Core Insights - The article emphasizes the importance of actively managing finances in retirement despite having more leisure time, highlighting the need for strategic adjustments to protect savings against rising costs and changing tax rules [1] Group 1: Medicare Optimization - Retirees should optimize their Medicare plans during the Fall Open Enrollment period, which runs from October 15 to December 7, by comparing current plan costs, networks, and drug coverage against alternatives [3][4] - The standard premium for Part B has increased to $185 per month, while Part D caps annual out-of-pocket drug costs at $2,000 [3] Group 2: Tax Planning - A smart tax plan for 2025 should include deliberate planning of tax brackets, considering partial Roth conversions, and a tax-efficient withdrawal sequence to manage lifetime taxes and IRMAA [5] - Some provisions from the Tax Cuts and Jobs Act will sunset after 2025, and changes from the One Big Beautiful Bill Act may also impact deductions and tax brackets [5] Group 3: Required Minimum Distributions (RMDs) - Required minimum distributions begin at age 73, and it is crucial for those who turned 73 this year to take the correct amount to avoid penalties [7] - Coordinating withdrawals with a tax plan and utilizing IRA withholding can help manage taxes effectively [7] Group 4: Cash Management and Portfolio Rebalancing - Retirees should maintain one to two years of planned withdrawals in cash-like reserves to avoid forced selling during market downturns [9] - Rebalancing the investment portfolio to align with target risk levels is essential as investing risks change in retirement [9]