Quote:
Originally Posted by CoachKandSportsguy
Why a ROTH conversion, of which you are proud of your decision versus a perceived professional, is not at all the question, nor the history . . remember, cpas and tax prep professionals have a current tax minimization today motivation. Tax minimization strategy is what you did, which is not their strength most of the time.. . . for that you need a planning professional, very different animal, one looks forward, the other looks backward. Very well done, and no criticism of your move to ROTH.
But now that the conversion is done, the question is for wealth maximization in conjunction with tax minimization, under what future scenarios for those two constraints or goals, does it make sense to take any money out of a Roth, versus using other sources of wealth. .
to be clear, the question is a future scenario question, one of which you are struggling for the constraints listed above. (which is the difference between finance and accounting) I am a finance professional, who only looks forward, as I can't change history, but I can influence the future towards wealth maximization and tax minimization, which is the point of the question.
looking forward to your thoughtfulness on your future decisions
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I understand everything we own. A professional might have been able to show a bigger return, but we’re OK with our own decisions and our returns.
My wiring is such that I like taking the responsibility for investment decisions. In fact, I really do think we are all wired in whatever way when it comes to money. I don’t know exactly why I am wired with an interest in investing, etc., but I am glad I am, and Mr. Boomer is happy about it, too.
Giving somebody one percent, annually, taken quarterly, whether the accounts are up or down is not something we are ready to do.
I have been at this for decades — in a sort of comfort zone. Maybe boring, but a comfort zone.
I do have a philosophy of investing. It is simple and categorized and forward-looking — and backward-looking — because I think many investors often suffer from amnesia. And I pay attention. No spreadsheets or formulas involved, just making sure I completely understand what we own — and what those companies do — and how they are doing at doing it, along with general awareness of things I might need to be aware of — like taxes — and have been getting tax advice along the way. I understand cap gains very well and play them carefully.
Mr. Boomer and I have a backup plan if I get to the point where I start investing in Franklin Mint plates or Pez dispensers or Beanie Babies. We have interviewed a few planners and know who we will see if we feel like we need or want to.
The main aggravation I have now is that there is no return on cash in that moat I maintain around the stocks. Our parents could always get returns on CDs. I don’t think we will ever see returns on CDs again. But, even so, I know to never get us into the position of having to sell stocks to pay taxes — thus, the moat will continue to be around.
All advisors can claim big returns right now. Bigger than mine, no doubt. But the old bull has been running for a long time. He must be getting awfully tired — and there sure seem to be a lot of picadors around these days. Whatever happens, I will stay swaddled in our comfort zone with my unsophisticated approach, still making our own decisions, while we can.
Btw, I am now over the idea of looking further into Roth conversions at RMD age. The existing Roth will be there already — and all ready — if we want it for a tax-advantaged expenditure. But I still regret not doing more conversion before RMD age. But that’s just me and my whole picture wiring.
Thanks for the conversation.
Boomer