TAX FREE OR TAXABLE? SHOULD RETIREES MAKE THE JUMP?
Olathe, Kansas – May 18, 2021
Many investors and retirees in the US are worried about future tax hikes. While stocks have managed to bounce off their recent lows, note that economic uncertainty and earnings season add up to more volatility in the future.
Note that a Roth conversion is an effective strategy that allows individuals to pay income taxes on some part or all of their retirement assets today instead of when they withdraw these assets in retirement.
During Roth conversions, investors or retirees move the funds from their conventional accounts into Roth accounts, paying the tax upfront. Keep in mind that the Roth strategy is most suitable when an individual is currently at a lower tax rate. Similarly, there are many advantages to purchasing a 7702 plan, such as increasing value on a tax-deferred basis and withdrawing money put into the policy tax-free in retirement. Journey Financial helps retirees make the most of the benefits of a Roth IRA conversion and 7702 plans, such as helping its clients diversify their retirement assets by tax treatment as it may give them greater flexibility to manage their taxable income in retirement, so they don’t need to worry a lot about future income tax rates.
To determine if a Roth IRA conversion or 7702 plan makes sense for a retiree, a Journey Financial expert can meet with them in order to explore the options. Journey Financial focuses on delivering investment and retirement planning excellence that retirees can rely on—now as well as over the long
term.
“When retirees work with Journey Financial, they can use Roth conversions as an excellent way to balance their mix of tax-deferred, tax-free, and taxable accounts. As a financial and retirement planning firm, we know that converting as soon as you retire also gives you more time in order to reap the various benefits of the tax tradeoff – as well as the growth – before withdrawing the funds from your Roth IRA,” said Kevin Travis, CEO, and Owner of Journey Financial.
Roth Conversion or 7702 plans might not be the most exciting or fun part of retirement planning. It can also be challenging. The good news is that once retirees work with a reliable financial planner, such as Journey Financial, they can start preparing and planning for the future they want.
Kevin Travis
Kevin Travis joined the insurance and financial planning industry in 1998 with a passion for creating and implementing viable financial strategies. He has had many entrepreneurial opportunities, including restaurant ownership, a marketing venture, and a distribution business throughout his career. As the current CEO and Owner of Journey Financial, he’s dedicated to providing comprehensive financial plans personalized for each client.
About Journey Financial
Journey Financial is a reliable full-service comprehensive retirement and financial planning firm in Olathe, KS. All their advisors have several years of planning experience, and they are confident that they could assist retirees and investors with any planning needs and concerns. The firm believes that developing trust and loyalty are the cornerstones of its and its clients’ success. Journey Financial is committed to building meaningful long-term relationships with clients and strives to work with them as they prepare for their retirement.
The firm’s comprehensive planning process separates it from other firms. The process encompasses every area of viable planning. The firm has a mission to deliver thorough and comprehensive financial and retirement plans and services that help each one of its clients to and through their retirement journey.
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