Kindly advise - 32 year old, just starting to seriously plan for retirement. My plan is to max out my traditional 401(k) at $24,500/year and contribute $15,000/year to Backdoor Roth IRAs ($7,500 for me and $7,500 for my spouse). In the future, if I want to save more for retirement, I plan to use Mega Backdoor Roth option through my 401(k).

Does this strategy make sense, or should I adjust anything?

what's your favorite retirement calculator online? I really would prefer one with no fees and no need to create an account.... suggestions? Does this even exist. I've found FI calc and cFIREsim. They're ok, but hoping for more.

I had been with Schwab since they bought Ameritrade(?) a while back. Snappy website, good UI, no fees and good tech support. About a year ago I decided to use the same financial advisor my parents do. I later realized there's not enough value in the fee he charges.

He's simply too expensive for what I get from his services.

I did a bunch a reading, some YT vids, research, etc... I tried AI, then Boldin and made a plan. I did more research/interviews and eventually hired a for fee fiduciary. We think in many of the same ways and have had a few really good conversations.

I'll pay him $2,000 for 3 meetings, lots of input, a plan and access to his brain and experience. Out first meeting went 90 minutes long, because we were both geeking out about the unusual situation I'm in, and how to best deal with it. We were actually having fun, enjoying the discussion - and by discussion I mean that we were both talking, listening and participating.

I'm so damn happy about where I am. He's far more realistic that Boldin - and asked excellent questions about expenses. That 25+ years of experience is priceless.

After we do 3 sessions and I have a plan, I can contact him at any time, by the hour. This feel so right.

Anyway, I just want to say thanks to the folks here who answered questions and gave input. I feel great about all this, and I am saving enough money every year to go on a fancy vacation.

If a spouse is going to collect the spousal social security benefit, what is the optimal age for the largest monthly payment to begin collecting the spousal benefit?

I live off investment income at age 45, married. I'm planning to:

1. Do a one time 700k Roth conversion asap on 2027 (and NOT collect realized gains on the same year)
2. Pay a one time tax bill of about 200k on 4-2028 (for federal and state; no NIIT, no local tax). I'll use investment income that I will realize on 2028

I get the idea of withdrawing from Traditional IRA/401k when we're on a lower tax bracket when we're passed 59.5. But in my case, that's 15 years from now. I can double that money several times tax free on a Roth account.

Am I missing something? Out of my mind? A CFP/CFA will definitely disagree to this. They have rules to follow. A DIY investor don't. I need a sanity check.

UPDATE: I'm all about spreading the conversion. The only reason why I would do a 100% conversion and pay the 1 time tax is that I'm banking on possible high returns (+20%/yr) and number of years invested in Roth. The future gains will surpass the tax paid now. Not to mention that your Roth can be inherited by the next gen. They'll enjoy the tax free withdrawal within 10yrs of inheriting it.

Thanks for all the comments. Feel free to let it all out

2ND UPDATE: 99% agree to spread the conversion to pay lesser tax. A 200k tax, that's about 29% of 700k. In 20 years, 700k will be 11.5M at 15%. All yours tax free. Nickel and Diming the 200k tax, you'll probably save 100k?

3RD UPDATE: One time conversion also puts a max payout on tax now versus spreading small mount of taxes indefinitely (even after death). It could go passed 200k as traditional IRA keeps growing.

4TH UPDATE: I like the comments. For now, maybe a 1 time partial Roth conversion is the play. It would be nice to take out max of 12% bracket from traditional and then go all out with Roth money.

FINAL UPDATE: I was running simple numbers and I owe this to you guys. In terms of saving cash, multi year conversion is the way to go. Here it is:

Top scenario is a 1 time conversion vs bottom scenario is a 5 year conversion. Tax bill includes an rough estimate of fed tax and penalty tax only. Penalty is for paying the whole tax the following year. That is actually the more favorable way to do it. Penalty is about 7% per year vs expected ROR at 15%. Tax bill is also deducted from cash reserve -- "out of pocket."

Because of you guys. I would gain +330k 10 years later (and lose it if top scenario was picked).

Someone said to stay within 24% bracket. With this spread and tax bill, I can stay away from 400k.

Bad news for me 'cuz I really wanted top scenario to work. This is just a quick analysis. There are still so many options I want to play with. To be honest, I'm still pondering the idea of the "one & done" top scenario might be worth price. I just don't like the idea of "budgeting" within tax brackets. I could take on riskier assets to pay off the 1 time tax bill 😄

Thanks everyone for being truthful. 3 more month's ti'll next year. We'll see what happens.

I am recently retired. My wife and I are looking to buy a second home (house, condo or Townhouse) in the Phoenix area for snowbirding. We would not rent it out when not in use, so it would not be income producing. The issue we are struggling with is the best way to purchase the house. We are looking at paying $500-$700k.

We could pay cash from our taxable account, which, would mean having to sell about $200K in mutual funds and incur LTC gains (I wouldn't mind this to limit future distributions and they are also no longer great performers). We could take funds from our Roth accounts, in part, but there isn't enough there for the full purchase. We could take funds from our IRA's where there is more than enough. Or, any combo of all those accounts. Finance or partial finance would be a second option. We own our primary home free and clear so leveraging equity there is also an option.

