Phil Cannella on NBC 10

Phil Cannella on NBC 10

Phil Cannella makes an appearance on the NBC 10! Show to discuss the intricacies of a Roth 401k conversion

“All you have to do is watch the stock market, and you know it is not easy to navigate investment options. Especially when it comes to your retirement. Well, Phil Cannella can help. He is a retirement phase expert and the creator of Crash Proof Retirement dot com he’s also written the book Crash Proof Retirement: the planning isn’t over. And Phil, welcome back to the show.” You’ve been telling us about this Roth IRA conversion of the importance of it for months, and you’ve been telling us about the deadline for the end of the year too and how important that is. right and so this is there really the time to act now isn’t?” “Bill, as you know retirement phase experts work with just people in retired years and it’s the folks in retired years who’ve built this great country over the last 30 40 50 years. Your mom, my mom, and dads and grandfathers and grandmothers they did everything right they paid their taxes they brought their families up they paid off their debt now they made it to retired years and I have to stress this: With all the money we’ve given away in this country with the bailouts with Medicare and Social Security and 74 million people on those programs another 77 million people want to join them in four years that would be a hundred and fifty five million people in retirement leaving half the country in the workforce not enough people to pay all the taxes that are needed so what’s going to happen is all the money is in the retirement sector. The conversion is so important because that is like a vaccine shot to your IRA and it’ll make it immune to any other federal tax increase in the future and if you think about what I’m trying to say everyone gets an income in retirement years and if income taxes keep going up and they will there’s a tsunami of taxes that going to happen in this country and it’s going to capsize people in retired years it’s going to erode their income in the next five to ten years so imagine you’re getting an income of thirty thousand dollars a year but you’re already paying six thousand in income taxes so you’re netting 24. But now that goes up to eight ten twelve thousand taking out of your income. I say that if people don’t stand up and understand and retired years if they don’t convert to a Roth, in about 10 years from now I’d say there’s going to be a wave of people running out of money because of income taxes eroding their income. Here’s the rule of thumb your bankers not going to tell you about roth conversions your CPAs out there don’t know enough about them believe it or not, and your financial advisors are dealing with the accumulation phase they know very little about roth conversions.” “This is why you need a retirement phase advisor for your retirement years.” “When you pay the taxes that are due in your IRA account what you have left is a pure tax-free growing account for three generations. If people don’t wake up particularly those in retired years they’re going to be very saddened in the next ten years because between income tax, risk, and dealing with the wrong financial advisors, in retired years, many people are
going to be struggling in 10 years from now. The classic thing is this. If you’re not living on your IRA and you’re not
depending on it convert to a Roth but if you are depending on your IRA seek out a professional that really can educate you on roth conversions.” “So the conversion is important not only for yourself too but the errors your children and your grandchildren you say it’s good for three generations.” “Once you convert to a Roth, not only will you have a tax-free growth account during your years as the owner of that conversion but you could pass it to your spouse and when she’s done with it she could pass it to the children they can pass it to the grandchildren. Three years of a legacy tax-free.” “Pretty convincing argument Phil.”