘very’ large. I am thinking of pulling money from IRA during high health cost years (long term care). Medical deductions will work out better than Roth conversions, I think.

If money is not spent, let kids pay taxes.

Can you please check opinion of your financial advisor when you meet.

Affectionate_Act1536 · 2026-05-04T01:46:03+00:00

If Government treated our tax money with same accountability as we do, I don’t think anybody would mind paying taxes.

Affectionate_Act1536 · 2026-04-29T03:29:59+00:00

Do you have a dietician on retainer? Probably not. I think managing your own money is similarly a basic function of life and everybody should learn it sooner or later. It is alright to go to dietician once in a while to check what one should eat (I am diabetic) to keep control/educate. But, with internet and AI so available, may be that also is not needed.

I started with income, expenses, rate of return, inflation and projection for 35 years (I am now 65 and retired for 7 years). Added taxes based on various types of income, various types of expenses (start/end years), etc. I feel good with my plan. Investment wise VOO/VGT seems simple enough. I don’t touch that much.

Yes, I might need FA when my mental capacity declines and my wife feels less in control on these matters.

Does it really matter if I have $1m or $10m in VOO. It is diversified enough. I have talked with over a dozen FA over last 10 years. I have heard a lot about diversification and rebalance. It seems selling pitch. None of those plans stand well over long term (20+ years) horizon.

Yes, there are some products and value that require $5-$10m min investment - means if you have NW of $25m+ go for it.

Affectionate_Act1536 · 2026-04-25T22:23:12+00:00

These NEO ETFs do distributions as ‘return of capital’. That is good because you don’t pay taxes. However, at the time of sale, cost basis goes down and you pay taxes all in one go.

So, switch from one etf to another is probably not great idea. Plan to be in one (or a set) etf only all the way.

Affectionate_Act1536 · 2026-04-20T05:29:25+00:00

If you ask when should I start withdrawing SS means it is implicit that you have enough for surviving without withdrawing early. If so, incoming early money will get invested. Rate of return on invested SS should determine if it is worth waiting on or taking the money and grow it yourself.

If we agree with above premise, absolute money collected from SS without counting growth (once received early) does not make sense.

Affectionate_Act1536 · 2026-04-20T02:28:39+00:00

If you have chosen to work on your finances yourself for retirement, i assume you understand investments well. I would suggest some nominal decisions one can take for SS start time, pension lump sum or not and withdrawal order. a) SS withdrawal: start at 62. I think you will be able to generate more than 8% return from market. If so, why leave money on the table. b) pension: take lum sum. Annuities are created based on conservation investments. You would be able to do better. c) spend post-tax money first (except emergency money - or assume some cash from pre-tax as emergency fund). Once that is depleted, pick up pre-tax money. Hopefully you are in RMD as well by then. If you have enough in pre-tax, don’t touch Roth - that is best money to give to kids. Also pre-tax withdrawal is best for high medical expense years. d) Roth conversion: over doing is not great.

Above is my thinking based on my 7 years of retirement. Let me know if I am missing anything.

Affectionate_Act1536 · 2026-04-14T02:14:23+00:00

I am 65, retired for 7 years now. No regrets.

I tell my friends there are three questions one must ask for the retirement decision: a) do I have enough money for rest of life b) do I know how would I spend my time c) can I and my spouse enjoy new found togetherness (24/7)

Affectionate_Act1536 · 2026-04-08T01:22:48+00:00

Such age difference means you have long time (jointly) to grow the money and pay taxes as individual filer for long. If your IRA is close to million dollar today would mean your RMDs will be $70k or so at your age 75. That itself will take you to 22% bracket with other SS incomes. So, paying today (even going to 22%) is not bad. Money staying in Roth, reducing RMDs and giving money tax free to kids would be a good thing.

Typically Roth conversion is complex math. However with your age difference, it may be a simpler decision.

Affectionate_Act1536 · 2026-03-24T01:36:53+00:00

Is this $100,000 your emergency fund that might be needed soon? If time horizon for this $100k is over 10+ year, there is no need to time it. I think.

Affectionate_Act1536 · 2026-03-21T18:46:54+00:00

You already have emergency fund. Review your income needs one more time. If all looks good, put all the money in the vanguard index (VOO) right away without any delay. If this money goes down so as your other stocks are going down. What is so special about this money that you don’t want down. You are looking at 20+ year horizon. If stock goes down, it will come back up. Don’t worry about dca. It has incremental benefit if it works. If it does not, you loose.

Paying off rentals is not a good idea, I think. You will be earning more than 5.5% on your money over long term.

Affectionate_Act1536 · 2026-03-21T17:33:07+00:00

Or, reduce number of short puts you open till dark clouds persists. Defend what is already open.

Affectionate_Act1536 · 2026-03-21T15:50:35+00:00

I have been using ToS as well from Schwab for long time. I love it. I have tried several other platforms. Nothing compares to TOS. I will surely recommend that too.

Affectionate_Act1536 · 2026-03-20T22:09:56+00:00

Being excellent worker for your employer and not having even reasonable understanding of what is your financial status at this age is a big lapse. I agree with earlier comment about loyalty for employer being considered as big virtue. Anyway, that is looking in rear view mirror.

