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JoelJohnson
06-24-2017, 09:11 AM
Does anyone have any experience with the "Retiree Portfolio Model" put out by the Boglehead group?

How about "Optimal Retirement Portfolio" (ORP)?

I'm trying to figure out if I should (and how much) of my IRA should be converted to a ROTH. Yes, I know there are no taxes on a Roth when you take it out, but, by converting a large IRA you are paying taxes now and are reducing your nest egg with the hope that you will make it up in the future.

The spreadsheet I mention helps with this, but it is very complicated.

retiredguy123
06-24-2017, 09:24 AM
In my opinion, it doesn't make financial sense to convert to a Roth. Delay paying taxes on the traditional IRA for as long as possible because you will have more money invested. The only argument I have heard in favor of converting is, if your tax bracket is lower than your heirs, and you want to maximize their inheritance. In that case, you can convert to a Roth, and effectively increase the after tax inheritance by paying a lower tax rate on the money than your heirs would pay.

biker1
06-24-2017, 09:41 AM
Roth's don't have RMDs so that may be a factor for some people.

In my opinion, it doesn't make financial sense to convert to a Roth. Delay paying taxes on the traditional IRA for as long as possible because you will have more money invested. The only argument I have heard in favor of converting is, if your tax bracket is lower than your heirs, and you want to maximize their inheritance. In that case, you can convert to a Roth, and effectively increase the after tax inheritance by paying a lower tax rate on the money than your heirs would pay.

villagetinker
06-24-2017, 10:21 AM
Biker1, you beat me to it, my current plan is to take the RMDs and put those into a ROTH based IRA.

Villageswimmer
06-24-2017, 10:49 AM
Biker1, you beat me to it, my current plan is to take the RMDs and put those into a ROTH based IRA.


One cannot contribute to a Roth (or anyIRA) unless one has earned income. RMDs are not earned income.

Find a wealth of info on this topic at bogleheads dot com .

retiredguy123
06-24-2017, 12:19 PM
///

birdiebill
06-24-2017, 12:36 PM
You can not take the RMD and convert it to a Roth. A Roth Conversion occurs when you take a normal distribution from the IRA, pay the taxes either with a portion of the distribution or from other sources of money, and convert the total/remainder of the distribution to a Roth. An RMD from a normal IRA can not be converted. Money converted to a Roth can not be withdrawn for five years without a penalty. There is no RMD for a Roth.

We chose to convert our IRA's to a Roth about eight to ten years ago, converting a portion each year. We paid taxes on the conversion out of other funds so we could convert each entire distribution to the Roth. The Roth/IRA funds are not needed for our monthly/yearly expenses, so they can grow tax free for any future needs. At the time we did the conversions, we had higher than normal charitable contributions which made the tax situation on the IRA conversions more palatable.

autumnspring
06-24-2017, 12:42 PM
Does anyone have any experience with the "Retiree Portfolio Model" put out by the Boglehead group?

How about "Optimal Retirement Portfolio" (ORP)?

I'm trying to figure out if I should (and how much) of my IRA should be converted to a ROTH. Yes, I know there are no taxes on a Roth when you take it out, but, by converting a large IRA you are paying taxes now and are reducing your nest egg with the hope that you will make it up in the future.

The spreadsheet I mention helps with this, but it is very complicated.

We do not know your age or your income needs.
If, you convert to a Roth you will pay your current tax rate on whatever amount you convert. You do not need to convert it all at once. When you reach age 70.5 you need to take minimum withdrawals from any regular IRA. The minimum withdrawal is calculated each year based on amount in the account AND YOU LIVING TO AGE 100.

Assuming you pass away before age 100, you can leave your IRA to your kids or??? They receive it tax free but are forced to take yearly withdrawals calculated based on them living to age 100. I have a small inherited IRA from my mother. It is like a gift that keeps on giving. I have it conservatively invested, the stock market has been good and after my forced withdrawal, I have more than the original amount.

