The Money Amplifier Roth Conversion Process

Background

Traditional IRAs and other tax deferred retirement plans are partnerships in which the

account holder owns a portion of the account assets and various taxing authorities ‘own’

the rest. Roth IRAs are sole proprietorships - the Account holder owns and controls the

entire balance and maintains discretion over its investing activities and distributions

(within the Roth rule set).

Conversion of a Traditional IRA and other tax deferred plans to a Roth IRA changes the

arrangement from a partnership to a sole proprietorship. It dissolves the partnership.

Each partner moves forward with their share of the assets with no need to interact on the

matter again.

Uniquely, The Money Amplifier conversion strategy recovers the exiting partner’s share

so that the account holder completes the dissolution without a reduction in their account

balance.

For example, if a client were to convert a $500,000 traditional IRA conventionally, they

might end up with $350,000 assuming a conversion tax rate of 30%.

If they convert using the The Money Amplifier strategy, they’ll end up with (at least) the

original $500,000, but it will be in a ‘tax-free forever’ Roth IRA.

In other words, we help our client recover 100% of their partner’s share so the money that

was never theirs – becomes forever theirs.

The Strategy – The Reduce and Recover Strategy

Our strategy involves two parts that can be executed independently, but when combined

achieve the desired outcome.

First, we obtain a legally supported valuation discount on the traditional IRA
of about 40%. That reduces the conversion tax accordingly.

Next, we introduce you to three investment options that will ‘earn’ the discounted tax
liability before it is due. That way the tax is paid out of earned/found money.

The Process

While we are happy to share information about our strategies at a high level, the details are

our work product, and will be shared upon receipt of a $1,000 retainer. The retainer will be

applied to any ongoing work should you choose to move forward.

The retainer allows The Money Amplifier to deliver to the client:

Details on how and why the valuation discount process works, its legal
background, and the valuation timeline (Part 1 of the process).

Details on the three investment options we recommend for accomplishing Part 2 of
the process – earning the (discounted) tax liability before the tax remittance due
date. This will include:

Disclosure of the instrument issuers, their returns, their track record, risks, and
other materials supporting their offering.

The amount of funding each would require in order to ‘earn’ a given tax bill
by its due date.

Any additional funding amount that would be needed to recover
The Money Amplifier contingency fee (if desired).

We will build a model to project your conversion tax if you were to convert conventionally in order to establish the Conversion Value Added which drives the computation of The Money Amplifier fee.

Detail the conversion timeline from engagement, to conversion, to the payment
of the tax bill.

Conversion Value Add, the client’s contingency fee will be based on their choice to move

forward with one phase only or both phases.

If the Client Chooses Phase 1 Only – The Money Amplifier will provide a
valuation discount specific to the client’s situation.

If a $500,000 Traditional IRA would carry a $150,000 conventional conversion tax, and

the valuation process would reduce that tax by 40%, the client’s tax savings would be

$60,000 ($500,000 – 40% X 30% tax rate).

Client Chooses Phases 1 and 2 – Continuing using the example above, the client’s conversion tax would be $90,000 after the phase 1 valuation discount. Phase 2 will earn $90,000 prior to the due date of the tax payment. Therefore, the Phase 2 Conversion Value Added would be $90,000, bring the total Conversion Value Added to 150,000;

The Conclusion

We know of no other firm in the nation who has developed and perfected a strategy that

has the effect of shifting 100% of the conventional Roth conversion tax liability back into

the pocket of the client/Roth owner.

Should you find that a compelling proposition, let us know, we’re happy to have another

conversation. See if this strategy might work for you.

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