Let’s start with Roth conversions. Alex from Massachusetts asked whether he should convert more of his traditional IRA into a Roth while staying in the 24% tax bracket. Even if he remains in that bracket, the flexibility of Roth accounts is invaluable. Roth IRAs allow for tax-free withdrawals and are not subject to required minimum distributions (RMDs), giving you more control over your income in retirement. Plus, if one spouse passes away, the surviving spouse may be taxed at a higher single rate, making Roth conversions even more compelling. Putting higher-growth investments into a Roth also means more long-term gains without added tax burdens.

Then there’s Steve from San Diego. In just five years, he grew his portfolio from $100,000 to $775,000 by following tough-love advice from Joe and Big Al. With $40,000 from work and $47,000 from Social Security, his income is nearly covering his $100,000 annual expenses. The suggestion? He may be able to retire soon, but adding a bit more to savings and shifting some investments to safer assets can help protect against sequence-of-return risk—the danger of retiring during a market downturn.

Now let’s talk about real estate. Mike asked whether forming an LLC for his three duplexes would help with taxes. The short answer is no—LLCs don’t provide tax benefits for rental properties. Their primary value lies in asset protection. If a tenant sues, the LLC can shield your personal assets. While separate LLCs for each property offer the most protection, they also come with higher administrative costs. Liability insurance can be a simpler alternative or complement.

Charitable giving is another area where strategy matters. Qualified Charitable Distributions (QCDs) allow individuals over 70½ to donate directly from their IRA to charity—up to $100,000 annually, indexed for inflation. This reduces taxable income and fulfills RMD requirements. QCDs are ideal for those who are charitably inclined and taking the standard deduction.

For larger charitable intentions, Charitable Remainder Trusts (CRTs) or specifically Charitable Remainder Unitrusts (CRUTs) may be worth exploring. Horry wanted to know if he could use his IRA to fund a CRUT. Yes, but the structure must ensure at least 10% of the trust’s value goes to charity. The trust sells assets tax-free, provides income to the donor, and then donates the remainder. However, because CRUTs have administrative costs and complex tax rules, they’re best suited for those with significant assets.

Finally, Joe and Big Al reminded us of the importance of lowering equity risk as you approach retirement. Markets fluctuate, and pulling from stocks during downturns can rapidly drain your portfolio. Keeping enough in cash or bonds to cover a few years of expenses can help ride out rough markets without touching your long-term investments.

Retirement planning isn’t one-size-fits-all. But with careful tax management, smart charitable strategies, and a balanced investment approach, you can make your money last and leave a legacy you’re proud of.

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.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• 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 How to Retire Smarter: Tax Strategies, Rental Property Tips, and Giving Back appeared first on ROI TV.

Let’s break down how to avoid the pitfalls—and how one couple, Bob and Sally, turned a good Roth conversion strategy into a great one.

1. Roth Conversions and Tax Bracket Management

Many advisors recommend doing Roth conversions up to a certain tax bracket—like 10%, 12%, or 22%—to “fill the bucket” without spilling over into higher brackets like 24% or 32%.

Why? Because later in retirement, Required Minimum Distributions (RMDs) can push you into a higher tax bracket. That’s exactly what was projected to happen for Bob and Sally. Converting early at a lower rate would reduce their taxable IRA balances and lower future RMDs.

Initially, they planned to convert up to the 22% bracket. This approach saved them an estimated $485,000 in tax-adjusted portfolio value by age 90—already a win. But it could’ve been better.

2. Beware of the IRMA Surcharge Trap

What Bob and Sally didn’t expect? Their Roth conversions bumped their Modified Adjusted Gross Income (MAGI) just $1 over the IRMA threshold—triggering higher Medicare premiums.

The Income-Related Monthly Adjustment Amount (IRMAA) increased their Medicare Part B and D costs by $5,828 annually.

But that’s not all. Because they had to withdraw extra funds from their IRA to cover those healthcare surcharges, the opportunity cost over 25 years was an estimated $47,000 in lost investment growth.

Just one dollar over the limit created a compounding penalty that turned a good tax strategy into an expensive oversight.

3. A Better Strategy: Stay Below IRMA

Once they revised their approach and aimed just under the IRMA threshold, Bob and Sally saw huge gains.

Instead of converting all the way to the 22% tax bracket, they converted slightly less—but avoided IRMA surcharges. That small adjustment increased their projected portfolio value from $485,000 to $760,000.

Why the jump?

• Lower healthcare costs
• More assets left in their accounts to compound
• Better overall tax efficiency

Sometimes converting less can mean keeping more.

4. The Other Hidden Taxes of Roth Conversions

IRMA surcharges aren’t the only danger. A Roth conversion also affects:

• Social Security “tax torpedo”: Increases in provisional income can make up to 85% of your Social Security benefits taxable.
• Capital gains taxes: Higher MAGI can push long-term capital gains and dividends from 0% to 15% or even 20%.
• Your heirs’ tax brackets: If your beneficiaries are in lower tax brackets, they might have paid less tax on inherited traditional IRA dollars than you will converting them now.

Every tax lever affects another—and ignoring that can lead to thousands lost.

5. The Case for Comprehensive Roth Planning

Smart Roth conversion planning involves more than just your current tax bracket. It means understanding:

• IRMA thresholds
• Social Security taxation
• Capital gains interaction
• Future tax rates for your heirs
• Portfolio growth expectations
• Medicare costs

Many retirees benefit from using retirement planning software or working with a financial planner who models these interactions. At the very least, understanding where each tax trap lives on the map gives you a fighting chance.

6. Final Takeaways

If you’re doing Roth conversions—or thinking about them—keep these takeaways in mind:

• Roth conversions are powerful, but precision matters.
• IRMA surcharges can turn small missteps into expensive, recurring costs.
• Consider all the tax interactions, not just income taxes.
• Legacy planning and Medicare costs should factor into your strategy.
• A little foresight could mean hundreds of thousands in extra retirement dollars.

The right Roth strategy is less about brute force and more about finesse. Get it right, and your future self—and your heirs—will thank you.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

The post The Hidden Traps of Roth Conversions: How to Maximize Tax-Free Retirement Without Triggering Costly Surprises appeared first on ROI TV.

In this episode of Your Money, Your Wealth, Big Al Clopine and I laid out 11 specific steps that can guide you toward building and sustaining true financial independence. It’s not just about saving more—it’s about thinking strategically and living intentionally.

Here’s how you can get there:

Step 1: Take Inventory of Your Net Worth

Start by calculating your net worth:
Assets – Liabilities = Net Worth

List out your:

• Bank accounts
• Retirement savings
• Real estate
• Jewelry or valuables
• Any business assets

Then subtract your:

• Credit card balances
• Student loans
• Car loans
• Mortgage

You have to know where you’re starting before you can plot a course forward.

