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An option to consider....allows you to carry more funds but bulk of returns still resides in top 3 and gives you time to watch 4-8 for clarity.
Strongest conviction Fund A 25% allocation Second strongest conviction Fund B 25% allocation Third strongest conviction Fund C 25% allocation Four thru 8 Funds 5% each
The cumulative performance 4-8 acts as a fourth fund.
@Crash, not questioning the plan, but say, if you don't have enough income to pay any taxes, and if you or your wife had some work income during the year, wouldn't that be an ideal situation to convert T IRA money to a Roth? In fact, as a retired senior I don't think you need work income to covert.
@Crash, not questioning the plan, but say, if you don't have enough income to pay any taxes, and if you or your wife had some work income during the year, wouldn't that be an ideal situation to convert T IRA money to a Roth? In fact, as a retired senior I don't think you need work income to covert.
Hello! We have no earned REPORTABLE income. I'm sure you catch my meaning.
”Roth conversions now can reduce the size of those RMDs and keep more of the money tax-sheltered for longer. This may not matter to you since you don't expect to owe taxes either way.”
Roths are the best thing since sliced cheese. I’m not aware of a need for “reportable income.” Did 3 conversions in retirement. If @Crash means he doesn’t receive social security or any pension, then perhaps there’s a problem doing a conversion. I don’t know about that.
Like @msf says, you can reduce your annual RMD with a conversion because Roths don’t require any. And yet, if you need a big slug of money in a hurry, you don’t have to worry about paying taxes on your distribution because there aren’t any. I’d say Roths are a “plum” for the wealthy, and so I don’t expect Congress to kill them anytime soon.
Roth IRAs became popular after 2010 when the income limits were dropped. Rorh Conversions don't require earned income. But recently, the stretch was eliminated for most beneficiaries - now most inherited IRAs must be drained in 10 years & annual RMDs may be required too in some cases. See Secure 2.0 thread for more details.
Comments
Strongest conviction Fund A 25% allocation
Second strongest conviction Fund B 25% allocation
Third strongest conviction Fund C 25% allocation
Four thru 8 Funds 5% each
The cumulative performance 4-8 acts as a fourth fund.
Roths are the best thing since sliced cheese. I’m not aware of a need for “reportable income.” Did 3 conversions in retirement. If @Crash means he doesn’t receive social security or any pension, then perhaps there’s a problem doing a conversion. I don’t know about that.
Like @msf says, you can reduce your annual RMD with a conversion because Roths don’t require any. And yet, if you need a big slug of money in a hurry, you don’t have to worry about paying taxes on your distribution because there aren’t any. I’d say Roths are a “plum” for the wealthy, and so I don’t expect Congress to kill them anytime soon.
Rorh Conversions don't require earned income.
But recently, the stretch was eliminated for most beneficiaries - now most inherited IRAs must be drained in 10 years & annual RMDs may be required too in some cases.
See Secure 2.0 thread for more details.