I'm 60 with ALL PRE-TAX (401k, IRA, etc.). How Do I Minimize Taxes (ROTH CONVERSION CASE)?

1st video i've watched of yours and i'm actually shocked how good it was compared to others i've sat through. Well done.

As a soon retiree, keeping my 401k on course after a rocky 2022 is top priority. I have been reading of lnvestors making up to 250k ROI in this current crashing market, any recommendations to scale up my ROI before retirement will be highly appreciated.

Recently, I've been pondering retirement, unsure if my 401(k) and IRA will provide a stable future. I've also put $800K into the stock market, encountering fluctuations with limited gains. i need an approach that will align with my risk tolerance and financial goals

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

Retire early and draw down some of that pretax at age 60. Trust me you will enjoy your money at 60 vs 75.

Cyanne or cayenne, I laughed out loud when you said that!! Thanks for taking us through a mostly all pre-tax retirement portfolio impact scenario Ari. That’s what my husband and I are facing when I retire in 2 years and he retires the year after me. Roth conversions annually coupled with delaying our SS will address it for us!

I'm a math nerd and actually familiar with the what and why of ROTH conversions, but this was a really nice overview, particularly with the 4 colored lines that represent the borders between tax brackets. It's my opinion that there is hardly any difference between 22% vs 24% so just go up to 24%.

I really love all your case study analysis. They offer more confidence when someone is unsure about their financial situation. Good job my friend

Ari, I ran into this video of yours and I am seriously looking into converting my pre-tax 401k to Roth (in incremental amounts over time), just like you mention. I'm 55 now and my wife is 51, and we are in very similar situation as the hypothetical couple. I am looking into your sites/resources now, and I just subscribed.

Hello Ari, really well done conversion video. I improved my understanding a little bit. a while to go till retirement for me. Definitely starting to deep dive into Roth Conversion with minimum tax implications for the future. Thank you.

Thanks, this explains RMDs better than anyone else I have ever listened to or read !

One flaw about going into the next tax bracket (without regard to IRMAA surcharges) is that ONLY those income dollars above the bracket upper limit are subject to the n3x5 higher income tax rate. I don’t think you were clear about that. I’m guessing most viewers think that ALL their income is subject to the higher rate if their income exceeds the high end of the income brackets.

Not to mention, if one of them passes away, the surviving spouse is going to get really screwed on taxes. Even more of a reason for them to Roth convert as it is inevitable that one will outlive the other.

tax diversification accounts are very important. All 3 accounts should be distributed properly.

We have had RMD in Canada 🇨🇦 for years .. in Canada you can effectively double the tax percentages - a $235K income in Canada has a marginal tax rate of 53.53% .. it’s something big we need to be aware of and plan for in retirement

Financial planners HAVE to be the most overpaid occupation. 1% charged to each account. 100 accounts means their income for the year equals the lifetime investments of their average client. Quite unbelievable.

Remember if your 401(k) or IRA funds decline in a market correction or recession in that pre-retirement or early retirement window it's a doubly good time to convert and play the recovery of account values in your Roth.

Ari. Thanks for the great information. This scenario is very similar to mine. I am 60, my wife is 53. But, the one issue I don't see included is healthcare. This is a big issue if both are retired, since the cost of healthcare premiums would be near $24k/year, but if they keep income low, they qualify for significant subsidies. So, doing Roth conversions is good on one hand, but then this pushes them out of any healthcare subsidies through the ACA. The wife will have 13 years before reaching Medicare age, and the husband has 5 years. Are you including healthcare in the income they are showing? It does not seem to be enough, but perhaps I am missing something?

This is a great video. I’m 54 and have way too much tax-deferred money. I have a good sized after tax brokerage account but I have zero in Roth. I guess when I stop working (56), I need to eat cauliflower and pay tax from brokerage. Thanks for the great content.

You’ve considered tax brackets for “married filing jointly”. It gets even worse if one spouse dies first, and the survivor suddenly has to file as “single”! Show an example of what happens if one dies at say 75, 80, or 85. Should make ROTH conversion even more important. And don’t forget IRMMA changes!