Step 2: Understand Your Cash Flow

Track your monthly income and expenses. Ask:

• What’s coming in consistently?
• Where is it going?
• Are you spending more than you earn?

Financial freedom depends on positive, intentional cash flow, not just a big salary.

Step 3: Define What Financial Freedom Means to You

It’s different for everyone:

• 54% say it means being debt-free
• 50% say it means living comfortably
• Only 13% say it means being rich

Your version of financial freedom should reflect your values, not someone else’s lifestyle.

Step 4: Pay Off Bad Debt

High-interest debt—especially credit cards—kills financial momentum. Example:

• $8,600 balance
• $272/month payment
• 53 months to pay off
• $5,600 in interest!

Make a plan to eliminate debt aggressively.

Step 5: Build an Emergency Fund

Before you invest or upgrade your lifestyle, save 3–6 months of essential expenses. This keeps you from falling back on credit cards during life’s unexpected turns.

Step 6: Invest Strategically

Once you’ve got cash flow and a safety net, invest intentionally. Consider:

• Diversified stock and bond portfolios
• Real estate
• Business ventures
• Index funds

Remember: your investment mix should match your goals and risk tolerance.

Step 7: Maximize Tax-Advantaged Accounts

Use every tool the tax code gives you:

• 401(k) or 403(b) — often with employer matches
• Traditional and Roth IRAs
• HSAs (if you’re eligible)

This reduces your tax bill now and in retirement.

Step 8: Consider Roth Conversions

Converting traditional IRA or 401(k) funds into a Roth lets you pay taxes now at lower rates and enjoy tax-free withdrawals later. It’s a smart move for many people in lower-income years or before RMDs hit.

Step 9: Create Passive Income Streams

These give you freedom from needing a paycheck:

• Rental properties
• Dividends and interest
• Royalties or side hustles
• Social Security (claimed strategically)

The goal: income that supports your lifestyle—even if you stop working.

Step 10: Adjust As Life Changes

Markets shift. Tax laws change. Health and goals evolve.

Revisit your financial plan annually:

• Are your investments aligned with your risk?
• Are your goals the same?
• Do your withdrawal strategies need a tweak?

Financial freedom isn’t static—it’s dynamic.

Step 11: Think About Sustainability, Not Just Wealth

The final key? Sustain it.

Don’t burn out. Don’t blow it. Create systems that let you enjoy your money, give back, and live with purpose. That’s what real freedom looks like.

Final Thoughts

There’s no magic number for financial freedom—but there is a strategy. These 11 steps are designed to take you from wherever you are to a place where your money supports your life—not the other way around.

Start small. Stay consistent. And remember: freedom isn’t just for the rich. It’s for anyone willing to plan for it.

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.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• 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 Your 11 Step Path to Financial Freedom appeared first on ROI TV.

This week, we walked through three very different retirement plans John Pierre, Tiger (not Woods), and James & his wife and each one had a different challenge: risk management, lifestyle creep, or navigating legacy wealth. I’ll take you through each, so you can see how we tackled their goals and avoided the most common pitfalls.

John Pierre: A Near-Retiree Without Bonds

Let’s start with John Pierre, age 61, and his wife, 58. They plan to retire in the next year or two and want to spend about $150,000 annually, with $80K for basic expenses and $50K for travel.

Their portfolio? Impressive:

• $2M in 401(k)s and IRAs
• $500K in Roth accounts
• $3M in brokerage
• $200K in cash
• Zero bond allocation

That last part? A red flag.

Joe and Big Al advised a 20–25% bond allocation—about $1.5M—to create a 10-year buffer of “safe money” during potential market downturns. That allows the rest of their portfolio to stay in equities for growth, but with a cushion to ride out the bad years.

We also talked about using municipal bonds in taxable accounts. They’re tax-efficient and can help smooth the process of Roth conversions, which we’re starting in 2025. Risk tolerance is critical here, especially if your gut tells you to sell during a downturn. Build your plan around how you actually behave, not how you wish you would.

Tiger (Not Woods): The Overconfident Millennial Millionaire

Tiger is 33, and he and his wife make $240,000 a year. Their numbers:

• $3.2M net worth
• $2M in brokerage
• $1M in pretax retirement
• $150K in Roth
• $375K in crypto
• $1M home with a 2.75% mortgage

He’s planning to retire when his taxable account hits $2.8M—and that’s excluding crypto. Add to that a potential $5 million inheritance, and you can imagine why Tiger feels like he’s winning the game.

But here’s the warning: overconfidence bias. Just because you hit it big once with a few stocks or crypto doesn’t mean that strategy will work forever.

Tiger wants to cut his retirement contributions, spend an extra $2,000/month, and lean into brokerage investments. Joe and Big Al hit the brakes. Inheritance is not a financial plan. And speculative returns are not predictable. The advice? Stay disciplined, keep saving, and don’t let lifestyle creep sabotage your future freedom.

James & His Wife: Rich in Assets, Not in Income—Yet

James and his wife, both 60, want to retire next year on $180,000 annually. Their portfolio:

• $2M in 401(k)s
• $2M in deferred compensation
• Purchased annuities with GLWBs (guaranteed lifetime withdrawal benefits)

They’ll get:

• $47K/year from annuities starting at 65
• $20K/year more from annuities starting at 74
• $50K/year in Social Security starting at 70

They’re also planning aggressive Roth conversions throughout their 60s to reduce the tax burden before RMDs (required minimum distributions) begin at 73.

Joe and Big Al offered a balanced take. They’re not the biggest fans of annuities (they usually benefit the insurance company more than you), but in this case, they work well as a bond substitute. That gives James room to take more risk with liquid assets to drive growth and liquidity for those planned conversions.

Why Delaying Social Security Matters

If you can afford to delay claiming Social Security, it can be one of the most powerful tools in your retirement plan. You gain 8% per year in delayed retirement credits plus COLA (cost-of-living adjustments).

But it’s not just about the math. Seeing your account balances drop in a market downturn while you delay withdrawals can be scary. That’s why Joe and Big Al always talk about Social Security as longevity insurance. You may not need the money at 62 but you might at 85. Plan accordingly.

Big Picture Advice

Here’s what all three scenarios had in common:

• Don’t rely on speculation or inheritance
• Keep a balanced asset allocation
• Know your true risk tolerance, especially once you stop working
• Avoid lifestyle creep your future self will thank you
• Make automated saving part of your plan so you don’t spend what you don’t see

We say this every week, but it’s worth repeating: retirement planning isn’t just about the numbers. It’s about behavior, discipline, and having the flexibility to adapt as life evolves.

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.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• 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 Real Retirement Plans That Work and Don’t appeared first on ROI TV.

