Investment opportunity window rare

Our parents and grandparents had the privilege of working for a company for many years then retiring with the ability to live off a pension. This was reliable, dependable and certain.
Those of us who are still working today do not have this luxury to simply put our financial future on autopilot and know we can live happily ever after.
You and I need to chart our own course toward financial success in our retirement years. Unlike our parents and grandparents, many working today need to plan to take care of themselves financially up to age 100. The fact that we are living longer with less guaranteed retirement income means we need to take control and seize every opportunity.
For the most part, retirement planning is a matter of setting up a long-term plan to contribute regularly to your 401k, 403b or IRA.
Once this is established, normally there is little you need to do other than have an annual review of your progress. In the coming days, however, many of us will have a unique and unprecedented opportunity to convert our traditional IRA to a Roth IRA.
I can hear people around the world reading these words in newspapers, magazines and online publications, collectively sighing and asking the eternal question, “So what?”
This past week, I had lunch with a good friend, Beth Burkeen, who is a respected CPA.
We talked about real-life examples of individuals who were facing conditions where this conversion opportunity could mean literally millions of dollars gained or lost in their retirement.
If your CPA, tax preparer or financial planner has not approached you about this one-time conversion opportunity, you need to approach them or, better yet, find a professional who is looking out for your financial well-being.
This is particularly important to those who have suffered a decline in the value of your retirement plan, experienced a tremendous loss in your business or have some unique estate planning factors.
Basically, in a traditional IRA, you put in pretax dollars you have not yet paid income tax upon into an account that grows tax deferred until you retire. Then, in your retirement years, you will be forced to pay income tax on every dollar you withdraw. In a Roth IRA, you invest after-tax dollars for which you have already paid taxes, then your retirement account grows tax free, and you are allowed to withdraw funds in your retirement owing no tax obligation.
Many have not had the opportunity, due to IRS restrictions, to invest in a Roth IRA, but now for a brief period of time, we have all been given the opportunity to convert. There are only a few times in our financial lives when we have a limited window of opportunity to do the right thing and make a huge difference. This is one of those times.
As you go through your day today, make sure you are planning and preparing for your retirement, and get the best possible advice with regard to converting your retirement account.
Today’s the day!



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