Money in the Middle

Sandwich Generation Talking About Money Up, Down and Across Generations

Watch Out for Roth IRA Predators

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The new rules on Roth IRA conversions can be a real benefit to some baby boomers and seniors.  But it also an opportunity for less scrupulous sellers of financial products to engage in a bit of bait and switch.  Not good for your retirement planning….probably pretty good for the seller’s wallet 

This article Crooks Are After Your Retirement Account from CBS MoneyWatch gives  a great  inside view of how at least one sales agent is planning on using Roth IRA conversions as a hook to get information to sell you something else that you probably don’t need.

Watch out!

I have no doubt you’ll start seeing seminars on Roth IRA conversions, flyers in your local newspaper and senior center.  Be wary.  Some will be legitimate experts with good information and reputable businesses.  Others will be using it as a hook to get information to sell you something you don’t need or isn’t right for you.


1. Get your information from reliable, trusted sources.  Get the information promised and don’t give up your personal financial information to get it. Here’s a NY Times article that can help you figure out if a Roth IRA even makes sense for you. Check with your tax adviser.

2. How is the person offering you advice on Roth IRA conversions getting paid?  Do they have expertise in retirement planning and investing for retirement.  Check out our blog on recommendations from the AARP Retirement Survival Guide.

3. Keep your antenna up.  Watch for bait and switch. Watch out for crooks. Maybe the information is good, but if you suddenly find yourself talking about a different product, it’s probably time to move on.


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