1. Assess Your Starting Point If you’re in your 50s or early 60s, the clock may be ticking, but the game isn’t over. Many people nearing retirement believe they need $1.6 million, yet the average retirement savings for those aged 55-64 is around $400,000. That’s a big gap, but Joe and Big Al show that with the right strategy, you can still create a workable plan.

2. Spending Adjustments Make a Big Difference In a case study of a couple in their mid-50s, reducing annual spending from $100,000 to $90,000 extended their retirement savings by six years. This single tweak made their money last until age 84 instead of 78. It turns out, cutting back a little on travel, dining out, or unnecessary subscriptions could make a big long-term difference.

3. Working Longer or Delaying Retirement If you can work an extra two years, you gain twice: more money saved and fewer years drawing from your savings. In the case study, working until 66 (instead of 64) had almost the same positive impact as cutting expenses by 10%.

4. Roth Conversions and Tax Strategies Taxes don’t retire when you do. Joe and Big Al recommend using Roth conversions to shift money from traditional accounts to Roth IRAs while you’re still earning. Doing so can lower your future tax burden and give you tax-free income in retirement. Just make sure you use non-retirement assets to pay the tax bill, or you’ll lose the compounding advantage.

5. Sequence of Return Risk Is Real The early years of retirement are vulnerable to market downturns. If your portfolio drops and you’re withdrawing funds at the same time, it can cripple your future. Maintaining a balanced allocation and keeping your withdrawal rate low can protect your savings during rough markets.

6. The Triple Lindy Strategy Joe and Big Al combine four power moves: save more, spend less, delay Social Security, and work longer. They call this the “Triple Lindy,” and it could extend your savings lifespan to age 94. These adjustments may seem small individually, but together they have a massive impact.

7. Take Advantage of Catch-Up Contributions Starting in 2025, Americans aged 60–63 can contribute 150% of the standard catch-up limit. That’s $11,250 in additional contributions annually. Someone starting from $0 at age 59 could still end up with $340,000 by age 67 with diligent saving and a 6% return.

8. Plan for Health and Long-Term Care Long-term care costs can derail even the best retirement plan. With assisted living averaging $65,000 per year and skilled nursing at $100,000, make sure to include healthcare planning in your retirement strategy.

9. Understand Your Spending Patterns While many advisors say you’ll spend 80% of your pre-retirement income in retirement, Joe and Big Al warn this varies widely. Some retirees spend more early on during the “go-go” years and later face higher healthcare costs. Plan for flexible spending.

10. Use a Realistic Rate of Return Expecting a 6% return on your 401(k) is a conservative and practical benchmark for planning. Stick to a 60/40 stock-to-bond allocation and avoid emotional reactions that lead to buying high and selling low.

Final Thoughts It’s never too late to stage a retirement comeback. With the right mix of spending adjustments, tax planning, catch-up contributions, and strategic timing, you can extend your savings well into your 90s. And who knows? You might end up better off than if you’d started early but planned poorly.

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.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• 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 How to Stage a Retirement Comeback: Smart Strategies for Financial Freedom appeared first on ROI TV.

1. Safe Withdrawal Rate Planning for a High-Net-Worth Couple

A couple aged 58 and 56, with $4.3 million in assets, plans to retire in 2025 and spend $165,000 annually—including $65,000 on discretionary items like vacations. Their portfolio includes $2.6 million in deferred accounts, $1.6 million in taxable investments, and $325,000 in rental property equity.

Joe and Big Al crunched the numbers: a safe withdrawal rate supports $175,000 annually for 35 years, and even $225,000 in the first decade. But market risk looms large. The couple is advised to:

• Develop a diversified investment strategy
• Incorporate Roth conversions early for tax control
• Plan distributions to avoid spikes in ACA premiums

2. Using Roth Conversions After Moving to a Tax-Free State

James Bond—yes, really—asked if moving to a tax-free state like Texas or Nevada to do Roth conversions is legit. With $5.6 million in assets, he’d save serious money avoiding California’s income tax.

Big Al confirmed the move works—but only if it’s genuine. Change your driver’s license, voter registration, and spend at least 183 days there. Anything less could trigger an audit and retroactive tax bills.

3. Single Dad’s Retirement on a Lean Budget

A 54-year-old single father in San Francisco hopes to retire at 62. With $620,000 in investments, $3,000 in monthly rental income, and an $800 monthly parental pension, his goal of spending $72,000 annually is doable.

With smart investing, his portfolio could hit $1 million by 62. Adding in a $25,000 pension at 65 and $3,100 in monthly Social Security at 70, his strategy is conservative, flexible, and aligned with his lifestyle.

4. Stress-Free Career Planning at 45

Rob, 39, wants to scale back his high-stress job in six years, with an eye on early retirement in his 50s. His net worth is $1.8 million, and he saves $60,000 annually.

Big Al projected Rob could grow his portfolio to $2.3 million by 45 and $4.1 million by 55 at 6% returns. The advice? Keep saving, keep investing, and stay open to pivoting into lower-stress work when the time is right.

5. Managing Capital Gains on a Home Sale

A Fremont homeowner was concerned about exceeding the $500,000 capital gains exclusion. With a $300,000 purchase price and a $1.2 million sale value, taxes were inevitable.

After deductions, they face roughly $67,000 in federal and state taxes. Still, they walk away with massive equity and are reminded that the temporary spike in Medicare premiums is manageable given their financial windfall.

6. Pension vs. Lump Sum: What’s the Better Bet?

A 61-year-old with $3 million in liquid assets asked if he should take a $520,000 lump sum or a $38,000 per year pension.

Joe and Big Al found the pension’s net present value was comparable to the lump sum at common discount rates. The choice boils down to:

• Take the pension to preserve liquid assets while waiting for Social Security
• Take the lump sum if you want investment control or to leave a legacy

7. Real Estate Concentration vs. Retirement Account Diversification

Lloyd Christmas (no relation to Dumb & Dumber), a business owner with $7.3 million, prefers commercial real estate and isn’t a fan of retirement accounts.

While his strategy has worked so far, Joe and Big Al warned that market downturns could wipe out income. They advised:

• Opening Roth accounts for long-term tax-free income
• Creating a balanced mix of real estate and paper assets
• Stress-testing his strategy against worst-case scenarios

Final Takeaway: Customize Everything

No two retirement plans are alike. Whether you’re managing $600,000 or $6 million, the key is thoughtful strategy. That means managing taxes proactively, preparing for market downturns, and being honest about your lifestyle needs. With the right plan—and the right team—you can design a retirement that fits your future, not just your finances.

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.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• 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 Real-Life Strategies for Taxes, Withdrawals, and Wealth Building appeared first on ROI TV.

