Medicare Question

[Tractor Seabee]

Seabee, I didnt understand the extra 5 yrs at higher pay? You took SS at 65? But kept working?

Yes, you have to be a double dipper to survive in this economy. Read my explanation again. I have 3 government pensions; military, civil service, and SS. Many of the same days apply to all three concurrently and others two, so I guess I am a triple dipper. I planned all this long before it all came to fruition. Lesson learned to all you younger ones; planning your retirement is a paramount duty for your early working days. I actually, all together, have 6 annuities working for me plus an IRA and other investments. I managed to get all 39 years plus accumulated. No zeros and dumped some real low paid years with very high paid years. I can now live in the style that I became accustomed to.

Ron

 

[kenmac]

I will start taking SS at 62 (in about 6 months) I might not live to 65.
My wife still works, so I'm on her health insurance plan

 

[buckeyefarmer]

Seabee, thanks for the info.

I might take SS at 62. Still debating that.

I get pension at 60, but my high 3 are from yrs ago. It would benefit me a lot to work 3 more to raise it, but dont think i can stomach it.. Would be major pay cut to do it.

I also have another small pension i can start any time. And multiple 401k plans.

I track it all in a spreadsheet, including what my SS will be if i start at different years.

 

[Tractor Seabee]

Seabee, thanks for the info.

I might take SS at 62. Still debating that.

I get pension at 60, but my high 3 are from yrs ago. It would benefit me a lot to work 3 more to raise it, but dont think i can stomach it.. Would be major pay cut to do it.

I also have another small pension i can start any time. And multiple 401k plans.

I track it all in a spreadsheet, including what my SS will be if i start at different years.

You need to consider consolidating those 401Ks into one IRA if you are no longer with the sponsoring employer. I have a good adviser and he has made me a lot of money with the portfolio we arranged. It netted 17% last year and is already at 12% this year. Putting it all together allows you to diversify in a more meaningful manner. If you have not heard ; both 401s and IRAs you have to start taking a payout at 701/2. i have beat tat system as the earnings are more than paying back the mandatory distribution as they call it. Principal has stayed intact. Lots to think bout and consider. Now is the time to put it all in place. Remember I am only one mans opinion, get others.

Ron

 

[buckeyefarmer]

The trick is finding a good advisor...

 

[KennyG]

Just another small item for those of us turning 70 about now. There is a proposal in Congress to change the age when you have to start taking distributions from 401K and IRA. Instead of 70-1/2 it will become 72 (unless they change the bill again or don't pass it by the end of the year). The negative part of the bill is that inherited retirement accounts (by other than spouse) will have to be withdrawn within 10 years, instead of reset to the age of the heir. The purpose of this is to increase the tax revenues from retirement accounts, by distributing it sooner and requiring heirs to take the income while they are still working, with a higher tax rate. Not a lot you can do about this except to live until your kids retire.

 

[Tractor Seabee]

The trick is finding a good advisor...

Uniquely I found mine on a fluke. He was in the process of making routine calls to his clients and reached me on a mis-dial. For some reason we got to talking and I liked his pitch. We are still together for almost 20 years. We recovered all the losses from 2008 in 3 years. During those 20 years except for the 3 result from 2008 every year has been a positive return. Investment portfolio is all geared to long term focusing on high dividend payers. There has been no churning.

Ron

 

[Tractor Seabee]

Just another small item for those of us turning 70 about now. There is a proposal in Congress to change the age when you have to start taking distributions from 401K and IRA. Instead of 70-1/2 it will become 72 (unless they change the bill again or don't pass it by the end of the year). The negative part of the bill is that inherited retirement accounts (by other than spouse) will have to be withdrawn within 10 years, instead of reset to the age of the heir. The purpose of this is to increase the tax revenues from retirement accounts, by distributing it sooner and requiring heirs to take the income while they are still working, with a higher tax rate. Not a lot you can do about this except to live until your kids retire.

The secret is to take those distributions and re-invest them asap. Roth IRAs have the advantage of paying the taxes now instead of later when you may not be able to afford it.

Ron

 

[KennyG]

The secret is to take those distributions and re-invest them asap. Roth IRAs have the advantage of paying the taxes now instead of later when you may not be able to afford it.

Ron

My approach is to keep the funds in the tax deferred accounts as long a possible to delay the taxes and to minimize the withdrawals to keep from being pushed into higher tax brackets. Roth is great but I had most of my retirement funds already in conventional accounts when the Roth law was passed. If I had moved them to a Roth account I would have been killed on taxes because I was already in a high bracket.

 

[Tractor Seabee]

My approach is to keep the funds in the tax deferred accounts as long a possible to delay the taxes and to minimize the withdrawals to keep from being pushed into higher tax brackets. Roth is great but I had most of my retirement funds already in conventional accounts when the Roth law was passed. If I had moved them to a Roth account I would have been killed on taxes because I was already in a high bracket.

Kenny, I was in the same situation so did the same thing. 401K to a regular IRA is a wash tax wise just consolidate so you only have to watch one account instead of several and you take the advantage of order of magnitude. I hope the young folks are following this thread. If you have been following my posts you will note that I have a very comfortable retirement. With current health and hereditary factors I plan to continue beating the system. I consider I earned every dime of it.

Ron