Musings

 January 15, 2010

Happy New Year!

The previous 12 months were certainly full of challenges, yet patient investors were handsomely rewarded for their perseverance. Even the most optimistic among us could not foresee equity markets rebounding so significantly through the year’s end. Needless to say, I appreciate your continued trust and confidence, and will strive to maintain both in the years ahead.

Roth IRA Conversions

Will 2010 be known as the Year of the Roth IRA Conversion? It’s quite possible. New rules allow all taxpayers, regardless of income, to convert retirement assets to a Roth IRA.   As you know, a Roth IRA uses after-tax money and permits tax-free growth and tax-free income distribution assuming you are 59-1/2 or older and have held your Roth IRA for 5 years or longer.

Of course, there is plenty of fine print so you need to plan carefully. The IRS regards a traditional IRA-to-Roth IRA conversion as a taxable distribution from a traditional IRA which means you'll need to pay taxes on the amount converted.  The IRA Conversion article on my website has more information but be sure to consult your tax advisor before you convert as you should fully understand the potential tax implications of a Roth conversion on your finances and your estate.

Account Aggregation

One of my roles as an advisor is to provide the best service possible.  Doing so, however, requires a complete view of your ever-changing financial picture. This is especially important during annual or semi-annual review meetings. With that in mind, I am happy to offer account aggregation services at no charge to existing financial planning clients.  This sophisticated service provides easy consolidation of your account information - banking, investment, retirement, insurance, credit card, mortgage, loans and bill information, life insurance, annuities and REITs – using unmatched security to protect your vital information and accurate data reporting.  This service truly provides the “Big Picture” while eliminating the need for multiple account statements.

Regardless of whether a Roth IRA conversion makes sense for you, I hope you’ll take advantage of account aggregation. Please contact me for details.