Im curious what the best course of action will be when the time comes, just trying to think ahead.
We want to retire in approx 10 years. We will both be 50 years old at that time. My wife will be eligible for health insurance through the feds when we are 57...so we will be paying for health insurance for 7 years.
Since neither of us would be working and our income will be low, would it be optimal to start converting our IRA's to a roth using a conversion ladder? We would like to stay in the 12% tax bracket to keep taxes low. (taxes are subject to change)
Here is our financial picture as of now.
TSP/IRA - $1,332,000
Roths - $480,000
Brokerage - $338,000
Cash - $400,000
My concern is taxes later in life, when RMD's kick in. Im thinking to move as much in our IRA's as possible and pay the taxes with cash. Im hoping in another 10 years our accounts will also have grown substantially. No guarantees though. Tax rates will probably be different too. Lot can happen in 10 years.
Would there be a better strategy to move money around at that point?
We want to retire in approx 10 years. We will both be 50 years old at that time. My wife will be eligible for health insurance through the feds when we are 57...so we will be paying for health insurance for 7 years.
Since neither of us would be working and our income will be low, would it be optimal to start converting our IRA's to a roth using a conversion ladder? We would like to stay in the 12% tax bracket to keep taxes low. (taxes are subject to change)
Here is our financial picture as of now.
TSP/IRA - $1,332,000
Roths - $480,000
Brokerage - $338,000
Cash - $400,000
My concern is taxes later in life, when RMD's kick in. Im thinking to move as much in our IRA's as possible and pay the taxes with cash. Im hoping in another 10 years our accounts will also have grown substantially. No guarantees though. Tax rates will probably be different too. Lot can happen in 10 years.
Would there be a better strategy to move money around at that point?