Subscribe
Share
Share
Embed
Welcome to How to Retire on Time, a show that answers your questions about all things retirement, including income, taxes, Social Security, healthcare, and more. This show is an extension of the book How to Retire on Time, which you can grab today on Amazon or by going to www.howtoretireontime.com.
This show is intended for those within 10 years of their target retirement date or for those are are currently retired and are concerned about their ability to stay retired.
Welcome to How to Retire on Time, a show that answers your questions about all things retirement, including income taxes, Social Security, health care, and more. This show is an extension of the book, How to Retire on Time, which you can grab today on Amazon or by going to www.how to retire on time.com. My name is Mike Decker. I'm the author of the book, How to Retire on Time, but I'm also a licensed financial adviser, insurance agent, and tax professional, which means when it comes to financial topics, we can pretty much talk about it all. Now that said, please remember this is just a show.
Mike:Everything you hear should be considered informational as in not financial advice. If you want personalized financial advice, then request your wealth analysis from my team today by going to www.yourwealthanalysis.com. With me in this duty today is my esteemed colleague, mister David Fransen. David, thanks for being here today.
David:Yes. Hello, Mike.
Mike:David's gonna be reading your questions, and I'm gonna do my best to answer them. You can send your questions in right now to 913-363-1234. Once again, that's 913-363-1234. Or email them to hey mike@howtoretyme.com. Let's begin.
David:Hey, Mike. When would someone not want to do an IRA to Roth conversion?
Mike:A person, in my opinion, would not wanna do an IRA to Roth conversion when their current income, so typically, like, you know, working individual or there's just a higher tax situation, I mean, it's higher than than you would expect to get in retirement. So let's say you're earning 250,000 more of income overall, you know, from employment and other investments, and you plan to have a 150,000 gross income in retirement, maybe you wait, and then you just do it later.
David:Right.
Mike:That would make sense. If your income in retirement is kind of the same as what you're currently receiving or more, I actually know a lot of people where their income increases in retirement because they did not realize that they were living so below their means that they could have spent more money. Yeah. Those people probably should be doing it as well. But that that's kind of the idea here is, it's not necessarily when, it's more about what's happening now and what do you expect to happen in the future.
Mike:Also, those who have charitable intent, you also need to consider the fact that maybe you're gonna be gifting your RMD. There's a lot of regulations around that and there's limits to it, but maybe your RMD is 20,000 in 1 year, and you just gift it. So you don't pay taxes on that. That you have to be of RMD age to qualify for charitable gifting. What's it called?
Mike:A qualified charitable distribution, I think is the acronym.
David:Okay.
Mike:QCD, but, yeah, there's a lot of ways that you could dive in here and plan for it, but it just depends. And what's so interesting is I get a lot of people that are making a lot of money, and they say everyone all my friends are saying, do you hire Roth conversions? What do you think? And I explained to them. They said, that makes sense.
Mike:Thank you for confirming there's been a lot of peer pressure to do something that they didn't have full context of, or just everyone's doing it, so I should do it. Yeah. You know, don't be a lemming just running off the cliff. And there's a lot of people that say, I I don't even know what to do it, or how do how do I do this? So, yeah, be mindful of that.
Mike:Everyone's situation is different, but it really depends on what you're currently experiencing now, what you expect in the future, and what you expect tax rates to do in the future, and you plan around that. That's all the time we've got for the show today. If you enjoyed the show, consider subscribing to it wherever you get your podcast. Just search for how to retire on time. Discover if your portfolio is built to weather flat market cycles or if you're missing tax minimization opportunities that you may not even know exist.
Mike:Explore strategies that may be able to help you lower your overall risk while potentially increasing your overall growth and lifestyle flexibility. This is not your ordinary financial analysis. Learn more about Your Wealth Analysis and what it could do for you regardless of your age, asset, or target retirement date. Go to www.yourwealthanalysis.com today to learn more and get started.