Search found 2147 matches

by WoodSpinner
Wed Aug 04, 2021 10:12 pm
Forum: Personal Investments
Topic: What is “Enough” of a Margin of Error for Retirement?
Replies: 9
Views: 1439

Re: What is “Enough” of a Margin of Error for Retirement?

OP, I used a number of different approaches but still was nervous when I pulled the plug. Like you, I started by building an Excel model of Assets, Income, Expenses and Taxes. I figured I had one shot at this and wanted to be sure. It’s been four years and am much more relaxed about my Retirement pl...
by WoodSpinner
Wed Aug 04, 2021 7:17 pm
Forum: Personal Investments
Topic: SECURE Act and family inheritance question
Replies: 28
Views: 1838

Re: SECURES Act and family inheritance question

Could convert to Roth and let the kids keep it in tax sheltered even longer. Actually that you cannot do! Inherited IRAs are not eligible for Roth Conversions. WoodSpinner If you look at all the quotes, I was suggesting a Roth conversion for the OP, as opposed to someone else suggesting they pay th...
by WoodSpinner
Wed Aug 04, 2021 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Complex retirement drawdown planning?
Replies: 25
Views: 1180

Re: Complex retirement drawdown planning?

OP, How are your excel skills? You can build a Cashflow model that includes tax calculations to get a better answer. OTOH, this would be a good time to work with an hourly Financial Advisor to build it out as part of your Retirement plan. If you want to tackle the Excel model and have the skills, PM...
by WoodSpinner
Wed Aug 04, 2021 2:54 pm
Forum: Personal Investments
Topic: SECURE Act and family inheritance question
Replies: 28
Views: 1838

Re: SECURES Act and family inheritance question

sailaway wrote: Wed Aug 04, 2021 11:23 am
Could convert to Roth and let the kids keep it in tax sheltered even longer.
Actually that you cannot do!

Inherited IRAs are not eligible for Roth Conversions.

WoodSpinner
by WoodSpinner
Wed Aug 04, 2021 9:12 am
Forum: Personal Finance (Not Investing)
Topic: trust vs beneficiary for taxable brokerage Florida
Replies: 4
Views: 283

Re: trust vs beneficiary for taxable brokerage Florida

OP,

IANAL but….

They need to either Title the account in the trusts name (best option or make the Trust the beneficiary.

Adding it to their trust independent of ETrade will only generate confusion and problems.

Plus, they already gave eTrade their SSNs when setting up the account!

WoodSpinner
by WoodSpinner
Wed Aug 04, 2021 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 29
Views: 2571

Re: Long Term Care Insurance

On July 22, 2021 the court hearing the CalPERS LTC case granted preliminary approval of the class action settlement reached with CalPERS. More information is available at: http://www.calpersclassactionlawsuit.com/index.html The information includes a transcript of the hearing and a Power Point pres...
by WoodSpinner
Wed Aug 04, 2021 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 29
Views: 2571

Re: Long Term Care Insurance

I purchased a long term care policy 7 years ago for me (51 yrs old) and my wife (58 yrs old) through Calpers. We pay $350/month. They are raising rates by 77%. They are also no longer allowing new applicants due to the "uncertainty of the long term care market". Although I've invested a l...
by WoodSpinner
Tue Aug 03, 2021 11:25 pm
Forum: Investing - Theory, News & General
Topic: How do you define your goals when considering Roth IRA conversion?
Replies: 51
Views: 3931

Re: How do you define your goals when considering Roth IRA conversion?

averagedude wrote: Tue Aug 03, 2021 5:34 pm I don't know if I will do Roth conversions in the future, but if I do, it will be to optimize tax savings and tax savings only.
Why this choice?