Tax Optimization in Retirement

Your retirement tax rate isn’t fixed—you can control it through smart planning. Strategic withdrawals from pre-tax accounts, Roth accounts, and brokerage accounts can help you stay within favorable tax brackets and even qualify for 0% long-term capital gains rates. For example, married couples filing jointly in 2025 can have taxable income up to $96,700 and still qualify for a 0% federal tax rate on long-term capital gains and qualified dividends.

Brokerage Accounts and the 0% Capital Gains Zone

Standard brokerage accounts may not offer tax-deductible contributions, but they provide unique tax planning opportunities in retirement. If your taxable income is below the $96,700 threshold, you can realize up to $26,700 in long-term capital gains tax-free. With proper timing and income management, reinvesting these gains also resets your cost basis, helping reduce future tax liability.

401(k)s and Roth 401(k)s: Know Your Brackets

Choosing between a traditional and Roth 401(k) hinges on your current and expected future tax brackets. Roth contributions are taxed now but grow and withdraw tax-free later. Traditional contributions are pre-tax but taxable upon withdrawal. Also, employer matches are almost always pre-tax. For retirees who give charitably, Qualified Charitable Distributions (QCDs) from traditional IRAs after age 70½ can reduce taxable income and satisfy Required Minimum Distributions (RMDs).

HSAs: A Triple Tax Advantage

Health Savings Accounts (HSAs) are an underrated tool in retirement. They offer a triple tax benefit: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. After age 65, you can also use HSA funds for non-medical expenses without penalty (though income taxes apply, similar to a traditional IRA). For retirees facing rising healthcare costs, HSAs offer unmatched flexibility and tax efficiency.

Inheritances and Strategic Withdrawals

Inherited non-retirement assets receive a step-up in basis, erasing capital gains accrued during the decedent’s life. However, inherited IRAs and 401(k)s must be fully withdrawn within 10 years under current law. Spreading withdrawals over the full period and coordinating with your tax situation can prevent large spikes in taxable income and protect more of your inheritance.

Social Security: Timing is Everything

Up to 85% of your Social Security benefits may be taxable depending on your provisional income, which includes half your benefits plus all other taxable income and some non-taxable interest. With careful planning, you can time Social Security collection and manage withdrawals from other accounts to minimize the taxable portion. In most states, Social Security benefits are not taxed at all.

A Holistic Approach to Retirement Tax Planning

The best results come from coordinating your withdrawal strategy across all account types—traditional, Roth, HSA, brokerage, and inherited accounts—while staying mindful of Social Security taxation and charitable goals. Retirement isn’t just about having enough; it’s about using what you have wisely to maximize income, reduce taxes, and ensure long-term financial security.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

The post How to Pay $0 in Taxes in Retirement appeared first on ROI TV.

Retirement Planning Strategies Across Decades

In your twenties, starting early with small, consistent contributions can make a significant impact. Saving just $190 per month, which is 7% of a $30,000 annual salary, and building an emergency fund of three months’ salary are foundational steps that set the stage for financial growth. The power of compounding interest over time is substantial.

By your thirties, as your salary increases to around $50,000, the focus should shift to saving $600 per month—about 14% of your income—to reach a target of $150,000 by age 40. It’s also crucial to build up your emergency fund, save for a home, and consider life insurance to protect your family.

In your forties, with a typical salary of $80,000, aim to save 20% of your income, equating to $1,300 per month. This strategy helps you achieve a target of $480,000 by age 50 while managing college savings, mortgage payments, and tax planning. The emphasis during this period is on maximizing contributions and diversifying investments.

By your fifties, it’s time to leverage catch-up contributions and increase savings to $1,100 per month to double your savings to $1 million by age 60. Tax-efficient strategies like Roth conversions and proper estate planning become increasingly important as you prepare for retirement.

Savings Goals and Benchmarks

Joe and Alan provided key savings benchmarks for each decade:

• One times your annual salary by age 30
• Three times your annual salary by age 40
• Six times your annual salary by age 50
• Ten times your annual salary by age 67

They emphasized the importance of small, incremental increases in savings, such as boosting contributions by 1% each quarter or dedicating bonuses and raises to savings. The magic of compounding interest makes starting early and consistently increasing contributions a critical part of achieving these benchmarks.

Risk Management and Investment Allocation

As you age, your financial strategy should shift from building capital to preserving it. In your twenties and thirties, higher-risk investments like stocks are ideal for growth. By your forties and fifties, the focus should shift to bonds and income-generating assets to stabilize your portfolio and provide reliable income in retirement.

Tax Planning and Roth Conversions

As your income grows, so does the importance of tax planning. Some strategies to minimize taxes on investment income, dividends, and interest. Roth conversions are a powerful way to shift money from pretax accounts to Roth IRAs, ensuring tax-free withdrawals in retirement. A diversified tax strategy can provide more control and flexibility during retirement.

Catch-Up Contributions and Retirement Account Limits

For those over 50, IRS catch-up provisions allow for additional contributions: $1,000 more for IRAs (totaling $8,000 annually) and $7,500 for 401(k)s (totaling $30,500 annually). Take advantage of these higher limits during their peak earning years.

Estate Planning and Risk Management

In your forties and fifties, estate planning becomes crucial. Setting up trusts, wills, powers of attorney, and healthcare directives protects your family and ensures your wishes are followed. It’s also vital to review beneficiary forms and maintain adequate life and disability insurance, especially if you have dependents and a mortgage.

Key Takeaways and Actionable Steps

Retirement planning is a lifelong journey. Consistent savings, smart investment strategies, and proactive tax planning are essential to reaching your financial goals. They encouraged viewers to use the Retirement Readiness Guide available on their website to evaluate their financial preparedness and implement effective strategies for every decade of life.

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.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• 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 Financial Planning and Retirement Strategies for Every Decade appeared first on ROI TV.

Retirement Planning for Jay and Her Husband

Jay and her husband are planning to retire in their late fifties or early sixties. Their current financial situation includes $285,000 in retirement savings, $200,000 in Roth IRAs, $85,000 in a rollover IRA, $75,000 in a Roth 401(k), and $10,000 in a brokerage account. Jay expects to receive a $50,000 annual pension starting in her early sixties, while her husband anticipates Social Security benefits ranging from $1,250 at age 62 to $2,450 at age 70.

Their assets also include a primary home valued at $800,000 with $330,000 remaining on the mortgage at 3.25% interest, and a rental property worth $800,000 generating $30,000 annually in net rental income. With monthly expenses around $8,000 and inflation-adjusted retirement expenses projected to hit $137,000 annually in 12 years, the team recommends aggressive saving to reach $1.5 million in retirement assets. Leveraging Roth IRAs, a Solo 401(k) for her husband, and maintaining a stock-heavy portfolio are key strategies due to their long investment horizon.

