‘I don’t know how much my wife earns’: I’m 63 with $6.4 million in stocks, mostly Apple. Will I get punished on taxes?

Core Insights - The individual has accumulated a significant investment portfolio valued at $6.4 million, primarily in stocks and a large-cap index fund tracking the S&P 500, with a substantial portion invested in Apple [2][13] - The individual is facing challenges related to Required Minimum Distributions (RMDs) and long-term care funding, which are critical financial considerations as they approach retirement age [7][19] Investment Portfolio - The investment strategy began conservatively but shifted to a more aggressive approach over time, resulting in substantial capital appreciation [2] - Approximately half of the $6.4 million portfolio is concentrated in Apple shares, amounting to $3.2 million, which poses a risk due to lack of diversification [13] Retirement Income - The individual has a state pension providing $9,000 monthly, alongside Social Security benefits that could total $90,000 annually for both spouses [4][14] - Rental income from properties adds to the financial stability, with one property generating $3,500 monthly [3] Tax Considerations - RMDs will be significant, calculated at 4.07% of the retirement account balance at age 75, potentially leading to high income tax liabilities [15][16] - Strategies such as Roth IRA conversions and Qualified Charitable Distributions (QCDs) are suggested to manage tax implications effectively [16][17] Long-Term Care - The individual has the financial capacity to self-fund long-term care, with median annual costs for facilities ranging from $65,000 to over $150,000 depending on the type of care [21] - Long-term care insurance premiums are expected to increase significantly with age, highlighting the need for planning [19][20] Estate Planning - Roth conversions during the individual's lifetime can mitigate tax burdens for the surviving spouse and heirs, as inherited tax-deferred accounts must be drained within a 10-year period [22]