Joe Anderson
ABOUT Joseph

As President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the firm opening. When Joe began working with Pure Financial in 2008, they had almost no clients, negative revenue and no [...]

Alan Clopine

Alan Clopine is the CEO & CFO of Pure Financial Advisors. He currently leads Pure Financial Advisors along with Michael Fenison and Joe Anderson. Alan joined the firm about one year after it was established. At that time the company had less than 100 clients and approximately $50 million of assets under management. As of [...]

Joe Anderson, CFP® and “Big Al” Clopine, CPA discuss what you need to know about Roth IRAs in this episode of “Your Money, Your Wealth℠.” Find out the tax benefits of investing in a Roth IRA, who qualifies for a Roth and how to convert your IRA to a Roth IRA. With all future growth being tax-free, Roth IRA conversions are a great strategy for many investors to grow their wealth. Joe and Al close off this episode with email questions from viewers.

Roth IRA Basics — White PaperKey Points:

0:25 “Taxes will be one of the biggest expenses that you have in retirement – do you know how you can reduce your tax bill in retirement?”

1:22 “It (the Roth IRA) is one of the best retirement tools the IRS has ever given us but there’s a lot of misunderstanding with how to use it”

3:01 “If you can save taxes in retirement, your money can go a lot further and then you don’t have as much risk of running out of money”

4:09 “What can you invest in a Roth? It’s the same as an IRA or 401(k). You can invest in stocks, bonds, you can invest in real estate…Realize that a Roth IRA is simply an investment account”

6:52 “If you’re single and make more than $132,000 you cannot contribute directly into a Roth IRA. If you’re married, you cannot contribute to a Roth IRA if you make more than $194,000…however you can still do a conversion”

9:23 “How do you determine how you should handle your money when you don’t know how long you’re going to live?”

9:52 “Here’s the toughest part about financial planning and investing your money: you have to protect purchasing power”

10:10 “As inflation goes up, you need a certain rate of return on your portfolio because we don’t know when we are going to die”

11:25 “[A Roth IRA conversion] is taking money out of your retirement account and converting it to a Roth IRA. You have to pay tax on this money but then all future growth will grow 100% tax-free”

12:48 “Who can actually do a Roth conversion? It’s anyone who has a retirement account, and any age, any income level, working or retired”

15:41 “There no harm in doing conversions, realizing that you can re-characterize or change your mind later. You can always undo it”

17:02 “[True or false:] Withdrawals from my Roth IRA are generally not taxable after the age of 59 ½. Joe, that’s generally true – but there’s an exception”

21:40 “[Email question:] I just inherited an IRA from my mom with a balance of $240,000. Can I convert this to a Roth IRA?”