Few, have bothered to see the obvious for an IRA. Assuming your tax bracket has always been 30%. You can earn a dollar but after taxes you only have .70 to spend.
As they pitch an IRA, rather than spending that .70 you can invest a full 1.00. Magic of compounding at say 7% it doubles every 10.28 years. For a regular IRA the rude suprise is you are forced to take it out of the IRA. If, you are still in the 30% tax bracket YOUR NET SPENDABLE DOLLARS IS EXACTLY THE SAME AS IF YOU HAD PAID THE TAX AND ONLY HAD .70. Enter the ROTH IRA, not avialable to us. It is available to younger people. You deposit after tax dollars into your ROTH and all of the growth as well as the after tax money you put in can be withdrawn FREE OF TAX.
YOUR ACCOUNTANT SHOULD BE ABLE TO BETTER EXPLAIN THIS TO YOU AND WILL HAVE FAR MORE KNOWLEDGE OF YOUR FINANCIAL AND FAMILY MATTERS.
All you need to know is exactly how long you will live, what the government will do about taxes AND INFLATION AND RETURNS ON YOUR MONEY DEPENDING ON WHERE YOU DECIDE TO PLACE IT and the correct answers are simple.
Only trouble is almost all of the information you must have is at best a guess.
We,ex-New Yorkers, moved to Florida and escaped a 6% STATE TAX, a 2% CITY TAX, real estate Tax on a far smaller home about 4x what we pay here

villagetinker
06-24-2017, 12:46 PM
One cannot contribute to a Roth (or anyIRA) unless one has earned income. RMDs are not earned income.

Find a wealth of info on this topic at bogleheads dot com .

OK I need to check this out.

retiredguy123
06-24-2017, 12:52 PM
To me, Roth conversions don't make financial sense unless you are sure that you will pay a lower tax rate on the converted money as compared with the tax rate you will pay later. Delay the tax payment for as long as possible, and let the money grow.

JoelJohnson
06-25-2017, 08:17 AM
How many of you knew that your SS could be taxed up to 85%? It's true! It depends on your Adjusted Gross Income (AGI).

Villageswimmer mentioned "bogleheads dot com", a very good site on all this.

Yes, you need to know how long you will live, what the stock market will do and what Washington will do to make a good decision. So we make some assumptions - we will live to the average age, taxes will go up and the stock market will revert to the mean.

If I convert my IRA over the next few years before I collect SS, I know what my taxes will be. If the tax table doesn't change, I know what my taxes will be in the future. Taxes will change, we just don't know by how much or when, but they will go up.

Yes, I will "lose" money on the conversion in the short term, but, if I let the ROTH grow, it will support me in my old age when health care prices go up.

I think we have a good debate going here, please let me hear more on this.

retiredguy123
06-25-2017, 08:31 AM
One thing to consider is that medical costs are tax deductible if they exceed 10 percent of your income. This includes a large portion of the cost for assisted living and all of the nursing home costs. The assisted living facility will calculate how much of their charges are considered medical costs, which can about 60 percent of the facility charges. So, you can use taxable traditional IRA money to pay these costs, and it will be tax deductible.

Bogie Shooter
06-25-2017, 08:37 AM
Always listen to arm-chair financial advisor quarterbacks.............

retiredguy123
06-25-2017, 08:45 AM
Always listen to arm-chair financial advisor quarterbacks.............
Well, isn't that what this posting site is all about? Free advice and worth every penny.

Bogie Shooter
06-25-2017, 09:28 AM
Well, isn't that what this posting site is all about? Free advice and worth every penny.

That remains to be seen.

Villageswimmer
06-25-2017, 09:41 AM
Always listen to arm-chair financial advisor quarterbacks.............


No one should make financial decisions based on posts here. However, posts may stimulate one to investigate further to verify information and see how it relates to their personal circumstances. This kind of discussion can be helpful.

Roth conversions carry a number of complex ramifications. Much info can be found at irs dot gov as well as the boglehead site.

The post wrt medical expenses is one such issue to be considered and illustrates the case for tax diversification.

The Roth conversion decision is not one size fits all.

Bogie Shooter
06-25-2017, 01:00 PM
]No one should make financial decisions based on posts here. [/U]However, posts may stimulate one to investigate further to verify information and see how it relates to their personal circumstances. This kind of discussion can be helpful.

Roth conversions carry a number of complex ramifications. Much info can be found at irs dot gov as well as the boglehead site.

The post wrt medical expenses is one such issue to be considered and illustrates the case for tax diversification.

The Roth conversion decision is not one size fits all.

You are right!

JoelJohnson
06-25-2017, 02:15 PM
GREAT COMMENTS! Keep them coming!

manaboutown
06-25-2017, 02:33 PM
Some years ago when the rules were no doubt different than they are today I had an otherwise very low taxable income year and took advantage of that to convert my IRAs to Roth IRAs. Of course I had to pay tax on my withdrawals but IMHO I benefited because today at age 75 I face no RMD issues. Too, when the day comes I do take distributions from my Roth they will not be taxable - unless of course the rules change. It was a personal choice which I did not analyze by calculating an IRR or anything like that; personal circumstances and perspectives differ so it is very much an individual matter.

