Weighing a Roth Conversion? Don’t Overlook These Five Factors

Conversions to Roth IRAs can have wide-ranging consequences on your finances, so look at the big picture before you make your move.

A piggy bank has a strip of paper coming out of its slot that says Roth IRA.
(Image credit: Getty Images)

Most investors understand that they need diversification in their portfolios. As a result, they are fairly good about settling on a mix of aggressive, moderate-risk and low-risk investments.

But one area people often fail to account for — especially when saving for retirement — is diversification of the tax status of their assets. Take a look at the retirement accounts of many Americans, and you will likely see they are heavily weighted toward IRA, 401(k), 457 and 403(b) accounts. People rely on that savings for their retirement income, along with Social Security and perhaps a pension.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Daniel Rey, Investment Adviser Representative
Founder, Voyage Retirement Solutions

Daniel Rey is the founder and CEO of Central Florida-based Voyage Retirement Solutions. Daniel developed the Retirement Navigator, a proprietary planning process designed to help Voyage's clientele achieve their long-term financial goals. He is passionate about helping investors, from public pensions and other employee retirement benefit plans to individual retirement planning.