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  • Help in retirement

    Thanks to WCI investor I've set upself up for financial success and FIRE. Now helping my parents with their finances as they plan to retire next year - any good resources/blog about how to approach this?
    Which account to pull from first, investing in retirement, how to approach social security RMDs....

  • #2
    search through the blog, i think all of these are addressed.

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    • #3
      I may try to read some books/articles when I approach the age, but I also may hire someone to go over the details with me. It seems asinine to expect a 70+ year old who may not have all of facilities about them to figure out required minimum distribution rules/medicare enrollment/ social security collection strategies. I don't understand it all now, I don't know how most people don't mess at at least one part of it up when they reach that age. The complexity of these issues combined with their wealth and declining cognition obviously makes our elderly an attractive target for fraudsters so you have to be careful in finding "help" as well. If you really want to help your parents, I would suggest learning about the issues yourself before outsourcing the task to an advisor. There are probably numerous books on the topic, but you probably have to perform google searches to find the most up to date information given our ever changing tax laws.

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      • #4
        “ It seems asinine to expect a 70+ year old who may not have all of facilities about them to figure out required minimum distribution rules/medicare enrollment/ social security collection strategies”
        • RMD’s are on front page of just about any brokerage.
        • Medicare is plastered all over to signup at 65. Use the phone. 1-800-MEDICARE
        • Social Security- use opensocialsecurity dot com.
        Anyone waiting to address this until 70+ is , less than brilliant. These are really not that hard.

        Much of the discussion here is about finesse. Paying less tax. If they have a big tax bill, there beneficiaries will get less and the government more.

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        • #5
          SORR

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          • #6
            Most brokerages will calculate your RMD. I like Mike Piper's software for SS planning. Link on Tims post. Which account to pull from first is actually a complex topic.

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            • #7
              Originally posted by Hatton View Post
              Most brokerages will calculate your RMD. I like Mike Piper's software for SS planning. Link on Tims post. Which account to pull from first is actually a complex topic.
              sorry where is this link? I'm trying to teach myself to better help my parents. Any resources you guys have found helpful, please post! thanks

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              • #8
                https://opensocialsecurity.com/

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                • #9
                  Might want to think about a financial planner for this one. At least a consult to make sure that they have sufficient funds for their retirement. Appropriate tax planning and withdrawal rates in early retirement sometimes can make the difference between a good retirement and being an 80 year old working at walmart

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                  • #10
                    This may be helpful:

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                    • #11
                      And this for a slightly different take. Both POF and FIPhysician very good on this topic, but remember these are guides not hard and fast rules. https://www.fiphysician.com/sources-...ment-strategy/

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                      • #12
                        I really liked Jim Lange’s Retire Secure book.

                        If your parents are a year from retirement there is so much at stake (considering SORR) that it is likely worth paying a professional for a one time analysis. FiPhysician would be one option. Basically your parents should already be de-risking their portfolio.

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                        • #13
                          Originally posted by Tim View Post
                          “ It seems asinine to expect a 70+ year old who may not have all of facilities about them to figure out required minimum distribution rules/medicare enrollment/ social security collection strategies”
                          • RMD’s are on front page of just about any brokerage.
                          • Medicare is plastered all over to signup at 65. Use the phone. 1-800-MEDICARE
                          • Social Security- use opensocialsecurity dot com.
                          Anyone waiting to address this until 70+ is , less than brilliant. These are really not that hard.

                          Much of the discussion here is about finesse. Paying less tax. If they have a big tax bill, there beneficiaries will get less and the government more.
                          I mostly agree. Definitely agree prior planning is the way to go. But to be fair there are some complexities. For example, it may not make sense for one spouse to take Medicare at 65 if the other is still working. Only 10%penalty per year not to take it, whereas the work salary may drive an IRMMA threshold, which could be a 100%increase.

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                          • #14
                            Medicare part A only. It is free and avoids the persons penalty. Not sure exactly how that would impact salary and IRMMA. Zero impact on income and avoids a gap or penalties. The question is, what healthcare is cost effective.
                            Not signing up will be the 10% per year and part B has a separate signup period (Jan-Mar)and then a delay of 6 months for any coverage. You are 100% correct that it is complex.

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                            • #15
                              Originally posted by Tim View Post
                              Medicare part A only. It is free and avoids the persons penalty. Not sure exactly how that would impact salary and IRMMA. Zero impact on income and avoids a gap or penalties. The question is, what healthcare is cost effective.
                              Not signing up will be the 10% per year and part B has a separate signup period (Jan-Mar)and then a delay of 6 months for any coverage. You are 100% correct that it is complex.
                              I may have a conceptual misunderstanding. Is the IRMMA penalty calculated on family income or individual income? Since it is based on taxable income from two years passed, I thought it would be family income, especially if MFJ. If that is right, and I am asking if it is, then wouldn’t one spouse”s high earning drive the other Medicare eligible spouse’s IRMMA over one or more of the penalty thresholds? Or, to the contrary, if somehow calculated individually, how does that happen without filing MFS?

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