Steve9930
06-25-2017, 04:37 PM
Does anyone have any experience with the "Retiree Portfolio Model" put out by the Boglehead group?

How about "Optimal Retirement Portfolio" (ORP)?

I'm trying to figure out if I should (and how much) of my IRA should be converted to a ROTH. Yes, I know there are no taxes on a Roth when you take it out, but, by converting a large IRA you are paying taxes now and are reducing your nest egg with the hope that you will make it up in the future.

The spreadsheet I mention helps with this, but it is very complicated.

Here is what I did and it worked great. I had a self directed IRA and was investing in the stock market. I had several stocks that where good companies but the stocks were beaten down. I opened a Roth and moved those stocks into the Roth and only paid Federal taxes on the lower amount of their value. Since that time all have recovered This March was the 5 year anniversary so now that gain and the dividends being generated are all now Federal Tax Free. I only wish I had done this years ago. There are so many advantages to the Roth IRA. Like the cash generated not be part of the SSN Taxing equation and the ability to pass the Roth on. I smile every time I take money out of the Roth and walk right by the tax man....... HooRa!

Villageswimmer
06-25-2017, 05:48 PM
Here is what I did and it worked great. I had a self directed IRA and was investing in the stock market. I had several stocks that where good companies but the stocks were beaten down. I opened a Roth and moved those stocks into the Roth and only paid Federal taxes on the lower amount of their value. Since that time all have recovered This March was the 5 year anniversary so now that gain and the dividends being generated are all now Federal Tax Free. I only wish I had done this years ago. There are so many advantages to the Roth IRA. Like the cash generated not be part of the SSN Taxing equation and the ability to pass the Roth on. I smile every time I take money out of the Roth and walk right by the tax man....... HooRa!


This may (or may not) happen with any investment vehicle with a fluctuating asset value--not just stocks. In your case, the timing turned out to be to your advantage. You were lucky. At least so far.

The opposite could just as well have occurred if the asset value had decreased after having been moved to the Roth. If your stocks now in the Roth go down, the value of the Roth decreases. Your post may imply that, somehow, the Roth protects assets from a falling market. Not at all.

I do agree that the tax free nature of Roth money is sweet. YOU own the whole enchilada.

When one looks at their balance of a traditional IRA, one needs to understand they only own PART of it. If the balance is $100k and you're in the 25% tax bracket, you only own $75k. Sobering thought.

Sorry...I don't mean to restate the obvious.

dewilson58
06-25-2017, 06:35 PM
To me, Roth conversions don't make financial sense unless you are sure that you will pay a lower tax rate on the converted money as compared with the tax rate you will pay later. Delay the tax payment for as long as possible, and let the money grow.

I'm with you 123.

Plus...........without getting political, what if tax rate brackets are reduced.

Steve9930
06-25-2017, 07:55 PM
This may (or may not) happen with any investment vehicle with a fluctuating asset value--not just stocks. In your case, the timing turned out to be to your advantage. You were lucky. At least so far.

The opposite could just as well have occurred if the asset value had decreased after having been moved to the Roth. If your stocks now in the Roth go down, the value of the Roth decreases. Your post may imply that, somehow, the Roth protects assets from a falling market. Not at all.

I do agree that the tax free nature of Roth money is sweet. YOU own the whole enchilada.

When one looks at their balance of a traditional IRA, one needs to understand they only own PART of it. If the balance is $100k and you're in the 25% tax bracket, you only own $75k. Sobering thought.

Sorry...I don't mean to restate the obvious.

Luck has nothing to do with investing. It requires research and a sense knowing when you are riding a dying horse and where the current momentum is headed. Luck had nothing to do with what happened in my case. Well positioned companies on a down turn is an excellent opprotunity to reduce taxes. A Roth allows you to generate a cash flow without effecting the taxing of the Social Security Benefit. A Roth gives you the same flexability of a traditional IRA with the additional benefits.Those companies allowed me to put the money into investments that now reduced the down side risk and provide a nice tax free revenue scheme. Not only that but the Roth will be pasted to my heirs without the disadvantage ov having to take the money. All investments come with risk. The amount of risk your willing to take is up to your ability to handle it. Once one retires its no longer about capital appreciating, its about a sustainable cash flow and enough appreciation to stay ahead of inflation.

