Roth also doesn't count for IRMAA. You could be making $400,000/yr on your Roth IRA/Roth 401k and IRMAA can take a hike. Also, a Roth IRA can be used in an Inherited Roth IRA and your kids can invest your Roth IRA (assuming they are beneficiaries) for another 10 years TAX FREE. They can also use that money however they want…even if they're under 59.5 and at any time they like. That can easily double a VERY LARGE amount with about 7 years (assuming a 10% ROR). That doesn't even include their own personal Roth IRA. That would absolutely springboard the next generation into the top 1%. This can turn into ridiculous money.
I personally think William Roth deserves his own holiday. He passed a while ago but I am so grateful for his contribution. If you knew how powerful it is, you'd beat down the door of Fidelity, Vanguard, Schwab…whatever, to get into a Roth tomorrow.
Yes, I am a very high-income professional that will gladly pay these tax rates today to secure a future where I'll actually make more tax-free in retirement than I do in the workforce right now.
Somebody tell Dave that there is thing called Roth conversion which you perform upto income at @12% bracket. This you can do in retirement prior to RMD age.
I have wondered about this. What would be the outcome of this situation. A person funds a traditional IRA. He receives a larger tax refund than he would have if he did not contribute to a trad. IRA. The EXTRA refund that he gets, he deposits into a taxable savings account and he invests it in the same funds as he has in his trad. IRA. How much money would that add up to be and then what is the better thing to do???
Roth also doesn't count for IRMAA. You could be making $400,000/yr on your Roth IRA/Roth 401k and IRMAA can take a hike. Also, a Roth IRA can be used in an Inherited Roth IRA and your kids can invest your Roth IRA (assuming they are beneficiaries) for another 10 years TAX FREE. They can also use that money however they want…even if they're under 59.5 and at any time they like. That can easily double a VERY LARGE amount with about 7 years (assuming a 10% ROR). That doesn't even include their own personal Roth IRA. That would absolutely springboard the next generation into the top 1%. This can turn into ridiculous money.
I personally think William Roth deserves his own holiday. He passed a while ago but I am so grateful for his contribution. If you knew how powerful it is, you'd beat down the door of Fidelity, Vanguard, Schwab…whatever, to get into a Roth tomorrow.
Yes, I am a very high-income professional that will gladly pay these tax rates today to secure a future where I'll actually make more tax-free in retirement than I do in the workforce right now.
Margaritas on the beach. Cheers!
Dave at 54 is it to late to start a Roth I feel like I have wasted my life especially financially not taking good care of my money
Somebody tell Dave that there is thing called Roth conversion which you perform upto income at @12% bracket. This you can do in retirement prior to RMD age.
Is there say a reason to do both? Like a 70/30… Seems like that may allow for a bit of flexibility when withdrawing if large expenses come up
Very informative and valuable vedio. Thank you.
I have wondered about this. What would be the outcome of this situation. A person funds a traditional IRA. He receives a larger tax refund than he would have if he did not contribute to a trad. IRA. The EXTRA refund that he gets, he deposits into a taxable savings account and he invests it in the same funds as he has in his trad. IRA. How much money would that add up to be and then what is the better thing to do???