Passkeys aren’t the problem you suggest they are. If you have my phone or laptop, you still have to know my password to log into it, and then you still need either my face or my fingerprint to use the passkey. If I lose my device, I can still use my passkeys on another device by logging into the account that has my password manager (Google, Apple, etc.).
I seem to recall there’s a way to block opening of new accounts in one’s name. Maybe it was specific to bank accounts and wouldn’t have worked for a 529, but probably still worth doing. Does anyone know what this is?
Our spouses must be related. We’ve been downsizing our household (or storage unit and luggage) since we combined households. Ironically, it’s her parents whose home and belongings will be a bear. At least it’s very organized, it’s just a lot.
Ah. Thanks for that. So, in the example, or in any other where the individual or couple is on the edge of an ordinary income tax bracket as well as the edge of the 15%, then a large enough conversion would push one over both, and the marginal rate would be additive, 27%. Maybe also useful to note for other readers considering conversions, it seems this would only apply to that specific kind of case. If already over the 15% (or 20%) threshold for dividends/capital gains with or without conversion, then the marginal tax rate on conversion would be whatever the ordinary income tax rate bracket is.
Randy I think you’re mistaken about the 27%. Even if the conversion is large enough that capital gains are pushed into 15%, the marginal rate on the conversion is what it is - 12%, 22%, etc, as the conversion is taxed as ordinary income. The tax on CG/dividends and ordinary income are applied separately, they’re not added together.
Great article Rick. From Adam Grossman’s article today: “The bottom line: We should never become too wedded to any one strategy. No investment can promise reliable and complete protection against inflation in every market scenario.” Adam was talking about TIPS and other strategies to fight inflation, but the statement can apply to lots of financial decisions including Roth conversions. Your decision was a good one based on information available at the time. The results could have swung the other way and I suppose still could. This is why, while we do Roth conversions, we are nowhere near the aggressive kind of conversion that some planners encourage to avoid the “widow tax” etc.
Glad to see this pop back up in the feed. Can understand the hankering to have some roots. Coming up on four years of nomad life and thinking about it now, at least for a while. They’d be shallow roots probably. Ireland and Italy are on the short list if we do it at all.
Glad you updated. When I read about your first sale, I told myself I should just make a call and sell some employer stock so that first experience is out of the way. So this is a reminder, although it sounds bad enough I probably still won’t do it… I gather your sell target hasn’t dropped, but rather you’re selling your dividends as soon as they’re reinvested.
Comments
Passkeys aren’t the problem you suggest they are. If you have my phone or laptop, you still have to know my password to log into it, and then you still need either my face or my fingerprint to use the passkey. If I lose my device, I can still use my passkeys on another device by logging into the account that has my password manager (Google, Apple, etc.).
Post: Financial Fraud
Link to comment from September 5, 2026
I seem to recall there’s a way to block opening of new accounts in one’s name. Maybe it was specific to bank accounts and wouldn’t have worked for a 529, but probably still worth doing. Does anyone know what this is?
Post: Financial Fraud
Link to comment from September 5, 2026
Yep. That makes sense. Thanks
Post: Traditional or Roth
Link to comment from September 2, 2026
Our spouses must be related. We’ve been downsizing our household (or storage unit and luggage) since we combined households. Ironically, it’s her parents whose home and belongings will be a bear. At least it’s very organized, it’s just a lot.
Post: Make the Attic Great Again
Link to comment from September 1, 2026
Ah. Thanks for that. So, in the example, or in any other where the individual or couple is on the edge of an ordinary income tax bracket as well as the edge of the 15%, then a large enough conversion would push one over both, and the marginal rate would be additive, 27%. Maybe also useful to note for other readers considering conversions, it seems this would only apply to that specific kind of case. If already over the 15% (or 20%) threshold for dividends/capital gains with or without conversion, then the marginal tax rate on conversion would be whatever the ordinary income tax rate bracket is.
Post: Traditional or Roth
Link to comment from September 1, 2026
Randy I think you’re mistaken about the 27%. Even if the conversion is large enough that capital gains are pushed into 15%, the marginal rate on the conversion is what it is - 12%, 22%, etc, as the conversion is taxed as ordinary income. The tax on CG/dividends and ordinary income are applied separately, they’re not added together.
Post: Traditional or Roth
Link to comment from September 1, 2026
The only kind of conversions we’ve ever done have been in kind. Just dead simple.
Post: Traditional or Roth
Link to comment from September 1, 2026
Great article Rick. From Adam Grossman’s article today: “The bottom line: We should never become too wedded to any one strategy. No investment can promise reliable and complete protection against inflation in every market scenario.” Adam was talking about TIPS and other strategies to fight inflation, but the statement can apply to lots of financial decisions including Roth conversions. Your decision was a good one based on information available at the time. The results could have swung the other way and I suppose still could. This is why, while we do Roth conversions, we are nowhere near the aggressive kind of conversion that some planners encourage to avoid the “widow tax” etc.
Post: Traditional or Roth
Link to comment from August 29, 2026
Glad to see this pop back up in the feed. Can understand the hankering to have some roots. Coming up on four years of nomad life and thinking about it now, at least for a while. They’d be shallow roots probably. Ireland and Italy are on the short list if we do it at all.
Post: On the Road to Home
Link to comment from August 26, 2026
Glad you updated. When I read about your first sale, I told myself I should just make a call and sell some employer stock so that first experience is out of the way. So this is a reminder, although it sounds bad enough I probably still won’t do it… I gather your sell target hasn’t dropped, but rather you’re selling your dividends as soon as they’re reinvested.
Post: Blood Money
Link to comment from August 26, 2026