Article published by CNBC.com
Written by Ryan Ermey
“If you’re a stock market investor, 2022 has been, well, less than ideal. The broad stock market entered bear territory earlier this summer, and even with a recent uptick, the S&P 500 has still surrendered more than 16% so far this year.”
“But a decline in the value of your portfolio may actually be advantageous for certain investors who hold funds in traditional, pre-tax IRAs: The lower the value of your portfolio, the cheaper it will be to convert your funds into a Roth IRA.
“The move is potentially lucrative for younger people, who stand to benefit most from switching to an account where their assets can grow and generally be withdrawn tax-free in retirement.
“In fact, if you’re early in your career, a so-called “Roth conversion” is smart, regardless of what the market is doing, says Ed Slott, a certified financial planner and founder of IRAHelp.com.
“For younger people, “it’s a perfect time to convert, whether things are up or down. It’s a long-term move,” he says. The price of stocks at this very moment tends not to matter much for a move whose results will take decades to shake out.
“Of course, if the market is down, you can convert more,” Slott adds.
“If you have a traditional IRA, here’s why financial pros say it’s worth considering a Roth conversion.”
Click here to read the remainder of this article.
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.