Pay Tax on This Move Now to Potentially Have More to Spend Later - 388

Your Money, Your Wealth

Realestate, Income, Investing, Personalfinance, 401k, Rothconversion, Retirement, Education, Taxes, Socialsecurity, Personalfinances, Finance, Retirementplanning, Investments, Stocks, Business, Roth, Fiduciary, Ira

2.3 • 681 Ratings

🗓️ 26 July 2022

⏱️ 41 minutes

🔗️ Recording | iTunes | RSS

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Summary

The time may be right for a giant Roth IRA conversion, especially now while the market is down, to potentially give you more money to spend in retirement. How does that work with long-term capital gains and dividends, and how much should you convert to Roth, and when, and how? Plus, deciding how to invest 529 plan college savings, whether to save to pre-tax or post-tax retirement accounts, and the ever-popular Backdoor Roth strategy. Show notes, free financial resources, Ask Joe & Big Al On Air: https://bit.ly/ymyw-388

Transcript

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0:00.0	Today on Your Money, Your Wealth podcast number 388, the time may be right for a giant Roth conversion,
0:08.0	especially now while the market is down to potentially give you more money to spend in retirement.
0:13.9	Now, how does that work with long-term capital gains and dividends, and how much should you convert, and when and how?
0:23.2	Plus, deciding how to invest college savings, whether to save two pre-tax or post-tax retirement accounts, and the ever popular
0:28.6	backdoor Roth strategy. Visit Your Money, Your Wealth.com and click Ask Joe and Big Al on
0:34.2	air to send in your money questions, comments, suggestions, requests, or stories.
0:39.8	I'm producer Andy Last, and here are the hosts of Your Money, Your Wealth, Joe Anderson, CFP, and Big Al Clopine, CPA.
0:48.5	Got our good buddy Carl, Spackler.
0:51.5	Right?
0:53.7	Right to it again. Andy? Yeah. Right. See it again.
0:55.0	Andy.
0:56.0	Thanks for getting my question to big out.
1:00.0	I goofed in my example because I didn't take into account that capital gains don't apply
1:06.0	for married couples with income under $83,000.
1:16.5	So with that being understood, I'd like to resubmit the same question with a different income situation.
1:19.2	This is called Taking Advantage.
1:23.6	I think we already answered this, but we'll do it again.
1:25.9	It's okay.
1:26.2	I plan on retiring in six years with about $1.5 million in IRAs,
1:30.1	one million traditional, $500,000 in Roth.
1:33.2	What I wouldn't need to touch for 10 years,
1:36.0	hopefully it will be $3 million by the time I need it.
	...

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