After thinking about converting to a Roth, here is
what I decided. Why should I give up any money now
on the chance this will save me on taxes 25 years
from now. I figure I'd owe about ten grand in taxes
if I converted, why not invest in something with that
money! Say I invest the ten grand and happen to hit
a ten or twenty bagger, I'll be happy to share my cut
with the IRS afterwards--but giving up the 10k now,
no way, you can't win if you don't play. Of course
saying this and doing it are different things, I
guess I should figure out the exact amount I'd have
to cough up, and find a good long term investment
that could pay off (--you can't just use the money
to trade in a taxable account, that would defeat
the purpose of this strategy.)
Opening a new Roth is a no brainer however,
I did do that, it's a mutual fund. My risky trading
is in the regular IRA.
Sound okay?
I do think I will have my wife convert however, her
account is still small, not much tax owed. |
