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Personal Investments • Should we start doing Roth conversions?

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The accounts will grow each year the real return is greater than 0%.
Perhaps we need to define "The accounts".

Roth balances don't matter.

Traditional account balances will not grow if the amount withdrawn/converted is greater than the investment growth.

Taxable account balances may grow, but in most cases (because the QD+LTCG brackets are so wide) there will be no marginal tax rate change.

Is that how you see it also?
The questiom I struggle with is.... how do we tell NYC1967 to accomplish this?

I believe if you run this scenario on something like RPM or Pralana and review the resultant outputs they may say all of these:
- Roth balances will never be spent and will work out greatly for the heirs (larger is better )
- Tax deferred will grow if using a need based withdrawal (OP does not need them) untill the RMD's % outruns the growth rates
- Taxable accounts will grow but also not needed, all divs and growth will be reinvested within the taxable accounts ....raising both interest and divs each year (OP's goal is 40/60 AA)
- They are in NY and the estate tax will likely come into play with some very real consequences, unless/untill they plan well out in the future

Statistics: Posted by smitcat — Wed Aug 14, 2024 7:22 pm — Replies 135 — Views 8870



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