ABOUT HOSTS

Joe Anderson
ABOUT Joseph

As CEO and President, Joe Anderson has created a unique, ambitious business model utilizing advanced service, training, sales, and marketing strategies to grow Pure Financial Advisors into the trustworthy, client-focused company it is today. Pure Financial, a Registered Investment Advisor (RIA), was ranked 153 out of 715 RIA’s nationwide by total assets under management by [...]

Alan Clopine
ABOUT Alan

Alan Clopine is the CFO & Chairman of the Board of Pure Financial Advisors. He has been an executive leader of the Company for over a decade. As CFO he is responsible for the financial operations of the company as well as investor relations. Alan joined the firm in 2008, about one year after it [...]

Published On
November 14, 2015

Joe and Al talk tax strategies in this hour, covering how to get the most out of your 401k and IRA, rollovers and the multiple benefits of Roth IRAs. Find out why you should take advantage of the backdoor Roth IRA now (hint: it could be going away!). The two also discuss the federal income tax and after-tax contributions in a 401(k) plan.


1:40 “The individual income tax is the single most important source of federal revenue, but it wasn’t always that way”

3:54 “As the individual income tax has become more important, it has also grown more complicated”

9:31 “A lot of financial advisors out there will sell you a product and then they make a commission off of that products. Different products have different commission levels so how do you know you got the best product for you? You don’t necessarily know that”

14:25 “Even though income in America has changed over time, some aspects of income remain exactly the same. There are still two basic ways to make income”

15:22 “When I was a young CPA, when looking at tax returns and seeing those who had a lot of money, I noticed something pretty obvious early on. Those who seemed to have a lot of money had three different sources: investing in real estate, investing or starting a successful business and number three—luck of the draw (inheritance)”

20:47 “If you have a plan that allows after-tax contribution, you might want to put some extra money into that plan in anticipation of rolling that right over into a Roth IRA when you retire”

24:18 “If I pull money from a Roth because I want more cash flow, I can pull it from the Roth and not pay any tax. So I can have more income and still keep myself in lower tax brackets”

26:54 “You do have more control over taxes than you think, particularly in retirement”

32:30 “We call it a backdoor Roth contribution. This strategy is important if you are single and your income is above $116,000 or if you’re married and your income is above $183,000 because that’s when you start phasing out your ability to do Roth contributions”

34:36 “A Roth IRA is not an employer plan; a Roth IRA is your own separate plan”