So, is the new tax reform good or bad for Roth conversions? The easy answer is “yes”!
Roth conversions are a useful option to move money from a standard IRA to a Roth IRA. Standard IRA contributions are tax deductible but you’re taxed when you withdraw the money. Roth gives no up front tax break, but the money isn’t taxed when you withdraw it.
Bashing index funds is a popular theme, but do the criticisms have value?
There are reasons to prefer index funds (now 18% of funds):
A well-meaning blogger touts the CGM Focus Fund as being spectacularly better than the S&P 500. Let’s give him credit for courage, and then demolish his ideas.
Usually, people want to avoid unnecessary taxes–except for one. That one they line up to pay, even though it’s a voluntary tax. Stranger yet, people think paying this tax makes them money. What strange, upside down world am I talking about?