Bull Sessions (12/13/2022)

Subscribers would like to see a Christmas Countdown at Manifest Investing again this year, so we'll kick that off during this week's Bull Session. Investors are invited to submit compelling stocks to study to markr@manifestinvesting.com. Ken kicked things off with Snowflake (SNOW). Christi Powell will spend a Few Moments With Back Door Roth Conversions.

In this December 13, 2022 Bull Sessions webinar, Mark Robertson and Ken Kavula welcome special guest Christie Powell from Falcon Financial to discuss financial planning and tax strategy. The session opens with market updates, noting that the CPI came in better than expected, causing a significant market rally at opening. Robertson shares the Groundhog portfolio tracker standings, highlighting that five entities have regained million-dollar positions, with several notable performers including Herb Lemkuhl as the individual leader and Kevin Gallogly's Montgomery County Club leading group entries. The team also notes the significant decline of the ARK Innovation Fund from top performer to last place, attributing it to market timing and redemptions.

Christie Powell provides comprehensive guidance on backdoor Roth conversions, a critical year-end tax strategy for high-income earners. She explains the distinction between traditional IRAs (tax-deferred) and Roths (after-tax), then walks through the two-step process for executing a backdoor Roth conversion by December 31st. Powell clarifies income limits for direct Roth contributions ($204,000 AGI for married filing jointly in 2022, rising to $218,000 in 2023) and emphasizes the importance of keeping tax receipts on non-deductible IRA contributions. The discussion addresses earned income requirements, noting that Social Security, pensions, and investment income don't qualify, while retirees who continue earning income (even part-time work) remain eligible. Powell stresses the need for professional tax and financial planning advice due to the complexity of these strategies.