Case Study

IRA to Roth Conversion is smart retirement planning

Mr. Williams - Norfolk (name changed for confidentiality)
Dr. Williams, a high income earner at age 43, came to us in 2009 for retirement planning. The doctor was doing a great job of saving money, and on the surface it did not appear he needed to make any changes. His income was approximately $600,000.00 per year and he was saving at least 30% of it. By age 58, he wanted to be debt free and retired, and have enough income to maintain his standard of living during retirement.

His challenge was taxes. First, his income placed him in the highest income tax bracket. Second, since he was saving all his money in traditional tax-deferred vehicles, he would remain in that high income tax bracket and pay huge amounts of money when he withdrew his funds for retirement. Many people lose a large percentage of their retirement money to taxes because they did not want to accept that fact, or they did not do their calculations correctly.

Our retirement planning for the doctor was to legally remove as much of his portfolio as possible from the U.S. income tax system.

Our retirement planning experts helped Dr. Williams implement smarter financial strategies. First, we positioned him to do an IRA to Roth Conversion by converting his SEP IRA to a Roth IRA in 2010. Many retirement planning experts are encouraging the IRA to Roth Conversion for several reasons:

• When moving to a ROTH IRA you pay today’s tax rate on the sum being converted instead of the tax rate

   20 or 30 years from now.
• That's a great advantage when you consider taxes almost always rise decade to decade.
• When you pull money from a Roth IRA in retirement, you'll owe no taxes on it.
• You can convert a regular IRA into a Roth IRA if your income is $100,000 or less (and starting in 2010 the

   income restriction disappears).

Our retirement planning professionals feel the Roth IRA is the greatest gift Congress has ever given to the American taxpayer. If you combine the Roth IRA with a protected investment you can enjoy the upside of the market, and be protected against the poor performing drops. Many of our clients in Norfolk, Virginia Beach, Chesapeake, Suffolk, Portsmouth, Newport News, Hampton, Williamsburg, and Hampton Roads, Virginia, like this financial product.

We then showed Dr. Williams how to invest any new money in an insurance contract. The retirement planning funds invested here will grow tax-deferred and can be accessed tax-free in retirement.

With the exception of a small amount of his savings, our retirement planning moved all of the doctor’s money into a tax-free environment.

On the asset side, we showed Dr. Williams how to use the Equity Accumulator to accelerate the pay off of his home in 12.5 years. This is a popular financial tool with clients in Norfolk, Virginia Beach, Chesapeake, Suffolk, Portsmouth, Newport News, Hampton, Williamsburg, and Hampton Roads, Virginia.

Dr. Williams is satisfied that through our retirement planning he will pay minimal income taxes on his retirement funds, be debt free by retirement, and have sufficient income to maintain his quality of life forever.


About TriQuest Equity Management
We are a financial planning company whose financial advisors specialize in converting deferred taxed IRA’s to tax free ROTH IRA’s, 401(k) strategies, home equity services, equity management, equity for life, home equity management, home equity uses, investment real estate equity, retirement planning, Roth IRA conversions, IRA conversions and fixed index products for clients in Virginia Beach, Norfolk, Chesapeake, Suffolk, Portsmouth, Newport News, Hampton, Williamsburg, Hampton Roads, Eastern Shore, Richmond, and throughout Virginia. Our retirement planning advisors and Roth IRA advisors are the backbone of our equity management company, and separate us from other asset management firms, financial advisor companies, and retirement planning firms.


For a no-cost phone consultation, feel free to call us at (757) 424-8901 or fill out this form.