It’s more than just RMD’s. If you can source some or all of your need3d income from your Roth, you get taxed less on social security payments( maybe not at all), and you are able to get subsidies on health insurance. It’s more about showing taxable income vs non taxable. The taxes have to be paid at some point, Roth allows you to get the funds you need without showing income.
*Investors Blog*
- Thread starter Warstud
- Start date
I might at some point give it a go. I'm left wondering why it didn't "report back" on some of the tickers.
Since I am decently comfortably retired, too much income, decent growth, and I'm paying taxes, etc - regardless it's pretty much a hobby as I am all about reducing stress and letting the big guy drive.
All good ideas. I have used AI to shift some holdings in the past, but I always question it.
I have like ten pages of replies from AI, so I am not sure how much will help here, but it definitely concentrated on RMDs along with the Roth Conversion Ladder, which to be honest, I have not heard much about. When I mentioned it to several others in my circle, they did not plan on that yet either.
I am 52 and am debating if I retire at 57, 60, or 63.
57 is a dream.
59.5 my military retirement (active then reserve) kicks in, so 60.
63 is due to our son having Type 1 diabetes and celiac and needing healthcare coverage, even though we are on a 10k family high deductible plan, but so far that has made the most sense for us.
I started with my initial comment/question: "I continue to struggle understanding if i should do pretax or roth with my 401k. How would I have a higher tax bracket when retired?" Along with all the following info:
- My age and desired retirement ages. You could pick one age, then ask it to recalculate the other ages, makes the feedback somewhat cleaner.
- Son's age
- Wife's age and retirement year, she is 6 years younger but most likely retire at 57.
- Current income for me.
- Current 401k holdings (cut and paste holdings from Fidelity) for me.
- Current income for wife.
- Current 401k holdings (cut and paste holdings from Fidelity) for wife.
- Reserve retirement amount (not much after 25 years, some of it hell)
- HSA contributions along with current value.
- Equity in home along with value (you can just provide it your address and ask it to use the value it finds).
- Other equity you may have. I didn't add anything even with a multitude of toys and paid off vehicles.
- Current Social Security info for me
- Current Social Security info for wife
- States I am considering retiring in due to tax implications.
Key takeaways for my situation:
- Contribute using catch up amounts.
- Shift all to Roth, keep wife's as pre-tax to offset. Roth is going to crush me for now, crush! So we have to make some changes, but in the long haul, it should be good to go. I will update in a few months after I meet with our fiduciary.
- Fund Roth IRA for both of us each year
- Recommendation Based on All Inputs: Claim at 70
Given your:
IRA size
RMD age (75)
Desire for Roth conversion ladder
Early retirement flexibility
High‑earner status
Tax‑free VA disability
Ability to cover spending before SS
Age 70 is easily the optimal Social Security claiming age.
- Plan for Roth Ladder Conversion Timeline (Simple Version, retiring at 57. You start this when you retire, "the moment your W-2 income drops")Age 57 → Your retirement → START converting
Age 57–65 → Heavy conversions (lowest household income)
Age 65–67 → Adjust pace if spouse still earns
Age 67–70 → Resume maximizing conversions
Age 70–75 → Finish off remaining conversions before RMDs
Age 75 → RMDs begin on pre‑tax accounts → conversion window ends
Generic feedback:
IRAs let you trade without tax consequences until withdrawal.
Roth = tax‑free growth; Traditional = tax‑deferred growth.
Transfers between same‑type IRAs are tax‑free.
Safe Harbor 401(k)s guarantee full contribution ability and required employer contributions.
2026 limits: $24.5k deferral + $8k catch‑up + $72k total.
High earners’ catch‑ups must be Roth starting 2026.
Short‑term trading in taxable accounts is taxed at ordinary income rates.
Safe harbor estimated tax rules prevent penalties.
RMDs start at 75 for Traditional accounts; Roth accounts have no lifetime RMDs.
Asset location (taxable vs. Roth vs. Traditional) significantly affects long‑term outcomes.
Emphasize Roth 401(k) contributions now (and go as far as your plan allows into mega backdoor Roth using after‑tax → in‑plan Roth conversions). That does three things you want:
Eliminates future RMDs on new contributions (designated Roth has no lifetime RMDs). [irs.gov]
Diversifies tax buckets so you’re not forced into large taxable withdrawals later.
