5. Learning the Roth Conversion Simulator. Part 2: Scenarios & Results
In Part 2, you’ll learn how to run conversion scenarios using FP Alpha’s optimisation engine and how to read the results dashboard. This video covers both the automated optimization options (client max benefit, heirs max benefit, minimum taxes) and manual scenario building, plus how to download the final report.
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Duration: ~3 minutes | Presented by: Josh Schultz (Director of Implementation) |
Two Ways to Model Conversions
Option 1: Automated Optimisation
FP Alpha’s optimisation engine runs thousands of scenarios to find the best outcome for one of three goals. Client Max Benefit maximises the client’s ending portfolio balance. Heirs Max Benefit maximises the after-tax amount passed to heirs at death. Minimum Taxation minimises total lifetime taxes paid. Each goal can produce a very different conversion strategy — the right choice depends on the client’s priorities.
Option 2: Manual Scenario Building
For a more tailored approach, you can manually set the conversion amount, number of years, and start age. Adjust the metrics however you and your client see fit. The results update in real time as you change the inputs. This is ideal when the client has a specific preference (e.g., “I only want to convert $100K”) or when you want to model a scenario the optimiser wouldn’t generate.
Reading the Results Dashboard
- The reporting dashboard compares data on an annual basis with and without the Roth conversion. Blue represents the conversion scenario; orange represents no conversion.
- Click any column header for a deeper dive — the graph at the bottom is dynamic and updates based on which column you select (total portfolio, taxes paid, Medicare premiums, withdrawals).
- The Taxes Paid view is the most powerful client visual — it clearly shows higher taxes upfront during conversion years followed by dramatically lower taxes in later retirement. This tells the story of why conversions work.
- Download the report as a PDF when finished. If you’ve modelled multiple scenarios, all of them appear on a single summary comparison page in the report.
What’s Next
For a deeper understanding of Roth conversion strategy, watch the full Mastering Roth Conversions webinar with Dylan, or the advanced Multi-Year Roth Conversions with Bob Keebler session for OBBA phase-out analysis, state-level arbitrage, and the widow’s tax strategy.