go see an CFP

Converting to a Roth can be good for some people, but it is important to do the math for your situation. Here is a simple example.

Suppose your tax rate is 30 percent and your investment return is 10 percent. Today, you convert $100 to a Roth, which leaves you with $70 invested. A year later, you have $77 in spendable cash (70 x 1.1). Now suppose, instead on converting, you keep the $100 in the traditional IRA. A year later, you have $110 (100 x 1.1). At that time, you withdraw the $110, pay the tax, and you still have $77 in spendable cash (110 x .7). So, in both cases, the result is the same. But, the result will change depending on your tax rate and investment return.

Another thing you need to calculate is the affect IRMAA can have on your Medicare premium. Too much income can increase the premium.

Since you're hooked up with Vanguard anyway, I'd have them do it

Personal Advisor | Vanguard

Full disclosure, I've been with their personal advisor services since 2016. My only wish is that I would have started with them earlier.

Joe

I would look into putting a portion into a few quality annuities. Have a chat with Parady Investments…. No pressure just advise and suggestions. We have been very pleased with them.

I don't like annuities at all. But transferring assets from an IRA into an annuity is almost never a good idea. The IRA is tax deferred by definition. With an annuity, one of the main selling points is that you are getting a tax deferral by buying the annuity and paying higher fees and reducing liquidity.

Gigi:

First, I strongly suggest that you edit your original message in this thread and delete the numbers referring to your assets. These TOTV messages are public and even show up in Google searches. You can click the edit button in your first post of this thread and then edit what your wrote. If you make that change to your message, hopefully other people in the thread who quoted your original message with your numbers will do the same.

Second, since you have been to a fee-based financial planner before, talking again to them with your question is likely a very good idea since they already have some idea of your circumstances. Many personal factors ought to go into the kind of investment decision you want to make. Alternatively, Boomer’s suggestion about talking with a planner in Fidelity’s Lake Sumter Landing office might work for you. (Also, I believe that you can transfer your Vanguard funds to Fidelity without be required to move them into Fidelity funds. Fidelity can hold a person’s Vanguard funds.)

Lastly, if your original question is motivated by wanting to lower your risk to volatile stocks, be aware you may be taking on new risks by switching (e.g., inflation risk, longevity risk). A competent financial planner can help you learn and balance the risks.

Rule of thumb: Never take advice from someone who makes large commissions by selling annuities. Never.

All true, I am keeping at the 22% rate, in 2026 the 22% rate goes up to (I think) 24% (or something like that). So, unless you think tax rates will stay the same or go down, I'd rather be in a ROTH.

IMO, don’t have a lot of your money just sitting around as cash because the banks are having major issues and money just sitting around above $250k ($500k if joint) because fdic only covers $250k or $500k. I moved most of our money to 1 money market paying 4.85% a month ago

Hmmmm. . .:eek:

Boomer

One other consideration is that people who may need to move into assistant living or a nursing home can greatly benefit by paying their bills with traditional IRA assets because of the huge medical tax deductions they will get.

Yeah I'm in Vanguard MM

Check out these two websites. Fee-only, certified financial planners.
1. Garrettplanningnetwork.com
2. Napfa.org (National Association of Personal Financial Advisors
Fee-only is NOT the same as fee-based!
I would strongly recommend, as others suggest, to avoid Parady and any other “annuity” companies. You will VERY likely be sold an annuity. They are commission driven and not fee-only.
Also, I cannot say enough positive things about Vanguard.

IMO, you are much better off with some monthly dividend paying securities. I get 9 dividend checks every month, direct deposited. There are quite a few really good monthly yields available. There are also quite a few very good quarterly yields available.

That’s been true for the last 10 years but if the economy is going to tank like 2097/2008, you will see companies stop paying dividends. Most dividends are in the 2-3.5% bracket, so with the risk of stocks/funds going way down later this year, MM funds that pay 4-5% with no risk is a no-brainer