Quote:
Originally Posted by retiredguy123
hopefully , the money will recover the losses tax free in the Roth.
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Hopium is not a good strategy. transferring when the market is low or high makes no difference in the outcome of building wealth because the wealth building outcome depends upon the choice of investments and their returns in the future, not whether the market is high or low at this point in time. If you pick the same investments in the Roth as the IRA, there is no difference in the wealth building outcome whether the market is high or low.
The only advantage to transferring when the market is lower is that you can move a larger proportion of the total from the IRA to a ROTH, that is all.. . .
please don't confuse a tax/cost minimization strategy with a wealth building strategy, the two are not the same. The more successful you are, the more taxes will be paid, with no other changes, the current tax structures remaining the same. Wanting to be less investment successful to pay less taxes is regressive thinking..