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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Demosthenes who wrote (2112)	11/15/1998 2:57:00 PM
From: MrGreenJeans	Respond to of 15132

Roth IRA Conversion-The Case Against I will not convert my IRA to a Roth. Why pay a tax today when I can postpone it, in my case, for 32.5 more years? A tax paid today because of the net present value of money is more costly than a tax paid tomorrow or 32.5 years hence. It is just another way the government gets one to depart from one's money. Case Closed.

To: Demosthenes who wrote (2112)	11/15/1998 3:10:00 PM
From: Lars	Read Replies (1) \| Respond to of 15132

Demosthenes, >>> Great summary for those of us who got taken out half way through the show b/c of football. BB also said that the Tuesday rate decrease was 50/50. We'll see. >>> Good point re: rate cut. >>> Also, regarding my decision to convert to Roth. 1) My IRA is small and all I own in it is a depressed semi equip, which I expect to triple in 2 years. 2)If I pay taxes on the price now which is very low, I will not have to pay on all the gains over the next few years. My rationale is focused on my age, 36 and the opportunity to lock in lower taxes on an acct that I expect to appreciated significantly. 3) I have thought about unconverting to a traditional IRA again, but this is the last year I think I will qualify income-wise. >>> Interesting scenario. I am not an expert on this but I like your logic. The only people who need to worry about ROTHs are in MA. I read a tax article awhile back and they are trying to tax the withdrawals with some obscure state tax over or around 10%. Most believe that this tax won't pass. Does anyone know details about this or the current status?

To: Demosthenes who wrote (2112)	11/15/1998 4:10:00 PM
From: Investor2	Respond to of 15132

RE: "My rationale is focused on my age, 36 and the opportunity to lock in lower taxes on an acct that I expect to appreciated significantly." I think your rationale is generally sound. If you expect your account value to increase substantially, it is probably better to pay taxes now, on a much lower amount. This, of course, assumes that your current tax rate is modest. I'm older than you and have much of my IRA money in GNMA's, which will not increase substantially in value. Also, I really do not wish to write a big tax check to the government at the present time. This all means that, unless my situation changes significantly between now and tax time, I will probably not convert to a ROTH. Best wishes, I2