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There are only three ways to invest. Taxable, Tax Deferred, and Tax Free.
Usually as we start out in accumulating money we build taxable accounts for savings and emergencies. Then, when we start saving for retirement in the company's 401(k) plan, a Traditional IRA, or an Annuity.
This is as far as it usually goes for most folks. In fact, until just a few years ago, Roth IRA's were not even an option. But today, you have the chance to move to the third phase, which is building tax free accounts.
If you haven't considered a Roth IRA, now is the time. The advantages are incredible and it's pretty simple when you stop and think about it. If you own a tax deferred account like an IRA, you will one day have to pay taxes on your withdrawals either now, or your children will have to at your death. Now if you are like most of us, you are investing in an account to make that account grow. Thus, one day if you are successful, not only will your account have grown, your tax bill will grow as well.
If you begin to pay the taxes now and systematically save money in a Roth IRA one day you could build a huge tax free account for you to enjoy during your lifetime, or pass it on to your loved ones tax free as well.
Simply put, pay the taxes on your seed or your harvest, which do you think will be less?
To find out more about how to convert a traditional ira to roth and how to calculate taxes simply
contact our Firm and we can have our Accountant run the numbers for you.
A handy online Roth Conversion Calculator is also available at:
http://www.dinkytown.com/java/RothTransfer.html
PLEASE NOTE:The information being provided is strictly as a courtesy. When you link to any of the
web-sites provided here, you are leaving this site. We make no representation as to the completeness
or accuracy of information provided at these sites. Nor is the company liable for any direct or
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When you access one of these sites, you are leaving our web-site and assume total responsibility
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Neither NEXT Financial Group, Inc. nor its representatives are qualified to give tax or legal advice.
Please consult your tax or legal professional regarding your particular situation.
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