No. of Recommendations: 1
Thanks for the correction Peter, wish I could rec it more than once. Got to say though, either way it's a darned attractive tax rate. Will definitely take on the strategy of drawing down the traditional IRA/401K accounts first and put the extra we don't need for expenses into Roth conversions and taxable investments.

At this point I'm thinking max out the 15% tax bracket to use for Roth conversions, using taxable funds to pay for the tax and for our income needs. This would allow us to convert $73,800+/year, (assuming future increases,) over 13 years for DH and 4 for me. Actually the 4 years for me will be at less than the 15% cap since the latest I will take SS is at FRA, not 70. Since I do best taking the spousal benefit, my benefit does not continue to go up after FRA.

Clearly Roth is the best place to have funds, followed by taxable funds that are managed for a combination of return and tax efficiency. At least that is what I've finally concluded.

You all have been very helpful in the process of thinking this through. Thanks!

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.