Protect Your Legacy with Roth Conversions

  • Home
  • Videos
  • Protect Your Legacy with Roth Conversions

TRANSCRIPT:

You may think of Roth conversions as an overly-talked-about way to save yourself a few bucks on taxes, but they can also save your spouse and your legacy. Hi, I’m Hunter Brockway, founder of Boca Retirement Strategies, here to guide you to a successful, stress-free retirement while spending more and avoiding being killed in taxes. Roth conversions are nothing new, and they are fantastic. For some reason, the tax savings for themselves isn’t enough motivation. So let’s talk about how Roth conversions can help your spouse and protect your legacy. As you age and your account value grows, because you are wisely invested to maintain and grow purchasing power and protect your legacy, the portion of your savings that Uncle Sam is waiting to get his hands on is also growing. Money put away in tax-deferred accounts isn’t allowed to sit there forever, and if you don’t pay taxes on your money, your spouse or heirs will be forced to. If, however, you make timely Roth conversions before and throughout retirement, you can take smaller bites out of your savings at a time, and then put that money into a Roth account for that money to grow tax-free forever.

If you pass away in 20 years before your spouse, your spouse gets to inherit your account and benefit from that two decades of tax-free growth and then make tax-free withdrawals. And the same goes for your heirs. When you pass away, if they properly inherit your tax-deferred account, they will likely be forced to withdraw that money over or within a 10-year period and pay taxes on all of that legacy, likely at the highest of their income years of their life to boot.

However, if you made timely Roth conversions, that converted money grows decades tax-free and grows your legacy and protects your legacy from Uncle Sam. So while you may think saving a few bucks today isn’t worth your while, ask if that same money compounded over decades is worth caring for your spouse or your legacy. If you have any financial questions, feel free to email them to contact us at BocaRetirement.com or check out our website BocaRetirement.com. I’m Hunter Brockway, founder of Boca Retirement Strategies. Enjoy your successful retirement and thank you for watching!

Start the Year Strong: Essential Financial Resources

Kick off the new year with tools to organize and optimize your finances. Gain access to our exclusive financial resources bundle, designed to help you take control of your retirement journey, by signing up below.

This field is for validation purposes and should be left unchanged.