Converting a traditional IRA or 401k employer plan to a Roth IRA is easy to accomplish and more popular than ever due to Runaway US debt. This already staggering US debt and unfunded liabilities’ will continue to increase according to a recent Forbes article. Additionally a recent Texas Tech University study concluded that investors with higher IQ’s are more likely to choose a Roth account .
So why is the smart money moving towards Roth’s, besides the benefit of tax free withdrawals for life and no required minimum distributions (RMD) at 70.5 years of age? Below are the top 3 reasons to convert soon, but before you jump too quickly always be sure to consult with your CPA or tax professional first.
- Do you think future taxes are heading North or South?
Traditionally as you age your income drops and your tax burden decreases, however many financial watchdogs believe that higher taxes may nullify this current lower bracket advantage. In fact Mike Patton of Forbes lays out a very compelling article as to why state and federal taxes will be heading higher (North) in the future. Many individual investors also feel the US and possibly their debt ridden state could want a bigger slice of their hard earned pie.
This strategy says, pay now and worry less down the road. After all isn’t that what retirement is all about?
- If the financial markets or banks collapsed could the government tax commodities or impose a windfall tax at a much higher rate?
Think it could never happen? Well it already has. The Crude oil windfall profit tax act that levied tax rates of up to 70% on profits was approved by congress in 1980. So there is legal precedence. Casey Research and Jim Rickards have written articles about how holding gold or silver in a Roth account may be your best strategy to avoid any future windfall tax.
- Do you think that President Obama was helping you or the government when he created myRA?
In 2014 by executive order and without any legislation Obama created myRA. This is a treasury backed IRA that pays a guaranteed rate of return well below the actual rate of inflation. Ron Paul, Jim Rogers and over thirty financial watchdogs are calling myRA the first step towards nationalization of retirement accounts. Nobody knows exactly what the government will do in a crisis but most experts believe your safest bet will be with a Roth.
The common denominator between all Certified Gold Exchanges clients is they seek protection from the US debt load and several decades of unfunded liabilities. So if you’re over 59.5 years of age there is a good chance you could benefit from converting to a Roth account. To check suitability please call one of our IRA success specialists today and tell them you’re thinking of converting to a Roth. Call 1-800-300-0715. We can show you how tax free income for life and more control of your financial future could be worth considering.
Source Information is updated on a monthly basis