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You have done well saving....BUT...you have a huge tax bomb in future years. You currently have close to $ 4 million between the tax deffered account and the two Trad. IRA's. In a few years you will need to take RMD's from these accounts and the taxes due will be significant. In addition...

A little confused on this topic and trying to avoid having to pay any interest or a penalty. When my CPA filed my Federal and State Taxes last year I owed a small amount in interest/penalty as I had not paid enough during each quarterly period. This year I did a huge Roth Conversion in the...

Agree 100%. Some of us want to live our lives. Remain cautious , but live our lives. LAst year, had a neighbor down the road. Ultra cautious pre- vaccine. Wore mask, gloves ( outdoors as well); had all groceries and essentials home delivered ( UPS and Amazon and Grocery deliveries on an almost...

Before I ask my question, please understand I am NOT trying to start yet another mask verus non-mask debate. What I am trying to do is UNDERSTAND how certain masks can help in preventing Covid. It is my understanding that only an N-95 mask is effective in filtering out the Covid virus due to...

Disagree. I agree with the scenario of having investments in each of the 3 varied accounts.....taxable; tax deferred ; and tax free and then withdraw from the one that gives the most tax efficient result. One reason we want to have some money in a Trad IRA and not convert all of it is we...

True.....but this doesn't work for those of us with huge pensions coupled with RMD's from huge inherited IRA's. Granted not a "bad" problem to have .....just limits staying in the lower tax brackets to qualify for a 0% tax rate. And future RMD's on one's own IRA's and Future SS will only...

I agree with your premise but the problem is especially over the past decade, returns have been exceptional and the annual increase in 401k/Trad IRA's values have outpaced annual Roth Conversions ( at least in my case and I am not even 100% stocks in my Trad. IRA). For example, if one's Trad...

Good job on saving as much as you have. Just beware that your 401k ( assuming none is a Roth 401k) is a ticking tax time bomb in later years. I fear many of us will be in higher tax brackets, perhaps much higher, in retirement, when one factors in pensions, SS, dividend income, and RMD's at...

Thank you to all. It seems the Roth Conversion itself while increasing MAGI is not included in the calculation of the NIIT which is what I suspected.

Here is the scenario: Wife and I are both retired and We are contemplating a larger than usual Roth Conversion this year as I will apply for MEdicare in 2024 and don't want to be hit with the MEdicare IRRMA surcharges for my 2022 MAGI going forward. That is one issue. The second issue is the...

LOL! I have more than you in cash....about $800k and I don't feel like an idiot. Especially when it represents just 13% of our net worth. I see this as an opportunity. If I need to rebalance, I can use cash and not worry about any taxes from rebalancing using other assets. Plus, due to probable...

Sounds like you have a few actively managed MF's which I am sure generate large CAp Gains distributions every Dec. The only actively managed MF I have is in an IRA so no tax consequences every year. In my taxable account, I have only index funds and a few tax managed funds which generate...

The TAx Managed Balanced Fund I use is with the Large Brokerage House that starts with the letter "V". Annual returns since inception (1994) have averaged 8%. Expenses are only 9 basis points (0.09%). Not bad considering two huge market corrections in 2000 and 2008. So even with a SWR rate...

Is this even an issue if one is fully vaccinated? Variants aside, what is the end game with regards to mask wearing and social distancing? If I can't infect you (Ok 95% immunity; good enough) and I can't be infected by you, what is the worry? Hopefully, when the "experts" sound the herd...

I see a few issues with annuitizing these accounts. First, while it does reduce your taxable estate upon your and your wife's death; the money is permanently removed and will not be part of any legacy plan you might have. This might not be a concern for you or you may have set aside other funds...

Drastically reducing the Federal Estate TAx exemption amount is certainly bad news. Plus consider if you live in a state that has its own State estate tax exemption. My state's exemption amount is slightly above $1.5M. Not really much if you factor in a house. But at least the state's taxation...

Disagree. Since fortunate implies luck. I believe I was smart enough not to make poor life choices early in life. Nothing to do with fortune.

I disagree about not having to live on just SS is somehow "fortunate." Obviously, everyone's situation is different. It has to do with proper planning, sacrificing early in life, and not engaging in activities early in life that derail future financial independence. And yes, some people do...

I'm confused. How does moving money from a Trad. IRA to a ROTH avoid estate taxes? I understand heirs will not owe taxes on distributions; but any money in a ROTH is still considered part of your estate and counts toward the overall number of how big your estate will be. Or am I mistaken?

Mass Mutual. We signed up 4 years ago. They may have increased rates for the same coverage since then. Who knows. Our plan costs us about $3,000 per year(for both of us) for the coverage I outlined which we felt was reasonable. The plan has a 3% annual increase in benefits as well. The fact...

I have a couple of comments. I feel some have vastly underestimated the future cost of LTC. I saw one post mention self funding at $400,000 for a couple. In my state, in 20 years, when one might need LTC, the cost of a private room in a nursing home will run about $20,000/month. That comes to...

I don't understand why you would get annoyed at someone asking if retirement would be prudent with a NW of $8 million? You are looking at it from your perspective. Perhaps they will have high expenses in retirement that will require monthly income streams in the tens of thousands of dollars due...

I was thinking about this and I have a question. So if only 50% of the US population get the vaccine, will those that do not get it still expect the rest of us to still wear masks, social distance, etc? Let's say that by Aug. 1, 2021......everyone who wants a Covid vaccine has had ample...

Won the game when I realized I have far more money than I know what to do with.

We have dined out ( actually dined in) 3 times in the past 2 weeks. Twice at our 2 favorite restaurants and once we stayed overnight at a hotel/casino and enjoyed a gourmet dinner and did a little gambling (weekday....not crowded). PAtrons were always socially distanced, sanitization...