[DebMil]

Originally Posted by Pugchief

Based on what? The high unemployment? The out of control inflation?

If anything, they should be raising interest rates.

It doesn't seem to be stopping people from enormous spending for luxury items. Expensive cars, vacations, etc.
It's the credit card industry where I believe you're going to see a lot of hits ending in personal bankruptcy to get out.

[Pugchief]

Originally Posted by DebMil

It doesn't seem to be stopping people from enormous spending for luxury items. Expensive cars, vacations, etc.
It's the credit card industry where I believe you're going to see a lot of hits ending in personal bankruptcy to get out.

This won't affect people with a pile of money/assets.

The rest of it will prob end up like 2008 or worse. Lots of bankruptcies, foreclosures and Big Bank bailouts.

[rsmurano]

You want to convert your portfolio to a Roth when your portfolio is at its lowest value, here’s why:
1) your capital gains will be at its lowest and possibly get a credit on any losses
2) you will pay less taxes on your sales of stocks/funds, your selling the same # of shares but at a lower price
3) the best times you should have converted your money into a Roth was during the 2007/8 crash or the 2020 covid downturn. Since you were already down, the money in your Roth would have recovered within a few years. If you convert when the market is at its highest, you are hoping the market will go higher but in reality, the market (based on a week ago valuations), you have a better chance of a market downturn which will make your Roth suffer a bigger loss.

Why convert in the 1st place if the market is at its highest?
Say you had a $1M portfolio. If you convert that $1M, you will be in a very high tax bracket, let’s say 40%, so your Roth will start at $600k. From this point on, all your gains will be on $600k. Say you make a 10% gain the 1st year, in the Roth you will make $60k, non Roth you would have made $100k. So next year, your gains will be on $660k or $1.1M. Compounded interest will make you a lot more money in the Ira/401k, and if I do this do 6 years before I have to pay an rmd, my gains will easily pay for any taxes the occur from my rmd.