PODCAST EPISODE 153: ROTH AT ANY INCOME

EPISODE SUMMARY

In today’s episode of Your Business, Your Wealth, Paul and Cory dive deep into the one topic that many potential clients and entrepreneurs don’t know much about, and that’s starting a Roth IRA. With most incomes, there are huge amounts of capital to be made outside of the regular IRS income tax system with the use of a Roth IRA. On today’s podcast, Paul and Cory dive into the business of going about starting a backdoor Roth IRA and why firms often tell people they can’t.

WHAT WAS COVERED

  • 01:46 – How often they meet potential clients who don’t know that they could be opening a Roth IRA.
  • 02:36 – What contribution and deduction limits actually mean.
  • 02:56 – The income limits of IRA’s and Roth IRA’s, and why people think they can’t do it.
  • 08:38 – What happens tax–wise when you convert an IRA to Roth in a single year.
  • 10:56 – How much Mitt Romney has in Roth IRA’s.
  • 11:52 – Why there are huge amounts of capital to be made outside of the regular IRS income tax with a Roth IRA.
  • 12:26 – Why many entrepreneurs are not as likely to retire in a lower tax rate as the person that’s a high income earning executive.
  • 13:48 – How to pull off the backdoor IRA.
  • 14:25 – When you’re doing a conversion, you’re going to need cash in some other pot of money to pay the taxes.
  • 18:10 – How easy it is to put money into an IRA and convert it to a Roth IRA.
  • 19:22 – Why you want asset location, asset allocation and asset taxation.
  • 21:52 – One of the pitfalls of the backdoor Roth IRA.
  • 25:26 – The problem with the pro–rata tax rule.
  • 30:08 – Why business owners should ensure they are controlling the investment structure in their 401K
  • 32:46 – Why your advisor is not going to want to do the math with you.
  • 34:36 – How IRA’s are considered one of the stickiest assets for certain asset management firms.
  • 37:32 – What the financial industry has taught people
  • 37:50 – Why firms aren’t talking about the ability to do this.
  • 39:44 – A giveaway for listeners of the episode.

TWEETABLES

LINKS

Sound Financial Group’s Website for a Financial Inquiry Call – Info@sfgwa.com (Inquiry in the subject)

Your Business Your Wealth on Instagram

Your Business Your Wealth on Facebook

Sound Financial Group on LinkedIn

Paul Adam’s on LinkedIn

Cory Shepherd on LinkedIn

Cape Not Required (Cory’s Book)

Sound Financial Advice (Paul’s Book)

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MUSIC CREDITS

“Legends Are Made” Copyright 2017. Music, arrangement and lyrics by Sam Tinnesz, Savage Youth Music Publishing SESAC and Matt Bronleewe, UNSECRET Songs SESAC

ATTACHMENTS

PRODUCTION CREDITS

Podcast production and marketing by FullCast

Recorded using Switcher Studio: sales@switcherstudio.com