Transcript
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Welcome to something more with Chris Boyd.
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Chris Boyd is a certified financial planner, practitioner
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and senior vice president, financial advisor at wealth
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enhancement group.
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One of the nation's largest registered investment advisors.
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We call it something more because we'd like
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to talk not only about those important dollar
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and cents issues, but also the quality of
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life issues that make the money matters matter.
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Here he is your fulfillment facilitator, your partner
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in prosperity, advising clients on Cape Cod and
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across the country.
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Here's your host, Jay Christopher Boyd.
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Welcome to another episode of something more with
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Chris Boyd.
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My name is Jeff Perry.
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I'm a financial advisor with the team AMR
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of wealth enhancement group.
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And I'm sitting in for Chris today, who's
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working with some clients today.
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So he left the control panel to my
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partner today, Russ Ball.
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Russ, welcome.
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Thank you.
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Thank you, Jeff.
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And myself.
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And, um, so we're going to try not
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to screw this up too bad.
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Right, Russ?
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That's right.
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So Russ, you know, for the, for our
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regular listeners, and we have a lot of
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listeners who listen to every episodes.
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And then of course we have occasional listeners
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who listen to some, this could be someone's
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first time hearing you.
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How, how long have you been on part
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of our team now?
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How long has it been?
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So I started on November 4th, I believe.
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So we're coming on three months here.
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Okay.
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Yeah.
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It's been a, it's been a great ride
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so far.
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Time goes quickly.
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I felt more like a month to me,
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maybe six months to you.
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I don't know.
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I know we have the holidays in there,
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a few different, you know, long weekends.
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So, uh, yeah, it's all kind of jumbled
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in with the holidays, but yeah, almost three
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months.
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So how's it going?
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Great, great.
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I love, I love everything about it.
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I, um, um, what do you like the
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most?
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I love to ask like new employees or
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people like, well, first of all, was it,
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is it what you expected?
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It would be working.
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You have some background working in the financial
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services industry, so you probably had some sense
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of what it could be like.
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Is it what you expected?
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Yeah.
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I mean, I feel like it's definitely been
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a better experience than I, than I expected,
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which is, you know, great.
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All I could ask for.
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Um, I, I had exposure to, uh, working
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with a number of different advisor teams throughout
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the country, uh, but actually being on a
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team and a team that, you know, I
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feel like I get along with everyone on
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the team and it's really good, um, environment
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to work in.
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So, uh, that has really surpassed my expectations.
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I'm not surprised that, you know, when I,
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when I joined in March of 21, so
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I'm coming up on my four-year anniversary.
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I knew Chris before.
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I don't think you did.
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No, no.
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No.
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So I knew Chris before, uh, from community.
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We lived in the same community and, um,
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politics and different things that our paths crossed.
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So I had a sense that he and
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Kristen were like super, uh, easy to easygoing
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people with a lot of integrity.
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They really cared about their customers.
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So that's what attracted me.
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You know, I felt like I was going
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into a good environment, but you were kind
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of more in the dark.
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So that's probably why it exceeded your expectations,
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right?
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Yeah.
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And I think from, from the interview phase,
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uh, it was, you know, we, we had
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a good rapport and, um, it seemed like
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the type of team I would really want
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to be joining and pursuing this side of
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my career.
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Well, you've been a great fit so far.
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Is there something that you particularly enjoy as
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your, you know, day-to-day different thing?
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You do a lot of different things cause
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we all do a lot of different things
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to serve our customers.
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But, um, is there something you particularly enjoy?
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Yeah.
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And I have, uh, you know, friends that,
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that know I started a new job recently,
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asked the same question and I referenced the
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fact that, uh, day one, you know, I
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was, I was just getting to know the
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people I was working with.
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I was immediately meeting with clients and a
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big reason why I wanted to work in
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the field as opposed to like the backend,
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the corporate side of this industry is to
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work with clients and to talk to people
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and help people with their, with their financial
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lives.
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So having that exposure day one was like,
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wow, this is, uh, couldn't, couldn't ask for
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more than this.
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Um, so yeah, I think that's been a
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real, you know, and the fact that Chris
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and the team is, you know, trusting me
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to be part of those conversations and getting
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to meet our clients and getting to know
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them has really been amazing.
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So that was the goal.
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And that's what, what I, um, yeah, but
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how it turned out as well.
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So great.
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Well, you're doing a good job, but from
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my point of view, I don't have to
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supervise you obviously, but it seems like you're
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a integral part of the team and gaining
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more value with each passing month.
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Thanks Jeff.
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I feel like definitely learning a lot.
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Um, for sure.
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Yep.
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Um, but I know we, uh, we want
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to hop on here today to talk about
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a article that you recently wrote for the
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street.
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And, uh, I know it was picked up
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by a couple of other publications online, including
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MSN.
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So, um, let's, let's dive into that article
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that you wrote Jeff.
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Yeah.
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To convert or not in 2025 was the
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title that I gave the article and, um,
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you know, I was trying to get some
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eyes on it.
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Right.
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So I didn't want, I wanted to get
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people, you want them to click it, to
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read it.
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Right.
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And it's on mostly financial sites.
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So, you know, when I hear convert, like
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most people, when you're not thinking about finances,
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you're thinking about a religious conversion, right.
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Or something like that.
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So that's not what we're talking about.
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If you're listening in and wondering if we're
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going to try to sway you to one
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denomination or the other, we're going to disappoint
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you.
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But, uh, we're talking about Roth conversions, Roth
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IRAs.
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And so for our, our listeners who may
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not know the term, uh, a Roth IRA
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is an IRA that is a little bit
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different than the traditional IRA in the sense
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that the benefit of a Roth IRA and
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why you would do it is everything that
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you would draw later in life, when you
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retire and you need the funds, or you
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want the funds generally, there's some rules that
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we can dig into, but generally comes out
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tax free.
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The downside, if you will, or the reason
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why some people don't choose to do a
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Roth is that money going in your contributions
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are pre-taxed, right?
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So you don't get that, you know, some
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people contribute to a 401k or an IRA
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in part, because they like the tax deduction
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off their income taxes.
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Right.
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Uh, this is not the case for the
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Roth IRA.
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You, you don't get any deductions for it.
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And the reward is when you take it
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out, you don't pay any taxes.
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So I think over the years, um, the
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value, the inherent value of the Roth IRA
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has been growing and growing, and people really
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kind of want some funds in a Roth
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IRA at some point in their retirement.
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And you can do that through contributions, right?
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You can contribute to an IRA, um, every
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year.
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And there's limits this year, 2025, the limits
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are $7,000.
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I believe into a Roth IRA.
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We'll just talk about those for now.
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Um, and $8,000, if you're 50 or
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over, when you think about contributions, there are
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some income limits.
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So, and this is another reason why some
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people may choose to convert.
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We'll talk about that.
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Um, but if you are a married couple,
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your 2025 contribution of seven or $8,000,
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depending how old you are, if you go
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over $246,000, you are not eligible to
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make a Roth contribution, right?
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If you're under 236,000, you are eligible.
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And there's that $10,000.
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I don't know why they did this.
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I, there's this $10,000 space where you
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can make a partial contribution if you're over
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236, but under 246, just to confuse things
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a little bit more.
