I just published "My Investment Picks For Retirees In 2024" on Seeking Alpha. An account is required, but it is free. The main point is about where assets should be located based on spending needs and tax characteristics. Funds with good long term performance are identified for Buckets/accounts.
https://seekingalpha.com/article/4671471-my-investment-picks-for-retirees-in-2024The topics covered are:
Regrets and Life in Retirement
2024 Investment Environment
Financial Advisors
Tax Characteristics of Accounts
Bond Performance Following Rate Cuts
Yield Curve
Lipper Category Rotation
Investment Picks
Comments
"...There is a psychological advantage for me to minimize sequence of return and longevity risks..."
Ergo, I withdraw only about 3% of the portfolio per year. That much can be easily made up through the year, and perhaps exceeded, by the performance of my holdings. In addition, I've been ADDING a small amount to the portfolio, month by month. At least it gives me a sense of progress. And those small monthly additions likewise serve to virtually cancel-out the money I remove from the portfolio, when combined with the current total that's already in there.
I have heirs in mind, primarily. Another item: I stumbled lately into an IRS Table designed to show withdrawal requirements for a spouse-inherited T-IRA, when the spouse is much younger than the deceased. Specifically, 10 years or more, younger. THAT one applies in my case. But it never gets mentioned anywhere. I'm lucky I bumped into it.
I THINK this link applies. I thought I had the wonderful item I intended to show you (and everyone) linked, but the fabulous Schwab link "defaulted" to a generic page. Anyhow, here's a different "explainer." SOME of us need to pay attention to this:
"...If the sole beneficiary of an IRA is the IRA owner's spouse who is more than 10 years younger than them, the required minimum distribution for 2023 can be calculated by dividing the account balance at the end of 2022 by the distribution period from Table III in Appendix B. If the spousal beneficiary chooses to assume the IRA, they must begin taking RMDs by the later of December 31 of the year after the owner's death or April 1 of the year after the spouse reaches RMD age. The spousal beneficiary should not enroll in the RMD Service until the year they intend to begin taking RMDs. A worksheet is available to calculate the required minimum distribution for a non-inherited traditional IRA if the spouse is more than 10 years younger than the owner."
....I must say, that junk is as clear and straightforward as a photo of a baboon in a closet at midnight. It seems to change horses in midstream. Beneficiary? But non-inherited? "Take over" the IRA? How about THIS: I die. My wife gets the money in the T-IRA. She deals with the labyrinthine, crazy, arcane rules. How about THAT?
Because of this qualification, they also resemble traditional IRAs. You don't want a T-IRA to grow too large because then RMDs can kick you into a higher bracket. You don't want HSAs to grow too fast, because if they outrun your medical expenses, some of the money you take out becomes taxable. For this reason, I allocate slower growing assets (e.g. bonds) to my HSA.
Regarding IRMAA, I don't see where the $5832 at $194,001 income level (joint) comes from in Table #2. A petty issue is that $194K is the 2023 threshold; for 2024 the threshold is $206K.
This minor point aside (and using 2023 figures for consistency), the monthly Part B IRMAA per person started at $65.90. That's $790.80/person per year. Throw in the starting level Part D IRMAA of $12.20/mo, and that brings the total annual IRMAA per person up to $943.20. Assuming both spouses are participating in Medicare, double the amount to $1886.40.
Cap gains - in 2016, cap gains didn't kick in until one hit the 25% tax bracket. The 2017 TCJA decoupled cap gains brackets from ordinary income tax brackets. Sunsetting reverses this - the 15% cap gains bracket will once again start at the 25% ordinary income tax bracket. Sunset minus cap gains should always be positive.
All of the numeric adjustments are noise. They don't change the points made. It's a formidable task to compress so many moving parts and levers into something clear and digestible. Bravo!
I haven't taken a close look at the funds yet, though I did notice a dearth of Fidelity MM to short term funds (bucket #1). It's hard to beat Vanguard on MMFs, but you might consider FCNVX as a peer to VUSFX.
Ed Slott IRA Help has a very responsive discussion board. Here is a quick query on your topic and some responses:
https://irahelp.com/search/ft/Rules%20for%20an%20inherited%20IRA%20by%20a%20spouse%2010%20year%20younger
Create a login and you can ask questions that are often answer within 24 hours.
*Found the proper IRS Table to use... At the bottom of a monstrously huge pile of absurdly complex bullshit verbiage. I have it bookmarked, now.
I also see from time to time: "Oops, we've hit a bottom." We don't know nuthin about nuthin with that request.... I just type-in a ticker of my choosing in the search box and hit the little magnifier, the icon for "search." The blocked page magically un-blocks itself.
Happy hunting.
No go. Once I sign in it pops up asking me to renew
Asking for a friend.
Hi
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... phase of the moon, which sign you were born under, etc.
Ain't AI great?
You might try using a different browser on the same computer... sometimes that works. If you don't have a second browser available, you might try the "Opera" browser. I use Opera with JP Morgan Chase because they don't like my older Firefox browser, and I'm damned if I'm going to start all over with a new browser just for them.
Anyhow, it sucks that you can't get in Try OJ's suggestions, maybe.
Nothing works.
I now believe it is Rida Morwa's revenge for me making fun of his crazy "can't loose" ideas that all pay 14% with no downside