WoodSpinner
by WoodSpinner
Tue Aug 03, 2021 10:27 pm
Forum: Personal Investments
Topic: X expenses in different types of accounts
Replies: 15
Views: 1084

Re: X expenses in different types of accounts

I appreciate the candor on this board. Warm fuzzy answers do little to assuage the anxieties of leaving gainful employment to depend solely on one's investments. This is so true! Retired 4 years ago and still remember the angst of all the decisions and learning! After awhile you get used to it and ...
by WoodSpinner
Tue Aug 03, 2021 8:30 pm
Forum: Personal Finance (Not Investing)
Topic: Once retired, how much SHOULD one keep in their Pre-Tax accounts (PTAs)?
Replies: 40
Views: 3081

Re: Once retired, how much SHOULD one keep in their Pre-Tax accounts (PTAs)?

I'm in a similar situation to OP. Here's what I did: I calculate how much RMD's I will need at age 72 to meet my expected expenses. Anything over that, I am convert to Roth. I'm currently 62 so I'm dealing with a 10+ year forecast. To determine the RMD amount, I estimated my total expenses when I'm...
by WoodSpinner
Tue Aug 03, 2021 8:17 pm
Forum: Investing - Theory, News & General
Topic: Marginal tax rate of Roth conversions
Replies: 27
Views: 2881

Re: Marginal tax rate of Roth conversions

OP, To better visualize your decision, consider modeling out your expected taxes through Retirement and building a Cumulative Taxes Graph to better visualize the taxes you are paying today vs. the taxes paid in the future. Visually, look to see the Tax Equilibrium between Conversions and RMDs as dis...
by WoodSpinner
Tue Aug 03, 2021 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: [**Update] - Metrics to Compare Roth Conversion Scenarios ??

Not sure if anyone took a look at the Tax Drag Example spreadsheet posted upthread. Reposting to provide support for McQ that the drag is real and will be more noticeable over time. To see a demonstration of the Tax Drag in action, you can inspect this simple Excel model. The size and impact of the...
by WoodSpinner
Tue Aug 03, 2021 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: [**Update] - Metrics to Compare Roth Conversion Scenarios ??

Not sure if anyone took a look at the Tax Drag Example spreadsheet posted upthread. Reposting to provide support for McQ that the drag is real and will be more noticeable over time. To see a demonstration of the Tax Drag in action, you can inspect this simple Excel model. The size and impact of the ...
by WoodSpinner
Tue Aug 03, 2021 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Once retired, how much SHOULD one keep in their Pre-Tax accounts (PTAs)?
Replies: 40
Views: 3081

Re: Once retired, how much SHOULD one keep in their Pre-Tax accounts (PTAs)?

Doing Roth conversions to the top of the 12% federal tax bracket is likely an easy choice but doing that much each year will likely never get you to a point where you need to worry about having converted too much since your investments should keep growing too. To me doing Roth conversions in the 22...
by WoodSpinner
Tue Aug 03, 2021 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Once retired, how much SHOULD one keep in their Pre-Tax accounts (PTAs)?
Replies: 40
Views: 3081

Re: Once retired, how much SHOULD one keep in their Pre-Tax accounts (PTAs)?

I think we have enough (especially when adding in future SS) but we're not HNW in my opinion. Roughly $3.5MM before the house, with about ~2MM in PTAs. We'll be converting to some level and I'm trying to figure out when to stop converting. My figuring was to stop at about $800M (all in cds/bond fun...
by WoodSpinner
Tue Aug 03, 2021 9:14 am
Forum: Personal Investments
Topic: Question about putting high proportion of income into 401k
Replies: 20
Views: 1393

Re: Question about putting high proportion of income into 401k

OP,

It does make sense and I would use the Roth option if you want to allocate this money to Retirement savings.

You should find out if there are salary maximums (e.g. no more than 50% of Gross Pay) from your Summary Plan Documents.

WoodSpinner
by WoodSpinner
Mon Aug 02, 2021 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: [**Update] - Metrics to Compare Roth Conversion Scenarios ??

In hopes of advancing the discussion of how to model Roth conversion outcomes, allow me to introduce McQuarrie’s rule: Professor, I was actually thinking of another Rule you had postulated earlier (paraphrased) “When in doubt choose the more conservative Roth Conversion Scenario — the future is unc...
by WoodSpinner
Sun Aug 01, 2021 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: [**Update] - Metrics to Compare Roth Conversion Scenarios ??

