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Retirement Planning

Don’t Fall into the Roth Conversion “Catch-Up” Trap [Video]

Is your Roth Conversion strategy maximizing your after-tax wealth in retirement? You can schedule an appointment with one of our Retirement Experts to look at your situation and help you plan for your future. Call us at (920) 544-0576 or go to https://www.safeguardinvest.com/contact. Are your tax-deferred accounts outgrowing your Roth Conversion strategy? Are you finding it difficult to minimize required minimum distributions because of this? You’re falling into the Roth Conversion ‘Catch-Up’ Trap!This trap is oftentimes created because retirees aren’t getting the most out of their conversion strategy. There are a few reasons for this. An important one is the timing of your conversions. Many retirees and advisors will wait until the end of the year to perform conversions. This can be problematic. For instance, if you perform a conversion at the end of the year, your tax deferred accounts have grown for the full year! Now at the end of the year, you are converting at a premium. Instead, this growth could have taken place within your conversion if you shift the timing of your conversion. In this video, we will discuss some important Roth Conversion strategies you can use to avoid this catch-up trap and gain control of your retirement tax situation. – – – – – – – – – – – – – – – – – Always remember, “You Don’t Need More Money; You Need a Better Plan”🍿 Subscribe to our channel: https://www.youtube.com/channel/UCVMA…🏆 Join our ‘Retirement Mastery’ Facebook Group: https://bit.ly/retirement-mastery-group📈 Talk with us about your retirement plan here: https://www.safeguardinvest.com/contact📚 The New 60/40: How the Next Generation of Retirees Can Achieve Radical Financial Freedom through Better Safe Investing – https://www.amazon.com/New-60-Generation-Financial-Investing/dp/B08H6TCMFNSafeguard 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

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Retirement Planning

3 Reasons to Perform Roth Conversions in 2021, 2022, and Beyond [Video]

Do you have a tax-efficient retirement income strategy that your after-tax wealth? You can schedule an appointment with one of our Retirement Experts to look at your situation and help you plan for your future. Call us at (920) 544-0576 or go to https://www.safeguardinvest.com/contact. Roth conversions are one of the most powerful tax strategies available to retirees right now. That is if you know how to maximize this strategy.Right now, we are seeing a lot of information in the media regarding conversions. However, this also means we are seeing a lot of misinformation around conversions as well. In our practice, there are three core reasons we believe you should perform Roth Conversions when they make sense for your situation. #1: Avoid Tax HurdlesWe discuss quite a few in this video:✅ The Social Security Tax Torpedo✅ Minimize RMDs (Required Minimum Distributions)✅ Avoid income related monthly adjustment amount (IRMAA)✅ Avoid the Capital Gain Bump Zone✅ and more…#2: Ensure Other Retirement Accounts are more ValuableMost assets you have will benefit from having less taxable income. Social Security can turn in a tax-free asset! Rental Income can fill up low and insignificant tax brackets. Unrealized gains in your brokerage account can be realized at a 0% rate. Roth conversions, if done properly can transform your retirement tax situation.#3: Defend Against Future Tax Hikes Most retirees that I speak with are concerned about future tax hikes. And understandably. The national debt may indirectly be one of the biggest wealth destroyers in the future. Learn how to defend against future tax hikes with Roth Converisons in this training. #RothConversions #RetirementIncomePlanning #TaxStrategies- – – – – – – – – – – – – – – – – – – – – – – Always remember, “You Don’t Need More Money; You Need a Better Plan”🍿 Subscribe to our channel: https://www.youtube.com/channel/UCVMA…🏆 Join our ‘Retirement Mastery’ Facebook Group: https://bit.ly/retirement-mastery-group📈 Talk with us about your retirement plan here: https://www.safeguardinvest.com/contact📚 The New 60/40: How the Next Generation of Retirees Can Achieve Radical Financial Freedom through Better Safe Investing – https://www.amazon.com/New-60-Generation-Financial-Investing/dp/B08H6TCMFNSafeguard 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

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Retirement Planning

Will the “Build Back Better” Plan Eliminate Roth IRAs? [For Good] [Video]

