Recs

4

Roth IRA Conversion: A Smart Move Right Now?

Retirement planning can be complicated, especially with all the complex rules governing tax-favored retirement accounts. But it can be well worth the effort to take advantage of smart planning opportunities in order to make the most of your retirement savings. One strategy to consider involves converting existing retirement accounts to a Roth IRA.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at Roth IRA conversions. Dan notes that even though you pay tax on the converted amount, you don't have to pay tax on future income and growth within the Roth IRA. If you're in a low tax bracket now, converting often makes sense. But Dan notes that it also makes a difference what investments you own, as the ideal time to convert is when asset prices are low in order to minimize your immediate tax liability. Dan notes that for investors in SPDR Gold (NYSEMKT: GLD  ) and MarketVectors Gold Miners  (NYSEMKT: GDX  ) or mining stocks Newmont Mining (NYSE: NEM  ) and Goldcorp (NYSE: GG  ) , current low levels might make now a great time to convert an IRA that owns those stocks.

The best stocks for long-term retirement portfolios
When it comes to investing your converted Roth, your best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.


Read/Post Comments (1) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 11, 2014, at 11:53 PM, angelwithwings wrote:

    Tax wise, It would have been smarter to do the Roth IRA conversion in March 2009 at the market minimum. But, hindsight is 20:20.

Add your comment.

DocumentId: 2791934, ~/Articles/ArticleHandler.aspx, 4/24/2014 12:46:27 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger
TMFGalagan

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated Moments ago Sponsored by:
DOW 16,520.50 18.85 0.11%
S&P 500 1,881.50 6.11 0.33%
NASD 4,153.10 26.14 0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

4/24/2014 12:31 PM
GDX $24.15 Down -0.12 -0.49%
Market Vectors Gol… CAPS Rating: ***
GG $24.66 Down -0.05 -0.20%
Goldcorp, Inc. (US… CAPS Rating: ***
GLD $124.25 Up +0.49 +0.40%
SPDR Gold Trust (E… CAPS Rating: **
NEM $25.64 Down -0.28 -1.08%
Newmont Mining Cor… CAPS Rating: ***

Special Offer for Savvy Investors Like You!

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut semper dui vitae molestie venenatis. Suspendisse.

Enter Email Address:



Privacy / Legal Information
Advertisement