Thanks very much for the input. I am curious about the benefit of the Roth conversions you are mentioning. Is the idea that my parents could gradually convert some of their tax-deferred retirement assets to Roth, which would mean paying tax on those assets now, but then those assets could grow and be inherited tax-free? I suppose this would help the recipient if, at the time of inheriting the assets, the recipient were already in a high tax bracket--in which case, as they withdraw from the accounts over the 10 year window, it could push them into a higher tax bracket than my parents are currently in? Am I getting that right?
TBB...As I read through your post and some of the excellent responses RE: Wash Sales, Capital Gains and charitable giving, I am surprised not to see a discussion of the benefits of some Roth Conversation strategies.
Assuming your folks plan to leave a legacy to you and any siblings, or to charities, wouldn't it make sense to consider some Roth Conversions? My wife and my holdings are not quite as large as your folks, but I am 73/wife is 69 and our cash flow (only counting Social Security Benefits) annually also exceeds our expenses. Our Total Portfolio consists of Equities, Annuities (our Bond Substitutes,) and cash/cash equivalents. Our tax break down is 55% Tax Free, 30% Tax Deferred, 15% cash/cash equivalent.
Just a thought. Otherwise... I like the job you are doing for your folks.
Statistics: Posted by TeenyBitBlue — Tue Mar 12, 2024 8:58 pm — Replies 12 — Views 1127