Tax Savings from Roth Conversions | Stock Market History

CASE STUDY: PLANNING ROTH CONVERSIONS

We’re continuing our series of case studies* from real (anonymized) clients that we think highlight what great planning is supposed to look like. Our goal is to help make key planning decisions more visible and more understandable.

Today’s case study focuses on partial Roth conversions. We take a look at the common use cases and what kinds of families should consider them as a part of their strategy.

Watch our team walk through the case study here, or read the summary here.

*This case study is provided for illustrative and educational purposes only and does not constitute investment, tax, or legal advice, nor a recommendation to pursue any strategy (including Roth conversions). The example reflects specific client circumstances; it is not representative of all clients and outcomes will vary. Selection was based on planning characteristics relevant to Roth conversions and not on favorable results. Client-identifying details have been modified to protect privacy. Consult your tax professional regarding your individual situation.

DID YOU NOTICE?: The S&P 500 recently closed at an all-time high.

WHAT CAN WE LEARN FROM HISTORY?:

GOOD NEWS?: The S&P 500 recently was up seven days in a row, and it also gained more than 7% during that win streak. Plain and simple, these types of buying thrusts are often clues that the trend has indeed changed and higher prices are coming, and rarely just a teaser bear market rally.

WHY WE DON’T JUST OWN U.S. STOCKS:

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TRUE OR FALSE?:

*The views expressed represent the opinions of Compass Ion Advisors, LLC, as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, an investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website here. Past performance is not a guarantee of future results.