Is there really a scenario where the tax savings are so dramatic that they pay the mortgage for you? I don’t see how that’s possible.I am currently living in a house but the mortgage is reaching the tail end, so the deductible interest portion is getting small. I am thinking of selling it and getting a new home that is more suitable for older age (e.g. one story) and with a higher deductible interest amount to lower my taxes.
Surely the goal is not to pay the least taxes, but to have the most money. If the government gets a smaller number of dollars, but you also end up with a smaller net worth, that doesn’t feel like a win to me.Well, I think the only other way to deal with high RMDs is Roth Conversion, which takes complex planning years in advance, and a favorable stock market condition (i.e. drop in market as was in 2022; it's disadvantageous to do Roth Conversion at high stock market prices since you'll be paying more taxes).
Theoretic Scenario 1: Of $100, the government gets 45 and you get 55.
Theoretical Scenario 2: Of $100, the government gets 30, the bank gets 30, you get 40.
I would choose 1, not 2.
Statistics: Posted by BirdFood — Sat Aug 03, 2024 3:01 am