2388: Is It The Right Time To Convert To Roth? by Erik Carter with Financial Finesse on Good Investment Decisions

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🗓️ 24 July 2023

⏱️ 10 minutes

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Summary

Erik Carter with Financial Finesse discusses whether or not it's the right time to convert to Roth Episode 2388: Is It The Right Time To Convert To Roth? by Erik Carter with Financial Finesse on Good Investment Decisions After years in the financial services industry, Liz Davidson became disgusted with how many people were being sold financial products and services that were not in their best interest. She decided there had to be a better way to provide people from all walks of life with truly unbiased financial guidance--designed to line their pockets, not their financial advisor’s. This is the story of Financial Finesse and how they give employees and employers unbiased financial wellness as an employee benefit. They help your employees maximize their compensation and benefits by making better financial decisions. You become a partner in their financial security and reap the benefits of a financially healthy workforce. They’ve helped hundreds of thousands of employees change their lives. The original post is located here: https://www.financialfinesse.com/2019/12/09/5-reasons-to-consider-converting-to-roth-and-4-reasons-you-might-not/ Visit Me Online at OLDPodcast.com Interested in advertising on the show? https://www.advertisecast.com/OptimalFinanceDaily Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Optimal Finance Daily Episode 2388.
0:04.7	Is it the right time to convert to Roth by Eric Carter with financialfinesse.com and
0:11.4	I'm your host and personal finance enthusiast, Diana Mariam.
0:15.4	Welcome to another Monday Mastery episode here on Optimal Finance Daily, where we'll
0:20.3	take a look at an article that features a more complex personal finance topic.
0:25.8	So with that, let's get right into our next article, as we optimize your life.
0:34.5	Is it the right time to convert to Roth by Eric Carter with financialfinesse.com?
0:41.7	Are you wondering if you should convert your retirement account to a Roth by the end
0:45.6	of the year?
0:46.6	After all, there's no income limit on IRA conversions, and many employers are now allowing employees
0:53.0	to convert their company retirement plan balances to Roth, while they're still working
0:58.2	there.
0:59.2	At first glance, it may sound appealing since the earnings in a Roth can grow tax-free,
1:04.5	and who doesn't like tax-free?
1:06.3	However, here are some reasons why now might not be the time for a Roth conversion.
1:12.7	Three reasons you might not convert to Roth this year.
1:16.7	Number one, you have to withdraw money from the retirement account to pay the taxes.
1:22.9	If you have to pay the taxes from money you withdraw from the account, it usually
1:27.4	doesn't make financial sense as that money will no longer be growing for your retirement.
1:32.6	This is even more of a tax concern if the withdrawal is subject to a 10% early withdrawal
1:37.8	penalty.
1:39.6	Number two, you'll pay a lower tax rate in retirement.
	...

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