What a Slinky Has to do With Your Retirement
The markets have been a little crazy lately, wouldn’t you say?
I wanted to check in— how are you?
Wanting to pump the breaks on any retirement strategies in the name of “waiting until the market bounces back” is easy.
Even relatively low risk moves like Roth IRA conversions aren’t exempt from this down-market paralysis.
Not acting now could be costing you thousands in additional taxes.
Think of it this way…
Imagine right now I’m holding a slinky. Yes, you got it right, that little toy we played with growing up!
This slinky represents your IRA.
Today the market is down, so I’m going to coil it down so that your $100,000 IRA is $50,000. If I convert it to a tax-free account today when the market recovers, your retirement savings will potentially uncoil tax-free.
So, when is a better time to convert your IRA to a Roth: when the market is down or when it is up?
Down markets can actually be an optimal time to act in certain instances!
You may still want to convert in up-years, but today we have the advantage of converting while the assets are suppressed.
A Roth Conversion can be one powerful tax-saving component to a well-designed, integrated plan.
Neither Boomfish Wealth Group, LLC, nor Wealth With No Regrets® is engaged in the practice of law or accounting. Content prepared by Snappy Kraken. We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. Neither the firm nor its agents or representatives may give tax or legal advice. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.
_____________________________________________________________________________
“You need to know the market’s going to go down sometimes. If you’re not ready for that, you shouldn’t own stocks. And it’s good when it happens.”
– Peter Lynch