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Suze Orman was as candid as ever when Gina, a 56 year-old retiree, called into her Women & Money podcast earlier this year.
Orman was quick to shoot down Gina’s plan, which involved converting a $1.6 million pretax 401(k) into a Roth 401(k), and eventually into a Roth IRA.
Orman was shocked after learning her caller had received this financial advice from her company’s former benefits department. She retorted, “With the utmost of respect to your benefits person – are you crazy? Really?”
Orman went on to explain that converting from a pretax 401(k) to any Roth account would trigger taxes upfront, as it involves moving funds from a tax-deferred to a tax-free account.
She quickly shot down the plans Gina had for her Roth IRA.
Shuffling accounts, as it turns out, isn’t the tax loophole Gina thought it to be.
The American system is notoriously convoluted and clunky, and the Tax Policy Center claims it’s getting even more complicated every year.
In an interview with MSNBC earlier this year, Orman was asked what she thought the biggest money problem is for women that are around Gina’s age.
She said women over 50 tend to avoid dealing with money and don’t make plans to take care of themselves later in life, but tend to focus on their family instead.
“Women still give more to others than we give to ourselves and that is a really big mistake.”
For those of us without a direct line to Orman, services like Advisor.com can help. Advisor.com connects you with vetted fiduciary financial advisors near you. All you have to do is answer a few simple questions about your finances, and Adivsor.com matches you with a short list of certified experts to choose from.
You can then set up an introductory meeting with no obligation to hire.
Read more: This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here’s how to buy the coveted asset in bulk
Suze Orman has long been a passionate advocate for long-term wealth generation.
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She frequently emphasizes that saving early can reduce your tax burden and allow for compounding growth, fostering a better financial security for you and your family security down the road.
She’s an especially big fan of Roth IRAs and their tax-free withdrawal benefits. Largely, that’s because these accounts can help you avoid a nasty tax torpedo that can have a detrimental impact on your Social Security benefits in retirement. However, a well-rounded retirement strategy includes careful investment choices within your investment account, no matter what that is.
For instance, if you’re nearing retirement age and optimizing for stability with your investments, gold is typically more stable than stocks during economic downturns and recessions. In fact, gold has increased in value sevenfold over the last 100 years.
Another reason to invest in precious metals like gold is that they can provide significant tax advantages. This is especially important for retirement planning.
Opening a gold IRA allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.
If you’d like to convert an existing IRA into a gold IRA, companies typically offer 100% free rollover. Others might offer free gold, silver or other metals up to a certain amount when you make a qualifying purchase.
You can check out the Moneywise list of industry-leading companies offering gold IRAs here.
Compare offers instantly and request a free information guide to help you understand how to diversify your portfolio and secure your retirement fund.
You might also consider additional asset classes for a resilient, long-term portfolio.
For instance, real estate can be a terrific way to diversify while benefiting from tax-free growth and retirement income — so long as you plan correctly.
New investing platforms are making it easier than ever to tap into the real estate market.
For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted internal returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
If you’re not an accredited investor, crowdfunding platforms like Arrived allow you to enter the real estate market for as little as $100.
Arrived offers you access to shares of SEC-qualified investments in rental homes and vacation rentals, curated and vetted for their appreciation and income potential.
Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allows accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any extra work on your part.
Another avenue is commercial real estate. For years, direct access to the $22.5 trillion commercial real estate sector has been limited to a select group of elite investors — until now.
First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions – including how much you would like to invest – to start browsing their full list of available properties.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
