Should you do a Roth conversion to take advantage of the current tax rates which may be lower now than they are likely to be in the future? It may be a good idea but check out the details before you take action as your tax bill may be higher than you think.
On average, Americans think the federal government spent 10 percent of its 2010 budget on pensions and retiree benefits; the OMB figures indicate the real number is about 3.5 percent. Another area that is not often talked about is the big difference for federal workers and state workers is that federal employees pay significant premiums for their health insurance.
During your working years, there may have been a nagging little voice inside your head worrying about what would happen to your family if you died before you’re able to send your children to college or marry them off. As you get closer to your retirement and the kids seem well on their way to being self sufficient, the worry changes from a concern for your early demise to the other end of the spectrum–living too long.
Roth Conversions can be done after 2010, but at what cost? The 2010 expiration date on Roth conversions is quickly approaching which means that beginning January 1, 2011, the best opportunities to reduce the tax on a Roth conversion may be behind us.
Over the past ten years the federal debt has mushroomed from $5 trillion to well over $13 trillion, and is forecasted to reach $20 trillion in this decade. But wait, it gets worse…private debt (consumer, financial, corporate) has swelled to $42 trillion!
If the federal government’s deficit could be closed by increasing taxes, how much of an increase would be necessary? This article clearly illustrates the degree to which our government is spending money compared to what it is bringing in.
