Sorry about my absence during some of these discussions. My Sister-in-Law passed away a week ago. She lived right next door and we have had a lot of family in for the funeral which was yesterday. Her and my wife Jeanne were very close and it was a big loss for us. Some family are still here but all will be gone within a couple of days. In addition my good friend who I have known since grade school is coming to visit for a week. We went though high school, college, were best man at each others weddings and try to get together a few times each year. So I haven't posted much and will still be limited for the next week. But I do want to post an article that I agree with and perhaps another one later. I know that Terry and others posters think that Biden is going to win handily. I am going to respectively disagree and this article pretty much says what I believe is going to happen. Opinion | Here's why Biden's lead in the polls is a lot shakier than it appears
Well I hope that article is right Bill, but it sure doesn't appear to be another 2016 come from behind win to me. Hope you and your best friend have a great visit and that the family heals from the loss of your sister in law.
I have no doubt though had it not been for Covid, Trump would have won maybe even handily in this election. But the combination of Covid and the unrest following the George Floyd death have done him in as far as a 2nd term.
We'll probably never know if Covid was an accident in China or a way to disrupt the world's economy and impact elections.
Hopefully a year from now, we'll have vaccines and Covid will be in the rear view mirror. We might be living in a country led by Biden, Warren, Sanders and Pelosi. I've seen videos by financial guys who recommend changing IRAs into Roths. Anyone else heard that advice? Any other harbors that you guys have heard recommended?
When Trump passed his tax cuts, I changed all ongoing contributions to 401k and IRA to Roth. My reasoning is that was the cheapest tax rate I was ever likely to see for those funds. My plans are to go back to traditional when those tax cuts end.
I guess you'd have to see the trade-off between the fees of changing to a Roth now, and what the new taxes will be on your retirement income going forward. Not sure there's any benefit for us who haven't retired yet... they'll find a way to tax it no matter what.
There are no fees for converting, only paying the tax rate. I did not convert any of the existing balances, only the ongoing contributions. The fee (penalty) comes in when withdrawing early, on top of the income tax rate, which is likely elevated due to the additional income on top of your "normal" income.