Joe D Grinder

This is a stupid fricking team no matter which way you slice it

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manipulate the board.

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Bingo. That's what this clown did a few years ago and I thought he was banned from here.

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Roth conversion vs taxable warrants a much closer look just offering it up for consideration.

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:cheers: planning on doing a thorough look into this

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Consider tax gain harvesting while taxable income is low and you can potentially pay zero LTCG instead of Roth conversions.

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Hadn't heard of that before and just did a quick read. I can see it makes sense selling a stock I like and then buying it back effectively resetting the cost basis of it which will lower to CG in the future. Wouldn't I want to do Roth conversions first though since those funds will grow tax free? Plus not having to deal with RMDs.

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Is it possible FA biases to Roth conversion to get more assets under management thus higher fees?

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:lol: you're likely not wrong. However, I've been very clear and up front my 401K funds that I convert are going into my Vanguard account. I have $450k with NWM that they're getting 1% on and again, i was upfront about selling those non-quals first because I don't want to keep paying 1%.

Regarding living circumstances and taxes, we plan on coming back home to Hawaii too, so we're not going to be doing permanent EU residency for me for a while, if ever. Wouldn't sell our actual primary for a while since it allows for us to have a home waiting in Hawaii and everything covered even if we don't rent our portion out. We may only switch classification of primary to a non tax state if we sell the condo. Still can wrote off the mortgage on our second home if we do change the primary.

Thanks for the advice on TIPS and everything else. Let me know if anything I'm saying doesn't make sense.

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Gotcha, years ago I'd say 75 would be enough but man, dollars just don't go as far as they used to. A $100 today feels like 15-20 bucks 10 years ago.

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I know, it's scary. $6k a month which goes up every year by COL should hopefully do it. If not, and we spend more, I'm still ok. And worst case, I'll pick up some PT job or do some consulting. I may want to work anyway after a few years if I get bored.

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75k would be tough imo with travel in there

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$75k is travel, food, and fun. We shouldn't have costs for rent as it's offset renting our upstairs unit. Not every month will we be doing some big trip as we're going to be living in Europe and so there will be plenty of times we'll be chilling at the beach there and exploring cities in that country. I think the plan has us on over $100k living expenses by the time we're in our mid-60s if I'm not mistaken. But yes, at first I thought $75k might be too low. I'm hoping not!

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If so, here's what I'd do if I was in your shoes. I'd build a 20 year $75k TIPS ladder that would go until age 70. That would cost ~$1.1 mil. Or even go longer if you want.

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Sorry for the delayed response but we're on vacation now :lol:

No kids and will plan on leaving behind for our nieces and nephews but that will just be lagniappe for them.

I will look into this more. First reaction is concerns about pulling money from the market to put it into a lower, albeit safer, return. That's without me looking into TIPS at all yet so I will do research on it soon. Thanks again for your suggestion!

Bat signal sent

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lsupride87

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You are an LSU fan and seem to have a dislike for Burrow. At minimum, you minimize his accomplishments. Why? We know you like Josh and so do I, you seem hellbent on making sure to shite on Burrow in thread after thread.

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How long are you planning on living in the EU? Will you be giving your properties over to a company to manage them or will you be trying to manage them from the other side of the globe?

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Hard to say on how long, but i love it there and she obviously does too. We'd travel most every country and likely live in a few so it could be as little as 2 years and maybe permanently. I'm guessing 5-10 years minimum and if it seems to be moving towards permanent we'd sell at least one property and buy there. Regarding a PM, we have a single friend who doesn't have a lot of stuff who would live in our unit upstairs for a reasonable rent and she'd take care of the tenants downstairs. Her rent we'd charge will easily cover a rent in EU.

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I love the hell out of TN as it gets all four seasons).

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Yeah, Tenn is my second choice. Nevada has low prop taxes and we have connections in that area to maybe make it a little easier to manage. We'd not really make wherever we buy our actual primary. That's just for tax purposes.

ETA: I'm leaning to not selling the Hawaii condo, but this is one of the main reasons for my OP is to get some other thoughts.

Sorry for the long post, but trying to give the info needed. I do have a financial advisor, and this is the plan we talked about, but I would certainly like to hear if anyone has any different thoughts/suggestions:
-Turn 50 in 2 weeks. Just retired from a job I can go back to tomorrow or years from now. I was the sales director, but would easily do well again as a salesperson if needed. Also can do consulting in this industry remotely.
-Married, no kids.
-Own 2 homes in Hawaii. One rented long-term. 10 years left on that mortgage @2.5%. Our primary has 2 rentals downstairs that cover the mortgage plus prop taxes and insurance. We live there nearly free outside of ~$500/month and soon the rents will be raised to cover everything.
-$600k in my i401k and another $150k in old employer 401ks for her.
-$115k in Roth (got started late)
-$1.35mm in brokerages
-1 BTC :pimp: :lol:
-$200k cash in HYSAs
-$500k Term until I'm 62. Same for her. Also got roped into some sort of life insurance that gives $125k death benefit but is worth the money I put into it, which isnt much ($36k). It will continue growing even though will I stop contributing to it since I just retired and I went past some number of years to qualify.

We want to live on about $75k a year as we will do a lot of traveling. We don't spend that much now. That obviously goes up and he showed plans for 3% vs 6%. We're going to live in Europe for a while and since my wife is an EU citizen, health care coverage isn't a huge issue. Will cost me <$300/month. She's covered. Can rent our upstairs house to easily cover rents in EU or maybe buy something there and I get dual citizenship. Or we can come back to Hawaii and get health care nearly covered because of low/no income until I reach 65 and her a few years later.

Ok, now that's out of the way, the plan is to do Roth conversions for the next few years to where I keep the tax rate to 12% or maybe even 10%. I have cash to live on for a few and of course brokerage money to live on as needed. He says I should get to about $240k Bonds if I remember right. It's written down at home. I have about $100k now. He also said to consider selling my rental and buying a "primary home" in a tax free state. I would likely do Nevada for a few reasons, one being low prop taxes. Issue in my mind is I would pay cap gains on selling my rental offsetting some of the gains from not paying Hawaii taxes on my Roth conversions. The NET is about $25k savings between the cap gains and no state tax, which to me seems low enough to not deal with all of that. Also, easy for me to deal with the house in Hawaii vs having a house in Nevada or Texas, or wherever. Although, it is a condo and I'm beyond tired of HOAs and their BS and the high insurance. I could see some advantages if I did go back to work as I could do my LLC in Nevada for payments. I would buy the house cash since I have plenty equity to avoid these mortgage rates.

Hope you're still with me! Thoughts on the Nevada idea? Any other suggestions/concerns with the plan? Enough money? Realistic expectations? And there's always some form of watered down SS I am not bringing up but should be in the equation for when I'm in my 60s. Not sure I'd wait till 70 as I don't expect to live too long. Family seems to die off in their late 70s. Ending on a positive note!