Velomon Group

I'll be a panelist on Wednesday, October 22 where the topic will be Roth Conversion. Hope you can attend - should be quite informative.

Session 56: ​​How To Do a Tax-Free IRA to Roth IRA Conversion Learn from Patrick Grimes, James Beattey and Scott Ellsworth about Tax-Free IRA to Roth IRA Conversion

While everyone is focused on the Roth conversion tax, they miss the fact that conversion is a choice between two tax systems:

* There's the default system where we'll pay taxes on all income - forever - and pass the remaining tax liability to our heirs, or

* The 'alternate' tax system of 'pay the conversion tax and be rid of many taxes and risks forever - and pass those benefit on to your heirs.

How do you decide which tax system you want to live with?

There's only one answer. You MUST know which one will result in your lowest lifetime tax bill.

That's where our energy needs to be focused.

Don't get fixated on the conversion tax alone. It's just one of variable in the decision equation

Figure out which system financially benefits you first. If it's Roth conversion - great. Then let's figure out how to minimize the conversion tax so your net benefit is even greater (our specialty).

If the traditional system would be less expensive - the conversion tax is meaningless, and you can make the 'no-convert' decision with confidence.

Simple - but not simple.

The good news is that we can 'value' both tax systems so you can make the best decision for you.

Deciding to convert a traditional IRA to a Roth is an ROI calculation. There's an investment (the conversion tax) and a return (the post-conversion financial benefits of conversion and/or the financial consequences of not converting. Do you have what you need to make a good decision?

Question: Would you convert your Traditional IRA/401k to a Roth IRA - if the tax cost was Zero?

For most people - the only thing standing in the way of conversion is the cost of the taxes that must be paid. But that's an incomplete analysis at best.

Can you identify the four financial factors that must be considered to make a fully informed decision?

1. There is already a tax cost of not converting
2. You'll save investing fees when you stop paying them on money that's not yours (the embedded tax liability)
3. You may be able to protect your Social Security benefits from taxation
4. You will definitely save on lifetime Medicare premiums

Quantify those four factors (we can help), and you'll discover that the cost of not converting will FAR exceed (by multiples), the cost of converting.

Was a guest on the Default Profitable podcast that dropped today. The episode is about starting a business. Love to hear your comments.

‎Default Profitable: Ep89 Jay Beattey CEO and Founder Velomon Group on Apple Podcasts ‎Show Default Profitable, Ep Ep89 Jay Beattey CEO and Founder Velomon Group - Jun 19, 2024

WEBINAR: Inflation-Proof Income In Retirement 3 Strategies To Generate Dependable Retirement Income

Going Down! - Jay Beattey's No More Wall Street If you’re like me – at some point as a kid – you pushed all the buttons in an elevator, making life a bit more miserable for those with places to be. Elevators are like the stock market – they go up – and they go down. But when markets go down, unlike the elevator, […]

Your 401k contribution this week is going into a declining market - meaning you're likely to lose money immediately. What if your money was guaranteed never to go down, and could only go up instead? Wouldn't that be a better way to save and invest? Ask us how.

Here's a new podcast just dropping today on which I was a guest - talking about converting traditional IRAs, 401ks. etc - to Roths. Some good stuff!

Roth Conversions with Jay Beattey - LifeBlood You've heard of Roth conversions, but do you understand the risks of not doing it? Jay Beattey talks about all the important variables to consider!

Check this video out. It's getting pretty dicey out there in the money world!

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