Financial Conditioning
Simon Karmarkar delves into inspiring stories and advice on achieving financial freedom. Get actionable tips, motivational stories, and insightful discussions that will empower you to take control of your financial future and get financially conditioned.
Mastering the Mega Backdoor Roth IRA and Innovative Retirement Strategies
In episode 49 of Financial Conditioning, Simon Karmarkar explores the mega backdoor Roth IRA, beginning with an overview of the Roth IRA and its benefits. He delves into the specifics of the mega backdoor Roth IRA strategy, explaining how to contribute and the tax implications and withdrawal rules associated with it. Simon emphasizes the critical role of employer involvement in this strategy. The episode also covers retirement withdrawal strategies, including an explanation of the 4 percent rule, with insights from Bill Bengen. Simon concludes by examining innovative financial planning techniques and offering final thoughts on personalized strategies for financial success.
Key Points
- The Mega Backdoor Roth IRA allows high-income earners to contribute significantly more to their retirement savings than standard limits permit, maximizing tax-free growth potential.
- To leverage the Mega Backdoor Roth IRA, employees must first max out their pre-tax 401(k) contributions, then make after-tax contributions, and finally convert those to Roth status for tax-free growth and withdrawals.
- Bill Bengen, creator of the 4 percent rule, now suggests that many retirees could safely withdraw 5 percent annually, provided they adjust their stock exposure and employ strategic financial planning.
Chapters
| 0:00 | |
| 2:40 | |
| 3:08 | |
| 5:03 | |
| 6:46 | |
| 9:00 | |
| 9:37 | |
| 11:36 | |
| 12:30 | |
| 13:07 |
Transcript
Loading transcript...
- / -