All, Just as an FYI I finally had a chance to update the Original Post in this thread to hopefully clarify my thinking and to help bypass some areas of discussion (e.g. RoI and IRR metrics) that weren't particularly insightful. I do plan to convert to the top of the 24% bracket this year (my last be...
by WoodSpinner
Sun Aug 01, 2021 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

Marginal rate (at 62) for No Conversions is 18% (Fed 12%, CA 6%) Marginal Rates (at 62) for IRMAA Tier1-3 are (31.3%, 33.3%, and 33.3%). You get a year free of IRMAA concerns at age 62 - might be a good year to make a large Roth conversion. - Once RMDs begin at 72 the Marginal Rates are much closer...
by WoodSpinner
Sun Aug 01, 2021 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

..... 2. In the plot above, why isn't the tax adjusted portfolio value the same for all scenarios at age 62? (I assume you are 62, this is t=0; I may be in error). Regardless of what I do in the future, my portfolio has a certain tax adjusted portfolio value today, determined primarily by the tax r...
by WoodSpinner
Sun Aug 01, 2021 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: [**Update] - Metrics to Compare Roth Conversion Scenarios ??

All,

To see a demonstration of the Tax Drag in action, you can inspect this simple Excel model. The size and impact of the drag will depend on a variety of the variables (in addition to time).

https://drive.google.com/file/d/1RRNghh ... sp=sharing

WoodSpinner
by WoodSpinner
Sun Aug 01, 2021 10:40 am
Forum: Investing - Theory, News & General
Topic: How do you define your goals when considering Roth IRA conversion?
Replies: 51
Views: 3931

Re: How do you define your goals when considering Roth IRA conversion?

OP, Great thread! I think a solid definition of your goals is the foundation for Conversion analysis. Here are mine (prioritized): - Provide Resiliency for our retirement to deal with unexpected opportunities or expenses - Fund LTC needs for my wife (hopefully never needed) from our IRA. - Inheritan...
by WoodSpinner
Sat Jul 31, 2021 9:53 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

In regards to the primary question, the "metric" or goal is to maximize your spendable money. ... The easiest guess is to figure out what will happen if one does not convert, then make the best-estimate of a Roth conversion plan you can. If you over-convert or under-convert, oh well, at l...
by WoodSpinner
Sat Jul 31, 2021 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

Marginal rate (at 62) for No Conversions is 18% (Fed 12%, CA 6%) Marginal Rates (at 62) for IRMAA Tier1-3 are (31.3%, 33.3%, and 33.3%). You get a year free of IRMAA concerns at age 62 - might be a good year to make a large Roth conversion. Agreed, good idea! - Once RMDs begin at 72 the Marginal Ra...
by WoodSpinner
Sat Jul 31, 2021 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

In my modelling, the differences between different roth conversion plans is surprisingly small, after considering the reduced future IRMAA surcharge, eliminated the future 3.8% NIIT, and 0% future LTCG tax rates. If you can do this easily, change your rate of return for both equity and bonds to the...
by WoodSpinner
Sat Jul 31, 2021 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

Why do you think the Total After Tax Portfolio Value (TATPV) is not immediately breakeven? Given equal marginal tax rates for current and future conversions, I would expect "no change" in TATPV when the conversion occurs. Because you could die before it actually breaks even. Because it is...
by WoodSpinner
Sat Jul 31, 2021 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

1. I can't follow this thread very well, in part because I think your metrics are not correct, as others have noted. This has complicated the thread above, making it difficult for me to follow. I hear you — part of the issue is I am learning, refining and remodeling to gain insights. My thinking an...
by WoodSpinner
Sat Jul 31, 2021 9:38 am
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: [**Update] - Metrics to Compare Roth Conversion Scenarios ??

MahoningValley wrote: Sat Jul 31, 2021 9:26 am
WoodSpinner wrote: Sat Jul 31, 2021 8:44 am

Btw, love the Black Swans on your Avatar!