Asset Allocation and Investment Strategy

Jay’s Roth IRA and brokerage accounts are predominantly invested in stocks, aligning with her long-term goals and the presence of a fixed-income pension. The team supports this strategy, emphasizing low-cost index funds for diversification and growth. They also recommend continuing to max out Roth IRAs and contributing to a Solo 401(k) for her husband to optimize tax-free growth.

Bridging the Retirement Income Gap

To bridge the gap between early retirement and the start of pension and Social Security benefits, Jay and her husband plan to use their brokerage account, rental income, and retirement savings. They are considering selling their primary home and moving into their rental property to unlock equity and reduce living costs. Calculating inflation-adjusted living expenses is crucial to ensure their savings last without depleting assets prematurely.

Pension vs. Bond Investment Comparison

A question from Micah in South Dakota asked whether a $40,000 annual pension equates to having $1,000,000 in bonds under the 4% rule. Joe and Big Al confirmed that it is indeed comparable, as $40,000 annually from a pension matches the income generated by a $1 million bond portfolio withdrawing at 4% per year. While pensions offer guaranteed income and stability, bonds provide flexibility but come with market risks.

Roth Conversion Strategy for Barney and Betty

Barney and Betty, both retired, have $1.3 million in tax-deferred IRAs, $200,000 in Roth accounts, and $34,000 in pension income with cost-of-living adjustments. They plan to receive $60,000 annually in Social Security starting at age 70, with monthly expenses ranging between $6,000 and $7,000.

The team recommends maximizing Roth conversions up to the 12% tax bracket to lower future required minimum distributions (RMDs) and optimize their tax position. They explained the difference between marginal tax rates, which apply to Roth conversions, and effective tax rates, which are blended averages. Taking advantage of the 12% bracket allows for strategic tax planning.

General Retirement Planning Advice

The team emphasizes the importance of setting long-term goals, calculating future expenses with inflation, and targeting a specific savings amount to achieve financial independence. Leveraging tax-advantaged accounts like Roth IRAs and Solo 401(k)s, maintaining a stock-heavy investment portfolio for growth, and planning for cash flow needs during retirement are crucial. Consulting with financial professionals can help optimize complex scenarios involving multiple income sources and varied retirement timelines.

Conclusion

Successful retirement planning involves strategic saving, smart asset allocation, and careful tax planning. By leveraging tax-advantaged accounts, investing in low-cost index funds, and bridging income gaps with diversified savings, retirees can ensure lasting financial security and the flexibility to enjoy their golden years.

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.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• 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 Answering Viewer Questions on Retirement Planning, Roth Conversions, and Income Optimization appeared first on ROI TV.

Workplace Retirement Accounts and Common Mistakes
Understanding your workplace retirement account is the first step to avoiding costly errors. As of 2023, $36 trillion is invested in preferred retirement accounts, with 35% of those funds held in IRAs. The rest is spread across 401(k)s, government pension plans, and annuities. One major point of confusion for many retirees is taxation—every dollar withdrawn from these accounts is taxable, and early withdrawals before 59½ often result in a 10% penalty. Knowing the rules and planning your withdrawals accordingly can save you thousands of dollars over the course of your retirement.

Types of Retirement Accounts: Defined Contribution vs. Defined Benefit Plans
Workplace retirement accounts generally fall into two categories: defined contribution plans and defined benefit plans.

• Defined Contribution Plans like 401(k)s, 457 plans, and IRAs allow employees to contribute a specific amount each year. These are now more common because they are less costly for employers.
• Defined Benefit Plans, commonly known as pensions, promise a fixed income based on years of service and salary history. Although less common today, those with access to these plans must decide between taking a lump sum or monthly annuity payments based on their risk tolerance and financial goals.

Options for Employer-Sponsored Plans Post-Retirement
After retiring, you have three main options for your employer-sponsored retirement plan:

1. Leave it in the plan – This option is the simplest and often comes with lower fees and fiduciary protections.
2. Roll it into an IRA – This allows for more investment choices and easier management.
3. Withdraw it – Early withdrawals from a 401(k) are penalty-free at age 55 if you retire, but regular income taxes still apply.

Taxation and Required Minimum Distributions (RMDs)
Understanding the tax implications of your withdrawals is essential. Distributions from 401(k)s and IRAs are taxed as ordinary income, and withdrawing before age 59½ incurs a 10% penalty.

• RMDs are mandatory for traditional IRAs and 401(k)s starting at age 73, ensuring the IRS collects its share of taxes.
• Roth IRAs, however, are exempt from RMDs during the account holder’s lifetime, making them a powerful tool for tax-free growth.
• Inherited Roth IRAs are required to be fully distributed within ten years, though they remain tax-free if held for five years.

Roth Conversions and Tax Strategies
Roth conversions allow you to transfer funds from a traditional retirement account to a Roth IRA, paying taxes now to avoid them later. This strategy is especially useful if you expect your tax rate to rise in the future. Converting your accounts before age 73 also reduces RMD amounts, which can minimize your tax burden.

However, it’s crucial to plan these conversions carefully to avoid bumping into higher tax brackets or increasing your Medicare premiums. Properly timed Roth conversions can offer substantial tax savings and more flexibility in retirement.

Beneficiary Designations and Estate Planning
One of the most overlooked aspects of retirement planning is beneficiary designations. Remember, the beneficiaries listed on your retirement accounts override any instructions in your will. Non-spouse beneficiaries are required to fully distribute inherited IRAs within ten years. For Roth IRAs, these distributions remain tax-free if the account has been held for at least five years.

To avoid unnecessary tax implications, always keep your beneficiary forms updated, especially after major life events like marriage, divorce, or the birth of a child.

Consolidating Multiple Retirement Accounts
If you’ve held multiple jobs throughout your career, you may have several 401(k) accounts scattered across different employers. Consolidating these accounts into a single IRA simplifies management, reduces fees, and makes it easier to maintain a cohesive investment strategy.

Consolidation also helps with RMD calculations, making it easier to plan your withdrawals without the hassle of managing multiple accounts. As Kurt from La Jolla learned, consolidating accounts can make retirement much more straightforward and stress-free.

Retirement Readiness and Resources
Preparing for retirement is more than just saving money—it’s about understanding your options and making strategic decisions that optimize your wealth. Joe and Big Al recommend downloading the Retirement Readiness Guide to explore detailed strategies for accessing savings accounts, understanding account types, and planning for the future.

With the right knowledge, managing your workplace retirement accounts can be a straightforward process that secures your financial future. By understanding your options, avoiding common mistakes, and implementing smart strategies, you can turn your retirement savings into a powerful tool for financial independence.

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.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• 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 Maximizing Your Workplace Retirement Accounts appeared first on ROI TV.

