I am getting ready to retire 2025,I will be 63 and can work longer to put money in saving, my advisor has never explain nothing,I supposed as long they making money they don't care
I love the way you explain this! We're in our early 60's, husband just retired, and I'm thinking that instead of Roth conversions, we should just spend more this year! Although I've thought if we convert, at our age, since we've had Roth accounts for decades, we could just pull it out of Roth when we need more for big expenses.
Good video. Your apple stock example is a good one except you never know what a stock will do. If all equities are down that is one thing but If an individual stock goes from 10 to 5 it could go from 5 to zero just as easily as going from 5 to 10. I do get the point being made though.
Great video Ari! Due to my asset allocation and location, my Trad IRA is all bonds. Since I still want to lower my pre-tax balance by doing Roth conversions, I was wondering what your thoughts are in terms of doing conversions for many years before RMDs (15+ years) which would probably just maintain the current IRA balance by only converting the interest and little growth from the bonds, or if I should switch to equities in the IRA in hopes for a downturn to convert to Roth at that time a much more significant portion (%) of my IRA. I assume that drastically changing my asset allocation temporarily for this purpose may not be a good idea, but I am curious to hear your thoughts. Thanks.
If you aren’t really close to where you would start itemizing deductions, would you wait until 2026 to create a donor advised fund for charity because the standard deduction is also scheduled to go down? (That is what I’m currently planning) Actually Roth conversions in the 24% bracket with IRMA considerations in 2024 and 2025 then combine Roth conversion with donor advised fund donation to keep the 2026 (and beyond) in the 15% brackets.
That's what I was curious about. Was guessing it depends on the election this year. Of course , one side wants to tax a ton more throughout the brackets , not just the ultra wealthy like implied. So it's curious if there's a possibility they won't change.
I wouldn’t be surprised if Congress didn’t raise the tax brackets. That would be giving themselves a pay cut, in essence. Instead, they may propose some spending cuts.
You mean the same Trump who pushed thru an Individual Tax Cut that would will expire....... but allow Business tax cuts to continue??? God forbid you allow yourself to second guess the decisions of Daddy Trump
He was the one responsible for making the tax cuts permanent for his companies (I.e. the rich) and not permanent for us. Yet again the middle class get screwed. We pay taxes for the rich and the poor.
Does it makes sense to consider military retirement pay and VA disability as “forced income” like an RMD? Military pay is taxable. VA disability is NOT taxable.
And the meanest retirement planner makes us listen to 5 minutes of dribble before he gets to the point. Just in time for me to loose interest in this video.
I'm more interested in what I want than what a CFP wants. And why do sales people ALWAYS use their first name when speaking about others addressing them . . . Ari?
I am getting ready to retire 2025,I will be 63 and can work longer to put money in saving, my advisor has never explain nothing,I supposed as long they making money they don't care
I love the way you explain this! We're in our early 60's, husband just retired, and I'm thinking that instead of Roth conversions, we should just spend more this year! Although I've thought if we convert, at our age, since we've had Roth accounts for decades, we could just pull it out of Roth when we need more for big expenses.
Good video. Your apple stock example is a good one except you never know what a stock will do. If all equities are down that is one thing but If an individual stock goes from 10 to 5 it could go from 5 to zero just as easily as going from 5 to 10. I do get the point being made though.
Can you discuss the 5-year rule for Roth conversions?
Have a video coming out on a soon!
Thank you, I look forward to it! I’m enjoying your channel!
@@toddmaniatoddmania9844 I’m so glad!
Thanks Ari, the video was very helpful!
Great video Ari! Due to my asset allocation and location, my Trad IRA is all bonds. Since I still want to lower my pre-tax balance by doing Roth conversions, I was wondering what your thoughts are in terms of doing conversions for many years before RMDs (15+ years) which would probably just maintain the current IRA balance by only converting the interest and little growth from the bonds, or if I should switch to equities in the IRA in hopes for a downturn to convert to Roth at that time a much more significant portion (%) of my IRA. I assume that drastically changing my asset allocation temporarily for this purpose may not be a good idea, but I am curious to hear your thoughts. Thanks.
hedge your bets. never keep all your money in one basket. tax laws are so complex that there will always be ways to pivot strategies.
Dynamic approach!
If you aren’t really close to where you would start itemizing deductions, would you wait until 2026 to create a donor advised fund for charity because the standard deduction is also scheduled to go down? (That is what I’m currently planning)
Actually Roth conversions in the 24% bracket with IRMA considerations in 2024 and 2025 then combine Roth conversion with donor advised fund donation to keep the 2026 (and beyond) in the 15% brackets.
Not a bad idea :)
Isn't there a possibility that the brackets won't change if they renew that law or whatever so it doesn't sunset?
Yes! Always a possibility. I like to plan for worst case, and smile if best case :)
Congress always has their own interests in mind. Tax legislation always seems to get expedited, especially tax cuts.
That's what I was curious about. Was guessing it depends on the election this year. Of course , one side wants to tax a ton more throughout the brackets , not just the ultra wealthy like implied. So it's curious if there's a possibility they won't change.
I wouldn’t be surprised if Congress didn’t raise the tax brackets. That would be giving themselves a pay cut, in essence. Instead, they may propose some spending cuts.
This dude is gonna feel real silly when Congress extends the cuts and nothing changes.
Hopefully Trump will turn it around
You sound smart.
You mean the same Trump who pushed thru an Individual Tax Cut that would will expire....... but allow Business tax cuts to continue??? God forbid you allow yourself to second guess the decisions of Daddy Trump
Tax rates will have to rise at some point, if not in 2026. Both parties have a deficit spending problem.
“Deficits don’t matter.” - Dick Cheney
He was the one responsible for making the tax cuts permanent for his companies (I.e. the rich) and not permanent for us. Yet again the middle class get screwed. We pay taxes for the rich and the poor.
Does it makes sense to consider military retirement pay and VA disability as “forced income” like an RMD?
Military pay is taxable. VA disability is NOT taxable.
And the meanest retirement planner makes us listen to 5 minutes of dribble before he gets to the point. Just in time for me to loose interest in this video.
Thank you for the feedback
I'm more interested in what I want than what a CFP wants. And why do sales people ALWAYS use their first name when speaking about others addressing them . . . Ari?