Mike from Tampa: A High Earner with Big Goals
Mike and his wife are bringing in $600,000 annually and saving aggressively. They’re maxing out their 401(k)s and setting aside an additional $5,000 to $10,000 each month in cash and investments. With $870,000 already invested, $104,000 in cash, and a fully paid $700,000 home, they’re building toward a $5–$10 million net worth by age 60–65.

Mike’s also dealing with $300,000 in student loan debt, managed under a pay-as-you-earn plan. With his income now higher, payments will increase to $1,200–$1,300 per month, but he’s planning to balance this by funding 529 college savings accounts for his two kids, aiming to hit $250,000 in total.

Kate from California: Nearing Retirement with Strong Assets
At 55, Kate is a single mother with a $6 million net worth. Her plan? Retire at 58 with a well-diversified portfolio: $1.3 million in a 401(k), $1.4 million in an IRA, $1.2 million in a brokerage account, $1.3 million in deferred income, and a paid-off primary residence.

Joe and Big Al advised her to switch her deferred income payout from five years to ten years. Why? It opens up more space for Roth conversions while minimizing tax brackets, avoiding massive RMDs later on. By age 65, her accounts could double in value—without planning, she could face $400,000 in taxable income annually just from distributions.

The Case for Roth IRA Conversions
Tactical Truth raised a great question: when should you do your Roth conversions? Joe and Big Al suggest January. It gives you the full year to pay quarterly taxes and allows those dollars to grow tax-free for an extra 12 months—especially helpful if the market grows 10% over the year.

Protecting Real Estate Gifts from In-Laws
MJ asked how to protect housing gifts from ex-partners. In states with community property laws, things can get tricky. Big Al recommended using separate property agreements or setting up a trust to shield the gift. It’s more legal than financial—but crucial for preserving family wealth.

Step-Up in Basis: Building on Inherited Property
What happens if you demolish an inherited house and rebuild? Figueras posed the question. Joe and Big Al confirmed that the stepped-up basis still applies to the value of the property at the time of inheritance. Improvements like a new build are simply added to the cost basis, meaning potential tax savings when the property is sold.

Gold: Still Just a Shiny Rock?
An old clip resurfaced in which Joe and Big Al recommended no more than 2% of a portfolio in gold. Eight years later, they stand by it. Gold doesn’t produce cash flow or dividends—it’s a hedge, not a growth engine. It can shine during inflation, but it’s no substitute for a diversified investment strategy.

Final Thoughts: Financial Success Is About Discipline
Whether you’re earning $600K like Mike or entering retirement like Kate, the principles stay the same: plan ahead, invest wisely, minimize taxes, and keep your eyes on long-term goals. From Roth conversions and 529s to deferred comp and real estate inheritance, smart moves today can protect your wealth tomorrow.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

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• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• 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.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post From $600K Income to Smart Roth Conversions: Real Strategies to Build Wealth and Retire Tax-Efficiently appeared first on ROI TV.

Hi, I’m Ric Edelman, and on this episode of The Truth About Money, we dove headfirst into something we don’t think about often enough: how unprepared most of us are for the unexpected.

Step 1: Financially Preparing for Natural Disasters

We’ve all seen it—floods, earthquakes, hurricanes. These things don’t give warning. Yet when I asked people on the street if they were financially ready for a disaster, most said no. The biggest reason? They never thought about it. That’s a problem.

Here are three simple steps to make sure a natural disaster doesn’t wipe you out financially:

1. Review your homeowner’s insurance. Make sure you’re covered for replacement cost, not just the current market value of your home. That’s what it’ll actually cost to rebuild.
2. Photograph everything. Document your valuables—furniture, electronics, clothing—and store those photos outside your home or in the cloud.
3. Keep essential documents handy. I’m talking Social Security cards, passports, birth certificates—have them ready to grab and go.

Step 2: CDs Aren’t Dead—For the Right People

Someone asked, “Are CDs still worth it?” Look, if you’re living on limited income and need principal protection, then yes—CDs, savings accounts, money markets, and Treasury bills still serve a purpose. They won’t make you rich, but they’ll help you sleep at night.

But remember, over 20 years, inflation cuts your purchasing power in half. That’s why diversification is key. I say it all the time: Don’t put all your eggs in one basket. Try 12 eggs in 12 baskets.

Step 3: Form an LLC—Even for the Family Side Hustle

If you or your spouse are running a small business, I strongly suggest forming an LLC. Why? Because if something goes wrong—someone trips and falls, equipment breaks—your personal assets (your home, your savings) could be at risk.

LLCs protect your family’s finances. They’re not expensive, and a quick consultation with a corporate attorney can save you from big headaches later.

Step 4: Rethink Life Expectancy—125 Is the New 85?

I know it sounds wild, but with biotech breakthroughs and AI-driven medicine, many researchers—like Ray Kurzweil—predict we’ll be living to 125 and beyond. That changes everything about how you plan your finances.

If you’re 60 and planning to retire, but you could live another 60+ years, will your savings last? That’s a conversation worth having. And it means retirement at 60 might become a thing of the past.

Final Thoughts

Being financially smart isn’t just about 401(k)s and investment portfolios—it’s about preparing for life’s curveballs. That includes natural disasters, inflation, evolving tech, and even how long you’re going to live.

Think big. Plan early. And always be ready—not just for tomorrow, but for 50 years from now.

All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.

Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.

The post Why Planning for Natural Disasters Is Just Smart Finance appeared first on ROI TV.