Roth Conversions and Trust Utilization
Roth conversions are a powerful tool for reducing your long-term tax liability. By converting traditional IRA funds into a Roth IRA, you pay taxes upfront, allowing your investments to grow tax-free moving forward. But the key question for many investors is: how do you fund the taxes owed during conversion?
Ted from Madison, Wisconsin, found himself in this very situation. With $3.2 million in tax-deferred accounts and a $1.6 million trust, he wanted to perform Roth conversions but didn’t have spare cash for the tax bill. Joe and Big Al suggested leveraging his trust assets to pay the taxes. Specifically, selling stocks within the trust that had minimal gains could generate the needed funds without incurring significant capital gains taxes.
Using a trust to pay for Roth conversion taxes can be incredibly strategic—if the trust document allows it. It’s essential to understand the terms of the trust to determine if distributions can be used for this purpose. Joe and Big Al also cautioned against using the trust to buy a house, as this could complicate his financial strategy and eliminate the $500,000 home sale exclusion. Instead, utilizing trust distributions smartly for tax obligations ensures tax efficiency while keeping the core investments intact.

Joint Ownership of Bank Accounts and Gift Tax Implications
Melissa from Rockport, Texas, brought up concerns about being added as a joint owner with rights of survivorship on her parents’ bank accounts. While it may seem like a straightforward way to access funds, it opens up potential gift tax implications and could result in a loss of the step-up in basis when her parents pass away.
Joe and Big Al explained that upon her parents’ death, Melissa would automatically become the sole owner of the funds. If she then distributes money to her nephews, she may need to file a gift tax return. The recommended solution? Remove her name from joint ownership and instead, consider transfer-on-death accounts or a trust. These options maintain the step-up in basis and prevent unnecessary gift tax issues while ensuring her parents’ wishes are honored.

Retirement Planning and Feasibility Analysis
Theodore and Louise from North Seattle shared their retirement plan, which included $78,000 in annual pension income, $72,000 from Social Security at age 67, and $2 million in liquid assets. Joe and Big Al confirmed that their plan was not only feasible but strategically sound. With their fixed income covering all their expenses, their retirement savings could remain largely untouched, allowing their investments to continue growing.
A critical recommendation for Theodore was to take advantage of spousal IRA contributions. Since Louise still has earned income, Theodore can continue contributing to his Roth IRA, maximizing their tax-advantaged savings even further.

Roth IRA Contributions and Limits
A common question that arises is whether you can contribute to multiple Roth accounts. Theodore wondered if he could fund both his employer’s Roth 403(b) and a personal Roth IRA simultaneously. The answer is yes—these are separate accounts, each with its own contribution limits.
For 2025, the limits are $30,000 for the Roth 403(b) (including catch-up contributions) and $8,000 for the Roth IRA. Joe and Big Al emphasized the importance of maximizing both accounts if financially possible, as the tax-free growth and future tax-free withdrawals can significantly boost retirement security.

Roth Conversions Strategy and Tax Payment
Ralph and Alice from Honeymooners had a solid plan to convert $40,000 annually from their traditional IRA into a Roth IRA. They planned to use Required Minimum Distributions (RMDs) from an inherited IRA to pay the taxes, reducing the financial strain of the conversion. Joe and Big Al suggested staying within the 12% tax bracket to minimize tax exposure. They recommended using funds from their brokerage account to cover any additional tax needs, ensuring the conversions remain cost-effective.
The long-term benefit of this strategy is substantial. By converting smaller amounts annually, Ralph and Alice can minimize RMDs in the future, effectively reducing their tax burden when Social Security kicks in and their income rises.

Grandchildren’s Roth IRA Contributions
Mark from Encinitas had a forward-thinking question about contributing to Roth IRAs for his grandchildren. Joe and Big Al clarified that grandchildren need earned income to qualify for Roth IRA contributions. That means babysitting, lawn mowing, or any job with documented earnings would qualify them for up to $7,000 in annual contributions, limited to their earned income.
This strategy is powerful for compounding growth over decades, setting up the next generation for financial success. By starting young, even small contributions can snowball into substantial savings, providing a solid foundation for their financial future.

Strategic Planning for Long-Term Success
The insights shared by Joe and Big Al underscore the importance of strategic planning in retirement and wealth management. Whether it’s leveraging trusts for Roth conversions, maximizing Roth contributions, or setting up the next generation for success with early investments, every decision counts.
Understanding the rules, avoiding tax pitfalls, and prioritizing growth through smart investment strategies can ensure that retirement is not just financially secure but also prosperous. Taking proactive steps today can build a legacy that lasts for generations.

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.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• 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 Mastering Roth Conversions, Trust Utilization, and Retirement Planning for Optimal Tax Efficiency appeared first on ROI TV.

So how can you close the gap? The first step is understanding how much you’ll need.

Calculate Your Retirement Shortfall

Joe Anderson and Alan Copeland walk viewers through a practical formula: subtract your fixed income (such as Social Security or a pension) from your desired annual spending. Multiply that shortfall by 25—or divide it by 4%—to determine the total savings needed. For example, if you need $75,000 per year and expect $50,000 from Social Security, you’ll need $625,000 saved to cover the difference.

Don’t let that number intimidate you. Even starting at age 40 with zero savings, you can get there by saving consistently and investing wisely. Saving $10,000 annually with a 6% return could hit your target by age 66.

Supercharge Your Savings

If you feel behind, you’re not alone—but there are ways to boost your efforts. Aim to save at least 15%–20% of your income. If you’re starting late, you may need to hit closer to 26% of gross income to replace 80% of your earnings in retirement.

Here are a few tactical tips:

• Max out your employer match.
• Set aside 50% of any bonuses.
• Automate your savings increases with every raise.
• Pay yourself first before spending on anything else.

Get Smart About Social Security

Timing your Social Security claim is one of the biggest levers you can pull. While you can start at age 62, doing so means locking in a permanent 30% reduction. Waiting until age 70, on the other hand, boosts your benefit by 8% per year past full retirement age—maximizing your lifetime income.

Joe and Alan also highlighted Social Security’s diminishing role as your income grows. For someone earning $15,000 annually, benefits may replace 80% of income. For those earning $150,000, the replacement rate drops to just 30%. In other words, the more you make, the less you can rely on Social Security alone.

Minimize Taxes in Retirement

Don’t underestimate the impact of taxes on your retirement income. Required minimum distributions (RMDs) from traditional accounts, plus the loss of common deductions in retirement, can push you into a higher tax bracket than you expected.

Alan emphasized the importance of tax diversification. Spreading your savings across tax-deferred (like traditional IRAs), taxable brokerage accounts, and tax-free Roth IRAs gives you more flexibility—and more control—over your tax bill.

