With a likely Dem sweep, including the Senate, tax rates are going higher. Even without a sweep they will go higher but perhaps not immediately.I have considered converting an IRA to a Roth but I am concerned about Roth rules being changed without grandfathering. Especially for the "wealthy"Several friends have converted and believe Roths will be grandfathered.Any views pro or con here?
they have already changed the rules on roth beneficiaries by making them take it out over 10 years, not taxable but still brings that money out into the world for further taxation.I don't trust the government at all on this. I would not pay a large tax bill now and cross my fingers. Depends on someone's age and other variables.
"I don't trust the government at all on this. I would not pay a large tax bill now and cross my fingers. Depends on someone's age and other variables."I don't go that far but I do assess the risk of government changing the rules along with all the other risks that accompany investment choices. To that end, I do have a comparatively large and growing position in non sheltered investment accounts that grow (I hope) in value with manageable tax costs - i.e., Berkshire Hathaway, some tax exempt municipal bonds, relatively low dividend growth stocks, etc. 9
About half of my retirement is in a Roth IRA (converted years ago) and the other half is in a rollover and my business simple IRA. I have no plans for any further conversion at this point. More of my net worth is tied up in a brokerage account and I agree that Berkshire and Google/Amazon/Apple are excellent plays to Compound and delay paying Uncle Sam. Despite being in my mid-50s, I have no real bond exposure as I would rather be in equities at current yields. Who knows what will happen in 3 months, 3 years or beyond so I attempt not to worry about it. Good luck to all!
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