Ramsey Everyday Millionaires This Is What Happens When You're Smart Early
Apr 11, 2025
Explore how an ordinary caller navigates complex financial terrain, considering Roth IRA conversions and real estate investments. Discover strategic insights on managing taxes through depreciation and making informed property acquisitions. Personal stories showcase the benefits of early investing and disciplined financial planning, revealing how these choices can lead to incredible wealth. Tune in for a blend of practical advice and real-life successes that inspire smart money moves!
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Avoid Borrowing for Roth Conversion
- Never borrow money to cover a Roth conversion; pay the tax liability with cash you have available.
- Convert your SEP to a Roth in manageable chunks if needed to avoid large tax hits at once.
Roth Conversion Benefits for Estate Planning
- Converting all retirement funds to Roth can eliminate required minimum distributions and estate taxes.
- Roth IRAs pass tax-free to heirs with no mandatory withdrawal, unlike traditional IRAs under current law.
Pay Roth Taxes Gradually if Needed
- If facing a large tax bill on a Roth conversion, pay it over a 2-3 year period to cash flow the taxes.
- Do the Roth conversion regardless of real estate dealings or depreciation schedules.