Should You Convert Your IRA to a Roth?
The answer depends on details that are specific to you: your tax bracket now, the bracket you expect later, and where the money to pay the tax bill comes from. Rules of thumb tend to fall apart once you run your own numbers. In this conversation, Tony Muhlenkamp works through: Why "pay less tax" and "end up with more money" are not always the same goal What generic conversion advice assumes, and what happens when those assumptions do not hold Why holding money across different tax treatments leaves you more options in retirement There is math that comes before the [...]
Letter to My Daughters: On Maxims
"A maxim is a short, memorable statement that expresses a general truth, principle, or rule of conduct." Some maxims are widely known: "Life isn't fair," "You don't always get what you want," "If wishes were horses, beggars would ride," "Don't count your chickens before they hatch," etc. Some are vulgar: "Wish in one hand and spit in the other, see which one fills up first." Some are just earthy: "When you're up to your neck in alligators, it's easy to forget that your objective was to drain the swamp." And some are known only among family and friends: "Being paranoid [...]