Author
Topic: Retirement / What am I working for?
(Read 66679 times)

Riffraft · « **Reply #504 on:** December 06, 2025, 05:02:38 PM »

Quote from: betarhoalphadelta on December 06, 2025, 03:32:54 PM

It's not a matter of not having the money (although I need to do a little to make it liquid), it's a matter of not knowing what the hell I'm doing and how to set it up properly...

I think the ideal thing would be to set up the account, sell some of my holdings in my ETrade account that are long-term capital gains (15% tax, and only on the gain, not on the gross) which is below my marginal income tax bracket anyway (so it's better than using post-tax income to fund it). Put it into a traditional IRA and then immediately move into a Roth (backdoor). And then that helps me diversify my stock from only two companies I hold.

Maybe some of the folks on the board can tell me if I'm completely stupid for thinking that's the optimal idea.

But the question I have is... What do I need to do to make this happen? Can I do this on my own via some online option (I think Vanguard)? Are there simple ways to do the backdoor Roth online without the use of a financial advisor?

My wife worked at schwab. You can do just about anything you want to do on their website without help. However help is just a phone call away if you need it.

FearlessF · « **Reply #505 on:** December 06, 2025, 05:26:12 PM »

the Schwab commercials used to be pretty good

SuperMario · « **Reply #506 on:** December 06, 2025, 10:11:51 PM »

Quote from: Riffraft on December 06, 2025, 05:02:38 PM

My wife worked at schwab. You can do just about anything you want to do on their website without help. However help is just a phone call away if you need it.

Completely agree with this. I used to trade on OptionsXpress in the mid 2000’s and eventually Schwab bought them out which upgraded their platform from a technology standpoint. Since being with them, they’re honestly incredible from a service level. Service, research and platform are all top notch.

MikeDeTiger · « **Reply #507 on:** December 09, 2025, 10:30:18 AM »

Quote from: MarqHusker on December 06, 2025, 11:44:36 AM

if you don't presently have a roth...
folks who do not qualify for a Roth IRA should always do a back door Roth contribution each and every year.

1. fund IRA to max.
2. next day convert to a Roth.

I did not know that some people don't qualify for Roth IRA's. I looked it up and apparently it has to do with being over a certain income threshold.

I have a Roth, but now I'm questioning that and thinking about abandoning it for a traditional. There seems to be some conventional wisdom that suggests Roths are a good idea if you expect to be in a higher tax bracket in retirement, but not necessarily the best option if you expect to be in a lower tax bracket in retirement. We'll probably be in a lower bracket, I'd expect, but I'd have to do some number-crunching.

otoh, I'm also reading that we might not even get the tax benefits of a traditional IRA because tax deductions are limited to MFJ households of $149k or less if one or both has a 401k. So if that's the case, then there's no reason to mess with a traditional IRA because there's no tax relief at present or in future.

I should probably quit trying to figure this stuff out myself and get professional help. (insert joke here about needing professional help)

847badgerfan · « **Reply #508 on:** December 09, 2025, 10:33:23 AM »

Roth is the way to go. Who knows where taxes will be in the future? We know they are low now.

FearlessF · « **Reply #509 on:** December 09, 2025, 11:26:59 AM »

I'm pretty sure I can either be in a higher, the same, or a lower tax bracket when I retire - I'll have choices

and then chose to cash in traditional, convert traditional to roth or just cash in roth

MikeDeTiger · « **Reply #510 on:** December 09, 2025, 11:28:51 AM »

All the talk about converting traditional to Roth near or in retirement is confusing to me. I know you can do it, but it'd be a giant tax payment, even if one-time only, and who wants to sign up for that?

FearlessF · « **Reply #511 on:** December 09, 2025, 11:29:57 AM »

well, if you can convert some while staying in a lower bracket..........it's a good move

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Topic: Retirement / What am I working for?

Riffraft

Re: Retirement / What am I working for?

FearlessF

Re: Retirement / What am I working for?

SuperMario

Re: Retirement / What am I working for?

MikeDeTiger

Re: Retirement / What am I working for?

847badgerfan

Re: Retirement / What am I working for?

FearlessF

Re: Retirement / What am I working for?

MikeDeTiger

Re: Retirement / What am I working for?

FearlessF

Re: Retirement / What am I working for?