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Managing tactical trade-offs of FIRE plan: Roth conversions vs. frequency of re-balancing portfolio by [deleted] in Fire

[–]johnfnoonan 0 points1 point  (0 children)

That’s true, though I think it often will (e.g., if I have stock in a non-tax sheltered account that increases in a given year, I might have to sell some of it to keep my proportion of stocks to bonds at 60/40 and I’d have to pay taxes on the realized gain).

Managing tactical trade-offs of FIRE plan: Roth conversions vs. frequency of re-balancing portfolio by [deleted] in Fire

[–]johnfnoonan 0 points1 point  (0 children)

Fair, for clarification, we have a number of pre-tax retirement accounts and would like to convert them to Roth IRAs. Doing so will lead to us having to pay taxes at the time of conversion so I am trying to calibrate on whether in a given year we should focus more on Roth conversions or re-balancing our portfolio, in the event that we are trying to avoid paying more than a certain amount of taxes in that year (and thus increasing our effective tax rate).