Consider Roth Contributions and Conversions

Roth IRAs provide powerful benefits: tax-free growth and withdrawals. For 2025, you can contribute $7,000—or $8,000 if you’re over 50. And even if you can’t contribute directly, you can consider Roth conversions. Moving money from a traditional IRA to a Roth IRA means paying taxes now but avoiding potentially higher taxes later.

This strategy can be especially effective in the years between retirement and RMD age, when your taxable income is lower.

Define Your Retirement Vision

It’s not just about the numbers. Joe and Alan encourage writing down your retirement goals—when you want to retire, how much you plan to spend, and whether you plan to relocate or downsize. Studies show that those who write down their goals are far more likely to achieve them.

A good retirement plan includes:

• Savings benchmarks
• Social Security strategy
• Investment allocation
• Contingency planning for health care or unexpected expenses

Use the Right Tools

To help you get started, Your Money Your Wealth offers a free Retirement Readiness Guide. It’s packed with worksheets and step-by-step instructions to calculate how much you need, how to save, and how to draw income efficiently.

Whether you’re decades from retirement or staring it down in the next few years, planning now can ensure you retire with financial confidence.

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.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• 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 How to Catch Up on Retirement: Saving Smarter, Spending Wisely, and Planning Strategically appeared first on ROI TV.

Introduction to Roth IRAs

Roth Individual Retirement Accounts (IRAs) offer a powerful avenue for tax-free growth and withdrawals in retirement. Unlike traditional IRAs, contributions to Roth IRAs are made with after-tax dollars, allowing your investments to grow tax-free and enabling tax-free withdrawals during retirement. Additionally, Roth IRAs are not subject to required minimum distributions (RMDs), providing greater flexibility in retirement planning.

Contribution Limits and Income Parameters for 2025

For the tax year 2025, the contribution limits for Roth IRAs are as follows:

• Individuals under age 50: Up to $7,000.
• Individuals aged 50 and older: Up to $8,000, which includes a $1,000 catch-up contribution.

Eligibility to contribute to a Roth IRA is determined by your modified adjusted gross income (MAGI):

• Single Filers:
  • Full contribution allowed if MAGI is less than $150,000.
  • Partial contributions permitted if MAGI is between $150,000 and $165,000.
  • No contribution allowed if MAGI exceeds $165,000.
• Married Filing Jointly:
  • Full contribution allowed if combined MAGI is less than $236,000.
  • Partial contributions permitted if MAGI is between $236,000 and $246,000.
  • No contribution allowed if MAGI exceeds $246,000.

These thresholds have been adjusted for inflation from previous years.

irs.gov

Maximizing Contributions

To fully leverage the benefits of a Roth IRA:

1. Assess Eligibility: Determine your MAGI to confirm your eligibility for full or partial contributions.
2. Contribute Early: Making contributions early in the year allows more time for potential growth.
3. Utilize Catch-Up Contributions: If you’re aged 50 or older, take advantage of the additional $1,000 contribution limit.

Roth Conversions: A Strategic Approach

If your income exceeds the Roth IRA contribution limits, or if you have significant assets in traditional retirement accounts, a Roth conversion may be a beneficial strategy. This involves transferring funds from a traditional IRA or 401(k) into a Roth IRA, paying taxes on the converted amount now to enjoy tax-free withdrawals later.

Situations Favorable for Roth Conversions:

• Lower Income Years: Converting during years when your income is lower can minimize the tax impact.
• Market Downturns: Converting investments when their value has decreased can result in a lower tax bill, allowing for potential tax-free growth when the market recovers.
• Anticipation of Higher Future Taxes: If you expect to be in a higher tax bracket in the future, paying taxes now at a lower rate can be advantageous.

Considerations and Potential Pitfalls

While Roth IRAs offer numerous benefits, it’s essential to be aware of potential pitfalls:

• Tax Implications: Conversions increase your taxable income for the year, which could push you into a higher tax bracket or affect eligibility for certain tax credits.
• Medicare Premiums: Higher taxable income can increase Medicare Part B and D premiums.
• Pro-Rata Rule: If you have both pre-tax and after-tax contributions in traditional IRAs, the IRS requires that any conversion include a proportional amount of both, which can complicate the tax implications.

Inheritance Considerations

Roth IRAs can be a valuable tool for estate planning. Beneficiaries can inherit Roth IRAs tax-free, though non-spouse beneficiaries are required to fully distribute the account within 10 years of the original owner’s death. This allows for continued tax-free growth during that period.

Backdoor Roth IRAs

For high-income earners who exceed the Roth IRA income limits, a backdoor Roth IRA provides a workaround. This involves making a non-deductible contribution to a traditional IRA and then converting it to a Roth IRA. It’s crucial to understand the pro-rata rule and potential tax implications before pursuing this strategy.

Conclusion

Roth IRAs offer significant advantages for tax-free income in retirement. By understanding the contribution limits, income thresholds, and strategic conversion methods, you can effectively incorporate Roth IRAs into your retirement planning to maximize tax efficiency and financial flexibility.

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.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• 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 Rock Your Retirement with a Roth IRA appeared first on ROI TV.

Why Retirement Planning Matters More Than Ever

With new provisions introduced through Secure Act 2.0, retirees and pre-retirees need to rethink how they approach required minimum distributions (RMDs), Roth conversions, and tax-efficient withdrawal strategies. Slott emphasizes that retirement savings accounts are “time bombs” if not handled properly. The reason? Taxes.

Many retirees assume their tax burden will decrease in retirement, but that isn’t always the case. As Slott points out, the tax-deferred money sitting in traditional IRAs and 401(k)s will eventually be taxed, and if not properly planned, this could result in a significant tax liability—especially if tax rates increase in the future.

Secure Act 2.0 and Key Retirement Changes for 2024

The Secure Act 2.0, signed into law in 2023, has introduced several updates that impact retirement savings, including:

• Changes to RMD Ages: The age at which retirees must begin withdrawing from tax-deferred retirement accounts has been pushed back further, allowing savers to keep their money invested longer.
• Expanded Roth 401(k) Options: More employers are offering Roth 401(k) plans, which allow workers to contribute post-tax dollars and enjoy tax-free growth and withdrawals.
• Catch-Up Contributions for Higher Earners: Workers over 50 can contribute more to their retirement accounts, with increased limits for those making over a certain income threshold.

Understanding these changes is crucial for anyone looking to optimize their retirement strategy and reduce future tax liabilities.

Why Roth Conversions Are More Important Than Ever

One of the biggest takeaways from Slott’s discussion is the power of Roth conversions. Many retirees and pre-retirees are sitting on large traditional IRA balances that will be subject to future taxes. Converting some of these funds into a Roth IRA can be a strategic move, especially when tax rates are lower.

