STOP! Why You Shouldn't Do a Roth Conversion

Ready For Retirement

James Conole, CFP®

Investment Planning, Bonds, Education, Stocks, Cash, Business, Dividend Investing, Retirement Planning, Retirement, Investing, Tax Planning

5 • 706 Ratings

🗓️ 28 November 2024

⏱️ 30 minutes

🔗️ Recording | iTunes | RSS

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Summary

Roth conversions are almost a buzzword today, with many people jumping into them like they’re a guaranteed fix for tax worries—much like rushing into surgery hoping it will solve all your problems. But just like surgery, Roth conversions require careful consideration, and they’re not always the right solution. Before deciding to convert, it’s essential to understand why not to do it. Here are some key reasons to skip—or at least pause—on Roth conversions: - Lower Future Tax Bracket: If you ...

Transcript

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0:00.0	This is another episode of Ready for Retirement.
0:05.0	I'm your host, James Canol, and I'm here to teach you how to get the most of the life with your money.
0:09.0	And now, on the episode.
0:11.0	What's up, James?
0:14.0	How are you doing?
0:15.0	I'm doing well. Have you ever been happy to get a surgery?
0:19.0	No.
0:20.0	I don't think most people are happy, but I have a
0:23.1	weird situation where I was really happy about the thought of getting surgery because I thought
0:27.2	it would fix all of my problems. I went to physical therapy. I got an MRI that set of this diagnosis.
0:33.3	I went to so many doctors. No one told me what to do. So at one point, I was like, look,
0:36.9	just open me up and just fixed me.
0:38.8	I'm in that much agony because of my hip because I play soccer too much and I love it.
0:42.4	And that's another episode.
0:43.6	But I'll see people come to me, and I'm sure you've seen it as well, where they go, James,
0:48.4	just tell me what Roth conversion do I do.
0:50.9	Is it the 22% bracket? Well, it's going to become 25, so I don't know. What bracket do I do?
0:55.5	They're conversion happy. And they just want to do a conversion because they think it's going to
0:59.6	fix all of their problems in the same way I thought surgery would fix all of my problems.
1:04.5	But before you do surgery, there are things we should look at. And so I want to talk to you
1:08.3	today about when it does and does not make sense to do these
1:11.5	Roth conversions. I like that analogy because it is like surgery because people don't realize this.
	...

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