If you haven’t noticed, recently I’ve been calling out “self-anointed” Roth conversion guru Craig Wear. Craig is one of the most prolific marketers to IRA millionaires (including your clients!).
Why is this bad? The simple answer is that many of Craig’s recommendations are not mathematically sound (my researched opinion), and he charges upwards of $11,000 for the advice.
Fearmongering taxes—it’s easy to motivate someone to implement a Roth conversion when you fearmonger taxes based on faulty numbers that make conversions nearly always look good.
If you didn’t see my YouTube video where I warn consumers to stay away from Craig, you can watch it by clicking on the following:
https://www.youtube.com/watch?v=io4pzGSuuLk&t=6s
Craig’s latest consumer email and videos
Craig’s latest consumer email has an IDIOTIC example:
“Here’s the math that surprises people. A couple at 65 with $2 million in traditional IRAs, living another 15 years without drawing much down, can leave roughly $4 million. Two adult children then have 10 years to empty it. That’s about $200,000 of extra taxable income each, every year, for a decade — landing on top of whatever they already earn in their 50s, which for many families is their peak. At that point the top dollars are taxed at 35% or 37%, and with state tax the effective rate on those dollars can pass 45%.”
Watch Craig’s Video That Goes Along with His Newsletter
Craig has a video that tries to explain the math of the example from his consumer newsletter. It’s utterly ridiculous and provides no math to support his assertions. The video and his client newsletter fearmonger taxes without any substantive basis to do so.
https://q3adv.com/the-ira-inheritance-tax-trap-how-to-protect-your-heirs
What’s wrong with this example and video?
1) The assumption is that both parents die after 15 years, leaving the heirs with the IRA asset at an age when they are still working.
2) There is no way the heirs will have an effective rate that can “pass 45%” (or anywhere close).
3) It assumes the heirs take out money every year when they are still working at a high income.
Life expectancy—FYI, the parent’s life expectancy if in average health is 87 and 89. Their joint life expectancy is 92. If in above-average health, it’s 88, 90, and 93. Craig has them dying at age 80, which makes the math of conversions look totally different than if they die at their life expectancy.
Why can’t the heirs wait until the end of the 10th year to remove the money? If they are working and earning good income, why would they take withdrawals from the inherited IRA?
Why? Because the assumption allows Craig to fearmonger taxes and get consumers interested in talking with him about how to mitigate taxes.
I can’t run comparable numbers in OnPointe because we’d need way more info, but what I know is that the example is from a FANTASY world and designed to fearmonger consumers to contact him.
Also, if Craig is still using Right Capital, his numbers are inaccurate. If you missed my newsletter on why I believe Right Capital’s numbers are wrong, click on the following:
https://onpointesoftware.com/onpointe-vs-right-capital
Download Six (6) Legacy Examples to Review and Compare + an Overview Video Showing the Legacy Software
About 85% of the time conversions DO NOT work for clients if their goal is more money while alive. However, the success percentage increases dramatically for the heirs. Click on the following to download the legacy examples and watch a video on the OnPointe retirement planner’s legacy app (the examples and video will demonstrate how clueless Craig is and how important running accurate legacy numbers is for clients) :
https://onpointesoftware.com/legacy-video
RoccyKnows YouTube Channel
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To watch the NEW consumer YouTube video, click on the following link or video:
https://www.youtube.com/@RoccyKnows/videos
