Here's Why You Should Consider Roth Conversions When Markets Go Down

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  • เผยแพร่เมื่อ 22 ธ.ค. 2024

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  • @Freemarkets1236
    @Freemarkets1236 หลายเดือนก่อน +1

    Great stuff! Thanks!

  • @mymusicalsons
    @mymusicalsons หลายเดือนก่อน +1

    SO helpful. Thank you!

  • @J-2024-v8i
    @J-2024-v8i หลายเดือนก่อน

    Great video Ari!. Since due to asset location many may have mostly or only bonds in their IRA, wouldn’t this avoid a significant drop in your pre-tax balance, which would not allow you to take advantage of a market drawdown to do Roth conversions (other than years like 2022 when bonds went down significantly)? Would you recommend to keep some equities in your IRA to convert during drawdowns (which could backfire if the market goes up)? Thanks again for the great content!

  • @DeRotzak
    @DeRotzak หลายเดือนก่อน

    So, hoping for the market to drop in order to do the conversion or just taking advantage of when that does happen? With the recent election the markets have gone up so do we wait (hope for) the market to go lower or just bite the bullet and go 'all in'? love the show and your insights =)

  • @StephanieHana69
    @StephanieHana69 29 วันที่ผ่านมา

    Are you able to do ROTH conversions before age 59.5? Are there other restrictions as to when you can do different things??

  • @Random-ld6wg
    @Random-ld6wg หลายเดือนก่อน

    always look for an upside.
    down market while working... you are buying more equities for the money as you invest in a down market. same thing with dividend paying stocks getting reinvested at lower valuations. i have a large position in berkshire hathaway for years and when there's a down market i hope it gives them a chance to deploy that cash hoard. for roth conversions, you are converting more shares for the same amount of money. i wouldn't just wait for a down market though as time in the market is what matters, so the earlier the conversion the more time for the money to grow tax free. just convert more if the market goes down if you still have it within your cobversion budget

  • @Elizaflower
    @Elizaflower หลายเดือนก่อน

    Wait, I am confused... when markets are down and you're using a dynamic withdrawal strategy, wouldn't you be taking a bit less money to actually cover your expenses (e.g. "Guardrails" or other non-static withdrawal strategy)? Then if you do a Roth conversion, you're just making your income higher on paper and paying taxes on it while you're also living on less? Like is that just a "Cauliflower" moment, living on less in a down year while also shelling out for taxes so you can get into a good position with your Roth? Just making sure I understand...

    • @earlyretirementari
      @earlyretirementari  หลายเดือนก่อน +2

      Yes. Eat more cauliflower while markets at down, spend less in that year, have more income on paper, and you’ll thank me years later.

  • @johnboughner4870
    @johnboughner4870 หลายเดือนก่อน

    Perhaps a black friday sale on the retirement software could be a nice gift to us low born blue collar workers who aspire to retire early.

  • @V.stones
    @V.stones หลายเดือนก่อน +1

    The markets are pretty rocky these days, aren’t they? Makes me nervous about how this will all affect retirement accounts

    • @kckuc310
      @kckuc310 หลายเดือนก่อน

      When haven’t they been, it’s the market

    • @rdspam
      @rdspam หลายเดือนก่อน

      S&P500 is up over 30% in the last year, NASDAQ 32%. Inflation is at 2.4%, below the long term 3.2% average, and unemployment is at 4.1%, compared to a 5.6% long-term average. Rocky?

  • @rolandosouffrain7957
    @rolandosouffrain7957 หลายเดือนก่อน +1

    Lucky me. All my money is Roth already. So when I become a millionaire it will be a Tax Free Millionaire 🎉🎉🕺🏾🕺🏾🕺🏾