What a Good Roth Conversion Plan ACTUALLY Looks At
In this segment, Craig Wear, CFP®, critiques the common practice of evaluating Roth conversion strategies solely on the "tax saved" figure, explaining that this metric merely compares what would have been paid without conversion and does not reflect actual cash flow. He argues that a robust conversion plan should instead focus on the net amount remaining after all taxes are paid—not just for the individual, but also for the spouse and heirs. Wear notes that a well‑designed plan often appears worse in the conversion year because of a real cash outlay, higher Medicare premiums, and increased taxation of Social Security benefits, which he frames as the "price of admission" rather than a sign of failure. The core message is that a plan that merely saves taxes but leaves the family with less overall wealth is not truly future‑proof.