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Yeah, I get, they could have a partial
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contribution limit and, you know, they could have
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a partial limit, but to make it only
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$10,000, uh, that Delta is, I don't
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know, I don't see the logic in there,
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but it is, maybe it's just to confuse
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people and keep the CPAs and the financial
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advisors employed.
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Right.
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Could be.
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Well, that, so that's, and that's one piece
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of the, the Roth IRA is the, you
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know, contributions up to 7,000.
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That's what I try to max out every
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year.
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Uh, it's definitely a goal that's seemed, you
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know, relatively attainable for a good amount of
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people.
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And, um, it's something that you're rewarding your
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future self for, for, um, that, you know,
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tax payment that you're basically making right now.
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So, uh, there's the other aspect of that
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as well as the, um, a lot of
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retirement plans through work offer a Roth option.
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So that's another way to, to contribute or
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a tax-free.
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Yeah, that's, that's, that's, that's really something relatively
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new.
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You know, when people have a 401k or
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whatever the retirement plan they have, I think
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most people have 401ks.
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Some people have simple IRAs.
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If maybe they're working for a small company
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or a SEP, if they're, you know, working
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individually, but thinking about the 401ks when 401ks
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have been around for decades, but you didn't
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00:09:21,280 --> 00:09:23,360
have the Roth option and even when you
274
00:09:23,360 --> 00:09:25,600
started to have the Roth option legally, a
275
00:09:25,600 --> 00:09:28,300
lot of companies didn't adopt it for their
276
00:09:28,300 --> 00:09:29,240
particular employees.
277
00:09:29,360 --> 00:09:32,380
But I think the demand from employees, you
278
00:09:32,380 --> 00:09:35,220
know, asking their HR directors and their supervisors,
279
00:09:35,760 --> 00:09:36,480
can I have a Roth?
280
00:09:36,560 --> 00:09:38,640
Can I have a Roth is really grown.
281
00:09:38,780 --> 00:09:41,120
And it's, I'd say it's, I don't know.
282
00:09:41,220 --> 00:09:41,600
Do you agree?
283
00:09:41,680 --> 00:09:43,140
It's kind of the standard now that most
284
00:09:43,140 --> 00:09:46,200
corporations that you work for have that Roth
285
00:09:46,200 --> 00:09:46,600
option.
286
00:09:47,200 --> 00:09:48,300
At least from what I've seen.
287
00:09:48,380 --> 00:09:49,100
Yeah, probably.
288
00:09:49,800 --> 00:09:52,440
You know, definitely the larger corporations out there
289
00:09:52,440 --> 00:09:53,920
would, would, would offer that as an option.
290
00:09:54,080 --> 00:09:56,860
Now, again, it comes back to the question,
291
00:09:56,920 --> 00:09:58,740
like you said, you know, would I rather
292
00:09:58,740 --> 00:10:01,660
pay taxes on an hour or down the
293
00:10:01,660 --> 00:10:01,860
road?
294
00:10:01,880 --> 00:10:03,400
And a lot of the time people like
295
00:10:03,400 --> 00:10:08,340
those 401ks, those traditional 401ks, because that money
296
00:10:08,340 --> 00:10:11,260
goes in pre-tax from your, from your
297
00:10:11,260 --> 00:10:11,500
paycheck.
298
00:10:11,820 --> 00:10:14,620
So there's obviously a lot to like there,
299
00:10:14,620 --> 00:10:17,000
but then the Roth portion, and I think
300
00:10:17,000 --> 00:10:19,220
we'll, we'll dive more into this is something
301
00:10:19,220 --> 00:10:21,860
that can really be beneficial when you're entering
302
00:10:21,860 --> 00:10:23,560
that retirement visa or nearing that retirement.
303
00:10:23,920 --> 00:10:24,140
Yeah.
304
00:10:24,220 --> 00:10:26,240
And like so many things in the financial
305
00:10:26,240 --> 00:10:30,700
planning sector is it depends, you know, what's
306
00:10:30,700 --> 00:10:31,300
your best choice?
307
00:10:31,440 --> 00:10:32,080
It depends.
308
00:10:32,080 --> 00:10:32,440
Right.
309
00:10:33,280 --> 00:10:35,800
And it also is not an all or
310
00:10:35,800 --> 00:10:36,060
nothing.
311
00:10:36,060 --> 00:10:38,200
So if you're just starting out, for example,
312
00:10:38,200 --> 00:10:39,420
and you're saying, all right, this is my
313
00:10:39,420 --> 00:10:40,880
first real job.
314
00:10:41,220 --> 00:10:45,200
I have this opportunity to make contributions to
315
00:10:45,200 --> 00:10:46,420
both, to either.
316
00:10:47,400 --> 00:10:48,320
That's your choice.
317
00:10:48,480 --> 00:10:49,700
You can do either or both.
318
00:10:49,840 --> 00:10:51,580
You can, most companies let you split it
319
00:10:51,580 --> 00:10:51,840
up.
320
00:10:52,040 --> 00:10:53,940
So I'd love it.
321
00:10:54,060 --> 00:10:57,280
I love when clients or people that I
322
00:10:57,280 --> 00:11:00,560
advise do both because the younger you are,
323
00:11:00,820 --> 00:11:02,340
you know, you get all this years of
324
00:11:02,340 --> 00:11:05,220
compounding and you get all this, this years
325
00:11:05,220 --> 00:11:08,340
of growth and all of that.
326
00:11:08,540 --> 00:11:09,060
Think about that.
327
00:11:09,120 --> 00:11:11,320
You know, when you retire, if you're starting
328
00:11:11,320 --> 00:11:13,580
at 25, if you retire in 30 or
329
00:11:13,580 --> 00:11:16,380
40 years, getting all those earnings and all
330
00:11:16,380 --> 00:11:20,340
that growth and in a setting, a setting
331
00:11:20,340 --> 00:11:22,840
that is totally tax free, that, that is
332
00:11:22,840 --> 00:11:23,700
pretty powerful.
333
00:11:24,520 --> 00:11:24,900
Yeah.
334
00:11:25,180 --> 00:11:25,400
Yeah.
335
00:11:25,440 --> 00:11:26,840
And that's a big reason why a lot
336
00:11:26,840 --> 00:11:29,300
of people like to use the Roth as
337
00:11:29,300 --> 00:11:31,640
something to use at the very end when
338
00:11:31,640 --> 00:11:33,360
the last, the last thing that you touch
339
00:11:33,360 --> 00:11:35,360
in retirement, because it's has all that growth
340
00:11:35,360 --> 00:11:38,080
potential without the tax impact and without the
341
00:11:38,080 --> 00:11:40,380
RMDs, but I know we'll dive into a
342
00:11:40,380 --> 00:11:42,560
little bit more, I think back to the
343
00:11:42,560 --> 00:11:46,780
conversion question, I think in your article, Jeff,
344
00:11:46,820 --> 00:11:48,440
you, you write about a couple of questions
345
00:11:48,440 --> 00:11:51,120
that investors need to consider before they think,
346
00:11:51,260 --> 00:11:53,540
Oh, let's just convert everything or, or let's
347
00:11:53,540 --> 00:11:54,440
not do a conversion at all.