JoelJohnson
06-26-2017, 08:21 AM
There is no doubt I will pay taxes on the IRA, the only question is how to minimize them. If I convert now (or in the next few years) and the ROTH portfolio goes down, I lose. If it goes up I win, true even without converting ,of course. The difference is that if you assume the market will go up over the next 20 years (which it should) then you may end up paying more taxes by NOT converting then converting. Of course you could end up paying more taxes if you convert too much at one time. Those sheets I mentioned are supposed to help with that decision. The problem is understanding what they are telling me. I was hoping to find someone who was familiar with those programs.

Steve9930
06-26-2017, 03:53 PM
We do not know your age or your income needs.
If, you convert to a Roth you will pay your current tax rate on whatever amount you convert. You do not need to convert it all at once. When you reach age 70.5 you need to take minimum withdrawals from any regular IRA. The minimum withdrawal is calculated each year based on amount in the account AND YOU LIVING TO AGE 100.

Assuming you pass away before age 100, you can leave your IRA to your kids or??? They receive it tax free but are forced to take yearly withdrawals calculated based on them living to age 100. I have a small inherited IRA from my mother. It is like a gift that keeps on giving. I have it conservatively invested, the stock market has been good and after my forced withdrawal, I have more than the original amount.

Few, have bothered to see the obvious for an IRA. Assuming your tax bracket has always been 30%. You can earn a dollar but after taxes you only have .70 to spend.
As they pitch an IRA, rather than spending that .70 you can invest a full 1.00. Magic of compounding at say 7% it doubles every 10.28 years. For a regular IRA the rude suprise is you are forced to take it out of the IRA. If, you are still in the 30% tax bracket YOUR NET SPENDABLE DOLLARS IS EXACTLY THE SAME AS IF YOU HAD PAID THE TAX AND ONLY HAD .70. Enter the ROTH IRA, not avialable to us. It is available to younger people. You deposit after tax dollars into your ROTH and all of the growth as well as the after tax money you put in can be withdrawn FREE OF TAX.
YOUR ACCOUNTANT SHOULD BE ABLE TO BETTER EXPLAIN THIS TO YOU AND WILL HAVE FAR MORE KNOWLEDGE OF YOUR FINANCIAL AND FAMILY MATTERS.
All you need to know is exactly how long you will live, what the government will do about taxes AND INFLATION AND RETURNS ON YOUR MONEY DEPENDING ON WHERE YOU DECIDE TO PLACE IT and the correct answers are simple.
Only trouble is almost all of the information you must have is at best a guess.
We,ex-New Yorkers, moved to Florida and escaped a 6% STATE TAX, a 2% CITY TAX, real estate Tax on a far smaller home about 4x what we pay here

Also cash flow out of a Roth is not used in the calculation on how much of your Social Security is taxable. It is possible if your income consisted of SS and a Roth you woul pay 0 Federal Tax.

Steve9930
06-26-2017, 03:58 PM
Always listen to arm-chair financial advisor quarterbacks.............
So if the paid finacial advisor is so smart, why are they still working?

Hoosierb4
06-26-2017, 04:15 PM
I'm not familiar with the programs you mention, but one thing that you may be able to take advantage of is converting part of your IRAs to a Roth in years where you have a low tax rate. That happened for me in the years between when I retired and when I had to start taking distributions from my regular IRAs. Nobody can predict when the markets will go up and when they will go down, so I'd just ignore that. But, you do know when you will have to start taking the RMD from your IRAs.

larcha
06-26-2017, 09:27 PM
Several financial web sites, like Fidelity and Vanguard, have free calculators to help you make a "Roth" conversion decision. When I looked at doing one a few years ago the answer was definitely NO! There just wasn't enough time left, read life expectancy, to re-coop the tax cost and make any money.

larcha
06-26-2017, 09:35 PM
Here is what Fidelity has to offer re a Roth conversion evaluater:
Fidelity Investments (https://calcsuite.fidelity.com/rothconveval/app/launchPage.htm)

JoelJohnson
06-27-2017, 08:06 AM
Great site - Thanks

Boomer
06-27-2017, 09:52 AM
Those who are charitably inclined and want to minimize taxes on the RMD, might want to look at the possible use of a QCD for all or some of the distribution.

