Should I Convert My Traditional IRA to a Roth IRA When the Market Is Down?
If you've been thinking about converting money from a traditional individual retirement account (IRA) to a Roth IRA, this may be a prime time to bust a move.
Last Monday, the Dow Jones Industrial Average plunged 876 points following a stomach-churning inflation report. The S&P 500 stepped into bear-market territory after dropping 3.9%, or 151.23 points. On top of that, the Federal Reserve raised interest rates by 75 basis points during June's Federal Open Market Committee meeting.
The recent market moves may not be good for your portfolio, but it could be a potential win if you decide to do a Roth conversion. Here are a few items to consider before you shift funds from a traditional to a Roth IRA.
Source Fool.com
