I know that it's better to maximize ACA subsidies, minimize IRMAA, and avoid taxes on big RMDs, but there's optimization and there's necessity, and I'm not clear on which scenario this is. Is it necessity--is there doubt as to whether she would be able to fund her basic expenses if none of those things were optimized?There are some topics (ACA subsidies, Roth conversions, which accounts to pull from and when) that could make a big difference to portfolio balance down the road that may seem straight forward to many here, but would strike the average person as very complex.
If it's not necessity--if she would have enough either way--it may be worth considering the cost of complexity-to-support-optimization against the cost that could result from her throwing up her hands and hiring a not-so-good advisor.
Or it might be worth considering not-optimizing now, while you can control the extent of the not-optimization--for example, bigger Roth conversions with bigger taxes, to give her a bigger, more flexible pool of post-tax money.
Statistics: Posted by BirdFood — Mon Jul 22, 2024 11:52 am — Replies 42 — Views 3160