u/Serve_Sorry

This video is mostly about the hell that is prior authorization. But in the middle she talks about the ER Noctor looking up “What is Hemophilia” right in front of her.

TIA for taking the time to read through this as it will be longish. This sub has very thoughtful and courteous discussions so I thought I would tee up this one. Please be assured I have/will seek advice from licensed professionals in advance of making any moves.

Spouse and I 62/64. Both in excellent health. No smoking non drinkers gym 4x per week. Family’s with remarkable longevity. (I know no guarantees)

Taxable Brokerage $3MM+
tIRA 5MM
Roth 1.5MM

Our Taxable account is concentrated in very highly appreciated Stocks. We have been retired for 6 years and have pretty much lived on cash/investment income and selling those stock positions with less appreciation and some tax loss harvest. The easy money is gone😎.

Unique family dynamics lead to a very low fixed cost of living. (We live on a family compound). Our spending is largely discretionary; two or three international trips per year, funding grandchildren 529s and family extras and gifts. (think travel, toys etc). This comes to about $20 -25k per month.

Children are very high earners (MDs) - That is relevant.

So with that background in mind, I have modeled (mostly with Claude Ai). Roth conversion scenarios. I wont provide all details but the bottom line is that converting up to the IRRMA threshold from here to eternity does relatively nothing to the IRA balance. Think even $300k per year (6% of $5mm) and assuming a 6% rate of return leads to a static account balance. In other words when we hit RMD age, we still have to deal with a $5MM Ira.

Sticking with the generic advice above (convert up to IRRMA each year). I still have another problem- where do I get cash to live and pay tax on the conversions? Answer is sell highly appreciated stock. Modeling this becomes difficult but bottom line is to convert the same amount every year leads to higher tax,IRRMA, higher capital gains rates, investment tax surcharges and depletes passive income, the source of funds for living and lifestyle rapidly.

So here is a plan: Do a one time conversion of $3MM AND rip the taxes directly from the conversion. In other words $2MM goes to the Roth and $1MM goes directly the greedy uncle.

I know that move is universally considered nuts as the 1MM is gone for ever and does not compound yada yada.

Allow me to provide my rationale:

1. Using Claude, I built a model assuming a $2MM Ira and $3+MM taxable account. (This is what
   I would have after the event)
   And miraculously everything works much better. I can spend as I do now by utilizing my pension/projected SS and investment income. I also have some room to continue conversions (or withdraw from IRA for spending). I can be flexible. As an example, I could nibble off some of the capital gains on the appreciated stock positions at the lower rate)

2. Leaving some money in the IRA is my long term care plan.

3. Estate Planning. This significantly address tax bomb for children and potential widow penalties. Additionally, As I understand it large tIRAs are a nightmare to put in a trust. It will be simpler to administer as Roth.

4). I believe it is likely significant tax increases are possible in the future.

5. And this relates back to #1 above. We have throughly enjoyed our early retirement. Family time every day, grandkids, good health, travel etc.
   It is impossible to model for every eventuality, but under the convert every year and pinch cash flow, deplete taxable etc, I fear that I would tighten
   up spending and decrease quality of life. So in the end the total dollar amount at age 90 might be less- but it will be enough.

Thanks for your time in reading and I look forward to thoughts.

Cheers!

Bought a new Yukon five weeks ago. It has been in the shop for Three of those weeks. Have been not given a coherent story as to the work performed.
Does anyone have a recommendation. I prefer not to name and shame the dealer I am using.

TIA.

Do domestic US airlines have internal standards as it relates to International business class service?

Recently flew BC to Europe. No water at the seat, no preflight service (777 was boarding through the front door so I’m sure it would have been difficult). No offer of cocktails when airborne until the dinner service. Most of the FAs gathered in the galley and chatted or surfed on their phones for most of the flight.

I have seen this happen on two of my last 10 flights. So it seems to be the exception. Is it like planned by the senior FA preflight or just something that happens?

BTW I don’t drink so I was really not that bothered- I simply asked for some water when I got thirsty.

No service preflight. No smiles. No bottle of water at your seat. No amenity kits. Plane broke down on taxiway. 5 hour late. New Plane Same cabin crew on the next flight. No preflight service. No smiles. No bottle of water at your seat. No amenity kit.

Twice the pleasure.

Seriously these people do not enjoy what they do for a living. I genuinely feel sorry for them.

Rant over

Partner and I (early 60s)are the youngest of large families- 10 siblings total.

Of the many positives, one stands out. Our brothers and sisters give us an unfiltered view of our future as it relates to aging. The good, bad and sometimes inevitable. However, often if you are willing, you can bend the future- if only slightly- based on the good and bad examples they demonstrate.

So here are a few lessons we have learned. Add to the list if you like.

1. Alcohol will catch up to you. I loved it but gave it up when I started to see the effects on older sibs that drank vs those that did not.

2. The consequences of raising entitled kids stick with you for life. We saw this in action early. It has turned out 100% as we imagined. We have sibs that have supported kids their entire lives. The financial and emotional drain has ruined a couple of lives.

3. Fitness especially weight training is critical. I have a 75yo brother who can not get out of the chair. Nothing really wrong medically, he just has no strength.

4. Social connections. Our world has a loneliness epidemic. Our sibs who have maintained family and friend networks are doing much better.

5. Technology phobias. Buy an iPhone and go to every class they offer. Get an Apple Watch track you activity and fitness. Buy the new car with all the gizmos. Technology is not going away and we have to learn and adapt.

6. Whatever you enjoy doing, if you have the time and money, do it now and do it often. We have seen our sibs abruptly lose the ability to travel etc literally overnight.

Cheers

Do I deserve to take up a seat at a live table? I enjoy a couple of two hour sessions a week. I mostly play in the afternoons with other retired - mostly nitty old dudes. At the end of any month I am up or down 1-2 hundred dollars. Hit a high hand bonus occasionally, have good conversation and watch sports. I enjoy running into really smart younger guys- you can tell - I spent time with a young electrician the other day. Guy was smart as a tack. We talked about him going out on his own. I hooked him up with a General a contractor friend. That gave me more satisfaction than any pot could. (I also hate seeing the other side of the coin -addiction issues,people losing rent money etc)
Occasionally end up at a table with a couple of good action players. Are they annoyed by me or happy to exploit my nittyness?

I have learned from the good players. I think I could make money. But it is the psychological hardwiring. Even though nothing could happen at the poker table that would move my financial needle at all, I just avoid risk.

Do you hate me, pity me or identify with me?

Just went on a luxury cruise. The drink package was complementary so I had it. In 12 days, I ordered one Margarita with light alcohol like a teaspoon.

Three years ago I drank over $1000 worth of booze on a similar cruise.

I continue to be amazed by this effect.

Good luck to all