Dr. Harold Wong
I have attended hundreds of financial seminars over the last 50 years and have never seen economic opportunity/cost benefit analysis mentioned. The world of investments states that to get a higher rate of return, you have to take higher risk. What if you could become a multi-millionaire by the huge economic opportunity benefit of Roth IRA Conversion tax savings?
Case Study: About 1.5 years ago, I met a retired nurse. She had $5 million of financial assets. Her normal taxable income was $190,000. In 2022 we did a $600,000 Roth IRA Conversion, which increased her taxable income to $790,000. In 2022 her federal income tax would have been $242,000 and Arizona income tax about $16,500, for a total of $258,500. She will convert the other half of her traditional IRA in 2023.
Tax Solution: She purchased $420,000 of solar business equipment that was leased long-term to giant food companies. Instead of paying $258,500 of taxes, the solar equipment reduces taxes to $25,000 Alternative Minimum Tax. She will receive an annual income of $29,400 for 10 years and average an 18.5% return.
She had $1.2 million in a traditional IRA and can earn 9%, or $108,000, annually. She’s in a combined 28.5% tax bracket, which would be $30,780 of taxes owed if that $108,000 was spent. She will be alive for at least 20 years, and her son who inherits the Roth IRA enjoys unlimited earnings for the first 10 years.
Using a Hewlett-Packard 12C Financial Calculator, we enter: PMT = $30,780; I = 9%; N = 30 years; and so FV = Future Value = $4,573,145 more net worth. She can keep the same investments that were in the traditional IRA, but the economic opportunity benefit of saving $30,780 of annual taxes creates $4,573,145 more net worth.
If you had $600,000 in a traditional IRA or 401k and converted all to a Roth IRA, you would add $2,286,572 of net worth. This analysis shows the tremendous power of doing Roth IRA Conversions to create millions of more net worth without taking any more risk in your investments.
Attend my Free Live Seminars: Tuesday, June 20, or Thursday, June 22, at Hyatt Place, 3535 W. Chandler Blvd., Chandler, AZ 85226. The seminar is at 6 p.m., followed by a Free catered supper. The topic is “Secrets of Roth & Multi-Generational IRAs!”
Free Tour/Workshop at Solar Reefer (Refrigeration) Factory: Saturday, July 8, from 9 a.m. to noon. The topic is “How Solar Reefers Can Reduce Taxes to $0 and Earn a Steady 10-14%!” Lots of tasty refreshments served!
The location is Advanced Energy Machines, 4245 E. Norcroft Street, Mesa, AZ 85215, one-quarter mile southwest of McDowell and Greenfield Roads.
Dr. Wong earned his Ph.D. in economics at University of California/Berkeley and has appeared on over 400 TV/radio programs.