348
00:11:54,560 --> 00:11:56,340
What, what do you, what do you make?
349
00:11:56,500 --> 00:11:58,560
What do you think those two key questions
350
00:11:58,560 --> 00:12:00,020
are for, for investors?
351
00:12:00,720 --> 00:12:00,840
Right.
352
00:12:01,460 --> 00:12:04,620
So two questions, whether or not you, so
353
00:12:04,620 --> 00:12:07,080
the scenario is the typical scenario is you
354
00:12:07,080 --> 00:12:10,840
have all or most of your retirement savings
355
00:12:10,840 --> 00:12:15,440
in a traditional IRA or traditional 401k, and
356
00:12:15,440 --> 00:12:17,340
you're now being, you know, you're getting older
357
00:12:17,340 --> 00:12:19,840
and you're thinking about your planning and you're
358
00:12:19,840 --> 00:12:22,800
saying, gee, I really wish I had some
359
00:12:22,800 --> 00:12:24,880
money in a Roth so later I could
360
00:12:24,880 --> 00:12:27,300
get this money out tax free, or later
361
00:12:27,300 --> 00:12:30,180
I could give a bequest this money to
362
00:12:30,180 --> 00:12:32,440
my heirs and transfer tax free and they
363
00:12:32,440 --> 00:12:34,240
could have a tax free or whatever the
364
00:12:34,240 --> 00:12:35,720
reasons is, or I don't want to take
365
00:12:35,720 --> 00:12:36,520
RMD someday.
366
00:12:36,520 --> 00:12:37,740
I don't think I'm going to need it.
367
00:12:37,880 --> 00:12:40,160
So there's no RMD in a Roth.
368
00:12:40,320 --> 00:12:42,900
So that you're at, people are asking themselves
369
00:12:42,900 --> 00:12:45,120
or clients are asking us, so should I,
370
00:12:45,500 --> 00:12:48,540
should I convert, which the IRS code allows
371
00:12:48,540 --> 00:12:52,740
us to do some or all of traditional
372
00:12:52,740 --> 00:12:56,680
IRA to a Roth conversion?
373
00:12:57,060 --> 00:13:00,280
So the question is, do I want to
374
00:13:00,280 --> 00:13:02,560
pay the taxes now to convert?
375
00:13:02,560 --> 00:13:05,800
Because any amount you convert a traditional IRA
376
00:13:05,800 --> 00:13:10,440
to a Roth IRA is 100% taxable.
377
00:13:11,000 --> 00:13:12,860
So if you're going to convert, say you
378
00:13:12,860 --> 00:13:15,500
have a IRA for a hundred thousand dollars
379
00:13:16,040 --> 00:13:18,360
and you convert the a hundred thousand dollars
380
00:13:18,360 --> 00:13:20,580
in that year that you convert that a
381
00:13:20,580 --> 00:13:23,700
hundred thousand dollars, that is all ordinary income.
382
00:13:23,820 --> 00:13:25,740
It goes on to your earned income.
383
00:13:26,320 --> 00:13:27,860
You're going to be taxed on it.
384
00:13:28,520 --> 00:13:30,620
So is it worth it to do that?
385
00:13:30,620 --> 00:13:32,660
And those two questions that you alluded to
386
00:13:32,660 --> 00:13:36,920
are, where am I in my own personal
387
00:13:36,920 --> 00:13:40,280
income level and my own tax bracket in
388
00:13:40,280 --> 00:13:41,680
the year that I'm going to do it?
389
00:13:42,200 --> 00:13:46,140
So let's say for example, you're in a
390
00:13:46,140 --> 00:13:49,040
year that happens to be, for some reason,
391
00:13:49,560 --> 00:13:51,720
you're having a low level of earned income
392
00:13:51,720 --> 00:13:52,300
that year.
393
00:13:52,700 --> 00:13:56,440
Maybe you've started a business, maybe you're been
394
00:13:56,440 --> 00:13:57,400
unemployed for a while.
395
00:13:57,460 --> 00:13:58,500
You took a sabbatical.
396
00:13:58,980 --> 00:14:01,120
Whatever the situation is, you just happen that
397
00:14:01,120 --> 00:14:03,140
year to have an income level that's less
398
00:14:03,140 --> 00:14:04,300
than you normally have.
399
00:14:05,140 --> 00:14:06,800
So therefore you have a tax bracket.
400
00:14:06,920 --> 00:14:09,400
You're probably in a lower tax bracket than
401
00:14:09,400 --> 00:14:11,300
you usually are, than you expect to be
402
00:14:11,300 --> 00:14:12,260
in the future, right?
403
00:14:13,040 --> 00:14:15,320
So if you are, and you're thinking about
404
00:14:15,320 --> 00:14:17,280
a Roth conversion, the fact that your income
405
00:14:17,280 --> 00:14:20,300
is level in this given tax year, it's
406
00:14:20,300 --> 00:14:23,020
a compelling reason on the plus side of
407
00:14:23,020 --> 00:14:25,560
doing a conversion because you might still be
408
00:14:25,560 --> 00:14:27,060
in the, you know, to use the extreme
409
00:14:27,060 --> 00:14:29,240
example, you might still be in the 15
410
00:14:29,240 --> 00:14:32,880
% tax bracket and maybe you believe in
411
00:14:32,880 --> 00:14:35,240
your future earnings years or historically you've been
412
00:14:35,240 --> 00:14:38,480
in the 24% tax bracket, so this
413
00:14:38,480 --> 00:14:42,180
could strategically be a reason to convert the
414
00:14:42,180 --> 00:14:42,740
money this year.
415
00:14:42,860 --> 00:14:44,480
And on the flip side, let's say you're
416
00:14:44,480 --> 00:14:48,000
thinking about a Roth conversion for 2025 and
417
00:14:48,000 --> 00:14:49,780
you're in a really, you're in a peak
418
00:14:49,780 --> 00:14:50,800
of your earning season.
419
00:14:50,800 --> 00:14:54,140
Uh, you're, you know, you're making two, $300
420
00:14:54,140 --> 00:14:57,240
,000 a year, you're, you know, your, your
421
00:14:57,240 --> 00:14:58,500
tax brackets up there.
422
00:14:59,280 --> 00:15:02,240
And you might even jump tax brackets by
423
00:15:02,240 --> 00:15:05,900
adding this $100,000 in hypothetical Roth conversion
424
00:15:05,900 --> 00:15:07,320
to your income.
425
00:15:07,320 --> 00:15:10,360
And you might be paying more in taxes
426
00:15:10,360 --> 00:15:12,020
than you might later in life.
427
00:15:12,600 --> 00:15:14,520
So it might not be the right time.
428
00:15:14,780 --> 00:15:17,140
That's kind of the first question is where
429
00:15:17,140 --> 00:15:19,580
are you in your own income tax bracket
430
00:15:19,580 --> 00:15:20,000
level?
431
00:15:20,420 --> 00:15:22,220
Is it a good time for you personally
432
00:15:22,220 --> 00:15:23,500
to think about this?
433
00:15:24,500 --> 00:15:24,620
Right.
