These tools can’t help you with predicting the unknowable unknowns (this is the issue). Most of these tools are sold as optimizers but they are only guesses about the future that likely to be off from reality. It’s important to not lose track of that. They are not crystal balls and can’t help you with predicting the future. They should only be used for checking different scenarios that may or may not play out. Sometimes the scenario say more Roth conversions are better. A different scenario would say no conversions are better. When all said and done you have to decide what plan helps you sleep better at night ——zzzzzz."No planning software will help with these issues."The biggest concern are the unknowable unknowns. What will the tax brackets be later in life? When will I or DW die? If either of us dies early that could have an important impact on the tax tables and IRMAA for a long period time. Also what will congress decide the tax tables to be as we age? What will our aging expenses be and could they be tax deductible from a tax deferred account? What if some reason we later decide to move from Washington State (no income tax) to California? No planning software will help with these issues. I do like RPM and Pralana Gold so they can help someone go through the what if scenarios to help with these risk factors. It’s more of a risk management exercise, than than trying to optimize something that isn’t predictable.
You can run any and all the various scenarios that might be concerning to your plans and review them all for both commonalities and where they diverge.
Statistics: Posted by 2pedals — Sun Jun 23, 2024 8:38 pm