How the Falling Market Could Help You Save in Retirement

How the Falling Market Could Help You Save in Retirement

How the Falling Market Could Help You Save in Retirement

The falling stock market has been a real downer for most investors to watch. The massive drops, as well as the volatile nature of the market in recent weeks and months, have left many investors trembling. But as with most bad news, there might be a silver lining to the story. The recent downturn in the market could actually help you save on your taxes in retirement.

Time to Convert to a Roth?

So how can you save on retirement taxes, and what does it have to do with the falling stock market? If you have a traditional IRA, or 401(k) plan then chances are it has recently taken a hit. The stock market has been tough on a lot of these plans. That’s why now might be the perfect time to make the switch to a Roth IRA Can You Convert Taxable Savings Into Your Roth IRA?. Converting to a Roth could help you reduce your taxes in retirement.

Pay Now, Save Later

The downside is you would have to pay income tax on the present amount based on your tax bracket, when you convert. However, there are some nice long-term benefits that could help you down the road. When you open or contribute to a Roth IRA that money gets to grow tax-free because you’ve already paid taxes on it once. Additionally, when you withdraw money during retirement, you also get to take that money tax-free. With a traditional IRA, you have to pay taxes every time you withdraw.

Who Should Convert

Why Convert Now – The two reasons converting now makes sense is that many people have declining shares with the market currently down. The other reason is that the current income tax percentages are lower than they have been, thanks to the Tax Cut and Jobs Act. That means if you convert, you will pay a lower tax percentage than you would’ve in the past, or might in the future.

Why Not Convert – It used to be that you could convert to a Roth and see how it went before deciding to stick with it. That gave people the chance to convert earlier in the year and watch the results. If things didn’t go well, they could convert back before the year ended. Under the new tax law, you can no longer do that. Roth conversions are now permanent.

The Verdict – Based on that information, converting to a Roth before the year ends, might make the most sense for retirees younger than 70½ who have already deferred on Social Security. If you are considering converting to a Roth, just make sure you have enough available funds to pay the amount of taxes that will be owed on the conversion. It’s best not to use money from your retirement account to pay the tax bill. Although anyone with a personal retirement account could choose to convert to a Roth IRA, everyone is different. And a conversion might not be the best move for every taxpayer. Make sure you assess your individual situation before choosing to convert. You can also speak with the tax professionals at GROCO for more help.


We hope you found this article about “How the Falling Market Could Help You Save in Retirement” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at  Unfortunately, we no longer give advice to other tax professionals gratis.

To receive our free newsletter, contact us here.

Subscribe to our YouTube Channel for more updates.

Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio is a proud sponsor of The American Dreams Show.



The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

Untitled_Artwork copy 4 (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

Posted in

Successful Entrepreneurs Share 9 Essential Qualities

Successful Entrepreneurs Share Unique Qualities In the dynamic landscape of business, entrepreneurship stands as a beacon of innovation and change. Behind every successful venture lies an individual with a unique blend of qualities that propel them toward success. Whether it’s a tech startup disrupting an industry or a small local business thriving in a competitive…

Tom Wheelwright Talks Tax Free Wealth

Tom Wheelwright Talks Tax Free Wealth

Tom Wheelwright sits down with Alan Olsen, Host of the American Dreams show to discuss tax free wealth. Transcript: Alan Olsen Welcome to America Dreams. My guest today is Tom wheelwright CPA, Tom, welcome to today’s show. Tom Wheelwright Thanks, Alan. It’s really always good to be with you. Alan Olsen I am really excited…

5 Best and Worst States for Wealthy Retirees

5 Best and Worst States for Wealthy Retirees

Determining The Best & Worst States for Wealthy Retirees Can be Subjective Retirement marks a significant phase in life, offering a new world of opportunities and choices. One critical decision for affluent retirees is selecting the right state to enjoy their golden years. In this post, we’ll explore the 5 best and worst states for…

Building Extraordinary Family Legacy 101

Family Legacy 101

The family “Legacy Builder” conference was a huge success!  The next conference will be in mid-May… This was the inaugural “how to” strategically build a family legacy event. On January 25, 2024, single and multi-family offices and high-net-worth individuals from around the world learned how to create a family legacy. Legacy Builder guests shared examples…