Maxifi seems to calculate the financially optimum conversion strategy and I guess one could say that if it is going to save you any money at all it is recommending it, but that doesn't necessarily mean you should do it. For me, it shows exact conversion amounts over many years and the net gain that I'll get from doing that over my lifetime - and it bases that on the assumption that I will live to to my planning age (unlikely). I also ran it with much more likely lifespans and that resulted in very different numbers.I've been running a Roth conversion calculator (MaxiFi) and it is recommending that i convert ALL of my IRA (about $1M).
At the moment I am a bit torn between not wanting to pass up low hanging fruit and the view that doing the conversions could be a lot of work/complication for an amount of money that isn't going to really change our retirement experience at all. I'm not sure where to draw that line though. Is the potential for $1k or even $2k a year in savings/additional purchasing power enough? That's not nothing, but also not life changing for us. Of course if one is planning to leave a legacy, that might at least change the math for your heirs.
You can add me to the list of people with TIPS in their ROTH as I have no tIRA and no way to purchase them in my 401k. I also have some in my taxable account because the rates were too attractive to pass up.
Statistics: Posted by rustwood — Tue Nov 19, 2024 5:21 am