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factor for overweighting Roth balance in final effective portfolio metric

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(@plaut)
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Joined: 4 months ago
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Pralana allows one to specific a tax rate for tax-deferred accounts as part of the final "effective" metric it reports (and presumably optimizes). It would be useful to also be able to specify, in the same metric, a factor that overweights Roth balances relative to the others. The rationale is that, for an heir, Roth money is more valuable as it can continue to grow tax-free for 10 years, whereas both taxable (after the step-up) and withdrawn tax-deferred money (if reinvested in a taxable account) will be subject to tax drag and will also create taxable capital gains over those 10 years.

I'm new to Pralana and am finding it a great tool. Thanks for considering my request.



   
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