To say that 2022 has been a rough ride for investors is such an understatement as to almost sound trite. The S&P 500 is well into bear market territory, and the traditional “safe haven” of bonds has done no better. The Wall Street Journal headlined “It’s the Worst Bond Market Since 1842.” What’s going on?
With many areas of the market down over 20%, we look to the Roth to help us turn lemons into lemonade! How so? With a Roth Conversion, of course!
Roth IRAs and Traditional IRAs have polar opposite tax treatment and fill two different roles in retirement. So why would you invest them the exact same way?
The triple tax trap can happen when you have Social Security retirement benefits and capital gains that span multiple thresholds. And it happens at a surprisingly low level of income.