The QCD has been made permanent (?) in the tax law, but there are strict rules on getting the money from the IRA to a qualified charity in order to not have it appear as income.

(btw, I see those comments in the thread about not taking financial advice from internet posters.....well, of course not. But financial advice from professionals (?) is not necessarily good either. The best overall thing that can come out of a thread like this is to get people thinking more and learning what further questions to ask and/or research.

Please carry on. :)

tcxr750
07-19-2017, 04:09 PM
There are a number of websites that have a Roth vs IRA calculator. Just remember that when the RMD starts you will have to take out an about based on a government mandated percentage. That withdrawal may be more than you want or need.

justjim
07-19-2017, 08:03 PM
Here is a thought. Most of us have worked hard, sacrificed, saved for our retirement and you just might want to take that RMD and do something "extravagant" with it. Life is uncertain and short at best. Just a thought........

Wiotte
07-19-2017, 10:31 PM
Here is a thought. Most of us have worked hard, sacrificed, saved for our retirement and you just might want to take that RMD and do something "extravagant" with it. Life is uncertain and short at best. Just a thought........



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Wiotte
07-19-2017, 10:32 PM
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l2ridehd
07-20-2017, 05:51 AM
I have always used the thought process to delay paying taxes as long as possible. So for me, a ROTH conversion does follow that logic. I invested in ROTH's when I was still working, but also used the 401 (IRA in sheep's clothing) along with the catch up provision as much as possible. Than when I retired converted the 401 to a self directed IRA. ROTH is good if you still get a W2, but use all vehicles available to defer taxes. Now with RMD's it does create a tax problem with SS, but still better to pay later than sooner IMHO. Tax laws change. They may get better or worse. Right now they will probably get better in the short term so take advantage of that if they do.

Taxes decimate returns, so use ROTH if you can. That does not mean you should ignore IRA/401K options. Both help defer taxes on earned income. Key phrase is "earned income" You need that to utilize either. BOGLEHEADS is a great site with a wealth of information on this topic.

So if you get a W2 use ROTH first than IRA/401K. If you don't than live with what you did in the past.

petsetc
07-20-2017, 07:25 AM
IMHO Roth conversion is purely a taxable decision. Somewhere in Nov/Dec, I do a tax "mock-up" (using last year's turbotax) and base my decision whether to convert on (how I feel about) the tax consequences. Have done so for the last 12+ years and have essentially driven my taxes into the less than 10% range after any conversion. Still have a small RMD, but it has become essentially tax-free.

JoelJohnson
07-20-2017, 07:56 AM
All good comments.

Taxes are at historic lows, I think with all the things going on, taxes will have to go up. Also, there is strong evidence that the law that allows our heirs to take the IRA/ROTH over their lifetime will change to a requirement to take the distribution within 5 years.

"petsect" has a good point, he uses TurboTax to test his conversion amount to see the effect on taxes. I do that too. I have 7 years to convert my wife's IRA to a ROTH, but I collect SS in 5, so it looks like doing to conversion will save the most in taxes.

One thing I haven't seen anyone mention is that you can have a "do over". You can "convert" any amount you want this year and recharacterize it by October 15th of next year. It's like placing a bet on a horse race after the race is over. Restriction apply, so be sure you follow the rules.

If you convert, say, $100,000 this year and when you do your taxes next year you find out it puts you in a very high tax bracket, you can put some of that money back into the IRA like it never even happened (no penalty from the IRS).

Boomer
07-20-2017, 10:07 AM
........

dewilson58
07-20-2017, 10:13 AM
All good comments.

Taxes are at historic lows, I think with all the things going on, taxes will have to go up.

Historical lows???????

Looks like 30 year highs.

JoelJohnson
07-20-2017, 12:40 PM
Your chart shows 1933 thru 1987 as being much higher

Best Answer: Partial History of
U.S. Federal Income Tax Rates
Since 1913
Applicable
Year Income
brackets First
bracket Top
bracket Source
1913-1915 - 1% 7% Census
1916 - 2% 15% Census
1917 - 2% 67% Census
1918 - 6% 73% Census
1919-1920 - 4% 73% Census
1921 - 4% 73% Census
1922 - 4% 56% Census
1923 - 3% 56% Census
1924 - 1.5% 46% Census
1925-1928 - 1.5% 25% Census
1929 - 0.375% 24% Census
1930-1931 - 1.125% 25% Census
1932-1933 - 4% 63% Census
1934-1935 - 4% 63% Census
1936-1939 - 4% 79% Census
1940 - 4.4% 81.1% Census
1941 - 10% 81% Census

