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Can't do it. I'm GS13/10, wife is 15/7. A conversion doesn't save anything. That being said, the plan is to move it out of TSP and into an IRA with high paying dividends and live off of this, pension and SSI.
Consider that if you’re working for the next several years and tax rates are going back up, you’ll be paying more on the same income. That’s where the Roth TSP and Roth planning could be helpful.
Traditional versus Roth only differs in taxation. There should not be restrictions on investments unless the custodian has restrictions themselves. For instance, many work-retirement accounts only have a small pool of investments from which to choose. Additionally, no retirement account--Traditional or Roth--is able to deduct losses. Only non-retirement accounts.
I often wonder if your just better off to put your money in a simple savings account (or a old coffee can) at your local bank and not worry about taxes, inflation, the stock market, etc. and use and enjoy it as as long as it lasts. All this wealth your building will most likely be enjoyed by someone else. I do like your videos and they are very informative!
The challenge is that the same money you spend to day to buy something won't buy the same amount in the future. That's the problem with inflation--we have to outpace it or at least keep up with rising cost so we can continue spending. Thanks for tuning in!
With a Roth account, aren't you incentivized to let it grow to the max and never withdraw, so you end up dying with the highest net worth possible? What's the fun in that?
That's a really great point. That's why I always say retirement planning is both art and science. At some point, your life and objectives (art) intersect with maximizing your wealth (science). But if you can use strategies to make the most out of your money, you may have the ability to spend at higher rates and enjoy retirement even more!
