Bogleheads® Live Mike Piper on Social Security
6 snips
Jul 4, 2022 
Mike Piper, a CPA and author specializing in Social Security planning, dives into the intricacies of Social Security benefits and retirement strategies. He addresses key questions from the audience, shedding light on tax strategies for early retirees like Roth conversions. Piper explains actuarial equivalents and their implications for singles versus married couples in terms of claiming benefits. He also discusses the optimization of filing strategies and the importance of clear communication in estate planning, providing practical tips for effective financial planning.
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Roth Conversions vs. Tax Gain Harvesting
- Prioritize Roth conversions over tax-gain harvesting in the period between early retirement and required minimum distributions (RMDs).
- Roth conversions are generally more beneficial due to the likelihood of tax-free gains later through inheritance or donation.
Impact of Life Expectancy on Roth Conversions
- Life expectancy significantly impacts the effectiveness of Roth conversions when taxable assets fund the conversion taxes.
- Longer life expectancies increase the negative effect of tax drag on taxable investments, making Roth conversions more appealing.
Target-Risk Funds for Retirement
- Consider using target-risk funds like Vanguard Life Strategy Funds for simplicity in retirement accounts.
- These funds are not suitable for taxable accounts due to potential tax implications.