Typical Roth Conversions have a ‘built-in’ problem….
Roth Conversions are almost exclusively performed at the end of the year as one big lump-sum conversion.
This makes sense on the surface. Estimating your tax situation is easier later in the year therefore knowing the exact amount to convert is easiest in November/December.
But if we think about getting the most out of the money we are converting, this Roth Conversion strategy really doesn’t make all that much sense.
It would be similar to saving up 401k contributions towards the end of the year and making one big contribution.
This strategy leaves behind all of the positive benefits that can be achieved with dollar cost averaging.
In this video, we cover a different type of Roth Conversion ladder strategy and show how you can increase the power of each conversion by adjusting our Roth Conversion strategies.
In this video we cover:
✅ Explain dollar cost averaging and how it can benefit your Roth Conversion strategy
✅ How this laddering approach beats the end of the year conversion approach 75%+ of the time
✅ Why this approach intuitively makes sense and can increase your Roth IRA balance and minimize future tax liabilities
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Always remember, “You Don’t Need More Money; You Need a Better Plan”
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Safeguard Wealth Management is a Registered Investment Advisor in the State of WI. Safeguard Wealth Management is not an insurance provider. All content on Youtube is for informational purposes only and should not be taken as personal advice for your situation. You can read more disclosures at https://www.safeguardinvest.com/fiduciary