Just do the Roth conversions. It may not seem easy, but there is a simple part to it

Just do the Roth conversions. It may not seem easy, but there is a simple part to it.

When you're young and anticipate making more money in the future, but find yourself in a low-income situation for a particular year, that's the perfect time to consider it. Whether you've lost a job or are between jobs, if your income happens to be low that year, it's an opportunity to take advantage of. Even if you're taking a year off or a professional gap year without pay, these are the years to think about Roth conversions.

The strategy revolves around being in a lower tax bracket now and expecting to be in a higher tax bracket later. I like to call it tax bracket arbitrage, but let's not get too fancy.

So, during that gap year when you're in a low bracket now and will be in a higher bracket later, that's when you should seriously consider it. It's a great year to make the move.

#RothConversions #TaxBracketArbitrage #FinancialStrategy #Shorts