How to Convert Traditional IRA Assets to Roth

Mental accounting can be helpful in this context where someone has the overage portfolio, which are funds that they don't expect to spend during their lifetimes. If it gives yourself permission to spend, sure. Or if it makes you feel more comfortable using a risk-heavy portfolio for the money that you're intending to leave to your kids, then that's your goal. There's a lot going on here. It could definitely be a full episode all on its own. But some of the high-level concepts, point number one, when you make a Roth conversion, you are paying tax now so that you can avoid paying tax later.

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