When Should You Use an LIRP

[@FinancialFastLane]

Great information, thanks for the interview David!

[@DavidMcKnight]

Thanks for having me Lane!

[@PatrickCarosi]

Hey Dave, I read your book actually2 times!...,: the power of zero. Great book! I am a licensed and appointed insurance agent that transitioned from real estae (agent) to this industry! So if someone does quality for a permanent life insurance then we can simply use an Annuity to help get them into the 0%. Do you have any thoughts on that or a video that covers that topic. I know the power of a properly structured Annuity can be powerful. Thanks again for your time and may God Bless you

[@Bondbeer]

Good video. Always like to listen to David. Unfortunately unless SS rules change it will become difficult for many to get to zero, however you can still apply the concepts of Power of Zero to get to a lower tax bracket, avoid IRMAA surcharges and the 3.8% NIT. The reason many won’t actually get to zero is that half of SS counts toward taxable income and is not adjusted for inflation. If you have 20 years before collecting SS a dual income couple could easily exceed $100k in SS which will likely not allow any other income to keep it tax free, a lofty goal to say the least for anyone with assets (aka the audience for these webcast's).

[@DavidMcKnight]

Totally true. 50% of SS counts as provisional income so it figures into the equation.

[@Bondbeer]

Interesting you use the analogy of 1 in the hand beats 2 in the bush to make a point why conservation is good. That is exactly my reason why not to convert. I would rather take my 1 in hand today in higher balance vs the risk of losses in future impacting the lower Roth account balance and the ability to take advantage of capital losses (if you withdraw and don’t convert).

[@romankutu9139]

Hi Dave, can I do Roth conversation at any age if I am still working for the same company that I have my 401K?

[@DavidMcKnight]

Are you saying convert your 401(k) at any time?

[@charlescook4248]

Feedback on the host’s audio is extremely annoying.

[@DavidMcKnight]

Thank you for your constructive feedback.