Why Care?
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By 70–80, retirement income is in full swing — Social Security, required minimum distributions, and portfolio withdrawals are all active. The focus shifts from growing wealth to managing it efficiently and sustainably.
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Healthcare costs become one of the dominant financial concerns of this decade. Understanding Medicare coverage gaps and supplemental insurance options is increasingly urgent.
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Required Minimum Distributions from Traditional accounts increase as a percentage of the portfolio each year, with rising tax implications.
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Estate planning — previously theoretical — becomes real and time-sensitive. Ensuring your will, trust, powers of attorney, and beneficiary designations are current protects your family.
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Cognitive decline is a financial risk factor that many families don't plan for. Simplifying finances and establishing trusted oversight now — while fully capable — is a form of financial protection.
Top Tips:
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Consolidate accounts for simplicity. Fewer accounts at fewer institutions reduces administrative complexity and makes estate settlement significantly easier.
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Review healthcare coverage annually during Medicare Open Enrollment (Oct 15–Dec 7). Prescription drug plans and Medicare Advantage plans change every year.
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Continue Roth conversion planning if it makes sense. Even in your 70s, converting Traditional IRA funds to Roth during low-income years can reduce future RMDs.
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Review and update estate documents. Ensure your will, trust, power of attorney, and healthcare directive are current. Review beneficiary designations annually.
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Plan for cognitive protection. Grant a trusted family member limited oversight of your finances. Simplify investment accounts to reduce the complexity that makes fraud more likely.
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Consider qualified charitable distributions (QCDs). If you're 70-1/2 or older, donating directly from your IRA (up to $105,000/year in 2025) satisfies RMDs and is not counted as taxable income.