1792 Advisors for Owners & Entrepreneurs’ Post

When debating the merits of a Roth IRA conversion, a number of issues need to be evaluated. And while many advisors will advocate conversions when financial markets are down, you shouldn't dismiss the idea when markets are stronger. Conversions are a key part of any wealth plan. This article summarizes three issues to evaluate when deciding on the timing and size of a conversion. #personalfinance #wealthmanagement

You’ve probably heard of a Roth Conversion and wondered if it’s a good option for you. I’m going to explore the concept of Roth conversions and whether it might be a good strategy for your financial future. We'll cover what a Roth conversion is, the benefits of it, and the potential downsides. We'll also discuss scenarios where a Roth conversion makes sense and where it doesn’t. Learn how we can help you achieve your financial goals through a focused process and ongoing support. Visit our website to schedule an initial consultation. Tune in here: https://lnkd.in/e_vp-fPu Sequence of Return Chart Source: https://lnkd.in/eiEu3jjR DISCLAIMER: TRADITIONAL IRA ACCOUNT OWNERS HAVE CONSIDERATIONS TO MAKE BEFORE PERFORMING A ROTH IRA CONVERSION. THESE PRIMARILY INCLUDE INCOME TAX CONSEQUENCES ON THE CONVERTED AMOUNT IN THE YEAR OF CONVERSION, WITHDRAWAL LIMITATIONS FROM A ROTH IRA, AND INCOME LIMITATIONS FOR FUTURE CONTRIBUTIONS TO A ROTH IRA. IN ADDITION, IF YOU ARE REQUIRED TO TAKE A REQUIRED MINIMUM DISTRIBUTION (RMD) IN THE YEAR YOU CONVERT, YOU MUST DO SO BEFORE CONVERTING TO A ROTH IRA. #RothConversion #FinancialPlanning #RetirementPlanning #TaxStrategies #FinancialAdvice #RetirementSavings #RothIRA #IRA #InvestmentTips #TaxFreeGrowth #CertifiedFinancialPlanner #WealthManagement #TaxPlanning #RetirementGoals #FinancialFuture #FinancialFreedom #RetirementIncome #EstatePlanning #FinancialStrategy

Most financial planners make a horrible assumption when comparing a Roth vs. Traditional IRA. They assume that the "tax savings" gets invested. Which, in reality, it rarely, if ever, does get invested. For example, if you make a deductible Traditional IRA contribution and it gives you a "tax savings" of $300... They assume that you take that $300 and invest it in a standard brokerage account. All else being equal (you make a $7k Traditional IRA contribution or a $7k Roth IRA contribution)↴ When you make this assumption in your comparison, then the Traditional IRA might make more sense. But this is flawed for 2 reasons. 1️⃣ This just shows that to outperform the Roth IRA with a Traditional IRA, you literally have to invest more money (in this example $300) 2️⃣ You're making an unrealistic and impractical assumption. You can't just live in spreadsheets. You need to live in the real world and how people actually behave and act. Most people spend the "tax savings" or leave it in their bank account making pennies. You just simply cannot overlook the power of tax-free withdrawals of the Roth IRA.

The buzz around Roth IRA conversions has many individuals pondering if they should act on it. But is it the right strategy for you? Here are some compelling advantages and potential drawbacks of this approach. https://lnkd.in/gYrzQ3w #finance #financialgoals #wealthmanagement

We Answer Your Questions on Roth IRA Conversions. Determining whether to transfer your retirement nest egg to an after-tax account is complex. Here’s how to navigate opportunity costs, Medicare surcharges, the ‘five-year rule’ and more. https://lnkd.in/ghTvpqVr Barron's, Jeffrey Condren: https://lnkd.in/geNgu3N7 #investing #stocks #bonds #cfp #financialplanning #planner #volatility #fiduciary #debt #wealth #education #educationplanning #college #savings #budget #bullmarket #bearmarket #millennial #hsa #healthsavings #estate #estateplanning

Roth IRA Inheritance Insights: Did you inherit a Roth IRA? Discover why this might be a boon for your financial future. Our recent blog explains how Roth IRA earnings grow tax-free, offering a significant advantage for beneficiaries. Learn how to leverage this powerful estate-planning tool! Read it now: https://lnkd.in/evk_gMcm #inheritedIRA #rothIRA #estateplanning

"Here are three thresholds you need to consider before deciding to do a Roth conversion.." https://lnkd.in/epgkDWrA #millennialwealth #personalfinance #financialplanning #retirementsavings #rothconversion

"What you don't want to happen is you don't want to have too much money; you don't want to go and make 30% every year for a few years and now this plan is overfunded." Just in time for tax season, Tom and Adam, chat with David Podell, Founder of Business Benefit Consultants, and deep dive into tax savings and retirement planning for business owners. Click the link for the full episode 🔽 #Taxes #ProfitSharing #CashBalance

Roth Conversions: It’s not just about tax rates now vs. tax rates later. t’s about your entire financial plan. Here are some Roth Conversion questions we've had clients ask in the last month 👇 ✅ Tax brackets ↳ "Do I have room to do more Roth Conversions?" 🏠 Capital Gains ↳ "Should I use these low brackets to realize capital gains at a 0% rate or convert to Roth?" 💵 Liquidity ↳ "Should we withhold taxes from the balance or use our cash?" 🗳️ Politics ↳ "Given the election results, do we still need to do Roth Conversions?" 👨👩👧👦 Inheritance ↳ "Should I distribute from my inherited IRA or convert to Roth?" ❌ Required Minimum Distributions (RMD) ↳ "Can I convert my RMD to Roth?" (Spoiler: RMDs must be withdrawn before you can do a Roth Conversion.) 📈 Asset Allocation/Location ↳ "Why does my Roth IRA have more stocks?" . . . Disclosures: thrivent.com/social

Effective tax strategies can help minimize liabilities and ensure that more of the wealth is passed down to heirs. Having multiple income streams can create complex tax situations, making proactive tax planning important for safeguarding generational wealth. By exploring options like backdoor Roth IRA conversions and other tax-saving techniques, wealthy families can better navigate the complexities and maximize the transfer of wealth to future generations. By converting traditional IRA or 401(k) funds into a Roth IRA (and paying taxes upfront), high-income earners can bypass the income limits for contributing directly to a Roth IRA, allowing them to enjoy the tax-free growth and withdrawal benefits, or pass on a substantial tax-free inheritance to their heirs. Staying informed is crucial for effective wealth preservation. ALINE Wealth Management and Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice. This material was not intended or written to be used or presented to any entity as tax or legal advice. Clients are urged to consult their tax and/or legal advisor for related questions. #Tax #Retirement #WealthPlanning #WealthManagement #Finance