434
00:15:24,800 --> 00:15:26,560
And I think a lot of, uh, clients
435
00:15:26,560 --> 00:15:28,340
have been asking about Roth conversions.
436
00:15:28,540 --> 00:15:30,840
I think it's, um, kind of gaining a
437
00:15:30,840 --> 00:15:31,800
little bit more popularity.
438
00:15:32,280 --> 00:15:34,060
Uh, people are starting to consider these types
439
00:15:34,060 --> 00:15:34,460
of things.
440
00:15:34,720 --> 00:15:37,220
And, um, it really does come down to,
441
00:15:37,420 --> 00:15:39,440
well, uh, where's your income now?
442
00:15:40,280 --> 00:15:43,300
And, um, is it, is there any, uh,
443
00:15:43,520 --> 00:15:44,780
is there any period in the, in the
444
00:15:44,780 --> 00:15:45,800
next couple of years where it's going to
445
00:15:45,800 --> 00:15:47,820
be lower or is there anything you anticipate
446
00:15:47,820 --> 00:15:48,900
that would, would make it lower?
447
00:15:49,060 --> 00:15:51,140
And if it's lower, obviously it leaves more
448
00:15:51,140 --> 00:15:53,880
of that room in that tax bracket to,
449
00:15:54,000 --> 00:15:56,180
uh, to get some more, some more income
450
00:15:56,180 --> 00:15:58,020
and not, not have a big effect on
451
00:15:58,020 --> 00:15:58,400
it.
452
00:15:58,660 --> 00:15:58,760
Right.
453
00:15:59,020 --> 00:16:01,600
So there's two like little asterisks I'll put
454
00:16:01,600 --> 00:16:04,360
next to those comments, like danger, danger, go
455
00:16:04,360 --> 00:16:04,660
away.
456
00:16:04,840 --> 00:16:08,080
You know, um, one is Irma, which is
457
00:16:08,080 --> 00:16:08,800
a.
458
00:16:10,220 --> 00:16:12,940
Calculation that they have when you're a couple
459
00:16:12,940 --> 00:16:15,120
of years out from filing for Medicare at
460
00:16:15,120 --> 00:16:16,040
age 65.
461
00:16:17,180 --> 00:16:19,680
Medicare looks at your income two years back.
462
00:16:19,800 --> 00:16:22,820
So say when you hit age 63 to
463
00:16:22,820 --> 00:16:25,180
calculate what your premium will be for Medicare.
464
00:16:25,460 --> 00:16:27,600
So you may be thinking, well, I'm retiring
465
00:16:27,600 --> 00:16:29,240
when I'm 62.
466
00:16:30,840 --> 00:16:32,620
Um, so my income is going to be
467
00:16:32,620 --> 00:16:33,040
low.
468
00:16:33,200 --> 00:16:34,860
I'm just going to be using my investment.
469
00:16:34,880 --> 00:16:36,500
So I'm not going to have any earned
470
00:16:36,500 --> 00:16:36,800
income.
471
00:16:36,860 --> 00:16:38,060
I'm just going to investment income.
472
00:16:38,140 --> 00:16:42,080
So maybe I'll convert my a hundred thousand
473
00:16:42,080 --> 00:16:42,460
dollars.
474
00:16:42,500 --> 00:16:43,780
We'll just keep that same figure.
475
00:16:44,340 --> 00:16:48,100
When I'm 63 and I'm in a very
476
00:16:48,100 --> 00:16:50,200
low tax bracket, well, that's going to be
477
00:16:50,200 --> 00:16:52,000
on your tax return, discerned income, right?
478
00:16:53,080 --> 00:16:54,740
So it could, you could do it at
479
00:16:54,740 --> 00:16:56,960
exactly the wrong time when you're thinking about
480
00:16:56,960 --> 00:16:59,080
how low is my Medicare premium going to
481
00:16:59,080 --> 00:16:59,700
be, right?
482
00:17:00,420 --> 00:17:02,340
So that's something you just got to like,
483
00:17:02,500 --> 00:17:04,240
stay away from if you're close to that
484
00:17:04,240 --> 00:17:07,160
age or some, or some other type of
485
00:17:07,160 --> 00:17:09,339
benefit that you may be able to receive.
486
00:17:09,339 --> 00:17:10,460
That's based on income.
487
00:17:10,460 --> 00:17:12,500
Just be aware that this is going to
488
00:17:12,500 --> 00:17:14,960
come as a taxable event.
489
00:17:15,040 --> 00:17:17,099
That's going to look like income on your
490
00:17:17,099 --> 00:17:19,220
tax return and it could skew a different
491
00:17:19,220 --> 00:17:19,660
benefit.
492
00:17:19,920 --> 00:17:22,380
The other asterisks I want to make is
493
00:17:22,380 --> 00:17:25,440
this is not a all or nothing proposition.
494
00:17:26,200 --> 00:17:28,580
We're using this a hundred thousand dollar example,
495
00:17:29,300 --> 00:17:31,420
but if you are in, say you're in
496
00:17:31,420 --> 00:17:34,440
the 22% tax bracket and you've got
497
00:17:34,440 --> 00:17:36,080
a little bit of room before you jump
498
00:17:36,080 --> 00:17:39,320
up to the 24% tax bracket, meaning
499
00:17:39,320 --> 00:17:42,940
you, your income is like $20,000 below
500
00:17:42,940 --> 00:17:43,960
the next tax bracket.
501
00:17:44,160 --> 00:17:47,540
Well, you can convert $20,000 and stay
502
00:17:47,540 --> 00:17:49,220
within the tax bracket you're in.
503
00:17:50,020 --> 00:17:52,760
You don't have to convert your entire IRA.
504
00:17:53,080 --> 00:17:55,460
You convert as much as you're comfortable with,
505
00:17:55,540 --> 00:17:58,240
or maybe as much as you want to
506
00:17:58,240 --> 00:17:59,000
pay taxes on.
507
00:17:59,100 --> 00:18:02,100
Because, you know, sometimes people get in trouble
508
00:18:02,100 --> 00:18:04,640
by making financial decisions in life that impact
509
00:18:04,640 --> 00:18:05,220
your taxes.
510
00:18:05,380 --> 00:18:06,820
And they say, I'll worry about the taxes
511
00:18:06,820 --> 00:18:07,260
later.
512
00:18:07,660 --> 00:18:08,140
Yeah.
513
00:18:08,300 --> 00:18:10,280
So if you're converting this kind of, you
514
00:18:10,280 --> 00:18:12,440
know, big money here, a hundred thousand dollars,
515
00:18:12,540 --> 00:18:14,220
$50,000, whatever it is.
516
00:18:15,220 --> 00:18:18,880
You have the option of withholding the taxes
517
00:18:18,880 --> 00:18:22,420
from the conversion, paying the taxes through withholding,
518
00:18:22,600 --> 00:18:26,020
which is not wrong, we don't suggest it.
519
00:18:26,080 --> 00:18:29,300
We'd rather have you pay the taxes from
520
00:18:29,300 --> 00:18:33,980
other taxable accounts or savings that you have
521
00:18:33,980 --> 00:18:36,360
so you don't lose the money that's in
522
00:18:36,360 --> 00:18:37,640
that IRA setting.
