The ROI of your traditional IRA will depend on your asset LOCATION strategy. What is the purpose of your traditional IRA? For me, I am doing Roth conversions until the balance of the traditional IRA is reduced to my targets for life-time QCDs and self-funding of long-term care. I built my own spreadsheet using the current denominator for RMDs and a 1% real ROI because I'm investing in nominal and TIPS bonds using real dollars because the tax brackets and IRMMA thresholds are indexed for inflation. It seems that the RMDs stay relatively constant in real dollars for a number of years because the decrease in the RMD denominator is counteracted by the decrease in the balance through withdrawal. This knowledge was helpful because it informs me that we will be in the same tax bracket as a couple, and for the surviving spouse under most scenarios. I did learn that the balance of traditional IRA in real dollars (purchasing power) will decrease by 50% between age 70 and 85.
In a couple of years when RMDs start, I will need to figure out how to invest the RMDs for self-funding long-term care after paying for 2-3 years of LTC at age 85 have exhausted my traditional IRA. If the purpose of the traditional IRA is for daily expense, the OP does not have problem
In a couple of years when RMDs start, I will need to figure out how to invest the RMDs for self-funding long-term care after paying for 2-3 years of LTC at age 85 have exhausted my traditional IRA. If the purpose of the traditional IRA is for daily expense, the OP does not have problem
Statistics: Posted by chemocean — Sun Mar 17, 2024 9:36 am — Replies 11 — Views 1149