65-year-old Couple Does (2) $250k Roth Conversions Before Taking Social Security (for tax-free wealth transfer)‼️

(don’t forget to checkout the video of this case study too)

💾 be sure to save for later 💾

⭐️ Here are the details ⭐️

☑️ Brad & Angelina are 65

☑️ They want to retire this year with $12,000/month

☑️ They have an annuity that will pay them $5,600/month (for life)

☑️ Social Security will provide them with $6,400/month at 67

☑️ $400k in a non-retirement investment account (for flexible spending)

☑️ $160k in a CD that just matured (for income until SS is activated)

☑️ $500k in fully taxable 401k (pre-tax)

☑️ They would like to leave a tax-free legacy to their children

⭐️ Retirement Income Plan (65–67) ⭐️

☑️ Activate annuity for immediate $5,600/month of guaranteed, lifetime income

☑️ Use CD funds for additional $6,500/month of retirement income

☑️ This gives them just over $12,000 per month from ages 65–67

+ They can also utilize their investment account for additional income if needed

⭐️ Legacy Goal: (2) $250k Roth Conversions prior to collecting Social Security ⭐️

☑️ Estimated Roth Conversion cost (per year) = $47,605

☑️ Total taxes paid on Roth Conversion = $95,210

☑️ The entire Roth Conversion is done in the 24% tax bracket or lower

☑️ They still stay below an 18% effective federal tax rate

⭐️ Estimated Tax-free Wealth Transfer (if they live until 90) ⭐️

☑️ $3.4M completely tax-free (if they average 8% per year in retirement)

☑️ OR $5.4M (if they average 10% per year — what the market typically does)

⭐️ Retirement Income After Roth Conversion ⭐️

🔥 Once the tax-free wealth transfer plan is created through the Roth Conversions they can simply activate Social Security for an additional $6,400 per month of lifetime income‼️

They also have additional investments that they can spend however they see fit.

This gives them a performance-based, tax-free wealth transfer (using a Roth IRA rather than Life Insurance for more potential wealth transfer)

But, they can also utilize those funds to manage their own taxes in retirement (if taxes increase significantly at some point down the road)

Let’s chat 💬😎