roth vs traditional 401k
Hi Terry, my wife and I fall into a high tax bracket and are in our late 40’s. The advisor we have worked with for a long time has always advised us to max out our traditional 401k and 403b accounts as much as possible. I have been trying to learn more about retirement over the past year because we are now at the point where we have a substantial amount of money in these accounts.
I have come across people suggesting that roths are a good option even for people in high tax brackets to help spread out money into different buckets going into retirement either through their 401k/403b or through backdoor roth ira’s. I am curious what your opinion would be on this and who you would recommend would be best to talk to regarding this situation. Thank you for your time and all the advise you give on wgn radio!
Terry Says
First, read this — and watch the linked podcast:
https://www.terrysavage.com/roth-conversions-2/
But this decision is part of an overall financial planning strategy for your retirement. Who is your long time advisor? Is he/she a FEE-ONLY FIDUCIARY CFP (certified financial planner)? If so, you should have already discussed this with your advisor. But if this is just a broker, or your CPA, you are at the stage where you need more sophisticated wholistic advice.
For that, please click on this link and watch the video. This is the only way I know you will be matched with someone you can trust completely: https://www.terrysavage.com/pam-krueger-wealthramp/