1942-1943 - 19% 88% Census
1944-1945 - 23% 94% Census
1946-1947 - 19% 86.45% Census
1948-1949 - 16.6% 82.13% Census
1950 - 17.4% 84.36% Census
1951 - 20.4% 91% Census
1952-1953 - 22.2% 92% Census
1954-1963 - 20% 91% Census
1964 - 16% 77% Census
1965-1967 - 14% 70% Census
1968 - 14% 75.25% Census
1969 - 14% 77% Census
1970 - 14% 71.75% Census
1971-1981 15 brackets 14% 70% IRS
1982-1986 12 brackets 12% 50% IRS
1987 5 brackets 11% 33% IRS
1988-1990 3 brackets 15% 28% IRS
1991-1992 3 brackets 15% 31% IRS
1993-2000 5 brackets 15% 39.6% IRS
2001 5 brackets 15% 39.1% IRS
2002 6 brackets 10% 38.6% IRS
2003-2008 6 brackets 10% 35% IRS

The lowest rate between 1936 and 1980 was 70%. Today, the top tax rate now is 35% of earnings in excess of $357,701.
In the earlier period, budget deficits were minimal, in the latter, they have been a huge problem.

tcxr750
07-21-2017, 10:51 AM
Here is a thought. Most of us have worked hard, sacrificed, saved for our retirement and you just might want to take that RMD and do something "extravagant" with it. Life is uncertain and short at best. Just a thought........

My RMD thoughts. Assuming you had to take some $$$ from IRA to meet your expenses and that was added to a pot of money including pension and social security. Let's say you only want or need 5k a year from your IRA. Suddenly, your 71 and you have to start withdrawals on your $500k IRA based on the RMD. That will be $18,867. This percentage calculator increases each year.
ROTH IRA you still take out $5k.
Vanguard and FINRA websites, among others, have an RMD calculator.
It's good to be aware of ROTH IRA vs Conventional differences early in your working and saving career.

dewilson58
07-21-2017, 12:32 PM
The lowest rate between 1936 and 1980 was 70%. Today, the top tax rate now is 35% of earnings in excess of $357,701.
In the earlier period, budget deficits were minimal, in the latter, they have been a huge problem.



Top bracket is 39.6%

JoelJohnson
07-22-2017, 08:41 AM
Top bracket is 39.6%

True, but very few get to this. At one time the top rate was 90%!!! But, there were deductions and such that really reduced the tax bite.

The average family pays less in taxes (percentage wise) than in the 80s.

My point is that if you are going to do an IRA to ROTH conversion, you are better off now since taxes will probably increase,

To be sure, all you need to know is 3 things:
1) How long you are going to live
2) What Washington is going to do
3) What inflation will be

Good luck with any of those.

autumnspring
07-22-2017, 12:00 PM
Also cash flow out of a Roth is not used in the calculation on how much of your Social Security is taxable. It is possible if your income consisted of SS and a Roth you woul pay 0 Federal Tax.

It is impossible to answer the question without knowing net worth, age, expenses etc etc etc etc.

What is interesting is assuming that Trumps tax plan passes, it will shake up any calculations you will do today.
Will it happen? Frankly, I doubt it. But, we will get some sort of plan. The TALK is they must pass if by Thanksgiving so they can make it apply to this entire year.
FASTEN YOUR SEAT BELTS IT IS GOING TO BE A WILD RIDE.

Government is like a dog drooling over a steak. Few know or want to know that 42% of our now TWENTY TRILLION DOLLAR national debt is held by Social Security with no payback term or rate of interest. I expect the next steak they will grab will be retirement savings. Actually, while few see it for what it is that is one of the reasons why the government wants to fuel inflation is to devalue our currency. When, they devalue our currency it reduces what your savings, what your social security check, what your pension-if you have one, will buy.

JoelJohnson
07-22-2017, 05:54 PM
The full tax program may not pass, but, that doesn't mean they can agree on some sort of tax increase. They will not touch the ROTH tax free system, that would be political suicide plus they get the tax money upfront. I'm pretty sure they will take away they hiers to take the inherited IRA/ROTH over their lifetime. They may make it a 5 year withdrawal time frame. That way you will have to tax the money out of the ROTH and invest what you don't need in a taxable account.