Beans and rice, rice and beans. Going to have to make some adjustments. LOL. Actually I'm barely down over the past year. I bought myself another vehicle this week. I was frugal and bought used but a great vehicle from Arizona.
Yes, selling more shares, larger percentage of the account, for the same amount of taxes to be paid. Then it grows again when the market recovers tax free. Just not sure about the math. If it's worth paying taxes into the next bracket to get it.
@@normswan5806 Thanks for your response. So I guess it will not be a loss so long as it is reinvested in basically the same stocks before conversion, in the Roth. And then hope and pray the market will recover and not fall further like it is doing today! The whole amt of the conversion will be taxable and I would not be able to claim capital gains loss because it is a conversion from funds that were never taxed (IRA).
@@mafarnsims yes. Reinventing as soon as possible is really important. Don't give the market a chance to go up. Then when it eventually does go up it is tax free. If we don't think it will go back up we wouldn't be in it anyway.
@@_-Karl-_ Thanks Karl for the info. I have my IRA at HSBC in one of their managed funds and they told me the only way they do conversions is to sell units of multiple stocks/bonds in the fund totaling the amt I want to convert and then buy them back under the Roth and it takes a few days for the conversion to be completed i.e. they can't sell and buy back on the same day. They say they can't transfer the asset in kind fr one acct to another even though it is the same fund managed by them.
Wow 😱 I know her and I have also been trading with her, she's such an amazing woman with good skills keeps me happy all week knowing I earn 17thousand extra income in trading with her..
We retired at start of The Great Recession. Scary, yes. But I was always income focused, and we came through fine. Stock gains are great, but I think good sleep is better. Financial conditions come and go, but your retirement is long and won't be fun if you always have an eye on the stock market. The trick is not to "end up with more", the trick is have a happy life.
I'm in roth conversation phase. I plan to leave most if not all of it to my estate. Should I enter the 30+% tax rate to take advantage of the market being 20% down? All 700k is in s&p index both before and after conversion. I'm 58.
Yes, if you think the market will rebound quickly, and if your heir's predicted tax rate avoided on future Roth withdrawals is greater than 24% (30% tax rate less 20% down market). I'm in a similar situation. I think, however, this 20% market 'correction' is just a necessary reduction, due to the very high returns we've seen for the last decade (16.58% CAGR for S&P 500, for 2012 - 2021). I'm leaning towards, 'No', but I may regret this decision if 2023 returns are 30%. I'm going to make my final decision on December 29, 2022. If the market is further down, I'll probably do an additional Roth conversion. I'm going to complete my Roth conversions by 12/31/25.
@@larryjones9773 thanks. It just looks like it's going to take forever to complete if all I do is use up the current bracket I'm in. And then ACA and EIRMA (sp?) Limits too. It's complicated.
@@normswan5806 Yes, I started my Roth conversions in 2015, and stayed within the 15% federal bracket. But, like you, that was going to take 20 years to complete it all. Thus, in 2018, with the lower tax rates, I bumped my conversions up to the top of the 22% federal rate. Yes, it's complex, as there are so many variables. But, a horrible situation to be in would be older and have a ton of money in tax deferred accounts, without a way of withdrawing it, without paying a giant tax rate & IRMAA & NIIT. That terrifies me. Our future selves will be thankful we performed Roth conversions when we were young (I'm 61). :) Hang in there, with your calculations!
@@_-Karl-_ Also, I'm single, but married people have an even higher incentive to perform Roth conversions, due to the 'widow penalty', as chance of death is always 100% Even if we convert at a tax rate that is close (slightly over or under) to the predicted avoided tax rate on Roth withdrawals, this converted money can act as INSURANCE should the market perform MUCH BETTER than we predicted, for future years.
Good timing for the video especially with the market volatility in September. You helped me not to panic sell like all the other….
Beans and rice, rice and beans. Going to have to make some adjustments. LOL. Actually I'm barely down over the past year. I bought myself another vehicle this week. I was frugal and bought used but a great vehicle from Arizona.
A most thoughtful and relevant question / and video. Many thanks.
Is it advisable to do roth conversions when the market is down because we wld be selling at a low price?
