Retirement
from24/7 Wall St.
18 hours agoWes Moss Says Roth Conversion Hype 'Is Not True at All' and Detroit Retiree Dave Proves Why
Roth conversions are not universally beneficial; they depend on comparing current and future tax rates.
What gets glossed over in most of these conversations is taxes, as everyone focuses on the accumulation phase by maxing out your 401(k), funneling money into accounts like the Vanguard Total Stock Market Index Fund, and watching your net worth compound. However, when you retire early and need your portfolio to generate income, the tax bill can be significantly higher than you planned for, particularly if most of your money is in tax-deferred accounts or you've accumulated large unrealized gains in taxable accounts.