Will the “Build Back Better” Plan Eliminate Roth IRAs – Mega Backdoor Roth IRAs for Good?SUBSCRIBE to NOT being a transaction ever again… https://bit.ly/33TpKqDLike us on Facebook! https://www.facebook.com/Stop-Being-Sold-524309451006118Follow us on Twitter! https://twitter.com/stopbeingsoldVisit us on the web: https://stopbeingsold.com/The recent version of the Build Back Better Act has brought back retirement law changes that will curb high balance accounts and popular wealth building strategies including backdoor Roth IRAs and after-tax 401(k) contributions. The goal: Tax the wealthiest taxpayers to help pay for the new Social and Climate bill that is currently being debated in Congress.History of Roth: A Roth IRA can be a great way to save for retirement since the accounts have no required minimum distributions and you withdraw the money tax-free.The Roth IRA was introduced as part of the Taxpayer Relief Act of 1997.Is named for Senator William Roth, the author/founderHere’s some of the fine print:Backdoor Roth IRA’sBackdoor Roth IRA’s – These are where someone makes too much to contribute to a Roth IRA, and they can put non-deductible contributions to an IRA and immediately convert to a Roth (owing no taxes)Eliminated by limiting rollovers and conversions to taxable accounts after Dec 31, 2021.Backdoor Mega Roth IRA’sSame as the Backdoor Roth, except it allows much greater amounts to be deposited.Prohibits all after-tax contributions to 401(k)s after Dec. 31st, 2021.Also prohibits converting existing after-tax IRA amounts to a Roth IRA after Dec 31, 2021.Both Backdoor Roth and Mega Roth IRA’s are regardless of income levelRoth ConversionsEliminates Roth conversions for higher income earners above $400k for individuals and $450k for married couples after Dec 31, 2021.New contribution limitsProhibits new contributions for IRA holders with a total of $10 million in IRA assets.Applies to married couples with income over $450,000, and individual income over $400,000New distribution rules for larger accountsRequired to take a special minimum withdrawal of 50% of the amount over $10 million the year following you reaching this number.More restrictive provisions over $20 million.Begins Dec 31st, 2028New Reporting RequirementsRecordkeepers (TD/Schwab/Fidelity) will be required for annual reporting of all accounts over $2.5 million.Also, reporting of where the assets are held (Roth/Traditional)Begins dec 31, 2028Once this data is available it could lead to lowering the threshold of Special Minimum Withdrawals from $10 million to who knows whereLonger timeframe for IRS to go after violators (6 years, instead of 3)Stay tuned to this channel as this information is very fluid.. mega backdoor roth, roth ira withdrawal tax rules, roth ira eliminated, roth conversion eliminated, backdoor roth

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Retirement Planning

The Optimal Way to Pay Taxes on Your Roth Conversion [Video]

Is your Roth Conversion strategy maximizing your future after-tax wealth? Do you have a Roth Conversion strategy? You can schedule an appointment with one of our Retirement Experts to look at your situation and help you plan for your future. Call us at (920) 544-0576 or go to https://www.safeguardinvest.com/contact. In past videos, we’ve talked about different sources you can use to pay your Roth Conversion taxes. Everything from paying Roth Conversion taxes out of the actual conversion to paying conversion taxes out of your Roth IRA if you’re younger than 59 1/2.In today’s video, we round out this topic by discussing the optimal way to pay taxes on a Roth Conversion. Our goal with Roth Conversion strategies is two-fold:1. Convert money from less-tax preferenced accounts to tax-protected accounts AND2. Pay less in taxes today than we will pay down the roadYou will see as we go through this video, this ‘tax paying’ strategy accomplishes both of these. In this video we discuss:✅ How the right Roth Conversion strategies result in large conversions ending up in your Roth IRA✅ How to avoid underpayment penalties and estimated tax payments by paying your taxes on time✅ How to optimize Roth Conversion taxation and save on taxes throughout your retirement#RothConversion #RetirementIncomePlanning #TaxPlanning- – – – – – – – – – – – – – -Always remember, “You Don’t Need More Money; You Need a Better Plan”🍿 Subscribe to our channel: https://www.youtube.com/channel/UCVMA…🏆 Join our ‘Retirement Mastery’ Facebook Group: https://bit.ly/retirement-mastery-group📈 Talk with us about your retirement plan here: https://www.safeguardinvest.com/contact📚 The New 60/40: How the Next Generation of Retirees Can Achieve Radical Financial Freedom through Better Safe Investing – https://www.amazon.com/New-60-Generation-Financial-Investing/dp/B08H6TCMFNSafeguard 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