523
00:18:38,020 --> 00:18:40,420
But whichever way you do it, make sure
524
00:18:40,420 --> 00:18:42,760
you are prepared to pay the taxes.
525
00:18:43,040 --> 00:18:43,140
Right.
526
00:18:43,660 --> 00:18:43,940
Yeah.
527
00:18:44,080 --> 00:18:46,020
I think that's a, that's a key point.
528
00:18:46,120 --> 00:18:49,500
Um, in order to really maximize, and you
529
00:18:49,500 --> 00:18:50,780
read about this in the article too, in
530
00:18:50,780 --> 00:18:53,360
order to maximize the benefit of that Roth
531
00:18:53,360 --> 00:18:55,820
IRA, that it's not taxable.
532
00:18:56,040 --> 00:18:58,460
You don't want to take tax money out
533
00:18:58,460 --> 00:18:59,820
of there to pay the taxes.
534
00:18:59,820 --> 00:19:03,560
So if, if you anticipate a Roth coming,
535
00:19:03,700 --> 00:19:06,020
I mean, a Roth conversion coming up, having
536
00:19:06,020 --> 00:19:08,080
some money saved on the sidelines to pay
537
00:19:08,080 --> 00:19:10,420
those taxes would be the ideal way to.
538
00:19:10,760 --> 00:19:11,520
It is the ideal way.
539
00:19:11,620 --> 00:19:14,160
And this is where age, your age starts
540
00:19:14,160 --> 00:19:15,360
to come into it.
541
00:19:15,420 --> 00:19:17,660
Um, cause in essence, you're, let's say you're
542
00:19:17,660 --> 00:19:19,400
in the 24% tax bracket.
543
00:19:20,060 --> 00:19:21,520
And if you live in a state with
544
00:19:21,520 --> 00:19:23,780
a state income tax, that might be another
545
00:19:23,780 --> 00:19:26,600
5% for Massachusetts, I think that's what
546
00:19:26,600 --> 00:19:26,940
it is.
547
00:19:26,940 --> 00:19:29,300
So, you know, you're close to 30%
548
00:19:29,300 --> 00:19:33,420
that's going to be contributed from another account
549
00:19:33,420 --> 00:19:34,200
or withheld.
550
00:19:35,180 --> 00:19:39,500
And if you're nearing retirement, even though it's
551
00:19:39,500 --> 00:19:40,860
still going to be in this tax-free
552
00:19:40,860 --> 00:19:43,120
setting after the conversion, it depends on when
553
00:19:43,120 --> 00:19:45,420
you're going to be withdrawing, if you, it
554
00:19:45,420 --> 00:19:46,840
doesn't make a lot of sense if you're
555
00:19:46,840 --> 00:19:49,700
going to convert and then start withdrawing.
556
00:19:49,780 --> 00:19:50,220
Right.
557
00:19:50,460 --> 00:19:52,380
Like, cause you're going to miss all those
558
00:19:52,380 --> 00:19:54,740
additional years of tax-free compounding.
559
00:19:54,800 --> 00:19:55,040
Right.
560
00:19:55,860 --> 00:19:56,140
Yeah.
561
00:19:56,140 --> 00:19:57,620
So there's a lot of thought that goes
562
00:19:57,620 --> 00:20:00,480
into, you know, your own personal situation, when
563
00:20:00,480 --> 00:20:01,340
do I need the money?
564
00:20:02,100 --> 00:20:03,380
What's my current tax bracket?
565
00:20:03,440 --> 00:20:04,980
What do I think it's going to be?
566
00:20:05,460 --> 00:20:07,560
And these other caveats of, should I do
567
00:20:07,560 --> 00:20:08,100
a little bit?
568
00:20:08,180 --> 00:20:08,940
Should I do a lot?
569
00:20:09,240 --> 00:20:11,400
Does this affect any other benefits I have
570
00:20:11,400 --> 00:20:12,100
like Medicare?
571
00:20:13,360 --> 00:20:13,680
Right.
572
00:20:14,200 --> 00:20:17,300
Uh, the other, the other question of my
573
00:20:17,300 --> 00:20:19,240
two part question, that was a long part
574
00:20:19,240 --> 00:20:20,060
of question one.
575
00:20:20,640 --> 00:20:23,620
Uh, the other one's simpler, but less clear,
576
00:20:23,640 --> 00:20:23,900
right?
577
00:20:23,900 --> 00:20:26,560
So the question is, where do you think
578
00:20:26,560 --> 00:20:30,660
federal income taxes are headed in the future?
579
00:20:31,380 --> 00:20:33,460
So we have the tax cuts and job
580
00:20:33,460 --> 00:20:35,840
deck that we're living in now, um, where
581
00:20:35,840 --> 00:20:37,660
the brackets were reduced.
582
00:20:38,340 --> 00:20:40,320
And so we're, we're in a period of
583
00:20:40,320 --> 00:20:44,580
lower than typical, lower than historical income taxes.
584
00:20:45,060 --> 00:20:48,020
It, you know, president Trump was reelected or
585
00:20:48,020 --> 00:20:48,400
elected.
586
00:20:48,580 --> 00:20:49,420
How would you say that?
587
00:20:49,460 --> 00:20:50,860
Cause he had a hiatus.
588
00:20:51,860 --> 00:20:52,360
Yep.
589
00:20:52,360 --> 00:20:56,040
So he's in office and he's hoping to
590
00:20:56,040 --> 00:20:58,880
pass an extension to that tax cut and
591
00:20:58,880 --> 00:20:59,500
jobs act.
592
00:21:00,380 --> 00:21:01,980
And so we could be staying in these
593
00:21:01,980 --> 00:21:04,000
tax rates for a few more years.
594
00:21:04,040 --> 00:21:06,160
So that's good, but kind of your, your
595
00:21:06,160 --> 00:21:08,440
general sense of where do you think income
596
00:21:08,440 --> 00:21:09,360
taxes are headed?
597
00:21:10,060 --> 00:21:11,800
And you may say, well, I have no
598
00:21:11,800 --> 00:21:12,140
idea.
599
00:21:12,280 --> 00:21:13,540
Taxes go up and go down.
600
00:21:13,640 --> 00:21:15,260
How would I be able to predict that?
601
00:21:15,340 --> 00:21:18,800
Well, that's an accurate thought, but you can
602
00:21:18,800 --> 00:21:20,100
think about it generally.
603
00:21:20,100 --> 00:21:22,040
You know, we're in a period of record
604
00:21:22,040 --> 00:21:25,680
high budget deficits and national debt levels of
605
00:21:25,680 --> 00:21:27,000
$37 trillion.
606
00:21:27,500 --> 00:21:31,160
We have a social security crisis coming in
607
00:21:31,160 --> 00:21:33,340
nine years where, you know, if we don't
608
00:21:33,340 --> 00:21:36,320
do reforms, which reforms usually cost us money,
609
00:21:36,440 --> 00:21:36,620
right.
610
00:21:37,660 --> 00:21:40,760
And money comes primarily from taxes.
611
00:21:41,460 --> 00:21:44,340
Um, and then we have Medicare that needs
612
00:21:44,340 --> 00:21:45,540
to be reformed as well.
