Don't Overdo Roth Conversions скачать в хорошем качестве

Don't Overdo Roth Conversions

Don’t convert to Roth? Why not? You don't need to avoid the strategy altogether, but it's nice to follow a well-designed plan as you more forward. Roth conversions can help you secure tax-free income in retirement. If you have significant savings in pre-tax accounts, prepaying taxes and converting to Roth may be appropriate. You can potentially smooth out your income, manage RMDs, avoid the highest costs for health coverage in retirement (although that gets complicated), and more. But there are situations where Roth conversions don’t make sense. You can have too much of a good thing, so it’s important to convert the right amount each year. 🌞 Subscribe to this channel (it's free):    / @justinonretirement   Get free retirement planning resources: https://approachfp.com/2-downloads/ 🔑 9 Keys to Retirement Planning 🐢 6 Safest Investments It’s understandable to find the strategy alluring. You can change your future, reduce taxes, and end up with more resources in retirement with a well-designed conversion strategy. But there may be several reasons not to convert to Roth, or at least to limit conversions to amounts that you estimate are appropriate. Why not convert to Roth? For starters, you can’t predict the future, so you can’t be sure that you’ll have a higher tax rate later. Yes, tax diversification can be helpful, and converting isn’t necessarily a bad idea. But you might not need to convert everything. Plus, you might use up cash that could go toward paying down debt or spending on life experiences. If you give to charity, converting everything to Roth might not make sense. That’s because you can potentially give pre-tax assets to qualifying charities, which could benefit both you and your favorite causes. Ultimately, it comes down to figuring out a reasonable amount to convert. As with buying a home, you don’t necessarily need to spend as much as your lender allows—you might be just fine with less. Related Resources: What taxes do you pay in retirement?    • Taxes in Retirement: Why You Still Pay Tax...   AARP Tax Estimator (verify with your CPA): https://www.aarp.org/money/taxes/1040... States that don’t tax Social Security: https://www.kiplinger.com/slideshow/r... Read more here: https://www.approachfp.com/why-not-co... Learn about working with me at https://approachfp.com/ ✔️ Flat-fee and hourly advice options ✔️ One-time projects available ✔️ Investment advice (optional) CHAPTERS: 00:00 Too Much of a Good Thing? 00:38 Partial Roth Conversions in Retirement 01:33 Benefits of Tax-Free Income 01:48 Tax Diversification 02:25 Smooth Out Income (RMDs, etc.) 03:50 Social Security Taxation 05:32 Widow’s Penalty 06:23 Higher Tax Rates in the Future 07:52 Pitfalls: Will Your Rate Really Be Higher? 09:26 Cash Required for Tax Payments: Opportunity Cost 10:47 Issues With Higher Income 11:29 Bigger Impact for Charity? 13:18 Don’t Convert to Roth? Justin Pritchard, CFP® is a fee-only fiduciary advisor who can work with clients in Colorado and most other states. IMPORTANT: It's impossible to cover everything you need to know in a video like this. The only thing that's certain is that you need more information than this. Always consult with a CPA before making decisions or filing a tax return. This is general information and entertainment, and is not created with any knowledge of your circumstances. As a result, you need to speak with your own tax, legal, and financial professional who is familiar with your details. This video is not a substitute for individualized, personal advice. Please verify with your plan administrator when employer plans are involved. This information may have errors or omissions, may be outdated, or may not be applicable to your situation. Investments are not bank guaranteed and may lose money. Opinions expressed are as of the date of the recording and are subject to change. “Likes” should not be considered a positive reflection of the investment advisory services offered by Approach Financial, Inc. The Comments section contains opinions that are not the opinions of Approach Financial, Inc., and you should view all comments with skepticism. Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.