There have been great swings in the stock market over the past year and the Dow is down about 5% since the beginning of the year.
Inflation and rising interest rates are pushing down 401(k) and other investment accounts. So, how do you help yourself in this environment?
Read: Here’s how a Roth IRA conversion could help after a tough year
Business Editor and Certified Financial Planner Rod Meloni suggests looking into a Roth IRA.
In a traditional IRA you take pre-tax dollars and you invest them. When you take the money out all those dollars are taxed. With a Roth IRA, it’s the other way around. You invest after-tax dollars and they grow over time.
Certified Financial Planner and Planning Alternatives CEO Nathan Mersereau said now is a very good time to consider that option.
“We’re in an interesting time right now where Roth conversions are more attractive than what they perhaps would have been in the past,” Mersereau said.
Watch the video for the full report.
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