613
00:21:46,000 --> 00:21:49,300
We are having a peace through strength type,
614
00:21:49,400 --> 00:21:52,740
uh, president, which means increased military spending.
615
00:21:53,080 --> 00:21:55,160
I know they have doge and they're trying
616
00:21:55,160 --> 00:21:56,760
to cut spending and I wish them well,
617
00:21:56,900 --> 00:21:57,740
but it's tough.
618
00:21:58,540 --> 00:22:02,000
So, you know, the question is, do you
619
00:22:02,000 --> 00:22:05,880
think after president Trump say, do you think
620
00:22:05,880 --> 00:22:07,840
that there is a period of higher or
621
00:22:07,840 --> 00:22:08,980
lower federal taxes?
622
00:22:09,260 --> 00:22:12,900
Which means I'm going to pay higher federal
623
00:22:12,900 --> 00:22:16,180
taxes if I do a Roth conversion later,
624
00:22:16,180 --> 00:22:18,780
or if all my money is in a
625
00:22:18,780 --> 00:22:20,420
traditional IRA, when it comes out.
626
00:22:22,040 --> 00:22:24,900
So if you believe that higher taxes are
627
00:22:24,900 --> 00:22:27,160
in your future, either when you do a
628
00:22:27,160 --> 00:22:29,040
conversion or when you would draw your traditional
629
00:22:29,040 --> 00:22:31,840
money, that kind of puts the thumb on
630
00:22:31,840 --> 00:22:34,880
the scale to say, maybe it's a good
631
00:22:34,880 --> 00:22:36,520
time to do it now.
632
00:22:36,880 --> 00:22:37,360
Right.
633
00:22:37,440 --> 00:22:37,620
Right.
634
00:22:37,960 --> 00:22:38,200
Yeah.
635
00:22:38,580 --> 00:22:39,520
At least that's my logic.
636
00:22:39,840 --> 00:22:42,100
I think, so I was listening to a,
637
00:22:42,100 --> 00:22:44,800
uh, another podcast with, um, a guy named
638
00:22:44,800 --> 00:22:47,540
Ed slot and his name is very familiar
639
00:22:47,540 --> 00:22:50,680
in the, uh, wealth management industry and finance
640
00:22:50,680 --> 00:22:53,340
in general, he is a sort of, uh,
641
00:22:53,340 --> 00:22:56,200
IRA and, um, as a tax expert, tax
642
00:22:56,200 --> 00:22:58,720
guru, uh, he's the go-to guy really
643
00:22:58,720 --> 00:23:00,300
out there in the United States.
644
00:23:00,300 --> 00:23:01,400
He is, he is.
645
00:23:01,460 --> 00:23:04,160
And, um, what he was saying was, uh,
646
00:23:04,760 --> 00:23:07,040
you know, yeah, you might think like some
647
00:23:07,040 --> 00:23:08,720
people might think that taxes are going to
648
00:23:08,720 --> 00:23:09,420
be lower in the future.
649
00:23:10,040 --> 00:23:11,260
Uh, they've done a bunch of surveys.
650
00:23:11,580 --> 00:23:13,680
Most people don't think that most people think
651
00:23:13,680 --> 00:23:14,780
it's probably going to go higher.
652
00:23:14,980 --> 00:23:17,720
So, uh, if that's the case, taxes may
653
00:23:17,720 --> 00:23:18,940
not be lower than they are today.
654
00:23:19,000 --> 00:23:20,200
Why not take advantage?
655
00:23:20,400 --> 00:23:22,980
Um, ASAP, if, you know, if it matches
656
00:23:22,980 --> 00:23:24,300
what you're, what you're looking for and what
657
00:23:24,300 --> 00:23:24,880
your needs are.
658
00:23:25,020 --> 00:23:25,420
Yeah.
659
00:23:25,480 --> 00:23:28,680
Um, and yeah, I think, uh, his point
660
00:23:28,680 --> 00:23:31,220
as well in that, in that podcast, uh,
661
00:23:31,220 --> 00:23:33,600
that I was listening to was, uh, he's,
662
00:23:33,700 --> 00:23:35,520
he loves, uh, the Roth IRA.
663
00:23:35,520 --> 00:23:37,680
He does not seem to love a traditional
664
00:23:37,680 --> 00:23:40,700
IRA just because, uh, you know, the, the
665
00:23:40,700 --> 00:23:44,900
tax impact of, of taking RMDs and, and,
666
00:23:45,200 --> 00:23:48,340
um, over time that basically increasing your, your
667
00:23:48,340 --> 00:23:51,360
tax bracket and, um, making it pay, pay
668
00:23:51,360 --> 00:23:52,360
more in taxes potentially.
669
00:23:52,780 --> 00:23:56,320
So, um, definitely a lot of, uh, uh,
670
00:23:56,320 --> 00:23:57,280
key things to consider.
671
00:23:57,500 --> 00:23:59,720
Um, one question I had for you as
672
00:23:59,720 --> 00:24:02,740
well, Jeff, uh, when would someone typically think
673
00:24:02,740 --> 00:24:04,360
about, uh, a Roth conversion?
674
00:24:04,500 --> 00:24:05,800
When would be at me like an ideal
675
00:24:05,800 --> 00:24:06,080
time?
676
00:24:06,120 --> 00:24:07,140
And I know it, it depends.
677
00:24:07,280 --> 00:24:09,360
It's different for everyone's circumstances, but if a
678
00:24:09,360 --> 00:24:11,120
Roth conversion was something that really wanted to
679
00:24:11,120 --> 00:24:12,220
do, or really we're considering.
680
00:24:12,740 --> 00:24:14,560
When would be a typical time in the
681
00:24:14,560 --> 00:24:16,260
life cycle and the career cycle that would
682
00:24:16,260 --> 00:24:16,860
take place?
683
00:24:18,240 --> 00:24:20,700
I think anytime that you're starting to build
684
00:24:20,700 --> 00:24:23,240
wealth, you know, you have control of your
685
00:24:23,240 --> 00:24:26,360
budget, your meeting, your expense, monthly expenses, you
686
00:24:26,360 --> 00:24:28,620
have your emergency fund, you're saving for retirement,
687
00:24:28,620 --> 00:24:30,960
I think as early as when you start
688
00:24:30,960 --> 00:24:33,140
saving for retirement is a, you know, that's
689
00:24:33,140 --> 00:24:34,660
not so much a conversion is where should
690
00:24:34,660 --> 00:24:35,640
I put my money?
691
00:24:35,800 --> 00:24:35,940
Right.
692
00:24:36,240 --> 00:24:39,440
But at any time, uh, before your retirement,
693
00:24:39,440 --> 00:24:41,920
you should be thinking about this and if
694
00:24:41,920 --> 00:24:45,220
you're working with a trusted financial advisor, fiduciary,
695
00:24:45,380 --> 00:24:47,380
someone who has your best interest at heart
696
00:24:47,380 --> 00:24:50,080
as compared to maybe someone selling you a
697
00:24:50,080 --> 00:24:50,780
product, right.
698
00:24:51,120 --> 00:24:53,760
Someone who's compensated, not on what they sell
699
00:24:53,760 --> 00:24:56,360
you, but on how well you do generally
700
00:24:56,360 --> 00:24:56,900
speaking.
