This is on investing in index funds that many may find helpful especially during times of volatility.
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DH was in the same boat as yours and our FA was able to teach DH a lot during each of our meetings. DH learns better from others than from me but does learn when I reiterate what FA was getting to. FA was helpful for us for our cash stream from purchased annuities that have been beneficial for reducing our portfolio risk.
We have used indexed funds for some of DDâs invested money (Roth IRA) and for a personal fund for us outside of retirement funds.
CCers, is one thing we can do in this down market is to maybe step up Roth conversions? So that if/when 
the market rebounds that growth will be tax-free?
Thoughts?
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I mean we are down 10%. It depends on your income level (tax rate) - and a self determination of how far down is enough.
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True. We donât know the bottom. And Iâm not trying to time the market, per se. Just thinking of how we can take advantage of this crappy turn of events.
We do a conversion every year at the end of the year, and I was thinking maybe we do a larger one or move it up earlier in the year.
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Just know your income, tax rate, and where the next increase hits - assuming you have a tax rate in mind.
Iâm not a fan of conversions.
For most youâll be in a lower bracket when you are retired.
But everyoneâs situation is different.
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Gotcha. We are as low as we are ever going to be. We expect to got up a bracket in eight years, when both our pensions and SS kick in.
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We also did Roth conversions several years ago because our taxable rate is affected by our unearned income which has fortunately increased, and hopefully will continue to increase (separate from the current mess) apart from earned income.
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I have thought about it, but so far havenât done it.
We messed up our taxes for a couple of years bc my husband wasnât aware you needed to do certain forms for backdoor Roths already.
I have another issue - my money is in the federal TSP, and itâs not instantaneous if I ask to move it, so it could hit on an âupâ or âdownâ day, which I donât like in this volatile market.
Iâve also thought 20% down would be when Iâd consider a conversion.
I do stress about the current volatile market and potential long term impact to our retirement funds, especially since we arenât earning any longer. I have kicked myself for not moving to a less risky mix, but I just ânever got around to it.â
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Im doing after tax contributions in my 401k and then moving that to my Roth 401k. This allows me to create a back door Roth without triggering any taxes.
This is called the âmega back door Roth IRAâ and sidesteps the backdoor Roth IRA with non deductible IRAs (which is a pain because of the IRA aggegation rules).
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NiceâŠif your 401K provider offers it
Hey, Jill Schlesinger on her podcast this morning recommended a Roth conversion if it works for you so yea!
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I just got what amounts to a donât panic email from my FA. It basically said, things are in flux, and the tariff situation will be evolving over the coming days. They suggest you sit tight and donât make any changes at this time.
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thatâs true for the US as a whole, but Iâd guess that wonât be teh same for many on cc.
Personally, a big fan of doing Roth conversions at a âdiscountâ.
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Yep, trying to make this true, but it may not end up that way. We were in a low tax bracket for a few years. My husband had retired, but was not taking any pension, 401(K) distributions, or Social Security benefits. Our only income was dividends, interest, and a small amount I make from a part-time job.
Last year the market and our CDs did so well that we ended up with a lot of dividend and interest income, putting us in a high tax bracket. I can imagine years later on in retirement when we are both getting SS, I am getting my small pension, and RMD kick in, that our tax bracket will go up again.
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Reminder: folks who are 63+ and considering a jumbo Roth rollover that would push income over $212K should be aware of the IRMAA âtaxâ
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We are fans, and are converting as much as possible to Roth. Easier access for us if we need the funds, and if inherited by our kids, they donât have to spend down in ten years as taxes have already been paid.
We meet with our FA at the end of April, and will discuss conversions this year. This is an oddball year for us because of extra SS income I have received and will continue to receive. We need to crunch the numbers.
ETA, in addition to looking at your tax bracket, look at IRMMA increases. That would cost us $6000 or so a year for both of us, if we bump up to the next income bracket.
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As noted depends on the person. Like annuities, conversions are pushed incessantly by advisors. Thatâs a red flag right there.
But everyoneâs situation is different. My tax bracket will be less later.
But I will still be hit by the Medicare supplement thing which counts tax free income.
Thereâs no one size fits all to conversions and no one can 100% know what future tax brackets will be.
The Donald says he wants no federal tax. Canât imagine but if it did all this who converted will have erred in a big way.
But everyone can do what is best for them. You make your best decision and you live with the outcome, like in all investments.
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My Roths are converted to Roth IRA accounts, not annuities.
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We are converting annually up to the top of our tax bracket. One thing people neglect to consider is what will happen when one spouse passes away, which is the typical scenario. Look at expected RMDs and current tax brackets (since we can only plan based on what we know). Becoming single can push you into a higher tax bracket and IRMAA can kick in or increase. Ouch! Remember, your expenses do not get halved when a spouse dies. Itâs important to consider all scenarios when planning.
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