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Silver lining to a market crash


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Surveying the wreckage of my retirement accounts, it occurs to me that converting my prior employer 401(k) to a Roth IRA is now 50% cheaper in terms of taxes than it was previously.

It's days like these that make it hard to follow my own advice. The rollercoaster has gone into a tunnel and the fear comes not so much from the plunge itself but from not knowing where it ends.

Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra

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The rollercoaster has gone into a tunnel and the fear comes not so much from the plunge itself but from not knowing where it ends.

Nice prose, masteff, nice prose.

John Simmons

johnsimmonslaw@gmail.com

Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.

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masteff is right, as well as articulate. (Insert your own comment about how often that happens.)

If you are thinking Roth, now (or within the next ... what ... couple years?) is the time to do it. Lower taxes now and recovery gains tax-free. There will be a recovery, right?

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  • 2 weeks later...
masteff is right, as well as articulate. (Insert your own comment about how often that happens.)

If you are thinking Roth, now (or within the next ... what ... couple years?) is the time to do it. Lower taxes now and recovery gains tax-free. There will be a recovery, right?

I agree the thought is intriguing but doesn't a Roth avoid taxes on posititive earnings? When was the last time we has positive earnings over any extended period of time in the stock market ? What is the market index since the Roth was introduced? Wouldn't that be a fun factoid!

I think of money I put in "tax free" cruddy accounts for college tuition for my kids. What benefit did I get out of that to offset the forfeiture of capital losses?

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After re-reading my post #4, I must add that the parenthetical comment, 'How often does that happen?' was definitely not directed at masteff, who is regularly both right and articulate. It was an off-hand attempt at humor, probably while looking in the mirror.

AndyH - The DJIA closed at 7908.25 on December 31, 1997, and at 7965.04 on January 2, 1998. The Roth was born on the day between. At the moment the DJIA is 8474.21.

... there will be a recovery, right?

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