Quote:
Originally Posted by shortstop14
I'm planning to rebalance in January to get back to my planned 60/33/7 allocation, which gives me two years of living expenses in cash - holding the course for now. The tax bill doesn't affect us much at this point, since we're keeping income low for ACA subsidy purposes, so federal tax is minimal. It is getting harder to generate cash without taking capital gains, which could eventually make it harder to keep income at the subsidy sweet spot. Still have 4-5 years to bridge to Medicare.
If the ACA or subsidies disappear after next year, I'll retrench and start doing Roth conversions to the top of the new 12% tax bracket.
I ended up with a mixture of taxable and tax-deferred accounts, mostly because I didn't like the investment choices in my company 401(k), so I only funded that up the match percentage and saved the rest in taxable accounts. This had provided some useful flexibility.
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I feel for you, I'm 22 months from Medicare and DW is 28 months. No one knows what will come next year, but I know we need Medical Insurance and will pay what is needed to get it. Flexibility has also proven valuable for me.