Pays tax at today’s known rates (which are historically low by many measures), while your taxable retirement years look full already from pension + SS + potential RMDs. [advisor.mo...tanley.com]
When pre‑tax could still make sense (selectively)
If you need a little current‑year cash flow relief, it’s reasonable to put some deferral pre‑tax (e.g., a 70/30 Roth/pre‑tax split), especially if it helps you top up after‑tax (mega backdoor) and still hit the $72,000 annual addition limit. [taxnews.ey.com]
How your retirement date changes the strategy
If you retire at 59½
You potentially get a 7–10 year “conversion window” before Social Security, with only your $18k Navy pension showing up as taxable income. That is prime time to convert chunks of pre‑tax to Roth each year at controlled marginal rates, shrinking (or even eliminating) those big RMDs at 75.
You can also delay Social Security to increase your benefit (roughly +8%/yr to age 70), which both raises the guaranteed income for you/your spouse and preserves more bracket space for conversions in your 60s. [ssa.gov]
If you retire at 63
Shorter conversion runway before SS/Medicare interactions, and the model shows slightly larger first‑year RMDs (e.g., ~$264k vs. ~$252k in the 6% case). You can still convert, but you’ll have fewer lower‑income years to do it.
Bottom line: Earlier retirement (59½) generally improves your ability to manage lifetime taxes via Roth conversions. Later retirement (63) grows the portfolio a bit more but tightens the tax‑planning window.
Ask it why it didn't report back on some of them. it should tell you.
Just a FYI for anyone who doesn't know how a Roth Conversion Ladder scheme works.
https://www.investopedia.com/how-roth-conversion-ladder-works-5214808
I only gots silver.
Jan 1 2025 I had 70K in gld and slv etfs. A year later it grew to $145K. A month ago I liquidated all but 45K of it.
I put a bunch in GLTR, and REMX also put minor amounts in CENX, COPX, and . GLD, SLV, GLTR, and REMX. I will add to REMX and I would SLV will drop to say $75 I will do some of that. So I am only $50K invested right now. The rest in 3.85+ Money market/CDs
At the age of 80 we have no real money needs. (Yes, you can never have too much $$$ lol.
I put a bunch in GLTR, and REMX also put minor amounts in CENX, COPX, and . GLD, SLV, GLTR, and REMX. I will add to REMX and I would SLV will drop to say $75 I will do some of that. So I am only $50K invested right now. The rest in 3.85+ Money market/CDs
At the age of 80 we have no real money needs. (Yes, you can never have too much $$$ lol.
How do you eventually sell your gold without getting robbed ?
Do your kids inherit your precious metals when you are gone ?
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Many swindlers out there.
You have to shop it around as the prices vary to a large degree...
I have a gold buyer in TN that pays top $$$ and he treats his business as a hobby....he doesn't want to sell you gold but only buy...
Boasts of his wealth...... whatever works
I sold mine at a local shop. I'm probably gonna sell more soon and some silver too.
This shop was paying just barely under spot. I guess when he sells en mass to to his big buyer - I mean lotsa metal - it's enough, plus he can be patient.
You just need to call around, old fashion style
ETF's are fine for trading but no good in a real situation (ok yeah never will happen). The real weakness is if these ETF;s hold mining stocks. Stocks that will follow the market (down). Find the ETFs that are metal ONLY
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That is why GLD/SLV etfs are great. Buy and sell instantly
Look up Vermillion Enterprises on YouTube. That will tell you roughly daily what the best shops will pay. If you want a local shop and cash, expect to take a haircut.
Last I checked gold they were paying 1% back of spot for 1 oz foreign coins (roos, pandas, Kugerands, etc.) 2% back for fractional foreign coins. Gold eagles command spot or above.
Silver is a bit harder to sell as a lot of the refineries aren't taking it, and some that do are slow paying.
Silver sent to refineries?
Yep, they aren't taking "junk" silver - 90% coins, sterling, etc. Only .999 or .9999 that they can turn into 1000 oz Comex good delivery bars without refining. Coin shops sending in .999 often have to wait months to get paid, which is why they are offering well back of spot.
Right now is another big melt down, like 1980. Lots of collectible pieces are being melted down.
Ima ask my guy tomorrow
Mine will. They will either have to sew it into there clothing to start there life in the new place like refugees have forever, or hopefully they will laugh at what a nut job there old pop was. Either way I have them covered. I will never sell my physical.
If your holding it to speculate just use GLD / SLV. The purists will argue they don't have the actual metal, to which my reply is I am happy to settle in dollars so who cares.
Which actually brings up another good point - is gold and silver actually rare if Wall Street can make as many derivatives of it as they like?
Owen Lucas
$100 Site Donor 2023
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If that's the case I'm probably sitting on $10k in coins as I used to buy the standing liberties dollars as a kid...for $5 each.