701
00:24:56,900 --> 00:25:00,600
Um, sit down with them and discuss it.
702
00:25:00,640 --> 00:25:02,400
There's so many factors, you know, we're just
703
00:25:02,400 --> 00:25:05,140
touching on kind of the big ones here,
704
00:25:05,180 --> 00:25:08,020
but, you know, I'll just touch on a
705
00:25:08,020 --> 00:25:09,440
few other reasons why you might want to
706
00:25:09,440 --> 00:25:12,040
have a Roth and so, which would add,
707
00:25:12,040 --> 00:25:15,540
um, add the thumb on the scale to
708
00:25:15,540 --> 00:25:17,480
maybe I should talk to my advisor about
709
00:25:17,480 --> 00:25:20,840
this is it's stay with me on this.
710
00:25:20,840 --> 00:25:23,460
Cause it's kind of counterintuitive.
711
00:25:23,460 --> 00:25:25,440
You know, a lot of people, one of
712
00:25:25,440 --> 00:25:28,240
their biggest, um, risks to their financial plan
713
00:25:28,240 --> 00:25:29,360
and one of the things they worry about
714
00:25:29,360 --> 00:25:31,880
the most is a long-term care event.
715
00:25:33,120 --> 00:25:36,220
And they go through that process of, should
716
00:25:36,220 --> 00:25:38,880
I buy insurance or, you know, should I
717
00:25:38,880 --> 00:25:41,320
have a trust and hide, not hide, uh,
718
00:25:41,420 --> 00:25:44,880
segregate all of my assets from potentially receiving
719
00:25:44,880 --> 00:25:46,580
some government assistance, right?
720
00:25:46,660 --> 00:25:47,860
How am I going to handle this?
721
00:25:47,860 --> 00:25:50,560
This could be three or $400,000 event.
722
00:25:50,560 --> 00:25:52,840
If I was in a long-term care
723
00:25:52,840 --> 00:25:54,780
and it's not covered by Medicare, the only
724
00:25:54,780 --> 00:25:55,980
the first a hundred days is.
725
00:25:56,340 --> 00:26:00,860
So a Roth, well, well, not designed for,
726
00:26:00,960 --> 00:26:03,600
or commonly thought of, of, of a way
727
00:26:03,600 --> 00:26:06,200
to dealing with future long-term care event
728
00:26:06,200 --> 00:26:08,040
can be just that if.
729
00:26:08,320 --> 00:26:10,060
And why would I use a Roth?
730
00:26:10,180 --> 00:26:12,000
Well, you'd use a Roth because you never
731
00:26:12,000 --> 00:26:13,220
have to take money out.
732
00:26:14,720 --> 00:26:16,440
Meaning you don't have RMDs.
733
00:26:16,500 --> 00:26:18,340
If you have a traditional IRA that you're
734
00:26:18,340 --> 00:26:20,200
thinking, well, I can use my IRA money.
735
00:26:20,560 --> 00:26:22,600
Remember two things about that traditional IRA.
736
00:26:22,820 --> 00:26:25,320
One is at age 73 or 75, you're
737
00:26:25,320 --> 00:26:27,520
going to be taking our RMDs so that
738
00:26:27,520 --> 00:26:29,580
you're going to be diminishing that account, which
739
00:26:29,580 --> 00:26:31,020
is what you're supposed to do in retirement,
740
00:26:31,120 --> 00:26:34,220
you're supposed to take your money and it's
741
00:26:34,220 --> 00:26:35,700
taxable when it comes out.
742
00:26:36,400 --> 00:26:38,520
So if you're taking large chunks out of
743
00:26:38,520 --> 00:26:40,700
that to fund a long-term care event,
744
00:26:41,500 --> 00:26:44,280
you're adding another 30% to your withdrawals
745
00:26:44,280 --> 00:26:45,880
or the cost of your long-term care
746
00:26:45,880 --> 00:26:46,160
event.
747
00:26:46,640 --> 00:26:47,140
Right.
748
00:26:47,140 --> 00:26:49,880
So if you have these funds, segregated funds
749
00:26:49,880 --> 00:26:53,160
in a Roth, it can serve certainly to
750
00:26:53,160 --> 00:26:55,840
supplement your retirement if you need it, but
751
00:26:55,840 --> 00:26:58,440
if you don't need it, especially in the
752
00:26:58,440 --> 00:27:00,620
early part of your retirement, and it's just
753
00:27:00,620 --> 00:27:04,980
building compounding, it's a great segregated nest egg
754
00:27:04,980 --> 00:27:07,880
to say, well, I've saved this and it's
755
00:27:07,880 --> 00:27:09,580
here for long-term care.
756
00:27:10,080 --> 00:27:11,120
If I need it.
757
00:27:11,320 --> 00:27:13,300
Another reason to have a Roth and to
758
00:27:13,300 --> 00:27:16,320
consider a conversion and build up that account
759
00:27:16,320 --> 00:27:20,600
is legacy, a Roth.
760
00:27:21,420 --> 00:27:23,940
So if you pass for the Roth and
761
00:27:23,940 --> 00:27:27,880
your beneficiaries, they receive that tax free.
762
00:27:28,160 --> 00:27:32,040
If it's a spouse, that Roth can be
763
00:27:32,040 --> 00:27:33,680
inherited to the spouse.
764
00:27:33,800 --> 00:27:34,820
They just keep the Roth.
765
00:27:34,920 --> 00:27:37,920
There's no withdrawal schedule.
766
00:27:38,080 --> 00:27:39,660
There's no RMDs for the spouse.
767
00:27:40,180 --> 00:27:42,700
They just have it all come out tax
768
00:27:42,700 --> 00:27:42,920
free.
769
00:27:42,920 --> 00:27:44,440
If it's not a spouse, there's a five
770
00:27:44,440 --> 00:27:46,920
-year rule on that, but the funds still
771
00:27:46,920 --> 00:27:48,140
come out tax free.
772
00:27:49,640 --> 00:27:52,240
There's some asterisks there, if the money's been
773
00:27:52,240 --> 00:27:54,180
there for five years and so forth.
774
00:27:54,560 --> 00:27:56,160
So it's a great way to think about
775
00:27:56,160 --> 00:27:57,240
legacy as well.
776
00:27:59,860 --> 00:28:03,160
If you receive an inheritance, you're thankful that
777
00:28:03,160 --> 00:28:04,260
your loved one left you something.
778
00:28:04,380 --> 00:28:05,560
You're not going to say, is it a
779
00:28:05,560 --> 00:28:07,520
traditional IRA or a Roth?
780
00:28:07,540 --> 00:28:08,720
Oh no, it's a traditional.
781
00:28:08,860 --> 00:28:09,400
I don't want it.
782
00:28:09,440 --> 00:28:09,900
Of course not.
783
00:28:10,020 --> 00:28:10,140
Right?
784
00:28:10,260 --> 00:28:10,660
Right.
