David sits down with certified financial planner Mark Byelich to discuss how to avoid over-converting your Roth IRA.
They start the conversation by describing how over-converting your Roth IRA could sink your retirement plan.
According to David, you should execute a Roth conversion if your tax bracket is going to be higher during retirement than it is right now.
For stress-free retirement, David believes retirees should constantly think about future tax rates and ways to get to the zero percent tax bracket.
David and Mark predict that the Trump tax cuts will likely be extended, but they won’t be extended forever.
David reveals why the 24% tax bracket is his favorite of all tax brackets.
The Social Security Trust fund is projected to run out of money by 2032. David explains how social security benefits would be immediately cut by about 23%.
Mark and David break down the Backdoor Roth IRA and instances it makes sense to use it.
Mark is convinced the future of Roth IRAs is bright, but people must be careful when converting their money.
David explains why life insurance is a great retirement planning vehicle but only when kept for life and used appropriately.
LIRPs are a safe and productive way to grow a portion of your money, but they should never replace the stock portion of your portfolio.
According to David, the most outstanding part of LIRPs is the death benefit and long-term care coverage.
No matter how much money you have in your tax-deferred bucket, the good news is you still have eight or nine years to move your money to tax-free.
Mark and David agree that the Roth IRA is the only thing that both the government and everyday Americans love.
Mentioned in this episode:
David’s books: Power of Zero, Look Before Your LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code
PowerOfZero.com (free video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram
David McKnight on YouTube
Get David’s Tax-free Tool Kit at taxfreetoolkit.com