Personal Finance (Not Investing) • Too Many Voices: I'm Arguing with Myself Over How to Manage Cash During Roth Conversions

Hi all,

I've decided to take out ~ $415k a year from 2025 - 2031 from our IRA, of which a large fraction will go into Roth. This is being done to blunt IRMAA somewhat, to blunt rising RMD, and as a hedge against rising tax brackets in 2026. I know I have to budget for living expenses, taxes, and IRMAA.

I have a $250k CD in post-tax maturing next week;
A $500k CD in post-tax maturing in August;
A $537k TIPS in pre-tax maturing 10/2026;
A $127k TIPS in pre-tax maturing 10/2026
From 2028 about $65k a year of SS begins
$40k of I-bonds with 0% fixed, less than 5 years old

One of my voices says to build a CD ladder that goes out about 3 years at 5% APR, combined with a 5 year MYGA at 6.2%
My other voices want a larg(er) fraction in MMF

I have been preoccupied the last couple of years and ignored my investments; recently I gained some time and realized that my asset allocation for the fixed investments is shabby, and they are being remediated. While planning for the remediation I added the complexity of the Roth conversions ... which brings me to today. Fwiw, I don't feel strongly about using post tax cash to pay for the IRA conversions, except in a downturn or crash.

I'd appreciate some advice

Statistics: Posted by EricGold — Thu May 09, 2024 4:46 pm — Replies 5 — Views 523

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