We’ve all heard the optimistic phrase “when life hands you lemons, make lemonade”.
Well, the gist this phrase can apply to the current bear market. Even though the market has fallen about 20% from it’s October peak, there’s still an opportunity to make those losses less painful.
How’s that?
If you qualify, and it makes sense for you, this could be a great time to convert your traditional IRA into a Roth IRA. Remember, in many situations a Roth IRA has more advantages than a traditional IRA. But, in order to convert a traditional IRA into a Roth IRA, one must pay taxes on earnings from the traditional IRA.
BUT, now that the markets are down, and perhaps the value of your IRA investments along with them, converting to a Roth IRA now would mean paying MUCH LESS taxes then one would pay when the investments were worth 20% more.
Just something to think about.
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