{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"Why Dave Ramsey\u2019s Roth Conversion Advice Could Cost You a Fortune","description":"David McKnight discusses one of the most destructive pieces of retirement advice he has ever heard: that you should never do a Roth conversion in retirement or within five years of retiring. Dave Ramsey believes you should forego doing a Roth conversion if you\u2019re within five years of retirement or are already retired \u2013 because of the so-called Five-Year Rule. The problem with this approach, according to David, is that Ramsey is misinterpreting what that rule actually means, in addition to confusing multiple rules and applying them to the wrong people. Ramsey\u2019s advice, continues David, encourages retirees to make choices that could cost them a fortune and taxes over time. The bigger issue, however, is the fact that Ramsey is focusing on the wrong thing \u2013 what he should really focus on is where tax rates are headed in the future. The current historically low tax rates won\u2019t last, as the U.S. national debt is on track to hit $63 trillion by 2035. If that were to happen, the U.S. Congress won\u2019t have the luxury of keeping tax rates low anymore. According to former Comptroller General David Walker, tax rates will likely need to double just to keep the Government solvent. A recent Penn Wharton study found that if the U.S. doesn't get its house in order by 2040, no combination of raising taxes or reducing spending will arrest the financial collapse of the nation. David warns that if you\u2019re still contributing to or sitting on a big tax-deferred nest egg like a 401(k) or IRA, you\u2019re setting yourself up to pay massive taxes in the future. Remember: 2035 is your Roth conversion deadline. David goes through his suggested strategies to avoid paying higher tax rates and potential penalties in the future. Something good to keep in mind is that if you\u2019re in the 0% tax bracket and tax rates double, two times zero is still zero\u2026 David sees Dave Ramsey as the go-to expert for get-out-of-debt advice, not retirement planning strategy.     Mentioned in this episode: David\u2019s national bestselling book: The Guru Gap: How America\u2019s Financial Gurus Are Leading You Astray, and How to Get Back on Track DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Dave Ramsey David Walker Penn Wharton ","author_name":"The Power Of Zero Show","author_url":"http:\/\/davidmcknight.com\/","html":"