Craig Wear walks through a client's $1M IRA that grew to $2M and triggered massive required distributions. Medicare surcharges alone can cost a married couple up to $15,000 a year. Converting taxable assets now can save your heirs from decades of taxes.
Hey guys, welcome back to the channel. I just wanted to tell you about one conversation that changed my entire career. And it could save you hundreds of thousands of dollars of taxes. So here's the story. Fifteen years ago, a 70 year old gentleman, I'll name him Lynn, walked into my office. He had retired with a million dollars in his 401, rolled it to an IRA, and by the time he met with me the first year, he had to start taking RMDs. That amount had doubled to $2 million. But. But with the RMD starting, he faced tens of thousands of dollars in surprise taxes every year. So his CPA said, well, just take it. That's kind of the way things work. But Len had done some napkin math on his own and he had come to conclusion that converting everything that he had to a Roth would cost some upfront tax, but save his family from decades of compounding tax pain. And that conversation launched my Rothology journey. So let me give you just a couple of tips as takeaways from that conversation. Think long term. The thought of paying upfront taxes can really be uncomfortable. But by doing it, you can prevent decades of tax paying. Number two, don't underestimate Medicare surcharges. They're going to add up fast. And the more taxable income you have into retirement, the higher those things get. They could be as much as $15,000 a year for a married couple. Number three, converting today could save not just you millions of dollars of avoidable taxes, but your heirs from the same tax trap. I've created an RMD calculator that will give you not only an idea of what your RMDs are going to be, but we've added our special sauce to it. We've taken all the experiences we've gotten over the last 16 years, we've taken all the client outcomes that we've projected, and we've built those into the calculator so that you can see what the potential savings would be for you based on your age, based on the amount of IRA assets that you have covered compared to the thousands of people that we've helped. And I think that'd be really valuable for you to at least see how big the challenge could be. So click on the links below, click like, if you like this kind of stuff, subscribe to the channel. And if you're not already, and we'd love to be able to continue to keep resourcing, you take care of.
