Roth Conversions

[ATA]

Re: Roth Conversions and the opportunity they provide

Any Roth conversion software that does not take fully into account the present and future lost opportunity values of the taxes paid together with the impact of paying taxes from within versus from outside the IRA is worthless...........
But the larger point still in our business is not to talk people into doing a Roth or not. It is getting into a position of helping, knowing what we are talking about, and hopefully earning some business as a result.

We couldn't agree more with these comments. A key thing to be aware of with the software that's out there -- most are just calculators, offering an "all or nothing" type of output, and most ask you to state how much you want to convert. This is the wrong question -- analysis should provide you with an optimized amount, based on the many inputs required.

And -- to the last point above -- whether someone coverts or not is not the most important thing. That you have the discussion is key. This opens the door to solidifying relationships and potentially finding new assets.

To help professional financial advisors with the business-building strategy, and complex legal and analytical notions involved with Roth conversions, we offer the Roth 2010 Conversion Package -- an online portal with resources and a conversion optimizer. Visit us at AdvisorsTrustedAdvisor for more on this.

 

[Mr. Bill]

E&O will cover you for whatever business activities you disclose to them.
My E&O covers me for insurance/investment products as well as financial planning (which includes tax advice).
Anyone with a securities license is covered for tax advice related to the investments they sale.
Anyone with a 65 or 66 is covered for financial planning which includes tax advice if pertinent.

You might want to confirm your E&O coverage. "Financial Planning" is sometimes separate from "Tax Planning" (or whatever it is). It is on mine.

Better safe than sorry.

 

[scagnt83]

You might want to confirm your E&O coverage. "Financial Planning" is sometimes separate from "Tax Planning" (or whatever it is). It is on mine.

Better safe than sorry.

Your right. E&O varies as to what it covers, and definitions can vary from carrier to carrier too.
My old E&O did not cover tax advice related to products I sell. My current one does. Although its more expensive than my old coverage.

I should have said some policies do