A short YouTube video by Craig Wear, CFP® arguing that paying taxes now via Roth conversions can save millions and increase retirement financial freedom. The speaker contrasts paying taxes today with the common preference to defer taxes (e.g., in traditional IRAs), previews a promised explanation of why earlier tax payments can be advantageous, and signals a personal stance favoring proactive tax payments.
Why would you ever pay taxes now in the case of Roth conversions? Hey, welcome back to the channel. This is Craig Weir again. Glad that you're here with us. So by the end of this short video, I promise I'm going to reveal how paying taxes now can lead to millions of dollars in savings and a lot greater financial freedom for you in retirement. So a lot of people say to me, I see a lot of comments on our social media and YouTube posts that say, look, why would anybody willingly pay taxes today when you could defer them for years? And they kind of wear that as a badge of honor. Well, I've learned this, and it's worked for me my whole life. And I'm never going to pay taxes earlier. I'm going to always just wait and pay them at the last possible time. I remember one guy saying, you know, there's this misconception that deferring taxes in an IRA is always better. And to get to the point where you're ready to start transitioning to a different phase of your life, then I would say, yeah, tax deferral is always great.
