CharlesUFarley

And Bolivian honey farmers made even more money after the African Bees were released. They learned the risks and adapted to them, and benefited from a greater return from a more productive but riskier process.

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Memaw doesn't get much right these days, but I commend her for this one.

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Well, we got constitutional carry and this. I can't think of another Governor who did so much. Now, if she'd just abolish speed limits on the interstate beyond city limits....

If you can convert at 12% do it. At 22% or 24%, consider it. If you can delay realizing Capital Gains then you might be able to do an up year, down year and try to do your conversions in down years.

My situation will make any conversions 24% for the rest of this year. I may do some, but I am thinking of doing 401K tax deferred because I will save 29% on it this year (FED and state), and maybe I will have a chance to convert some of it at a lower rate later. I will turn 61 this year.

When I do the math, anything I invest through work doesn't really move the needle on where I'll be retirement wise. It will be what it is from what I have saved an invested for the last 40 years, not the next 7.

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Excess meaning any unspent income from pension dividends etc. I'll have to use that and liquidate from taxable to pay tax on the Roth conversions. So, any additional spend would be at higher tax rate than usual in a non conversion year.

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I look at this sort of thing often, considering how much to put in 401K, how much Roth or Trad, how much to convert to Roth IRA from my Rollovers, how to best balance out a Trad 401K so that I can still do a Roth IRA contribution, or whether to scrap all that and just max out Roth Conversions.

If I think about it long enough, the math starts to look the same regardless. No matter where money originates, it's taxed at prevailing rates one way or another. We know what they are today, and don't know what they will be tomorrow.

Will RMD's be a bad deal? Morningstar just did an article that said they were a fairly safe way to draw down your accounts. At any rate, when calcing it out, RMD's are going to be your withdrawal rate after you hit 75, so all this 4% rule stuff is really about what you can do up until then, but the math on taxes is probably nearly the same.

I'll go with the bucket approach: a short term bucket, an intermediate term bucket, and a long term bucket.

The long term bucket is all stocks. The short term bucket is all cash and money market. The intermediate term buck might be bonds and stocks.

Short term is two years. Intermediate is 3-8 years after that. Long term is everything else.

Then, if you are really well off, but you don't want to crank up those buckets, maybe you come up with some new ones: a speculative bucket, an inflation bucket, a SHTF bucket, inheritance bucket, etc.

Your allocation task each year is to fill up the short term bucket again. You have to choose which buckets it's coming from, and then how to refill them.

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Is there much difference in investing and saving for yourself and letting them inherit it?
It would compound the same.

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One difference is that his children would have a much better shot at a good financial education if he can put them in the driver's seat earlier by doing this.

I used to have brokerage link a few years ago in a Fidelity 401K. You could transfer vested amounts through the link and be able to buy anything Fidelity offered.

I can't remember how many years ago, maybe twenty, but at the time the Teamsters called a strike because UPS was going to leave the Teamsters retirement plan and start their own for their drivers. The Teamsters retirement plan was largely financed by UPS at the time, and would have been crippled without UPS.

I suspect the situation is no different today. That, or something like it, is why they are suing.

Well then, it is true, but it is easy to read that wrong.

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the Roth is much more beneficial to them since it doesn't carry a mandatory distribution over a 10 year period

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Not true. It changed back during Trump's first term.