Email Sent to Clients - July 30, 2010
We are already in the second half of 2010 and if you haven’t given some consideration to doing a Roth IRA Conversion in 2010, I strongly urge you to do so. As you probably know, the Income test for Roth IRA conversions was eliminated. This may or may not have been a constraint for you. In any event, everyone needs to at least consider converting all or part of their traditional IRAs to Roth IRAs in 2010. It is a complex issue and while conversions are very beneficial to some, they may be inappropriate for others. Roth IRAs have some great features but they come at a price. If I can help you with your decision, please contact me as soon as possible. I expect to be pretty busy at the end of the year with Clients who have procrastinated over this decision so please don’t be one of them.
I wish I could provide some guidance with respect to the stock market but my crystal ball is a little cloudy. After the strong gains experienced in 2009, it is not surprising that the market is taking a breather in 2010. We are slow coming out of the Great Recession, the housing market is lousy, unemployment is still very high, and consumer confidence is very low. However, corporate profits continue to improve and that is generally a primary driver of stock prices so I am cautiously optimistic with respect to the market going forward. As always, my advice is: stay invested by maintaining a well diversified portfolio consistent with your risk tolerance. Rebalance the portfolio regularly to maintain the desired asset allocation.
If I can assist you with the Roth IRA Conversion decision or any other matter, please call or email.
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