✅ School of Personal Finance Depending on your current income and tax bracket, now might be a great time to convert your accounts to a Roth IRA. In this video, I explain what a Roth conversion is and why the current market conditions make it more appealing to pull the trigger and pay the taxes now so you can enjoy tax free money later on. Subscribe Here: Check out School of Personal Finance blog: ★ CONNECT WITH RICH ON SOCIAL★ ▸Twitter: ▸Instagram: ▸Facebook: ▸Linked In: #schoolofpersonalfinance #personalfinance #financialeducation #financialplanning #financialfreedom #fire #financialindependence #richmccormack School of Personal Finance is an Investment Advisor registered with the State(s) of New York. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy, or the completeness of, any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions. Please contact us at 914-299-3843 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions. Additionally, we recommend you compare any account reports from SPF with the account statements from your Custodian. Please notify us if you do not receive statements from your Custodian on at least a quarterly basis. Our current disclosure brochure, Form ADV Part 2, is available for your review upon request, and on our website, www.schoolofpersonalfinance.com. This disclosure brochure, or a summary of material changes made, is also provided to our clients on an annual basis....(read more)
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With the current economic uncertainty due to the pandemic, many investors are wondering whether now is a good time to convert their traditional IRAs to Roth IRAs. While it's impossible to predict the future, there are a few factors to consider before making this decision. First and foremost, it's important to understand the difference between traditional and Roth IRAs. Traditional IRAs allow investors to make contributions with pre-tax dollars, which means they can reduce their taxable income each year. However, withdrawals from traditional IRAs are taxed as income in retirement. In contrast, Roth IRAs are funded with after-tax dollars, so contributions don't reduce taxable income. But, qualified withdrawals in retirement are tax-free. One reason to consider converting to a Roth IRA is if you expect to be in a higher tax bracket in retirement. By paying taxes on your contributions now, you can avoid paying higher taxes later when you withdraw your funds. However, if you expect to be in a lower tax bracket in retirement, it might be better to stick with a traditional IRA. Another factor to consider is your current financial situation. If you have a large amount of cash on hand, it might make sense to convert to a Roth IRA now. This is because you'll need to pay taxes on the conversion amount, and having the cash to cover that tax bill can make the process smoother. On the other hand, if you're currently experiencing financial hardship due to the pandemic, it might be better to hold off on a conversion until your situation stabilizes. Finally, it's important to consider the potential long-term benefits of a Roth IRA conversion. With a Roth IRA, you won't be required to take minimum distributions at age 72 like you would with a traditional IRA. This means you'll have more flexibility in retirement to manage your withdrawals and taxes. Overall, now could be a good time for some investors to consider converting to a Roth IRA. However, it's important to carefully evaluate your individual financial situation and consult with a financial advisor before making any decisions. By doing so, you can make the best choice for your long-term financial health. https://inflationprotection.org/should-roth-ira-conversions-be-considered-at-present/?feed_id=84981&_unique_id=642e26b299284 #Inflation #Retirement #GoldIRA #Wealth #Investing #convertrothira #financialeducation #howtoconverttoarothira #paytaxesonrothconversion #personalfinance #personalfinance101 #richmccormack #ROTH401k #roth401kvstraditional401k #rothconversion #RothIRA #rothiraconversion #rothiravs401k #rothiravstraditionalira #schoolofpersonalfinance #shouldidoarothconversion #TaxBrackets #TaxFree #taxfreeretirement #taxstrategy #whatisarothiraconversion #whentoconverttoarothira #RothIRA #convertrothira #financialeducation #howtoconverttoarothira #paytaxesonrothconversion #personalfinance #personalfinance101 #richmccormack #ROTH401k #roth401kvstraditional401k #rothconversion #RothIRA #rothiraconversion #rothiravs401k #rothiravstraditionalira #schoolofpersonalfinance #shouldidoarothconversion #TaxBrackets #TaxFree #taxfreeretirement #taxstrategy #whatisarothiraconversion #whentoconverttoarothira
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