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For the couple in Seir’s example, adopting a Roth strategy led to remarkable financial changes: their retirement tax bracket fell from 28% to 10%, and their tax liability linked to RMDs was eliminated entirely. Over their retirement years, they saved nearly $800,000 in taxes—money that would otherwise have burdened them and their heirs.
Steps to Implementing Roth Strategies
Seir emphasizes that it’s never too late to adjust retirement strategies, regardless of age. Here are actionable steps to consider:
Young Investors
Younger individuals should prioritize contributing to a Roth 401(k) if available. If their 401(k) does not have a Roth option, establishing a Roth IRA is essential.