Episode 187: The Biggest Objection to a Tax-Free Retirement

“I don’t want to pay the taxes on my Roth Conversion” is the single greatest objection David sees every week. David believes that whoever makes that argument is basically saying that they don’t want to pre-emptively pay a tax before the IRS absolutely requires it of them and that they think their tax rate down the road will be lower than it is today. He sees the latter point as the greater concern. For David, if you’re in the 22% or 24% tax brackets – meaning that your taxable income is between $83,550 and $340,100 – but are pushing the payment of taxes on your Roth Conversion down the road, you’re actually missing out on a good deal. Ten years from now, he argues, when the country’s tax rates will have risen dramatically, you’re going to end up realizing that you missed out on a deal of historic proportions. David sees not being convinced that tax rates in the future are likely going to be higher than they are today and being reluctant to pay the cost of admission to the tax-free buck...