When Is The Right Time For Roth Conversions?
Before initiating Roth conversions, ensure you can answer “YES” to all three essential questions, and if not, focus on accumulating cash, which serves as your conversion fuel.
January 19, 2021
Before initiating Roth conversions, ensure you can answer “YES” to all three essential questions, and if not, focus on accumulating cash, which serves as your conversion fuel.
In our daily schedules, there’s a crucial “Magic Window” where we decide our priorities. If you’d rather not handle financial complexities during this time, hiring a planner can streamline your journey and save you time.
While simplicity suffices in the beginning, a financial planner can offer clarity and guidance as complexities arise, saving time and reducing stress.
If you foresee higher taxes in the future and have most assets in pre-tax retirement plans, transitioning to tax-free investment vehicles is crucial—act now to devise a plan.
What can you gain from working with a financial planner, what are you missing?
A financial plan is like a roadmap, guiding you from where you are to where you want to be, aligning your goals with actionable steps for an optimal journey.
What to look for in a comprehensive financial plan.
Having a home equity line of credit (HELOC) ready before it’s needed is crucial, as waiting until a job loss or retirement can complicate approval, and moving homes may impact eligibility.
Shift your focus from short-term fluctuations in account value to accumulating shares of top-performing companies for long-term growth.
Focus on building your financial independence fuel by maximizing your income potential, as it offers greater opportunities for growth compared to solely reducing expenses.
To maximize the benefits of converting your IRA to a Roth, consider aligning your conversions with your current tax bracket.
Ensure your financial goals align with tax-efficient strategies by integrating tax planning into your investment decisions, maximizing vehicles like HSAs and Roth accounts while minimizing unnecessary tax burdens.