Chuck, Ibbotson, Rodrigue Johnson discussed on Business Beware
Can be risky for those. That are interested accumulation index. Annuities could be an answer. They're talking about interest rates potentially going up and the value of bonds going down. And clearly if you're fortunate you'll get the coupon yield which today on ten years like three percent. Pay a little bit of tax on that apply. A little inflation to that. And you have a negative return and the research done by impact partners robber. Roger, I should say Ibbotson and some company called zebra capital. I guess zebra capital is a research firm, evidently that works with it. But soon. Rodrigue Johnson's been around for a thousand thousand years, but a long time. I mean, I've I've used Ibbotson charts. For as long as I've been as long as I can remember anyway in the financial services industry de risking with bonds can be risky accumulation index. Annuities could be an answer. And that's just one of many many many research papers that I've alluded to. So just to summarize for today's program before I get to the emails longevity risk is real. It's a humongous problem living too long and with all this, medical technology. It may be not only do we live longer we live longer healthier. And that means our retirement portfolios need to be far more robust. And longevity. Planning is critically important. Ask any retirement researcher out there? It's one of the number one things, of course, tax planning is also critical asset location and asset allocation is critical. There's a whole bunch of stuff that's super important that your adviser a best practices advisor should be going over with you. All right. Let's hit the Email bag Chuck is I I'm considering a Roth conversion I have eighty K in my IRA. My wife has around fifty five k r income is ninety six thousand dollars annually. We just inherited fifteen thousand dollars. Do you think it's a good idea? It typically is a reasonable idea. But if you don't have any pensions. And you're you know. A smidgen away from retirement, I'm not so sure. That creating a tax Bill when you're already making ninety six thousand dollars is all that advantageous. Doing a conversion? And if you're a ways away from retirement, you can start funding Roth IRA's, I think it's a great idea to have some money in some post-tax retirement accounts that you can blend your tax bracket down, but your tax bracket. If you don't have a pension, your tax bracket is probably not going to be that high of you're retiring in the next five ten years, depending on how much money you're saving. So I'm going to be cautiously optimistic here and say, yes, I think eight partial conversion could make sense. But not if it causes you to move into a higher tax bracket keeping in mind that you're likely going to be in a much lower bracket when you retire, and you may be better off doing a pre-tax IRA contribution or a 4._0._1._K contribution and worrying about conversions and so forth later on and holding onto that fifteen K you just inherited or reinvesting that instead of having to pay taxes because my suspicion is. And incidentally, this happens a lot people like Chuck maybe making the assumption that they're going to be in a higher bracket when they retire. And they're not gonna be you. He will most likely not be in a higher bracket. Listen, let's say fifty five sixty years old. They've got a total about one hundred and thirty thousand bucks if you take four or five six ten percent. Out of that amount of money. It's not enough to push them into a higher tax bracket. It's probably not even enough to make their social security taxable at all. So there's some pretty serious calculations. It sounds simple on paper check. But there's some serious calculations that need to be done and taking a look at how much you're saving and investing. How.