Great summary, Ari. This was one of the most clear and focused videos in your series. Thanks for continuing to post educational content and for opening the academy for DIYers.
11:27 I think it’s important to keep in mind that what’s in your brokerage account will be stepped up and kids/heirs will owe nothing on the gains, while they’ll need to drain all IRA’s in 10 years, possibly pushing that amount to an even higher bracket. Paying less today may not be the best, depending on your asset level what you’re trying to optimize.
I’m confused about choosing between tax gain harvesting and a Roth conversion, since we’d be paying the taxes on the conversion with funds from our brokerage account. Aren’t we essentially doing both if we proceed with the Roth conversion??
Yeah but at what age should fresh contributions/conversions to Roth need to be phased out , due to 5 year holding period requirement, inability to take a Roth tax loss deduction, dollar amount limitations, and mental decline? A 60 year old doing Roth conversion means that he/she will need to actively monitor the Roth portfolio contributions at least until age 65 if trying to grow the Roth contributions tax free.
I want to do a backdoor Roth IRA for my spouse. We file married filing jointly. She does not work. My income is under 100K. I can contribute 7K to a Roth IRA in her name. Can I also contribute 20K to a non-deductible IRA in her name and then immediately do a Roth conversion of the 20K to her Roth IRA for a total of 27K?
Can a reasonable argument be made that whenever someone has a really bad RMD problem - they are simply not spending enough? Assuming they don't have some kind of incredibly aggressive legacy goal.
Sincere question here - not trolling, etc. How do we (savers/wannabee retirees) square being patriotic/America-loving citizens with the constant/eternal mission to limit taxes that fund the country we love. Is it a scenario of "Let those other people not as rich and well advised as us pay the taxes that fund this country we love" or "only dummies pay taxes to this country that we love". I'm trying to be okay with the idea of minimizing taxes and, at the same time, potentially paying a decent amount of my money specifically to limit paying taxes to the country I/we love. How do you all wrap your heads around this puzzle? Thank you sincerely.
I look at it this way. I pay what I’m legally obligated to but why would I pay more? Even if I strategize to minimize taxes, while that may keep my effective tax rate down, I still probably pay more in total tax dollars than most Americans. Does it make me less patriotic because I pay a smaller percentage of earnings? Or others less patriotic because they contribute less total dollars? If you felt bad, you could always send Uncle Sam a larger check. Me, I’d rather use that money to donate to a charity rather than the government. Also, I receive the same services as Americans that pay less total taxes (same roads, same fire/police/public education). So if anything I’m being MORE patriotic by paying more for the same services as people paying less. I don’t mind, as I realize I have been more fortunate economically than some others, but I don’t feel bad about it.
Judge Learned Hand, 1934 - “Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes”. (Helvering v. Gregory, 69 F.2d 809, 810 (2d Cir. 1934))
In an efficient market, all reasonable persons will aim to minimize their taxes. You should do the same. If the sum total of those tax revenues is not sufficient for the government, then they can modify taxation policy to make up the difference. You need to play your role and the government needs to play their role. It's not your job to determine who pays what. And I would say that just by caring, you're proving that you're a great American!
@@johnnysimes5082agreed. The tax code is mostly a book on how to save taxes if you do what they want you to do. If you do what the government wants you to do, You get the tax breaks. It’s the most patriotic thing you can do.
Paying as low of a tax rate that is legal is fulfilling one’s obligation. The fulfillment of the obligation is patriotic, cheating is not. That is why wealthy tax cheats hate that there’s more IRS agents now to audit them.
Maybe for you and me, but for the "common" person, they are clueless and unprepared. I know many of former coworkers with huge 401k's that are working longer than they need to and will get highly taxed when RMD's come up. I never gave retirement planning much though until a year before actually retiring. Fortunately, videos like Ari's have made a huge contribution in gaining knowledge and making that leap to retirement.
@@ChristopherEvans-650 yeah I like ari videos but sometimes just very generic… glad u on path to retirement.. just an FYI… I retire and the end of this month october 31… very excited and will continue to watch ari..
Great summary, Ari. This was one of the most clear and focused videos in your series. Thanks for continuing to post educational content and for opening the academy for DIYers.
Great video. Thank you
11:27 I think it’s important to keep in mind that what’s in your brokerage account will be stepped up and kids/heirs will owe nothing on the gains, while they’ll need to drain all IRA’s in 10 years, possibly pushing that amount to an even higher bracket. Paying less today may not be the best, depending on your asset level what you’re trying to optimize.
trying to decide if Ari is a better CFP or TH-camr 🐐
If you are a client of Root Financial, then you may a point of view/opinion. I find these video's useful/insightful with respect to my DIY planning.
