I like that thinking, so much so that I've already converted all of our traditional IRAs to Roth (over several years). Paid a couple heavy tax bills, but I sleep well and have greater freedom (no RMDs, no legacy taxes). I do keep some cash set aside in the Roth(s) for buying in downturns (like today!). However, I'm targeting the Roths for long term growth, so I wonder if I'm being too conservative with the cash. Then again, it's hard to think that the market is 'cheap' when it's at/near an all time high. Thanks for your help Jonathan. You're a Blessing.
In the situation of a retired person with a Roth IRA, bringing more cash into the account is not practical in many cases (unless one has additional earned income). This begs the question, what are the chances of 'dry powder' can overcome lost potential gains? Is it simply a matter of whether the market fluctuates up or down?
Where does this "extra cash" come from if it's not already set aside for this purpose? When the market's at it's peak (as it is now), would 35% be appropriate?
Comments
I like that thinking, so much so that I've already converted all of our traditional IRAs to Roth (over several years). Paid a couple heavy tax bills, but I sleep well and have greater freedom (no RMDs, no legacy taxes). I do keep some cash set aside in the Roth(s) for buying in downturns (like today!). However, I'm targeting the Roths for long term growth, so I wonder if I'm being too conservative with the cash. Then again, it's hard to think that the market is 'cheap' when it's at/near an all time high. Thanks for your help Jonathan. You're a Blessing.
Post: Sharing Lessons
Link to comment from December 18, 2024
In the situation of a retired person with a Roth IRA, bringing more cash into the account is not practical in many cases (unless one has additional earned income). This begs the question, what are the chances of 'dry powder' can overcome lost potential gains? Is it simply a matter of whether the market fluctuates up or down?
Post: Sharing Lessons
Link to comment from December 17, 2024
Where does this "extra cash" come from if it's not already set aside for this purpose? When the market's at it's peak (as it is now), would 35% be appropriate?
Post: Sharing Lessons
Link to comment from December 14, 2024