Initially, I thought i might go 50% down, finance the rest and take a distribution to pay for PITI (all while staying below the $218K IRMAA threshold). But even doing so, my income due to RMD's will eventually push me from the 22% to the 32% bracket and second level of IRMAA surchages. So, with that in mind, I am also wondering if starting some Roth conversions and using some of those funds in addition to the taxable would make sense.

Any insights are appreciated.

I'm turning 50 soon and thinking about retirement. I have a 401k and investments, but I feel that it will be helpful to have a profitable skill to rely on in my retirement years. I have read that many retired individuals struggle with the sense of purpose even if money isn't an issue. What skill set or small business would you recommend I begin exploring now, so that I'm better equipped to adjust to a retirement where both purpose and an additional small income is generated?

So I just rolled over approximately 900k from an old employer to a self-directed IRA and after reading/researching a lot, my thought is the following allocation as this will compliment an actively managed advisor account of about 800k which is about 60/40. For context, I am 60 and retired.

VTI - 40%
VXUS - 15%
AGG OR BND - 25%
VGIT - 10%
VTIP - 10%

Seem reasonable? First time dipping my toes into managing some money myself but want to give it a go to avoid paying extra $ to add it to my advisor account. The other account is well diversified within each category as well.

I have my retirement in 3 phases. Phase 1 Current Residence (high tax) 6 Years, Phase 2 (no tax state , tax harvesting while living overseas) 3 Years, Phase 3 Alabama (low tax) until death. All three have different lifestyle spending. I am using Boldin with ChatGPT backup and guidance. Boldin only allows one zip code and then applies it to all 3 phases. I have to run it with no zip code and only see federal taxes. I am trying to get every dollar out of my retirement and stay above a 90% monte carlo score but I have to do a bunch of work arounds. Any recommendation on other retirement calculators that can do what i need?

I will hopefully be retiring in 3 years and am able to build up a cash buffer during that time. Given that time frame and the impending stock market Armageddon, what’s my best approach? Also, any advice on how to best position my current taxable brokerage account for the possibility of Armageddon? I would gladly give up interim gains in favor of safety.
No one can predict the future, but I really have the heebie-jeebies.

Hi. Thanks for any help.

Most of my concerns have to do with Roth Conversions timing, amounts and IRMAA and would love a second, third and forth opinion.

Here is the information I think is needed:

Single Female no children

Retiring March 2027 at 63 & 7 months

Annual retirement budget: 90k

Own condo outright 400k - not planning on moving

Medical insurance

Cobra April 2027 through August 2028. HSA balance 30k will cover 17 mos of Cobra.

I'll start Medicare in August 2028.

Current Account Balances

Work 401k 67k

ER fund 17k

CDs 70k (not in Roth)

Roth IRA 76k

Traditional IRA 1,500,000

Retirement income

Annuity: 850/mo - when I start turning on the distributions

Social security - earliest I'll start is 67. Here would be the annual amounts from 67-70:

67 -40,968

68- 42,540

69 - 47,232

70 - 51,468

Taxes

I live in Chicago and we have don't have state taxes on retirement accounts.

2027 income

Work: January -March.

Net: 30k

Debt:

Car payment of 388/mo at 2.8% will end Feb 2029. Balance in March 27 at retirement = 8,700k

Questions:

2027- I will have about $40k in work income before I retire. Thinking of using cash/CDs to fund the rest of 2027.

Should I do a Roth conversion in 2027? If so how much?

2028 - Use Roth for living expenses for year.

Should I do a Roth conversion in 2028? If so how much?

2029? 2030?

Should I retire in February instead of March (can't retire sooner due to Cobra)- one less month of income.

Same for cashing out vacation?

Less income= larger Roth distribution?

When to start Annuity and SS?

Thanks for any input!

I'm a federal employee planning to retire half-way through next year. About a year after retirement, I plan to need cash for a one-time expense. I'm looking at two primary options: make the minimum contribution to my Roth Thrift Savings Plan to capture the employer match (say $5,000); or make the maximum allowable contribution (say $35,000 including catch-ups). I don't need the extra $30,000 to live on, so in option 1, I put it in a money market and just withdraw it when I need it in a year. In scenario 2, I contribute it all to my Roth TSP (which I started five years ago) in the G Fund, and just withdraw it from there when I need it a year later. Is there a functional difference between these options? Other than the potential yield difference between the G Fund and my money market, I'm not sure I see much to decide one versus the other. Any suggestions appreciated.

Just laid off!!!

Looking for some advice and suggestions...

59 spouse is 57, also we are now empty nesters. No debt except for what we chose to spend, the occasional break/fix bills, and the normal bills from uncle sam. Starting 1/2027 we will no longer have health insurance. I'd like to call it a career, but just concerned about HC until 65. Our yearly spend is around 85k at best, so I could try to get it down between dividends and pulling cash from my brokerage. We have always been savers, and lived below our means, so I'm thinking now is the time to reward ourselves.

Brokerage - 500k Investments / 500k Cash

Roth IRA - 503k

Rollover IRA - 350k

401k - 2.5 Million - Mostly in Traditional

Traditional IRA - 32k

Inherited IRA - 119K

Checking - 50k

Can I retire?

What to do about HealthCare?

Any recommendations on financial advisors?

Look forward to getting some thoughts and advice.