Converting to a Roth IRA can be tricky business. For the right household, this is an excellent way to save money on retirement taxes. A Roth portfolio generates untaxed income, letting you keep more of your portfolio and Social Security. It also has no required minimum distributions (RMDs), maximizing your financial flexibility. But remember that […]
Tag: Roth
Is It Actually Possible to Lose Money in a Roth IRA?
1 Major Reason I Prefer a Roth Account for My Retirement Savings
I’ve been investing my retirement funds into Roth accounts for over a decade. While traditional retirement accounts are a great choice for many, there’s one reason why I love Roth accounts. Hint: It’s not just the tax savings. I love Roth retirement accounts for this 1 reason Many people love Roth accounts because they are […]
I’m a 43-Year-Old Divorced Dad With $315K in an IRA, $90K in a Roth and Other Accounts. Can I Retire at 57?
I’m 65 and Just Did a Roth IRA Conversion to Avoid RMDs. Does the 5-Year Rule Apply to Me?
Imagine that you’re 65 years old and just completed a Roth conversion during a low-tax year early in retirement to avoid future required minimum distributions (RMDs). However, not long after the conversion, you want to withdraw the money you just paid taxes on. But pursuing the withdrawal without first understanding the five-year rule for Roth […]
Is It Wise to Convert 20% of My 401(k) into a Roth IRA Each Year to Avoid Taxes and RMDs?
Can I Retire at 62 With $500k in a Roth IRA and $2,000 per Month Between Pension and Social Security?
Ultimately, whether you have enough to retire depends on your costs and your income. If you can live on a tight budget with the right circumstances, $2,000 a month from a pension and Social Security, combined with the right strategy with $500,000 in your Roth IRA may be enough to sustain you throughout your retirement. […]
Suze Orman Says You Should Be Putting ‘Every Single Cent’ Into A Roth Retirement Account — If Not, You Are Making A Mistake
Suze Orman, a well-known financial advisor and author, is a strong advocate for Roth retirement accounts, including Roth 401(k)s and Roth IRAs. According to Orman, these accounts provide substantial benefits over traditional retirement savings options due to their unique tax advantages and flexibility. Suze Orman advocates for Roth retirement accounts, as highlighted in her book, […]
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Can a Nursing Home Take Our Savings? We Have a $500k Roth IRA and a Trust to Protect Us.
A retired couple looks over their options for paying for long-term care. Can a nursing home seize your savings? What if your money is in a trust or a Roth IRA? For married and single retirees alike, these are important questions with nuanced answers. First for the good news: A nursing home cannot simply take […]
I’m 62 with no debt and a part-time job. My advisers say keep saving, but my kids say spend — do I go for a Roth 401(k)?
“I am thinking that I should contribute to the Roth 401(k). This will not be matched.” (Photo subject is a model.) – Getty Images Dear MarketWatch, I retired in 2023 at the age of 62 with no debt, owning my own home, long-term-care insurance, and 401(k) and IRA savings that at a 4% withdrawal rate […]
I’m 60 With $1.2 Million in a Roth IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
Planning for a Roth IRA is a little different than with most other retirement assets. This tax-advantaged account generates entirely untaxed income, as long as effectively boosting the value of your withdrawals and your Social Security benefits. That changes your options compared to having a pre-tax 401(k) or other non-Roth account. For example, say that […]