I would “humbly” state that Adam does inform us weekly. Whether you agree or not is up to you to decide. You can make points in the comments that you may wish to debate, or have further discussion on, and other posters will almost always share their thoughts. I for one am grateful that Adam posts his weekly Saturday essays which I almost always find to be informative and educational in a way the rest of the website is not.
Mark, I just edited my reply above to clarify. Yes, I plan to do only do modest Roth conversions for the next 2 to 3 years. I’m utilizing the 0% LTCG/dividend rate for these upcoming years and doing Roth conversions within that tax bracket to stay at 0%.
Indeed. Some would say that when looking at 2 diverse opinions like these, sometimes the best course is the middle ground. I've have been converting up to just below the 1st IRMAA tier for a few years, but after considering Sean's views, I did the math on my projected future RMDs, and it does seem to make sense to delay the payment of taxes into the 22 to 24% marginal bracket by not doing large conversions now. I will likely be around those tax rates when RMDs start, and also below the first IRMAA tier. I'll enjoy more modest Roth conversions this year (and for the next 2 years) and the 0% LTCG/dividend rate. My effective tax rate I estimate about 3-4% with the more modest Roth conversions.
Everyone's situation is different, but might be worth watching this video by a respected tax and financial planner, Sean Mullaney: https://www.youtube.com/watch?v=bL_gpgQ10i4 . It's a contrarian view to much of the hype that one must almost always be doing large Roth conversions when one has large tax deferred balances. It opened my eyes to mainly convert up to just below the zero tax tier for LTCG/dividends within the 12% tax bracket (I currently hold a low 7 figures in a tax deferred accounts). Sean makes sound counterpoints to consider limiting one's Roth conversions during the years after age 65 to age 70 (for those deferring SS). Sean also discusses his thoughts on taxation in various life stages up to and thru various retirement stages (he co-wrote a book with Cody Garrett on the subject).
I personally would not consider a MA plan, unless it was a "flavor" of MA sponsored by a former employer (offering retiree medical) which may offer the full network of medical providers offered by Original Medicare. Most "over the counter" MA plans offered to the general public have network restrictions to PCP and specialists which can be an eye opener when starting to lean heavily on coverage for a serious medical condition. It seems like you have a fairly generous plan for out of state health needs- most do not offer that type of coverage, as when you are away from your home network, benefits are usually somewhat limited.
I agree with the premise outlined in the Bernstein/McQuarrie article. I believe Roth conversions in general are not necessary for those in early retirement (pre SS), even with moderate size tax deferred accounts of several million. I believe in filling the 12% marginal tax bracket with conversions while preserving the 0% LTCG/dividend rate. There are certainly situations where conversions up to the 22% marginal bracket may be worthwhile, but to me, the years before age 70 are "golden" from a tax perspective.
I agree with Bill Bernstein that folks need to do the actual math for their situation. While tax may rise, expenses will go down, so the maneuvering to avoid future taxes by paying more taxes now on Roth conversions, or the expense of insurance products sold by fear mongering advisors may be unnecessary.
That's great! I worked in banking as a lender for several decades, and it was challenging for some retirees to sometimes obtain financing for loan requests due to living on a lower income than working years. I think the OP would need a fairly large loan for a home purchase (rather than a modest HELOC), which was why I thought a securities loan could be an option. Anyways, good luck with your project in the future!
I somewhat agree with your general observations about Costco. I do have a membership, but rarely go in. I buy online from them, as I live 1.5 hours away from the closest warehouse. I buy some everyday items that I need (such as rental cars, coffee, clothing, food, etc). The items I buy in the course of a year easily offset the cost of membership (usually from the low rental cars rates). I would suggest checking their website for goods and services you wouldn’t associate them with. I purchased high end blinds from them online at a terrific discount from what we were quoted locally for the same product. If I didn’t use them for rental cars, I would likely just pay the 5% surcharge for non-member pricing on the goods I buy, though usually I make a large purchase during the year that offsets the membership fee.
I'm assuming you're retired, and income verification for a loan may be challenging with some lenders for a HELOC or bridge loan. A thought might be to see if the institution where you hold your retirement accounts may offer securities lending. I would only leverage up to or around 50% of the assets you may secure the loan with (assuming you are paying the loan back in the near future when selling the property you are in?). It's my understanding the institution could liquidate assets should there be a market correction of some sort. I've been meaning to look into a LOC from my institution since my HELOC recently expired. I'd be hesitant to liquidate the Roth IRA given it's tax benefits, but life is short, and if it's the only option to get you to your goal of spending more time with your family, might be worth considering. Question- what % of your Roth are you liquidating? Some folks hold large Roths, and maybe your thought isn't so bad...
Comments
I would “humbly” state that Adam does inform us weekly. Whether you agree or not is up to you to decide. You can make points in the comments that you may wish to debate, or have further discussion on, and other posters will almost always share their thoughts. I for one am grateful that Adam posts his weekly Saturday essays which I almost always find to be informative and educational in a way the rest of the website is not.
