Phil Cannella has long touted the benefits of Roth IRAs vs Traditional IRAs. The concept is that while you are in your working years you are most likely in a higher tax bracket, than the bracket you’ll be in once you retire, and through your IRA contributions you have been able to grow your investments tax deferred. Tax-deferral is a wonderful thing and enables us to grow our investments for years and years without taxes being extracted annually.
However, by the time you turn 70 ½ Required Minimum Distributions (or RMDs) must be made and a tax payment must begin. Phil Cannella makes the point that you may not be in a lower tax bracket when you retire and you could end up paying more in taxes later. As government debt grows astronomically, the one and only thing the government can do to rein the debt is raise taxes. If the 15% tax bracket now becomes the 25% bracket and the 25% bracket now becomes the 40% bracket you may end up owing a greater tax bill later on. Phil Cannella urges retirees to consider doing Roth conversions to take the IRS out of your retirement accounts now and allow these Roth IRAs to now grow tax-free. Phil Cannella has helped thousands of retirees with their retirement goals, and navigating these tax laws are an integral part of the planning he undertakes to help each and every person who comes through his doors.
It is not the return on your investments that counts; it’s the return of your investment and what you get to keep after all fees and taxes are paid out. With a Roth IRA you don’t have any taxes that get taken out and with Phil Cannella’s exclusive Crash Proof Retirement System, there are no fees. It’s a win – win situation all around.
