The punch list I have:
- Strategies to minimize MAGI for both ACA and Medicare look back [1]
- Possible to 'prefund' 529s [2]
- AA across taxable vs non-taxable funds [3]
- Alternatives to bonds we should be thinking about [4]
- Strategies for portfolio drawdown [5]
- Minimizing taxes in retirement [6]
This forum has been such a wealth of information that I thought I'd check in here and see what I may be missing. Any other thoughts on things we should be thinking about/planning over the next few years?
[Numbers added]
First, congratulations on doing so well! I think kids really benefit by having their parents around more, especially during the teenage years.
My comments on your bullet points, FWIW:
[1] Be sure to consider, in general terms, your tax burden across multiple years. A low MAGI now will garner sweet ACA subsidies, but doing Roth conversions (which raise MAGI) may save you on lots of taxes later. My simple strategy was to look ahead and see what my tax rate is likely to be when I hit RMDs and SS about age 70, and then try to lower that rate a brackeet or two by Roth converting and paying some "unnecessary" taxes now, to the degree that makes sense.
Also, in general, your taxes will fluctuate as you lose your child tax credits when they turn 17, and you may have college-related tax credits that are also pretty sweet. Try to figure out when that will be and see if there are opportunities. I tend to think that taxes are the largest single budget category that we can strategically minimize - more than cars, groceries, etc. that people often discuss.
But in general, the strategies to minimize MAGI is conceptually straightforward: Grab your most recent Form 1040, look at the numbers that make up your MAGI, and see if you can lower them: avoid working, avoid realizing capital gains if possible, etc. Look at the blank lines on the front side of Form 1040 that have the potential for negative numbers and see if you want to do things to put negative numbers in those boxes - for example, realizing capital losses if you have any, or perhaps owning a rental that you can depreciate.
On Medicare lookback, I believe they look back two years, so the tax return when your DH is about 63 is what they'll use to set your Medicare premium when he is 65. Note that they continually look at your tax returns, so if you have high income one year, you'll have a high Medicare premium two years later, but then if your income drops the next year your Medicare premium will drop the next year.
[2] I believe you can still pre-fund 529's with 5 years worth of contributions. (But if you do this, you can't contribute over the next five years.) Analyze the tradeoff between pre-funding, which gives you more time for the money to grow tax free, with whether you'll be able to take your state tax deduction or credit for the full five year amount. What I generally did was fund up to the maximum I could deduct on my state taxes each year.
[3] I'd refer you to this:
https://www.bogleheads.org/wiki/Asset_allocation_in_multiple_accounts
[4] I just use VBTLX. But if I were in a high tax bracket I would consider a municipal bond fund, from which the income is federally tax free.
[5] Too large of a topic for one post. Put your numbers into FIREcalc and make sure you're comfortable with the withdrawal rate and historical success rate you get. If you like Bogleheads, look into VPW.
[6] Too large of a topic for one post. You might be surprised how low taxes are in FIRE, though. Also, once you leave your jobs, you may be able to move to a LCOL and low tax state or area. If you're high income now, you may be low income in FIRE, which will likely make you eligible for tax breaks that you weren't eligible for when working, so I would suggest investigating those.
Good luck!
