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Originally Posted by heims01
For the sake of those readers in their younger stages of retirement, the advice from some financial planners is to do Roth conversions prior to RMD. Watch your tax bracket and convert as much as possible prior to that first RMD year. Who knows, the laws could change and it may not matter how well you plan. Sorry if this has already been mentioned.
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Quote:
Originally Posted by Boomer
That is excellent advice. I was doing exactly that. I wish I had done more. Time got away from me.
Anybody in this boat should take note.
Boomer
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Quote:
Originally Posted by Stu from NYC
If you do convert to a Roth you lose the opportunity to grow your money after conversion (the portion you have previously paid in taxes). That 25% paid in taxes could be working and growing for you for many years.
As a result it is not clear to me that a roth conversion is such a good idea.
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Quote:
Originally Posted by dewilson58
You are correct.
Conversions are not right for everyone.
Conversions are not always a good idea.
Conversions can cost you $$$
Conversions are possible hedges, possible.
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"Regrets, I have a few. . .but then again. . .I did it my waaaaaaay".........
au contraire, stu and dew, I have only one regret with this one. Like I said in my response to heims01 (who originally suggested the idea of Roth conversions before RMD age) I did it. I just wish I had done more. It can work quite well for some.
There are retirees in a biz where they can retire in their 50s . . .well. . .there used to be anyway. That's just one example of a scenario where it can make a lot of sense to do Roth conversions, especially if income is lower early in retirement, resulting in a lower tax bracket.
Roth Conversion? You gotta know when to do it, decide to take the hit early, and then — watch it grow again — for years and years. And if there is enough time ahead of you, the RMD can be significantly minimized. I wish I had kept doing those conversions. I was into it for a while. (sigh)
It's like choreography. . .you have to get the dance just right.
My point is that those conversions are something for individuals to be aware of, so they can decide if it can work for them. There is no need to be dismissive of the idea.......Yeah. I know. I see. At least the two of you included a little hedge in your posts. I'll give you that.
Boomer (who sometimes knows stuff, but never pretends she does when she does not)