This article describes the "SAMPLE - John Samuels (Roth Conversion Optimizer)" family provided for MaxiFi PRO customers.
John, age 66, is single, retired and has no children. He has a nominal pension that will begin to pay him at age 70. He lives in California and rents for $4000/month. His profile has already been maximized for social security, and he is planning to take benefits at age 70.
Data Review
Click on each menu item at the left under “Profile Dashboard” to review each of the data entry items including housing, assets, special receipts and expenses, and the default assumptions used in the program.
Reading the Report
Begin by running the Base Plan report.
Alternative Profiles
These profiles are variations based on the Base Profile. Each Alternative Profile makes a change illustrating a "what-if" scenario. Typically, an Alternative Profile is compared to the Base Profile. But sometimes an Alternative Profile starts by duplicating or cloning another Alternative Profile. In that case, it is generally most useful to compare the Alternative Profile not to the Base Profile, but to the Alternative Profile it was cloned from.
Base – Maximized Roth Conversion – current tax law
This alternative plan was created by using the “Maximized Plan” feature under “Reports” and selecting the “Optimize Roth Conversions” option. After creating the report, it was saved as a new Alternative Profile by selecting “Apply Changes” to the right of the Lifetime Discretionary Spending results and then selecting "Apply to New Alternative Profile".
Note: Areas that have changes to the Base Profile in an Alternative Profile are marked with a green flag symbol in the profile dashboard.
TCJA Made Permanent
This alternative plan was created by selecting “Add New Alternative Profile” from the Base Profile Overview Page. The only modification made from the Base Profile is under “Settings & Assumptions” > “Taxes” > ”Tax Policy” > “TCJA Changes Made Permanent”. This profile can be compared to the Base Profile to see the effect this change in tax law will have. It could also be useful to “Optimize Roth Conversions” on the TCJA Made Permanent Alternative Profile and compare the difference between Roth conversion software recommendations with current tax law vs TCJA tax law.
Move to Texas from California
This alternative plan was created by selecting “Add New Alternative Profile” from the Base Profile Overview Page. In order to see what effect a move to Texas from California would have on John’s living standard, we made modifications to “Housing & Real Estate” > ”Housing”. The difference the move will make can be seen by comparing the Base Profile to this Alternative Profile.