@keithmachado-pp6fv , please email your mailing address to podcasts [at] purefinancial [dot] com and we'll put Ed Slott’s new book, The Retirement Savings Time Bomb Ticks Louder, in the mail to you! We still have a few copies of the book available for other viewers and listeners. Schedule a free financial assessment with Pure Financial Advisors and we'll send you a copy as well: purefinancial.com/lp/free-assessment/?.com&YMYW-489KM
@invictus_151123 күн бұрын
I love watching the guys reactions! C'mon Keith. Keep the videos coming.
@keithmachado-pp6fv23 күн бұрын
For the record, if you reread my comment I did not say to compare effective rate to marginal rate. To clarify what I was pointing out, if you are in the 24% marginal tax bracket today before conversion, you pay 24% on the entire conversion. Many advisors (perhaps not you but definitely Ed) talk about paying less tax dollars as keys to Roth conversions. You can pay more tax dollars and be in a higher bracket and still come out ahead by deferring. The reason you may pay more tax dollars is you have a higher balance when deferring. The real comparison needs to be tax % paid not dollars. The point I was making is when RMDs start, even if the RMD causes you to enter the 28% bracket, you don’t pay 28% on the whole amount, thus my reference to an effective rate of 20% was showing the “average” rate you pay on the RMD over multiple brackets (depending on your other income at that time of course). Since 20% is less than 24% the conversion in that example may not be beneficial. Are there other reasons to convert? Absolutely, the biggest one being the widow trap when your rates double. Tax rates could go higher by legislation so you overshoot your projection. Maybe you just feel better knowing your account balance is all your money or want your heirs to get it tax free.
@YourMoneyYourWealth23 күн бұрын
I hope you enjoyed their reply. I'm still happy to send you that book, just email me! Thanks for making KZbin fun, Keith! - Andi
@PH-dm8ew23 күн бұрын
Love your show, love your content and your jokes. You have helped me immensely over the years. However, listening to ed slott invokes the same feelings from me as the letter writer here. He was great once, but now is just using fear to sell not very good books.
@YourMoneyYourWealth23 күн бұрын
Thanks for your feedback - it seems Ed Slott hits a nerve!
@jmnthe3rd23 күн бұрын
Oh no! Someone on the Internet disagrees with me!
@antillie723 күн бұрын
I've been all Roth since I started my Roth IRA in 2003 and my Roth 401k in 2008. These days my retirement account assets are 86% Roth and I plan to Roth convert all of my traditional dollars between the ages of 60 (when I plan to retire) and 70 before I take SS at 70. The goal isn't to maximize how much money I have, I have plenty. The goal is to remove complications and such from the later years of my life. The income from my brokerage account will always fill up the standard deduction and the first couple of tax brackets so its not like I have any tax optimization reason to keep my traditional dollars traditional anyway. I am looking forward to one day living off of only long term capital gains, qualified dividends, and Roth withdrawals.
@YourMoneyYourWealth23 күн бұрын
Thanks for sharing your strategy, and thanks for watching!
@daveschmarder-195023 күн бұрын
Al is left handed just like myself. Skills learned later (computer mouse, calculator, sending morse code) are all done right handed. )
@YourMoneyYourWealth23 күн бұрын
Andi here - I'm a lefty as well. Using scissors, mouse, and playing guitar (okay, fumbling with a guitar) I do right handed. Throwing a frisbee I'm completely ambidextrous. Lefties unite!!
@daveschmarder-195023 күн бұрын
@@YourMoneyYourWealth Cool Andi! I once bought a left handed pair of scissors. Throwing balls is right handed too. I use both hands to write on a blackboard. Left handers are in their right mind!
@MarkJames-cs2st23 күн бұрын
Love the YMYW show. Joe and Al are so funny. I hope I receive a copy of Ed Slott’s new book. Keep up the great show because it makes my day!
@YourMoneyYourWealth23 күн бұрын
Thanks for the kind words Mark, and thanks for listening! If you put in your free assessment request you should hear about the book soon!
@Markazoid604123 күн бұрын
Too funny, I guess Keith is only looking at one scenario as opposed to many scenarios. If some people didn’t do Roth conversions every year between now and when they reach RMD age they would be paying a lot more in taxes when they get there.
@keithmachado-pp6fv23 күн бұрын
Good point. Yes my example was meant to show that a guest on their show, as well as other advisors such as Dave Ramsey and Susie Orman paint a broad brush such as “all debt is bad”, “cash value life insurance is a scam” or “Roth convert for everyone”. I prefer advisors like David McKnight who takes a more balanced view. In any event the point I am trying to make is that if RMDs are many years away, with inflation adjustments to the standard deduction, tax brackets, and IRMAA surcharge limits, anyone that has less than $1m in a tax deferred account really needs to do their own analysis and cut through the noise and catch phrases that sell books but can cause damage to the uneducated.
@CD-ql9hz23 күн бұрын
I think Ed Slott makes some good points but he comes across as a carnival barker. He’s not nearly as entertaining as Joe and Al!
@YourMoneyYourWealth23 күн бұрын
HA! Thanks for the feedback CD!
@aj191823 күн бұрын
Ed Slott is terrible! He gives blanket advice as if it’s applicable to everyone.
@YourMoneyYourWealth23 күн бұрын
Hey thanks for sharing your opinion!
@robn.593223 күн бұрын
@@YourMoneyYourWealth I love this response, it says it all!