An Introduction

Hi. Welcome to BourGroup and my blog. Phil

Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.

I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.

"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.

Thursday, February 27, 2014


Allan S. Roth writes in the February 2014 magazine that "...a common myth is that the ROTH ... is better than the traditional [IRA] account if the assets are held for a certain number of years. This is false. The only things that matter are the marginal tax brackets in the year of the conversion and the year of withdrawal. If the marginal tax bracket ends up higher upon withdrawal, the conversion will have been beneficial..."

This is just  a number's thing. It is true. Other ROTH advantages, though, may entice someone to do ROTH conversions and/or start a ROTH. There is the 5-year rule for starters so beginning a ROTH sooner rather than later may still make sense to get the clock ticking in your favor. Another is that ROTH's do not have required minimum distributions. And, more importantly, withdrawals never show up on your tax return because it is not taxable income. 

Even if you are in the same tax bracket when you take money out, your social security may be taxed differently if you can minimize your taxable income and that may effect your true marginal tax rate.

Of-course, any money you put into a ROTH can be taken out without penalty or taxes and so this may be a good place to consider for some portion of your emergency fund.