ABOUT HOSTS

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
ABOUT Alan

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 [...]

Taxes are one of the main things you have control over, therefore planning to reduce taxes should be a key part of your integrated financial plan. According to the Internal Revenue Service (IRS), “Avoidance of taxes is not a criminal offense. Any attempt to reduce, avoid, minimize, or alleviate taxes by legitimate means is permissible.”

Tune in to this episode of “Your Money, Your Wealth” to learn how to create a tax free retirement income using one of the best gifts from the IRS, in our opinion; the Roth IRA. Joe and Al discuss how to put money into a Roth IRA, Roth IRA income limits and further dive in to the benefits of investing in a Roth IRA vs a traditional IRA.


1:26 “Where do you think taxes are going to go? Do you think they’re going to go up or going to go down? I think they’re going to go up”

3:37 “All principal income and growth [in a Roth IRA] is tax free”

3:57 “Some of you are not using Roth IRAs because you’re hearing these myths from accountants or advisors that just simply aren’t true”

4:10 “The Roth IRA is one of the best gifts the IRA has given us in decades”

6:25 “Talking about what the investments can be [in a Roth], as I mentioned before you can invest in basically anything the same as an IRA, 401(k), stocks, bonds, mutual funds, ETFs, index funds and even real estate if you get a Self-Directed IRA.”

8:15 “More and more employers are having a Roth Provision inside your 401(k) plan and a lot of you don’t know that you can contribute to it. It’s an after-tax contribution, it will grow 100% tax free for the rest of your life.”

10:47 “The IRS just came out with pronouncements that if you have a 401(k), you can take that pre-tax part and put that into your regular IRA and post-tax, which means that’s money that you have in the 401(k) that you don’t have a tax deduction on. You can put that directly in a Roth IRA.

12:45 “So what is a Roth IRA conversion? It’s taking money from your existing retirement account and moving it into an IRA and all future income is tax-free, but you must pay taxes on the conversion amount”

13:15 “We get this question all the time, ‘Well I don’ really qualify for a conversion.’ That’s not true, everyone qualifies. Starting in 2010 they took the income limitation away”

22:13 “The purchasing power of your IRA versus the net of the Roth, which you already paid tax, are the same”

22:40 “It can actually make sense at any age to do Roth conversions”

23:56 “When you do Roth conversion there is no 10% penalty.”