We have some inheritance money coming this year and perhaps some more next year with the sale of some property. Saw a PBS special with Ed Slott (mentioned in another thread) addressing Roth conversion as a long term plan for avoiding future taxes. His conjecture is that our current deficit spending is going to make the Govt desperate for income down the road and baby boomer IRAs are going to get hit pretty hard. Paying taxes now for future tax break via Roth conversion has a chance to be a real long term winner.
We plan to do some conversion this year and use the afore mentioned inheritance for the spending money that would otherwise come from IRA. Any thoughts/ plans from others? Also, what kind of investment would you make in Roth (we are 64 and 60 years old)? Our Roths are currently 100% stock but am thinking may want to "middle of road" this conversion to something like Vanguard's Balanced Index.
Thanks for any input!... bill
We plan to do some conversion this year and use the afore mentioned inheritance for the spending money that would otherwise come from IRA. Any thoughts/ plans from others? Also, what kind of investment would you make in Roth (we are 64 and 60 years old)? Our Roths are currently 100% stock but am thinking may want to "middle of road" this conversion to something like Vanguard's Balanced Index.
Thanks for any input!... bill