newellcr
Recycles dryer sheets
- Joined
- Aug 26, 2003
- Messages
- 224
It’s been a while since I engaged on the forums. I’ve been lurking more seriously over the last two years and have been interested in iORP for the IRAtoROTH ‘optimization’. I only put that in scare quotes because highest level of spending isn’t necessarily optimizing depending on the user. ACA isn’t an issue. I’m out of the workforce and DW is out in June.
Thanks,
Chris
My questions/discussion items.
At one time I thought I saw that IORP was a paid service. I ran a dozen scenarios yesterday and today. There also seemed to be fewer options (required income vs just disposable income is one that comes to mind) than what I recall reading about. Is there a fee service with additional inputs or controls? In general, I’m happy with the output, but I’m an ER number crunching geek.
The IRAtoROTH numbers optimize to the top of the 24% bracket and that makes sense to me for our situation. We’ve already converted over $400k in the last 6 years, so the shock value of six figure conversions isn’t there for me. It looks like iORP converges on Roth conversions being complete by age 63 for us (current ages in low 50’s) and even well before 63 if we can really stomach, or find it favorable, to follow iORP to the top of the 24% bracket. I assume this convergence at 63 is for the IRMAA medicare bump. Have folks been comfortable with the way iORP optimizes the IRAtoROTH?
The Monte Carlo numbers are similar to our Vanguard plan and are similar to FIREcalc. The 3-PEAT numbers for discretionary (total, in iORP’s case) spending seem inflated by about 25% which I attributed to flat application of interest rate for stocks and bonds. Does this seem right? I readily admit that I haven’t chipped through to what the 3-PEAT is, but I’m not sure it’s necessary.
My zero IRAtoROTH conversion and to the top of the 24% bracket ROTH conversion runs are only 2.5% different in discretionary spending (range of $190k/yr). This seemed hard for me to believe. If it is accurate, and it probably is, it lends some credence to the comments about ‘Roth Conversions don’t matter as much as you might think’. It also supports leaving additional amounts in the tIRA for late life healthcare costs and/or charitable giving. We do have long term care insurance. Not quite sure how to ask the question, so how’s this – It doesn’t seem like a bad idea to leave $100 – 200k in the tIRA at age 60, ignore it in the AA, set the one fund timeframe to 30yrs to retirement, and let it grow as a separate insurance policy/goodie fund. Is this a bad idea? Are there other uses for late in life tIRA funds?
Thanks,
Chris
My questions/discussion items.
At one time I thought I saw that IORP was a paid service. I ran a dozen scenarios yesterday and today. There also seemed to be fewer options (required income vs just disposable income is one that comes to mind) than what I recall reading about. Is there a fee service with additional inputs or controls? In general, I’m happy with the output, but I’m an ER number crunching geek.
The IRAtoROTH numbers optimize to the top of the 24% bracket and that makes sense to me for our situation. We’ve already converted over $400k in the last 6 years, so the shock value of six figure conversions isn’t there for me. It looks like iORP converges on Roth conversions being complete by age 63 for us (current ages in low 50’s) and even well before 63 if we can really stomach, or find it favorable, to follow iORP to the top of the 24% bracket. I assume this convergence at 63 is for the IRMAA medicare bump. Have folks been comfortable with the way iORP optimizes the IRAtoROTH?
The Monte Carlo numbers are similar to our Vanguard plan and are similar to FIREcalc. The 3-PEAT numbers for discretionary (total, in iORP’s case) spending seem inflated by about 25% which I attributed to flat application of interest rate for stocks and bonds. Does this seem right? I readily admit that I haven’t chipped through to what the 3-PEAT is, but I’m not sure it’s necessary.
My zero IRAtoROTH conversion and to the top of the 24% bracket ROTH conversion runs are only 2.5% different in discretionary spending (range of $190k/yr). This seemed hard for me to believe. If it is accurate, and it probably is, it lends some credence to the comments about ‘Roth Conversions don’t matter as much as you might think’. It also supports leaving additional amounts in the tIRA for late life healthcare costs and/or charitable giving. We do have long term care insurance. Not quite sure how to ask the question, so how’s this – It doesn’t seem like a bad idea to leave $100 – 200k in the tIRA at age 60, ignore it in the AA, set the one fund timeframe to 30yrs to retirement, and let it grow as a separate insurance policy/goodie fund. Is this a bad idea? Are there other uses for late in life tIRA funds?