Dinkytown is a neighborhood on the University of Minnesota campus. Not an actual town. Just had to say it! Thank you for the video. I'm getting ready to retire this year.
In the example of the couple that wanted to qualify for ACA subsidies were you mentioned there was a "miss opportunity" for Roth conversions, you did not consider that for ACA MAGI you need to add back the tax-exempt interest from muni obnds which was about $22K, which added to the $35K AGI puts them at about $57K MAGI which is close to the $63K limit for subsidies. The earlier slide that showed how to calculate MAGI to qualify for ACA subsidies did not mention that you need to add back tax-exempt interest and this was and error (only mentioned foreign untaxed interest).
Yes, very informative thank you very much! However, $6900 fee 1.4 % 1 Million 0.40 pts! There is no proof that an advisor can do better than yourself over time.
There are 2 plans. Basic is a fixed fee $6500 to review and make recommendation. You are on your own. Option#2 Portfolio management stats with 1.25% or $1m and goes down if the portfolio is much higher. Dana said that one of the high value customer pays 0.4%. I like this fees going down as your portfolio gets bigger.
@@madras61 The Safeguard Wealth Management managed accounts the advisor fee 0.48 any size, the second type of fee is fund expenses in total .55 % Why is your Dana's so much more?
Question: Regarding RMD’s and Roth Conversions, is there a IRS regulation that states the RMD amount must be disbursed from the traditional IRA before any Roth conversions can be made in a given year. I have been told both ways, YES RMD’s must come out first, and NO it really doesn’t matter. Would you please clarify and/or point me to the correct method or IRS regulation that addresses this situation?
Gary - I think that what they really mean, is make sure the RMD is based on the prior Dec balance (and not the year end balance LESS the conversion amount). But I am sure you would rather hear this from someone more qualified (and not someone who has listened to a wide range of channels). At any rate, I will have all of my IRAs converted before I get hit with RMDs - but not everyone is in this position).
I always do the RMD first. I’m highly confident that’s the rule but not 100% certain. To me it’s a minor issue. It has to come out anyway so it’s just the opportunity loss of deferred tax earnings on the RMD for part of the year. Good luck.
