“Our basic living expenses are covered by $110,000 in annual pensions and Social Security.”
‘It seems bizarre’: We’re in our 80s with $950,000 in traditional IRAs. Why is our adviser pushing us to do Roth conversions?
In short
A couple in their eighties holds $950,000 across traditional individual retirement accounts and is pushing back on guidance to execute Roth conversions. Their annual living costs are already covered by $110,000 generated from Social Security and pensions. Because their daily cash flow needs are met, the unexpected strategy has left them questioning their adviser's motives.
Key points
- The clients feel that converting traditional retirement funds at an advanced age seems un…: The clients feel that converting traditional retirement funds at an advanced age seems unexpected and bizarre.
- Daily living costs are comfortably sustained without tapping into the couple's existing r…: Daily living costs are comfortably sustained without tapping into the couple's existing retirement balances.
- The adviser's proposed conversion strategy has prompted the retirees to question the purp…: The adviser's proposed conversion strategy has prompted the retirees to question the purpose of moving their money.