I'm new here, first time posting so please bear with me.
I've heard great things about this forum and am hoping to tap into the knowledge base here regarding reducing the impact of what looks to be a Tax Torpedo up ahead along with increased Medicare premiums.
Age = 66 (Single, no exes, no kids. Healthy, so far.)
Own my house outright (no mortgage), current value = ~$400k
Retired, collecting non-COLA pension of $30k/yr...(supplemented with withdrawals from investments, as needed, to cover my living expenses)
On Medicare, with a supplemental Plan G
Currently in 25% fed. tax bracket
SS estimate at 70 = ~$36k/yr (Planning on deferring SS until 70. Family longevity has me using 103 for a lifetime estimate.)
Bulk of my investments are in IRAs. Trad. IRA = ~$1 million and Roth IRA = ~$150k
No future windfalls anticipated (such as inheritances, etc.)
I live beneath my means (LBYM), and am trying to stretch my means to allow for some fun and travel now while planning for the possibility of a long life and needing care in my later years.
Looking down the road, I am seeing the possibility of even higher taxes and Medicare premiums:
- RMDs beginning at age 70.5 (using today's Trad. IRA value, my first RMD = ~$36,500)
- Plus my Social Security payments will likely be taxed as well
- These RMD and SS increases in income will put me into higher-cost Medicare premium brackets, etc.
Are there any suggestions on steps I can take now, or in the next few years, to reduce taxes and Medicare premiums while maximizing my net worth and income for longevity? I've recently seen some calculators/articles on The Hump and possible taxation rates in the high 40-something percents, but rather than gaining clarity they only confused me.