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Retired? Think Twice About Hedge Funds #hedgefund #retirementplanning #retirement #palmbeach

Are you getting closer to your retirement or maybe you’re already retired and wondering, is a rough conversion a good strategy for me? In this video, we are going to share the three scenarios when a Roth Conversion is not a good strategy for you.

 

The first one

 

Maybe you’re currently in a really high tax bracket and you know that in the future, you could be in a lower tax bracket. If you start converting right now, you’re going to pay a lot of taxes instead of in the future paying lower taxes there.

 

The second scenario

 

Will be maybe you are saying, Oh, I’m really worried about those RMDs require minimum distributions in the future, so I’m going to start converting really fast because I want to convert all my money in my entire 401k, in traditional 401k in traditional 401ks or traditional IRA or 403b, I’m going to convert everything in just two years.

 

You’re going to go for a really high tax bracket for those two years, and you’re going to be giving all your money to the IRS, and you’re going to be losing all the compounding effect of your money in time. So it’s not a good strategy.

 

The third scenario

 

Will be maybe you already have your money invested in a 401k in a really aggressive way with a really high potential of growing there, but then you convert that money to a Roth IRA, but you leave the money in a really conservative portfolio with a really low opportunity to keep growing there.

 

You’re losing that opportunity of your money to keep growing in the other side. Be careful also with that. These are just three scenarios, but if you want to go more in detail for your particular case, always consult with a certified financial planner.

Alonso Rodriguez Segarra – CERTIFIED  FINANCIAL PLANNER®

Which provides hourly, fee-only, and fiduciary financial planning services. He has over 27 years of experience in the financial world and has been named among the Top 100 Financial Advisors in the US by Investopedia and by etf.com

 

Note: The comments given in this guide are for educational purposes only. Before making a financial decision, consult your financial advisor or conduct appropriate research. Remember that historical results are not a guarantee of future returns. In    the comments provided, this guide does not consider tax impacts. Always consult your particular case with a specialist. We are not your financial advisor, so remember that each case differs.

 

All rights to this guide are reserved, and the occasional mention of third-party brand names is made solely for educational and reference purposes, without any interest in financial gain. This information is for educational purposes only and does not represent an offer of products or services.

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