Make This Urgent Money Move Now—Before It’s Too Late!
When it comes to personal finance, there are moments that call for immediate attention, and according to renowned financial expert Suze Orman, one such moment is now. In a recent YouTube video, Orman passionately explains why you should consider converting to a Roth IRA before the opportunity slips away—especially with the current turmoil in the U.S. stock market.
Why You Should Act Now
Orman, an advocate for Roth IRAs, insists that this investment vehicle can be transformational for anyone’s financial future. She emphasizes, “I want you to do a Roth IRA no matter how much money you make.” It’s clear she believes these accounts—whether a Roth 401(k), 403(b), or traditional Roth IRA—are a strong choice for anyone looking to secure their financial health.
What Makes Roth IRAs So Special?
You might be wondering, what exactly makes a Roth IRA a superior option? Here are some of the most compelling reasons:
Tax-Free Growth: One of the hallmark features of a Roth IRA is that your gains aren’t taxed. Unlike traditional IRAs, where you pay income tax on withdrawals, with a Roth IRA, you pay taxes on your contributions upfront. This means if you wait until retirement—after age 59½—as long as the account has been open for at least five years, your withdrawals are tax-free.
- Future Tax Advantages: With federal income tax rates likely to rise in the future, utilizing a Roth IRA means you pay taxes today at potentially lower rates. This can lead to significant savings over time, especially considering how tax brackets increase over decades.
The Timing is Crucial!
So why should you consider making the switch now? Orman advises, “Your portfolio is worth less. Stocks have gone down.” This means that if you have been impacted by the recent market decline, now could be the best time to convert to a Roth IRA. Here’s why:
- If you convert when the value of your stocks is low, you will pay lower taxes on the converted amount.
- As Orman puts it, “The less money you have that you’re converting, the less taxes you owe.” Thus, a downturn in the market could work in your favor.
Taking Action: How to Convert to a Roth IRA
If you’re ready to make the move, converting to a Roth IRA is straightforward. Here’s a simplified guide:
Identify Your Account: Determine where your current pre-tax account is located, such as a traditional 401(k) or IRA.
Request the Conversion: Contact your financial institution and express your desire to convert your pre-tax account to a Roth account.
Pay Taxes on the Conversion: Keep in mind that you will need to pay taxes on the converted amount, but afterward, your money can grow without being taxed.
- Monitor Your Growth: Once your funds are in the Roth account, enjoy the peace of mind that comes with watching your investments grow tax-free!
Wrapping Up: Don’t Wait to Invest in Your Future
With opportunities often waiting for no one, acting promptly is essential. Suze Orman urges everyone—not just the financially savvy—to consider the benefits of a Roth IRA. "You have to be crazy to do anything other than a Roth retirement account," she states emphatically.
Take the leap! By converting to a Roth IRA during this tumultuous time, you may find yourself in an advantageous position for years to come. Don’t let this chance pass you by—secure your financial future today!
For more insights into smart financial habits, check out 5 Frugal Habits Suze Orman Still Follows Even Though She Can Afford Almost Anything or explore these 10 Used Cars That Will Last Longer Than an Average New Vehicle.