Yes, selling more shares, larger percentage of the account, for the same amount of taxes to be paid. Then it grows again when the market recovers tax free. Just not sure about the math. If it's worth paying taxes into the next bracket to get it.
@@normswan5806 Thanks for your response. So I guess it will not be a loss so long as it is reinvested in basically the same stocks before conversion, in the Roth. And then hope and pray the market will recover and not fall further like it is doing today! The whole amt of the conversion will be taxable and I would not be able to claim capital gains loss because it is a conversion from funds that were never taxed (IRA).
@@mafarnsims yes. Reinventing as soon as possible is really important. Don't give the market a chance to go up. Then when it eventually does go up it is tax free. If we don't think it will go back up we wouldn't be in it anyway.
@@_-Karl-_ good information. I change companies away from my companies 401k choice.
@@_-Karl-_ Thanks Karl for the info. I have my IRA at HSBC in one of their managed funds and they told me the only way they do conversions is to sell units of multiple stocks/bonds in the fund totaling the amt I want to convert and then buy them back under the Roth and it takes a few days for the conversion to be completed i.e. they can't sell and buy back on the same day. They say they can't transfer the asset in kind fr one acct to another even though it is the same fund managed by them.
My greatest happiness is the $ 28,000 weekly profit get consistently..
@flavio briatore it's all thanks to mrs Elizabeth Graney-Reed, her trading skills is the best I can think of now.
Oh that lady,She's awesome, perfect and genius. I've made a lot trading with her for 2yrs, she have really made trading easier for me than i expected.
@Bruce Kevin Really, is her trading strategy that big ??
Wow 😱 I know her and I have also been trading with her, she's such an amazing woman with good skills keeps me happy all week knowing I earn 17thousand extra income in trading with her..
@Jason Wills Elizabeth is always active on What's APK👇👇
We retired at start of The Great Recession. Scary, yes. But I was always income focused, and we came through fine. Stock gains are great, but I think good sleep is better. Financial conditions come and go, but your retirement is long and won't be fun if you always have an eye on the stock market. The trick is not to "end up with more", the trick is have a happy life.
Too early in the morning. At first I thought it said "The Great Depression". Then started the mental age calculation. LOL.
I'm in roth conversation phase. I plan to leave most if not all of it to my estate. Should I enter the 30+% tax rate to take advantage of the market being 20% down? All 700k is in s&p index both before and after conversion. I'm 58.
Don’t forget we have the trump era tax cuts so that could be a lower rate than your heirs could have if not converted.
Yes, if you think the market will rebound quickly, and if your heir's predicted tax rate avoided on future Roth withdrawals is greater than 24% (30% tax rate less 20% down market). I'm in a similar situation. I think, however, this 20% market 'correction' is just a necessary reduction, due to the very high returns we've seen for the last decade (16.58% CAGR for S&P 500, for 2012 - 2021). I'm leaning towards, 'No', but I may regret this decision if 2023 returns are 30%. I'm going to make my final decision on December 29, 2022. If the market is further down, I'll probably do an additional Roth conversion. I'm going to complete my Roth conversions by 12/31/25.
@@larryjones9773 thanks. It just looks like it's going to take forever to complete if all I do is use up the current bracket I'm in. And then ACA and EIRMA (sp?) Limits too. It's complicated.
@@normswan5806 Yes, I started my Roth conversions in 2015, and stayed within the 15% federal bracket. But, like you, that was going to take 20 years to complete it all. Thus, in 2018, with the lower tax rates, I bumped my conversions up to the top of the 22% federal rate. Yes, it's complex, as there are so many variables. But, a horrible situation to be in would be older and have a ton of money in tax deferred accounts, without a way of withdrawing it, without paying a giant tax rate & IRMAA & NIIT. That terrifies me. Our future selves will be thankful we performed Roth conversions when we were young (I'm 61). :) Hang in there, with your calculations!
@@_-Karl-_ Also, I'm single, but married people have an even higher incentive to perform Roth conversions, due to the 'widow penalty', as chance of death is always 100%
Even if we convert at a tax rate that is close (slightly over or under) to the predicted avoided tax rate on Roth withdrawals, this converted money can act as INSURANCE should the market perform MUCH BETTER than we predicted, for future years.
Great, timely info as usual; excellent work!
Great content and very well presented.