lawman3966
Recycles dryer sheets
- Joined
- Jan 8, 2008
- Messages
- 84
A thread about the terrors of RMDs on another forum prompted me to ask the board for proposed Roth conversion strategies in view of my age and distribution of assets among taxable, tax-deferred, and tax-free (Roth) investments.
My data:
Age 55 (possibly retiring at age 56 about six months from now).
Taxable: $730K (551K equities; 185 non-equity - mostly cash, some bonds).
Tax-def: $360K
Tax-free: $115K
SS: $30K at age 70.
Assuming that I retire at 56, my income in the following year would be about $10K a year from dividends and cap gains. I also expect to wait until age 70 to draw SS.
Q: Based on the above, how much would you recommend converting from Tax deferred to Roth each year between age 56 and 70?
Additional Info:
Single; no dependents;
No pension.
Will want to qualify for ACA subsidies (expect to live in WA state).
Expenses running at $30K a year.
Income: Expect to draw from the $185K in non-equity investments in Taxable. May do some part time work (Uber or Lyft). Not counting on it, but I might make $10K or so a year.
My data:
Age 55 (possibly retiring at age 56 about six months from now).
Taxable: $730K (551K equities; 185 non-equity - mostly cash, some bonds).
Tax-def: $360K
Tax-free: $115K
SS: $30K at age 70.
Assuming that I retire at 56, my income in the following year would be about $10K a year from dividends and cap gains. I also expect to wait until age 70 to draw SS.
Q: Based on the above, how much would you recommend converting from Tax deferred to Roth each year between age 56 and 70?
Additional Info:
Single; no dependents;
No pension.
Will want to qualify for ACA subsidies (expect to live in WA state).
Expenses running at $30K a year.
Income: Expect to draw from the $185K in non-equity investments in Taxable. May do some part time work (Uber or Lyft). Not counting on it, but I might make $10K or so a year.
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