Great to talk to another MaxiFi user! Have you tried modeling annuities?I've been playing with MaxiFi's Roth conversion module. Overall I think the Roth conversions work pretty well, given that the calculation has to optimize over a large set of additional constraints. Since its overall goal is maximizing Lifetime Disposable Income, in isolation the results on Roth conversions can seem counterintuitive.
In my case, I'm starting with about on-third each of TIRA, Roth and low cost-basis regular assets. MaxiFi doesn't recommend full conversion under the scenarios I've tested. Instead the recommendations vary from around 10-30% over 10-15 years depending on scenario. Things that go up or down with Roth conversions include life insurance amounts, IRMAA and Income Tax. I've standardized on an age 100 horizon and vary things like Economies of Shared Living and Life Insurance to modify survivor protection. I model life events and bequest wishes with Reserve Assets, Special Withdrawals and Special Expenses.
I'm glad to hear from another MaxiFi user! I've run cases with different life expectancies, and with different expectations for future tax rates.
The annual conversion amounts change, but it always has me convert everything over a period of years.
I'm modeling out to age 100, and I don't want to be messing with finances at that age. If I check the box to annuitize, it converts the IRA to Roth and then purchases an annuity in the Roth. That doesn't seem like the best approach!
As an alternative, I could get price quotes and then enter the annuity directly. However, I don't know how to get prices for the future annuity purchase.
Statistics: Posted by Hayden — Wed Nov 20, 2024 7:02 am — Replies 15 — Views 897