With a marginal tax rate of 32%, doing Roth conversions of all tax deferred balances now and making Roth (rather than traditional) retirement contributions doesn’t seem optimal.
Doing mega backdoor Roths to move savings from Taxsble to Roth does make sense.
Will you/your spouse receive SS benefits? Or are your pensions the only source of retirement income?
Do you and spouse have long-term care insurance?
Your 10% ROR planning assumption is aggressive. Your current portfolio + $138k savings /yr will probably grow to a portfolio of $2.0-$2.5 million invested in at least 60% equity in 10 years. Consider:
(1) do you have adequate disability insurance? As the sole breadwinner, your plan is dependent on you being able to work until you reach the desired #.
(2) apply now for 20-30 year level-premium term life as your current policy expires at age 50. If you die before age 65, this will allow your spouse as a surviving spouse to delay withdrawing from the portfolio until their 60s as the portfolio needs to last until age 100 (and pass wealth on) per your planning assumptions. It also helps if spouse’s pension benefits are terminated unexpectedly or spouse has significant uninsured care costs.
Doing mega backdoor Roths to move savings from Taxsble to Roth does make sense.
Will you/your spouse receive SS benefits? Or are your pensions the only source of retirement income?
Do you and spouse have long-term care insurance?
Your 10% ROR planning assumption is aggressive. Your current portfolio + $138k savings /yr will probably grow to a portfolio of $2.0-$2.5 million invested in at least 60% equity in 10 years. Consider:
(1) do you have adequate disability insurance? As the sole breadwinner, your plan is dependent on you being able to work until you reach the desired #.
(2) apply now for 20-30 year level-premium term life as your current policy expires at age 50. If you die before age 65, this will allow your spouse as a surviving spouse to delay withdrawing from the portfolio until their 60s as the portfolio needs to last until age 100 (and pass wealth on) per your planning assumptions. It also helps if spouse’s pension benefits are terminated unexpectedly or spouse has significant uninsured care costs.
Statistics: Posted by HomeStretch — Fri Nov 29, 2024 7:26 am