Episode #41: 4 Reasons Why You Might Benefit From Roth Conversions

Today’s Prep:

Have you considered doing a Roth conversion? Or did you even know they were an option? Here are four reasons to consider a Roth conversion and how they might fit in your tax strategy in the future.

(Click the featured times below to jump forward in the episode)

Equipping Points:

Following up on our conversation regarding tax strategies for the future, we talk about Roth conversions and how they can benefit you down the line. Here are four reasons you might want to look into a Roth conversion for yourself.

Consider this: what happens if tax rates go up in the future? Or what if you want to take a trip or do something extra fun in retirement but when you take out a bigger portion of funds get hit with a higher tax bracket?

Then thinking about your legacy, will your money be passed down tax-free? There are many questions to ask when it comes to Roth conversions and figuring out if it is the right thing for you. Not only that, but you may also want to consider the best time in life to do a conversion. But first, start with understanding what a Roth conversion is and whether or not you want to do it.

Even if you never choose to do a Roth conversion, it’s important to understand the options you have regarding your future tax bills. Seek out an advisor, do some research, and figure out (while you have the time) if this is a strategy you should be doing moving forward.

To hear all four of the reasons for a Roth conversion listen to the entire podcast or click on a specific one with the timestamps below.

[1:05] – What is a Roth IRA, again?

[2:58] – Reason #1: All conversions come out tax-free.

[6:42] – Reason #2: Unlike an IRA, there are no RMDs.

[8:01] – Reason #3: Roths can be inherited tax-free by heirs.

[9:40] – Reason #4: Distributions from your Roth do not cause your Social Security to be taxable.

[11:58] – When’s the right time in life to do a Roth conversion?


Today’s Takeaway:


Additional Resources:


More From David:

The host: David Dickens

Sign up for our weekly email newsletter:

We are an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives.

Investment advisory services are offered through Brookstone Capital Management LLC, an SEC Registered Investment Advisor. Kansas City Financial Advisors and Brookstone Capital Management LLC are separate companies.

Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. None of the information contained on this website shall constitute an offer to sell or solicit any offer to buy a security or any insurance product.

Any references to protection benefits or steady and reliable income streams on this website refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by insurance company. Annuities are not FDIC insured.

The information and opinions contained in any of the material requested from this website are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. They are given for informational purposes only and are not a solicitation to buy or sell any of the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Privacy Policy | Terms of Use

Call Now Button