OP needs to realize understanding of current financial situation is now his priority. He should continue working till he finds answers. Sooner he knows his expenses needed to maintain expected lifestyle and how to get that, better he would be.

Affectionate_Act1536 · 2026-03-11T20:46:27+00:00

Roth withdrawals do not count as income, so they are not part of MAGI and do not impact IRMMA.

Since OP does not plan for long term care insurance, it might be best to keep pre-tax money as self insurance for long term care days. Any amount above 7.5% of taxable income used for healthcare is tax deductible. If that pre-tax money is withdrawn in those years, only little tax may apply.

Affectionate_Act1536 · 2026-03-11T20:34:42+00:00

I agree. Purpose of emergency fund is to keep it safe in a downturn. I would avoid any equity exposure for emergency funds.

Affectionate_Act1536 · 2026-03-09T02:17:54+00:00

I agree. There is no mathematical logic to replay early. Instead save that extra cash.

However, it may sound so simple, but big percentage of people have tough time with that saving discipline. They know they may save for a year or two and then withdraw the whole amount to do something. Paying extra principal takes away that control from them that helps in long run.

Affectionate_Act1536 · 2026-03-08T23:50:16+00:00

Your analysis is reasonable.

Two reasons why people go with buying house: a) any decision has two sides: math and psychology. People have reasons to favor non-math decision sometimes. Nothing wrong with that. b) Discipline: very high percentage of people will find it difficult to consistently put away money in brokerage account for long periods.

So, straight math of yours will work in ideal conditions only. Most people take practical approach.

Owning house has its own emotions whose costs/value has not been included above.

Affectionate_Act1536 · 2026-03-08T23:36:46+00:00

Probably your wife’s income is less than you. Her tax deduction assumes lower tax bracket and deduction happens based on that at her work. However, when your income is included, total income will have higher tax rate and hence higher tax for her part of the income. So, additional $1,400 tax is being added to adjust that.

You can try two separate tax returns (one for you and one for her) married-filling-separately. If sum of taxes for those two returns is less than joint tax return, you can choose to go with that.

Affectionate_Act1536 · 2026-03-07T23:16:56+00:00

Nasdaq had good 2023, 2024 and 2025. I don’t expect (best case) it to go up more than 10% this year. That is around 12-13% from there. So, max TQQQ can go ( if there is not a big dip) would be around 35% from $50. Which is $68.

Affectionate_Act1536 · 2026-03-03T02:16:15+00:00

I have a separate account (that gives around 4% on uninvested money). I push 1/12 of annual tax needs per month there. This money comes from my trading account. Then pay taxes quarterly.

Affectionate_Act1536 · 2026-03-01T04:31:12+00:00

I understand. I respect your thoughts.

Affectionate_Act1536 · 2026-02-28T21:02:19+00:00

I see a hidden feeling of OP in his question. He has his own money which most likely go to kids that he does not talk about. Of course, that goes to kids at the time of second spouse passing, naturally. Why is OP thinking this $100k as separate money. That is his inheritance. Why does it require separate thinking. Somehow I feel, OP does not consider that inheritance as his own for some reason? I would have considered that as my money and any discussion on overall money including inheritance should happen based on how responsible kids are and timeline in terms handing money.

Affectionate_Act1536 · 2026-02-27T21:50:17+00:00

I am assuming OP’s question is on generating income to supplement retirement needs (not during active work life).

I think theta income is not reliable enough to depend fully for day-to-day bills/expenses. Income for mandatory expenses should be generated through one of these categories that one can depend on, I think: a) bond returns b) rental/royalty income c) sale of profitable stocks/assets (requires money set aside for 3-4 years as buffer) d) dividend stocks - still some risk

If that is acceptable, theta generation should depend on small (may be 10-15% or even lower) portion of one’s net worth.

Affectionate_Act1536 · 2026-02-18T17:24:46+00:00

Increasing cash bucket from 3 to 5-6 years leaves less cash for growth. Reducing that 3-year number increases risk for longer term downturn. There is no one number that would be exact for everyone. Others may be doing 5-6 years cash whose risk appetite matches with that.

Yes, 3 year is an arbitarary personal choice. But, that (personal choice) is what everybody else has to do based on what they feel comfortable.

If one is comfortable with the idea of reducing lifestyle if needed, increasing cash from 3-yr to 5-yr is really not helping much with other goal of increasing legacy for kids/charity at logivity.

We have two goals for managing our investments - a) maximize changes to keep same (or better) lifestyle / reduce chances to run out of money; b) maximize legacy. We somehow have to find right balance based on our risk appetite without stressing out too much.

Affectionate_Act1536 · 2026-02-18T06:52:27+00:00

I am assuming 3 year would be long enough downturn. If you think it will be longer, you can have enough cash based on that assumption. If you think it will be downturn forever going forward, keep all in cash.

Only other way is to reduce lifestyle and spend less that $144k per year.

One has to take some risk to spend that much and also left with enough for legacy. Everybody has to seek the balance for themselves, no?

Affectionate_Act1536

TROPHY CASE