WoodSpinner
:thumbsup My wife took that picture in Lucerne, Switzerland
Cool, mine was from Australia ….
by WoodSpinner
Sat Jul 31, 2021 9:36 am
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

At the risk of repeating myself and others. If you are going to do this kind of detailed analysis, it seems really odd to do two things: 1) You are using cumulative taxes paid as a metric. As shown in a previous post cumulative taxes paid is a terrible metric to use to evaluate Roth Conversions. Up...
by WoodSpinner
Sat Jul 31, 2021 8:58 am
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

1. Roth Conversions as a Tax-Arbitrage scheme won't break even until Spouse1 is about 84-88 years old. For equal current and future tax rates, we know Roth conversions are immediately "break even" based on the commutative property of multiplication. How are you defining "break even&q...
by WoodSpinner
Sat Jul 31, 2021 8:44 am
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: [**Update] - Metrics to Compare Roth Conversion Scenarios ??

MahoningValley wrote: Sat Jul 31, 2021 6:42 am I guess that I am a very simple man. My only metric re: converting tIRA to Roth was to move as much into the Roth before I turned 71 with minimal tax impact. I've been at it since I was 60. :beer
Simple can be good!

Btw, love the Black Swans on your Avatar!

WoodSpinner
by WoodSpinner
Fri Jul 30, 2021 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

All, I decided to take a step back and look at a smaller set of Conversion Scenarios and focus on 3 Simple Metrics: - Does the Scenario achieve a reasonable Tax Equilibrium? - Cumulative Taxes Paid over Time - Tax Adjusted Portfolio Value Scenarios Compared: - No Conversions - IRMAA Tier1 - IRMAA Ti...
by WoodSpinner
Fri Jul 30, 2021 9:29 am
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

The chart you attached is labeled "fictituos data" but it shows a growing balance each year. Looking at that and some of your descriptions leads me to believe that there will be a substantial amount of funds going to heirs. If you make a number of different runs with the most likely futur...
by WoodSpinner
Fri Jul 30, 2021 9:17 am
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

Here is how I did it. Each year, a part of the SS/Medicare bureaucracy posts next year's IRMAA calculations. Here is the most recent: https://www.cms.gov/newsroom/fact-sheets/2021-medicare-parts-b-premiums-and-deductibles So from that release, you can get the dollar increment for the first IRMAA br...
by WoodSpinner
Thu Jul 29, 2021 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

[Still figuring out nested quoting--apologies if I got this wrong] Perfect, there is a Preview Button that can also help. I am still learning some tricks in formatting and posting in the forum myself. Its definitely a bit old-school and not a WYSWYG interface. Fortunately the posts and the helpfuln...
by WoodSpinner
Thu Jul 29, 2021 11:16 am
Forum: Personal Investments
Topic: Another lump sum or DCA question
Replies: 17
Views: 1454

Re: Another lump sum or DCA question

OP, An out-of-the-box question ..... Why would you invest the money from the Trust Fund into your 3rd Tier Emergency Fund portfolio? Is there a shortfall? Do you also have a Retirement Portfolio where it would be better invested? Thoughts? I max out my 401(k), my profit sharing plan, and my wife's ...
by WoodSpinner
Thu Jul 29, 2021 10:37 am
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

Our metric is also after-tax disposable income. ROI & IRR both suffer from the same fatal error. In a progressive tax system, tax costs are lower in lower brackets, and higher as brackets increase. Roth conversions work by accelerating ordinary income, at least to your lifetime tax-equilibrium ...
by WoodSpinner
Wed Jul 28, 2021 11:52 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

Our metric is also after-tax disposable income. ROI & IRR both suffer from the same fatal error. In a progressive tax system, tax costs are lower in lower brackets, and higher as brackets increase. Roth conversions work by accelerating ordinary income, at least to your lifetime tax-equilibrium ...
by WoodSpinner
Wed Jul 28, 2021 4:27 pm
Forum: Personal Investments
Topic: Another lump sum or DCA question
Replies: 17
Views: 1454

Re: Another lump sum or DCA question

OP,

An out-of-the-box question .....

Why would you invest the money from the Trust Fund into your 3rd Tier Emergency Fund portfolio?