Post: Financial Lessons
Link to comment from October 1, 2026
Mark, I just edited my reply above to clarify. Yes, I plan to do only do modest Roth conversions for the next 2 to 3 years. I’m utilizing the 0% LTCG/dividend rate for these upcoming years and doing Roth conversions within that tax bracket to stay at 0%.
Post: Sourcing Taxes for Roth Conversions
Link to comment from October 1, 2026
Indeed. Some would say that when looking at 2 diverse opinions like these, sometimes the best course is the middle ground. I've have been converting up to just below the 1st IRMAA tier for a few years, but after considering Sean's views, I did the math on my projected future RMDs, and it does seem to make sense to delay the payment of taxes into the 22 to 24% marginal bracket by not doing large conversions now. I will likely be around those tax rates when RMDs start, and also below the first IRMAA tier. I'll enjoy more modest Roth conversions this year (and for the next 2 years) and the 0% LTCG/dividend rate. My effective tax rate I estimate about 3-4% with the more modest Roth conversions.
Post: Sourcing Taxes for Roth Conversions
Link to comment from September 30, 2026
Everyone's situation is different, but might be worth watching this video by a respected tax and financial planner, Sean Mullaney: https://www.youtube.com/watch?v=bL_gpgQ10i4 . It's a contrarian view to much of the hype that one must almost always be doing large Roth conversions when one has large tax deferred balances. It opened my eyes to mainly convert up to just below the zero tax tier for LTCG/dividends within the 12% tax bracket (I currently hold a low 7 figures in a tax deferred accounts). Sean makes sound counterpoints to consider limiting one's Roth conversions during the years after age 65 to age 70 (for those deferring SS). Sean also discusses his thoughts on taxation in various life stages up to and thru various retirement stages (he co-wrote a book with Cody Garrett on the subject).
Post: Sourcing Taxes for Roth Conversions
Link to comment from September 29, 2026
I personally would not consider a MA plan, unless it was a "flavor" of MA sponsored by a former employer (offering retiree medical) which may offer the full network of medical providers offered by Original Medicare. Most "over the counter" MA plans offered to the general public have network restrictions to PCP and specialists which can be an eye opener when starting to lean heavily on coverage for a serious medical condition. It seems like you have a fairly generous plan for out of state health needs- most do not offer that type of coverage, as when you are away from your home network, benefits are usually somewhat limited.
Post: Keep an eye on Medigap policies
Link to comment from September 27, 2026
I agree with the premise outlined in the Bernstein/McQuarrie article. I believe Roth conversions in general are not necessary for those in early retirement (pre SS), even with moderate size tax deferred accounts of several million. I believe in filling the 12% marginal tax bracket with conversions while preserving the 0% LTCG/dividend rate. There are certainly situations where conversions up to the 22% marginal bracket may be worthwhile, but to me, the years before age 70 are "golden" from a tax perspective.
Post: Widow’s Penalty Redux
Link to comment from September 27, 2026
I agree with Bill Bernstein that folks need to do the actual math for their situation. While tax may rise, expenses will go down, so the maneuvering to avoid future taxes by paying more taxes now on Roth conversions, or the expense of insurance products sold by fear mongering advisors may be unnecessary.
Post: Will Your Death Double Your Spouse’s Tax Bill?
Link to comment from July 16, 2026
That's great! I worked in banking as a lender for several decades, and it was challenging for some retirees to sometimes obtain financing for loan requests due to living on a lower income than working years. I think the OP would need a fairly large loan for a home purchase (rather than a modest HELOC), which was why I thought a securities loan could be an option. Anyways, good luck with your project in the future!
Post: Thinking of a possible reason to tap Roth earlier then planned
Link to comment from July 9, 2026
I somewhat agree with your general observations about Costco. I do have a membership, but rarely go in. I buy online from them, as I live 1.5 hours away from the closest warehouse. I buy some everyday items that I need (such as rental cars, coffee, clothing, food, etc). The items I buy in the course of a year easily offset the cost of membership (usually from the low rental cars rates). I would suggest checking their website for goods and services you wouldn’t associate them with. I purchased high end blinds from them online at a terrific discount from what we were quoted locally for the same product. If I didn’t use them for rental cars, I would likely just pay the 5% surcharge for non-member pricing on the goods I buy, though usually I make a large purchase during the year that offsets the membership fee.
Post: Frittering away Frugality
Link to comment from July 9, 2026
I'm assuming you're retired, and income verification for a loan may be challenging with some lenders for a HELOC or bridge loan. A thought might be to see if the institution where you hold your retirement accounts may offer securities lending. I would only leverage up to or around 50% of the assets you may secure the loan with (assuming you are paying the loan back in the near future when selling the property you are in?). It's my understanding the institution could liquidate assets should there be a market correction of some sort. I've been meaning to look into a LOC from my institution since my HELOC recently expired. I'd be hesitant to liquidate the Roth IRA given it's tax benefits, but life is short, and if it's the only option to get you to your goal of spending more time with your family, might be worth considering. Question- what % of your Roth are you liquidating? Some folks hold large Roths, and maybe your thought isn't so bad...
Post: Thinking of a possible reason to tap Roth earlier then planned
Link to comment from July 8, 2026