Is Now a Good Time to Do a Roth Conversion?

When is it the right time to do a Roth conversion? Brian shares why the right time might be right now, depending on your situation.

While the market is down, what financial opportunities do you have? While your money is down 10 to 15 percent, you may want to consider a Roth conversion. Brian has had several conversations with clients just this week about doing a Roth conversion to lock it in at a lower rate.

This is not the same thing as taking the money out at a loss. Brian gives an example of how this looks. You won’t miss anything in the market, in fact, you can invest in the same things. You’ll want to think strategically about how you’ll pay for the tax. Do you have a tax plan for your investments? You may need to pay quarterly estimates, but you may want to pay for the taxes from a different account.

When you are wanting to pass money on to the next generation, you can get creative. There are other things you can do to help offset the tax. You want to be shifting it at the right time to get more money back in retirement. Wealth enhancement is all about trying to figure out how you can get more money down the road and now. If you’re not paying as much tax, hopefully, that money is being re-invested and that creates more income for you.

Listen to the entire episode or skip ahead using the timestamps below.

Honest Takes:

[0:13] Should you do a Roth conversion?

[1:43] If you convert it, what happens?

[7:41] When should you convert?

Today’s Truth:

“Wealth enhancement is about trying to figure out how you can get more money down the road and now.”

Brian Bowen

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