Do Not Miss Your Chance…
Hopefully, you know about how I feel about the Roth IRA. Right behind the Lord, my wife and family, the Roth is among the loves of my life. It’s such a valuable, and most-underappreciated, tool that could provide benefits to untold millions…IF they’d just see.
In fact, I love the Roth so much, I actually wrote a book on it, which you can find here.
Very frustrating, however, to see how many people do not take advantage. They fall for the simple, “My taxes will be lower in the future so it makes no sense to use a Roth.”
Oh really? Have you actually thought this through? Modeled it? Ran ANY numbers to validate that assertion?
If not, NOW is the perfect time to revisit this. Why? Because the markets are down 10% or so. When the markets are down is about the only reason to do any kind of market timing. You are literally getting an opportunity to move your IRA/401k/403b/TSP to a Roth at steep discounts.
Could those discounts get even steeper? Maybe. Probably even. But don’t wait to take advantage, hoping that the sale prices drops. Take advantage of the 10% off sale we have now. And if the sales price drops more in 6 months, do it again!
Oh, need I remind you that YEAR END is upon us? Thus, the sales price you have today will literally be GONE for 2018 in a few short weeks. And if the sales get better next year, ala deeper discounts, those coupons will only be good for 2019.
Use your coupons now, before year end to take advantage of this amazing opportunity!
Yes, moving assets, even at a discount, to a Roth WILL cause you tax. No two ways around it. Yes, if you’re relying on an Obamacare subsidy for your health insurance, moving assets to your Roth may jeopardize that, indeed. Yes, moving assets to your Roth may even increase your tax bracket from say 22% to 24%…oh no!
A 9% increase for the ability to NEVER, EVER have RMDs for you, or your surviving spouse. Never, EVER, pay income tax again, did I say EVER, on that amount that is in your Roth.
Never to have any of that income, EVER, be used to cause huge increases in Social Security taxation, Medicare premiums, moving tax free assets to taxable assets (Qualified Dividends/Long Term Capital Gains), leaving your spouse with even higher tax rates, higher taxes on Social Security, higher Medicare Premiums, leaving your heirs with mandatory distributions most likely at the time they are making the most money of their lives and thus in the highest tax bracket ever, on top of the affects that IRA distributions will on THEIR own financial aid, ability to take deductions, child credits etc.
But hey, that 9% increase on a tiny fraction of additional income, well, it’s just not worth it, right? I mean, my tax guy after all, would have told me to do this, right? Or my financial advisor. Or the teller at the bank, or the mail carrier, or, my Primary Care Physician….
When the market drops is your opportunity to act. DON’T MISS OUT. Analyze your situation and see if there are opportunities to take advantage of.
If only someone would have written a book on this.. Oh, right, I did! Once again, my shameless sales pitch, you can pick up my book on the benefits of the Roth here. And I hope you do.