785
00:28:12,880 --> 00:28:16,240
But if you're offered two, with the same
786
00:28:16,240 --> 00:28:19,180
amount of money in each one, pick the
787
00:28:19,180 --> 00:28:22,640
Roth because there's a lot more flexibility and
788
00:28:22,640 --> 00:28:25,160
no taxes to pay if you follow the
789
00:28:25,160 --> 00:28:25,540
rules.
790
00:28:26,400 --> 00:28:29,020
And then when an heir would inherit a
791
00:28:29,020 --> 00:28:31,080
traditional IRA, they have to think about, well,
792
00:28:31,100 --> 00:28:32,660
how much am I taking out each year
793
00:28:32,660 --> 00:28:34,860
so that I'm still within a certain tax
794
00:28:34,860 --> 00:28:35,280
bracket?
795
00:28:35,940 --> 00:28:37,860
It's kind of the same analysis, isn't it?
796
00:28:38,000 --> 00:28:39,800
There's a lot more to consider.
797
00:28:39,940 --> 00:28:40,220
Exactly.
798
00:28:40,220 --> 00:28:42,680
It's the same kind of thinking that goes
799
00:28:42,680 --> 00:28:43,080
into it.
800
00:28:43,180 --> 00:28:46,400
Whereas with the inherited Roth, you need to
801
00:28:46,400 --> 00:28:47,960
still take the money out after 10 years,
802
00:28:48,220 --> 00:28:49,940
but you could take it all at the
803
00:28:49,940 --> 00:28:51,320
10th year, let it grow as much as
804
00:28:51,320 --> 00:28:55,580
possible, and the heir would receive that in
805
00:28:55,580 --> 00:28:56,680
the 10th year and not have to pay
806
00:28:56,680 --> 00:28:57,180
taxes on it.
807
00:28:57,480 --> 00:28:58,740
So pretty good deal.
808
00:28:59,600 --> 00:29:01,860
And again, like you mentioned, if it's not
809
00:29:01,860 --> 00:29:03,900
money that needs to be taken out right
810
00:29:03,900 --> 00:29:05,060
away, all the better.
811
00:29:05,640 --> 00:29:08,540
That would really only make sense if you
812
00:29:08,540 --> 00:29:10,160
did save it for the longer term.
813
00:29:11,820 --> 00:29:14,420
But yeah, I think it's a great option
814
00:29:14,420 --> 00:29:14,900
to consider.
815
00:29:15,060 --> 00:29:16,420
There's a lot that goes into it, and
816
00:29:16,420 --> 00:29:17,640
there's a lot that we can do on
817
00:29:17,640 --> 00:29:20,780
our end on the financial planning side to
818
00:29:20,780 --> 00:29:22,560
model what that might look like and when
819
00:29:22,560 --> 00:29:25,120
it might be a good time to make
820
00:29:25,120 --> 00:29:26,080
that conversion decision.
821
00:29:26,600 --> 00:29:28,760
Yeah, it's a dynamic decision.
822
00:29:28,980 --> 00:29:30,680
It really depends on your circumstances.
823
00:29:31,020 --> 00:29:32,540
You know, we haven't even talked about life
824
00:29:32,540 --> 00:29:33,060
expectancy.
825
00:29:33,060 --> 00:29:35,480
We haven't even talked about a lot of
826
00:29:35,480 --> 00:29:39,140
factors that a good financial planner who knows
827
00:29:39,140 --> 00:29:42,200
you knows all these factors, and they can
828
00:29:42,200 --> 00:29:44,160
decide if it's something you need to think
829
00:29:44,160 --> 00:29:45,840
about, and then they can model it out.
830
00:29:45,960 --> 00:29:47,220
You know, you can actually have software that
831
00:29:47,220 --> 00:29:49,000
can model it out longer term and say,
832
00:29:49,600 --> 00:29:51,300
yes, there's a benefit, or no, I don't
833
00:29:51,300 --> 00:29:51,920
think there is.
834
00:29:52,120 --> 00:29:53,320
So good point.
835
00:29:53,660 --> 00:29:55,860
Any other last thoughts on that article, Jeff,
836
00:29:55,900 --> 00:29:56,840
that come to mind?
837
00:29:57,200 --> 00:29:58,880
No, you know what I'll do, Russ?
838
00:29:58,880 --> 00:30:01,820
I'll throw the article, the link to the
839
00:30:01,820 --> 00:30:03,600
article in the notes of the show.
840
00:30:04,300 --> 00:30:05,500
So if people want to read the whole
841
00:30:05,500 --> 00:30:07,220
article, they can read that.
842
00:30:07,300 --> 00:30:08,640
And also in the notes of the show
843
00:30:08,640 --> 00:30:11,060
is a link to contact Chris Boyd, myself,
844
00:30:11,440 --> 00:30:13,660
or yourself, so we'd love to hear from
845
00:30:13,660 --> 00:30:13,900
you.
846
00:30:14,200 --> 00:30:15,300
And thanks for listening.
847
00:30:15,860 --> 00:30:17,380
And please tune in next time.
848
00:30:17,680 --> 00:30:20,560
Until then, keep striving for something more.
849
00:30:22,240 --> 00:30:24,140
Thank you for listening to Something More with
850
00:30:24,140 --> 00:30:24,860
Chris Boyd.
851
00:30:25,180 --> 00:30:27,320
Call us for help, whether it's for financial
852
00:30:27,320 --> 00:30:31,240
planning or portfolio management, insurance concerns, or those
853
00:30:31,240 --> 00:30:33,280
quality of life issues that make the money
854
00:30:33,280 --> 00:30:34,360
matters matter.
855
00:30:34,720 --> 00:30:38,000
Whatever's on your mind, visit us at somethingmorewithchrisboyd
856
00:30:38,000 --> 00:30:41,200
.com, or call us toll free at 866
857
00:30:41,200 --> 00:30:44,880
-771-8901.
858
00:30:44,980 --> 00:30:48,760
Or send us your questions to amr-info
859
00:30:48,760 --> 00:30:50,680
at wealthenhancement.com.
860
00:30:51,080 --> 00:30:52,800
You're listening to Something More with Chris Boyd
861
00:30:52,800 --> 00:30:55,420
Financial Talk Show, Wealth Enhancement Advisory Services, and
862
00:30:55,420 --> 00:30:57,560
Jay Christopher Boyd provide investment advice on an
863
00:30:57,560 --> 00:30:59,120
individual basis to clients only.
864
00:30:59,320 --> 00:31:01,280
Proper advice depends on a complete analysis of
865
00:31:01,280 --> 00:31:02,460
all facts and circumstances.
866
00:31:02,760 --> 00:31:04,560
The information given on this program is general
867
00:31:04,560 --> 00:31:06,580
financial comments and cannot be relied upon as
868
00:31:06,580 --> 00:31:08,160
pertaining to your specific situation.
869
00:31:08,400 --> 00:31:10,340
Wealth Enhancement Group cannot guarantee that using the
870
00:31:10,340 --> 00:31:12,360
information from this show will generate profits or
871
00:31:12,360 --> 00:31:13,460
ensure freedom from loss.
872
00:31:13,660 --> 00:31:15,840
Listeners should consult their own financial advisors or
873
00:31:15,840 --> 00:31:17,940
conduct their own due diligence before making any
874
00:31:17,940 --> 00:31:18,700
financial decisions.
