Ep 22 - Roth Conversions Demystified: Tax-Free Retirement Strategies
Episode Description:
In this episode of Enrich Your Life, host Rich Leimgruber sits down with Julia Fuentes, a Financial Planning and Coaching Strategist at Vanguard with over 20 years of experience in financial services. They break down the complex world of Roth conversions, exploring when it makes sense to pay taxes now versus later in retirement. Julia shares her personal journey into investing, starting with her first Roth IRA as a high school student, and walks listeners through the strategic advantages of Roth accounts, including tax-free growth, inheritance benefits, and no required minimum distributions. The conversation covers essential topics like the backdoor Roth strategy, the pro-rata rule pitfalls, and Vanguard's break-even tax rate method for determining optimal conversion timing. Whether you're just starting your career or planning for retirement, this episode provides practical insights into maximizing your tax efficiency and leaving a tax-free legacy.
Key Highlights
The Inheritance Game-Changer: Understanding the 10-Year Rule
The Pro-Rata Rule Trap: How to prevent your Backdoor Roth Strategy from Backfiring
Strategic Timing: When Market Downturns Create Conversion Opportunities
About Our Guest:
Julia Fuentes
Financial Planning and Coaching Strategist at Vanguard with over 20 years in the financial service industry and working with Vanguard for over 17 years.
