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When Should I Time My Roth Conversions for the Year?


When should you time your Roth conversions for the year? In this week's Arista Advice, we help you employ strategies that could help you in a declined market.

Full Transcript:

Welcome to Arista Advice! Question the week is: "When should I time my Roth conversions for the year?"

I was actually reading a very interesting article from Michael Kitces this week, and he talks about how bear markets can be very stressful for both advisors and clients, in particular, clients that were approaching retirement or just recently retired. At the same time, during the downturn though, there are many strategies that you can employ to get more benefit for you and for your financial plan. One of them tax-loss harvesting - big advantage. 

But today we want to talk about Roth conversions. Roth conversions are basically where you take your traditional IRA money and put it over into your tax-free Roth IRA, and by doing so in a declined market, investors considering this can effectively put more money into the conversion "on a sale" at hopefully, a temporary depressed value. This is one of the many things we do for all of our clients in particular right now. Just on the phone call with the client today, discussing the Roth conversions to help them employ this strategy. 

Thanks for listening. Remember to go to AristaWealth.com for more videos, tools, tips, and resources to help you live a life of significance. Don't forget to subscribe, rate, and review.