Categories
Retirement Planning

Don’t Fall for these Common Roth Conversion Mistakes! [Video]

Are you sure your retirement tax plan maximizes your after-tax wealth? You can schedule an appointment with one of our Retirement Experts to look at your situation and help you plan for your future. Call us at (920) 544-0576 or go to https://www.safeguardinvest.com/contact. We believe Roth Conversions are one of the most powerful tax planning tools retirees can be using right now. So much so, approx. 9 out of 10 plans we build have some kind of Roth Conversion element to them. And yet, every day I see retirees avoiding conversions because of some pervasive Roth Conversion myths. The right advice can be extremely beneficial to your retirement. That also means bad advice can be extremely destructive. These myths fit into the bad advice column. In this video, we dismantly two common Roth Conversion myths that we hear often from retirees. Those two myths are:1. “Conversions result in less money growing for your future. This costs you wealth.”2. “You never want to pay conversion taxes out of the conversion. It destroys the value of the conversion”Within this video, we’ll uncover a lot of fundamental reasons Roth Conversions make sense. We’ll show the math that dispels these miscalculations. Enjoy!#RothConversions #RetirementIncomePlanning- – – – – – – – – – – – – – – – – – – – – Always remember, “You Don’t Need More Money; You Need a Better Plan”🍿 Subscribe to our channel: https://www.youtube.com/channel/UCVMA…🏆 Join our ‘Retirement Mastery’ Facebook Group: https://bit.ly/retirement-mastery-group📈 Talk with us about your retirement plan here: https://www.safeguardinvest.com/contact📚 The New 60/40: How the Next Generation of Retirees Can Achieve Radical Financial Freedom through Better Safe Investing – https://www.amazon.com/New-60-Generation-Financial-Investing/dp/B08H6TCMFNSafeguard 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

Categories
Retirement Planning

Will Moving Affect Your Roth Conversion Strategy? [Video]

Do you have a tax-efficient retirement income strategy? You can schedule an appointment with one of our Retirement Experts to look at your situation and help you plan for your future. Call us at (920) 544-0576 or go to https://www.safeguardinvest.com/contact. Moving to another state in retirement is a common goal for many. Whether it be to save on taxes, change climates, or move closer to family, moving states can create a more complex planning situation. Specifically in terms of tax and Roth Conversion planning. Let’s say you’re moving from a state with state income tax to a state with no income tax. You might think as soon as you move you are now an official resident and no longer worrying about the pesky state taxes of your old state. This thinking is likely incorrect and it could affect tax planning greatly. Just as every state has a different tax code, they have different rules for when you are no longer a tax resident. Many follow something called the 183-day rule. We’ll discuss that in this video. Here are some other things we will talk about:✅ Should you perform a Roth conversion before you move states, after you move, or both? ✅ How will moving to another state affect my Roth Conversion strategy in general?✅ What are various rules that I have to follow to make a 2021 Roth Conversion successful if I am moving?#rothconversions #retirementincomeplanning #taxplanning #movinginretirement- – – – – – – – – – – – – – – – – – – – -Always remember, “You Don’t Need More Money; You Need a Better Plan”🍿 Subscribe to our channel: https://www.youtube.com/channel/UCVMA…🏆 Join our ‘Retirement Mastery’ Facebook Group: https://bit.ly/retirement-mastery-group📈 Talk with us about your retirement plan here: https://www.safeguardinvest.com/contact📚 The New 60/40: How the Next Generation of Retirees Can Achieve Radical Financial Freedom through Better Safe Investing – https://www.amazon.com/New-60-Generation-Financial-Investing/dp/B08H6TCMFNSafeguard 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