Slott and the Your Money, Your Wealth team emphasize the importance of doing Roth conversions early and strategically to spread out the tax impact over several years while benefiting from tax-free growth in retirement.

Avoiding the Retirement Tax Trap

One common mistake Slott warns against is failing to plan for taxes on Social Security and RMDs. Many retirees don’t realize that their Social Security benefits can be taxed if they have too much taxable income, including RMDs from traditional IRAs. Proper tax planning—such as utilizing Roth accounts or taking strategic withdrawals—can help retirees avoid unnecessary taxes and keep more of their hard-earned savings.

Final Thoughts: Take Control of Your Retirement Now

Ed Slott’s insights on Your Money, Your Wealth highlight the critical importance of proactive tax planning in retirement. With evolving tax laws and new retirement regulations, individuals who take the time to understand their options and implement strategies like Roth conversions, tax-efficient withdrawals, and careful RMD planning can maximize their savings and minimize tax burdens.

For those looking to stay ahead of the curve, Slott’s book The Retirement Savings Time Bomb Ticks Louder provides in-depth guidance on navigating today’s complex retirement landscape. And as always, Your Money, Your Wealth continues to bring expert insights to help listeners make smarter financial decisions.

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.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• 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 The Retirement Savings Time Bomb appeared first on ROI TV.

In this blog post, we’ll explore recession-proofing strategies like portfolio positioning, staying invested, and Roth IRA conversions that can help ensure you stay on track with your long-term financial goals. Read on to learn how to secure your financial future—no matter what the economy has in store.

Understanding the Signs of a Recession

Recessions are part of the economic cycle, and while they can’t be predicted with certainty, there are certain signs that may indicate one is coming. Key indicators to watch include:

• High inflation: When inflation rises, your purchasing power decreases, which can lead to a slowdown in consumer spending and overall economic activity.
• High unemployment: Rising jobless rates are often a telltale sign of a recession, as businesses cut back on hiring or lay off workers.
• Fluctuations in GDP: A decline in the Gross Domestic Product (GDP) over two consecutive quarters is one of the official markers of a recession.

While these signs may suggest a downturn, it’s important to remember that recessions vary in length and impact. While you can’t control the economy, you can prepare by strengthening your financial foundation and making proactive decisions.

Portfolio Positioning: How to Stay Disciplined

When economic uncertainty looms, it’s easy to get swept up in panic and make hasty investment decisions. However, one of the best strategies for managing through a recession is staying disciplined and sticking to a well-defined portfolio strategy.

Here are key steps to take when positioning your portfolio during market downturns:

• Dollar-Cost Averaging: This strategy involves investing a set amount at regular intervals, regardless of market conditions. Over time, this approach helps to smooth out the impact of market volatility and avoid the mistake of trying to time the market. By consistently investing, you’re buying more shares when prices are low and fewer when they are high, which helps reduce the average cost per share.
• Stay Invested: Even in the face of market downturns, staying invested is often the best long-term approach. Selling off assets during a dip locks in losses and prevents you from participating in the recovery when the market rebounds. History shows that markets recover over time, and those who stay invested tend to outperform those who panic and sell.
• Diversify Your Portfolio: Diversification is a key element of managing risk, especially during volatile periods. Spreading your investments across different asset classes—stocks, bonds, real estate, and cash—helps minimize the impact of poor performance in any one area. Diversifying between domestic and international markets can also protect against country-specific downturns.

By maintaining a long-term perspective and sticking to your investment plan, you can reduce risk while still allowing for growth in your portfolio.

Why Roth IRA Conversions Are a Smart Move During a Recession

Recessions often present a unique opportunity for Roth IRA conversions. A Roth conversion involves moving money from a traditional retirement account (like a 401(k) or traditional IRA) into a Roth IRA. The benefit? Roth IRAs grow tax-free, and withdrawals in retirement are tax-free as well.

Why is a Roth conversion so advantageous during a recession?

• Lower Taxes During Market Downturns: When the market is down, the value of your investments may be lower. This can be an excellent opportunity to convert to a Roth IRA at a lower tax cost. Since the amount you convert is taxed as ordinary income, a lower market value means you’ll pay less in taxes compared to converting during a market rally.
• Tax-Free Growth: Once your funds are in a Roth IRA, they will grow tax-free, providing a significant advantage in retirement. As tax rates rise in the future, having a Roth IRA can help you avoid higher taxes on your withdrawals, giving you more flexibility and control over your retirement income.
• No Required Minimum Distributions (RMDs): Unlike traditional IRAs, Roth IRAs are not subject to Required Minimum Distributions (RMDs) at age 73. This means you can leave your money to grow without the pressure of withdrawing it, which allows for better tax planning and financial flexibility in your later years.

Considering Roth conversions during a market downturn can lower your upfront tax bill and set you up for greater tax-free growth in the future. If you’re in a lower tax bracket due to economic uncertainty, now may be the perfect time to make this move.

How to Diversify and Protect Your Wealth During Uncertain Times

While a recession is often out of your control, how you position your finances is not. The following proactive strategies can help you protect your wealth during an economic downturn:

• Diversify Income Streams: Relying on a single source of income can be risky during a recession. Consider finding ways to diversify your income—whether it’s through side businesses, investments, or passive income sources like real estate. Multiple income streams can cushion the blow of job loss or reduced business earnings.
• Review Your Portfolio’s Asset Allocation: Ensure your portfolio is balanced and well-positioned to meet your retirement goals. A portfolio that is too heavily weighted in equities may be more vulnerable during a downturn, while one with more bonds or dividend-paying stocks may provide more stability and income. Work with your financial advisor to make sure your allocations are aligned with your goals and risk tolerance.
• Build an Emergency Fund: One of the best ways to prepare for any recession is by ensuring you have an emergency fund that covers at least 3-6 months of living expenses. This gives you a financial cushion in case of job loss, illness, or unexpected costs, allowing you to avoid dipping into your retirement savings during a difficult period.
• Leverage Tax Savings Strategies: In addition to Roth conversions, take advantage of other tax-saving opportunities to optimize your savings. Contributing the maximum to your 401(k) or IRA, utilizing tax-loss harvesting, and understanding your tax brackets can help lower your overall tax burden, especially during volatile economic times.

Conclusion: Take Control of Your Financial Future

Recessions can be unpredictable, but with the right financial strategies in place, you can protect your wealth and continue building for the future. By staying disciplined in your investments, considering Roth conversions, and diversifying your portfolio, you can navigate the challenges of economic downturns with confidence.

The key is to remain proactive, make well-informed decisions, and be prepared to adjust your strategy as needed. When the economy is uncertain, taking control of your finances ensures that you’ll be able to weather the storm and come out on top.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• 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 How to Prepare Your Finances for a Recession: Smart Strategies for Economic Uncertainty appeared first on ROI TV.