TH-cam… CFP is mostly all the same.. they have the same training…. only difference is personality...
Ari is good at both!
Has VMSXX ever decreased in value? I am in the highest tax bracket and looking for a relatively safe place to park my after tax cash.
I’m confused about choosing between tax gain harvesting and a Roth conversion, since we’d be paying the taxes on the conversion with funds from our brokerage account. Aren’t we essentially doing both if we proceed with the Roth conversion??
Great Video!
Does Nevada really don’t have taxes on 401k, IRA?
Yeah but at what age should fresh contributions/conversions to Roth need to be phased out , due to 5 year holding period requirement, inability to take a Roth tax loss deduction, dollar amount limitations, and mental decline? A 60 year old doing Roth conversion means that he/she will need to actively monitor the Roth portfolio contributions at least until age 65 if trying to grow the Roth contributions tax free.
Point 5, you said pulling from a brokerage account is 10%, 15%, etc, but onscreen, it shows 0%, 15%, etc? Did you misspeak?
It's 0%, 15%
Cauliflower is delicious, though!
I want to do a backdoor Roth IRA for my spouse. We file married filing jointly. She does not work. My income is under 100K. I can contribute 7K to a Roth IRA in her name. Can I also contribute 20K to a non-deductible IRA in her name and then immediately do a Roth conversion of the 20K to her Roth IRA for a total of 27K?
Can a reasonable argument be made that whenever someone has a really bad RMD problem - they are simply not spending enough? Assuming they don't have some kind of incredibly aggressive legacy goal.
Yes
Sincere question here - not trolling, etc. How do we (savers/wannabee retirees) square being patriotic/America-loving citizens with the constant/eternal mission to limit taxes that fund the country we love. Is it a scenario of "Let those other people not as rich and well advised as us pay the taxes that fund this country we love" or "only dummies pay taxes to this country that we love". I'm trying to be okay with the idea of minimizing taxes and, at the same time, potentially paying a decent amount of my money specifically to limit paying taxes to the country I/we love. How do you all wrap your heads around this puzzle? Thank you sincerely.
I look at it this way. I pay what I’m legally obligated to but why would I pay more? Even if I strategize to minimize taxes, while that may keep my effective tax rate down, I still probably pay more in total tax dollars than most Americans. Does it make me less patriotic because I pay a smaller percentage of earnings? Or others less patriotic because they contribute less total dollars? If you felt bad, you could always send Uncle Sam a larger check. Me, I’d rather use that money to donate to a charity rather than the government.
Also, I receive the same services as Americans that pay less total taxes (same roads, same fire/police/public education). So if anything I’m being MORE patriotic by paying more for the same services as people paying less. I don’t mind, as I realize I have been more fortunate economically than some others, but I don’t feel bad about it.
Judge Learned Hand, 1934 - “Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes”. (Helvering v. Gregory, 69 F.2d 809, 810 (2d Cir. 1934))
In an efficient market, all reasonable persons will aim to minimize their taxes. You should do the same. If the sum total of those tax revenues is not sufficient for the government, then they can modify taxation policy to make up the difference. You need to play your role and the government needs to play their role. It's not your job to determine who pays what. And I would say that just by caring, you're proving that you're a great American!
@@johnnysimes5082agreed. The tax code is mostly a book on how to save taxes if you do what they want you to do. If you do what the government wants you to do, You get the tax breaks. It’s the most patriotic thing you can do.
Paying as low of a tax rate that is legal is fulfilling one’s obligation. The fulfillment of the obligation is patriotic, cheating is not. That is why wealthy tax cheats hate that there’s more IRS agents now to audit them.
these videos are pretty worthless…any reasonable peron knows this already dont need a certificate in finance to know this…common sense...
Maybe for you and me, but for the "common" person, they are clueless and unprepared. I know many of former coworkers with huge 401k's that are working longer than they need to and will get highly taxed when RMD's come up.
I never gave retirement planning much though until a year before actually retiring. Fortunately, videos like Ari's have made a huge contribution in gaining knowledge and making that leap to retirement.
@@ChristopherEvans-650 yeah I like ari videos but sometimes just very generic… glad u on path to retirement.. just an FYI… I retire and the end of this month october 31… very excited and will continue to watch ari..