What Nick starts talking about at the 11-minute mark (filling a tax bracket, IRMAA implications) is exactly why I think it's so important to work with a CFP. I don't know about most people, but I don't have the ability to look around corners and do that level of financial planning and tax planning on my own.
Of course, once you retire, you don’t need to cover loss of work income. Emergency- is just for issues that arise with cars and house and maybe a medical emergency (cover the deductible). And, if you go ahead plan for a new roof or a wedding, that’s no longer an “emergency”. It’s a planned expense.
I don't keep an emergency fund, but there's a reason why. I'm retired military with a disability compensation package. That provides me more than enough to pay mortgage, son's private school, car loans, etc! If I ever need money I can go to my taxable brokerage. It has never happened, but ... My wife also earns a $100k+ salary and there is about a .00001% chance of her being unemployed.
What Nick starts talking about at the 11-minute mark (filling a tax bracket, IRMAA implications) is exactly why I think it's so important to work with a CFP. I don't know about most people, but I don't have the ability to look around corners and do that level of financial planning and tax planning on my own.
Great information!! The example you used to re-fill the emergency $ from the IRA within a tax bracket sounds similar to doing Roth conversions.
Good you are including IRMA
Huge bite if not tracked
Of course, once you retire, you don’t need to cover loss of work income. Emergency- is just for issues that arise with cars and house and maybe a medical emergency (cover the deductible). And, if you go ahead plan for a new roof or a wedding, that’s no longer an “emergency”. It’s a planned expense.
I don't keep an emergency fund, but there's a reason why. I'm retired military with a disability compensation package. That provides me more than enough to pay mortgage, son's private school, car loans, etc! If I ever need money I can go to my taxable brokerage. It has never happened, but ... My wife also earns a $100k+ salary and there is about a .00001% chance of her being unemployed.