Ok I have tried the paid version of new retirement as an attempt to answer the question on when we should convert.I'm using my own Excel spreadsheet, and before it my own program. I run several Monte Carlo simulations.What software are you using?I'm not sure there is a sweet spot. It is dependent on the
individual portfolio.
In my plan, I need to convert into the 22% bracket, below IRMAA,
for 2 years, then possibly 1 or 2 years in the 25% bracket, then after age 69 to the top of the 15% bracket for ages 70 to 72 or possibly 76.
This is from simulations.
I was getting similar results from extended i-ORP before it
shut down, and TIAA-CREF analysis.
New Retirement gives me a 99% chance of success.
I don't know of a piece of software that will do this sort of analysis, which includes both federal and state taxes, at least a free one, so I wrote my own. Figuring the taxable portion of SS was complicated, as well as the portion that made the decision of whether to Roth convert based on the balance of the portfolio and tax deferred accounts
Maybe New Retirement paid version would do this, at least with regard to federal taxes.
I used their Roth conversion stimulator and when I optimize for highest estate value, it’s actually telling me to convert my tira to roth now and in the next few years even though some conversion will be in 32% bracket. That seems counterintuitive especially when I would expect to hit a lower bracket after I retire. (before hitting SS).
Feels like maybe something is missing in the logic. Perhaps maybe the expense is adjusted for inflation growth but tax brackets are not adjusted to go up? Or maybe it’s telling me to convert because I m stimulating retirement before 59? (We are currently 44 and 48)
I didn't attempt this stimulation in excel cause honestly it’s too advance for my skill set
Statistics: Posted by Ccthealias — Mon Jul 29, 2024 2:17 am