Is there a shortfall? Do you also have a Retirement Portfolio where it would be better invested?

Thoughts?

WoodSpinner
by WoodSpinner
Wed Jul 28, 2021 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

Hello all: Woodspinner asked me to comment on his metrics here. Apologies to those who also participated in the earlier thread; it is not likely I will say anything new here. Thank you very much for taking the time and thought in your reply. Its much appreciated and I have been pondering it (and Fi...
by WoodSpinner
Wed Jul 28, 2021 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

Any metric that uses "amount of tax paid" as a standalone input (as opposed to "marginal tax rate", where the tax paid is divided by the income in question) is liable to mislead. Simple example (same investment in traditional vs. Roth; no taxable account present): a) Convert $10...
by WoodSpinner
Wed Jul 28, 2021 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Really how many times your annual spending?
Replies: 98
Views: 10490

Re: Really how many times your annual spending?

25X is the normal recommendation when retiring in your mid- 60s. Mid-50s is good at 33x. Now that "X" is your anticipated living expenses in retirement, not your current income (current income usually includes FICA taxes, 401k deductions, etc.). In contrast, early retirement usually inclu...
by WoodSpinner
Wed Jul 28, 2021 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Really how many times your annual spending?
Replies: 98
Views: 10490

Re: Really how many times your annual spending?

25X is the normal recommendation when retiring in your mid- 60s. Mid-50s is good at 33x. Now that "X" is your anticipated living expenses in retirement, not your current income (current income usually includes FICA taxes, 401k deductions, etc.). In contrast, early retirement usually inclu...
by WoodSpinner
Mon Jul 26, 2021 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

"Once you adjust for the after-tax value, it does not matter which assets you put in a traditional IRA or 401(k) and which you put in a Roth. If you are in a 25% tax bracket, investing $4,000 in the 401(k) or $3,000 in the Roth in the same investment will give you the same after-tax value.&quo...
by WoodSpinner
Mon Jul 26, 2021 10:54 am
Forum: Personal Investments
Topic: Advice on possible elder abuse?
Replies: 19
Views: 1638

Re: Advice on possible elder abuse?

OP,

How awful…..

I think a letter to the editor would be appreciate, especially if it laid out the impact of costs and fees.

No idea if it is illegal (not a lawyer) but your Dad was ill served by his advisor.

WoodSpinner
by WoodSpinner
Mon Jul 26, 2021 10:47 am
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

I have also found significant benefit to the optimization of asset location and plan to post in this in a separate thread. Not only is the the IRA growth slowed but the equities moved to Roth are now growing tax free. I am still trying to figure out how to quantify the benefit— did you do any work ...
by WoodSpinner
Mon Jul 26, 2021 10:25 am
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

Woodspinner, I’d like to see total portfolio just to better understand total tax adjusted portfolio. Not sure what other metrics get you. Love to see some of your results. Good luck Hypothetical … At age 90: Taxable $700,000 Roth $3,000,000 IRA $900,000 Total $4,600,000 Marginal rate at 90, 28% Fed...
by WoodSpinner
Mon Jul 26, 2021 10:20 am
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

Finding an appropriate Figure Of Merit to use in complex analysis can be surprisingly hard. Often there is not a single figure which will adequately describe the impacts of various decisions. It's possible to create scenarios which will have high levels of variation due to unpredictable life events...
by WoodSpinner
Mon Jul 26, 2021 10:17 am
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

It's a question of paying today what may be put off until tomorrow or even ten years or more after death. If you're able to defer it until after death, then you only care if you care about your heirs. If you do care, it is still a tax rate today vs tax rate for them comparison. I do not believe the...
by WoodSpinner
Sun Jul 25, 2021 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: [**Update] - Metrics to Compare Roth Conversion Scenarios ??
Replies: 151
Views: 9626

Re: Metrics to Compare Roth Conversion Scenarios ??

It's a question of paying today what may be put off until tomorrow or even ten years or more after death. If you're able to defer it until after death, then you only care if you care about your heirs. If you do care, it is still a tax rate today vs tax rate for them comparison. I do not believe the...