Simplifying Roth Conversions: Insights for Financial Advisors

by Micah Shilanski, 8/6/24

Micah Shilanski,Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

“Should I do a Roth Conversion?” How many times am I going to be asked that question as a financial advisor?

Remember when summer vacation meant long, exhausting road trips in the mini van because really, who could afford to fly a family of five anywhere? During these road trips, with a giant clan of us Shilanski sardines packed into a maroon Chrysler Minivan, one of us would inevitably ask the most futile question in the world to my dad, “How long is this going to take?” and we would get only one answer to that question… Dads, you know the answer. There is only one:

“As long as it takes.”

The lesson my father taught us during these adventures was about patience and acceptance of the journey. By responding with “As long as it takes,” my father was setting the foundation that some processes and experiences, like a long road trip, cannot be rushed and require enduring the passage of time. This lesson encouraged in us a mindset of perseverance and understanding that reaching a destination, whether literal or metaphorical, demands patience and resilience.

I think about these little lessons my father, Floyd Shilanski, taught my sister Jamie and I growing up, far more than I would ever confess to him. Recently, I was thinking about the “as long as it takes” answer when I was my marketing team presented another question from a prospect on Roth Conversions.

The prospect was asking whether a Roth conversion made sense, what the tax implications were, and what the best strategies were. I threw my head back and thought, “How many Roth Conversion question-and-answers or educational articles on this subject can I possibly answer?” The answer was instantly waiting on the sidelines of my childhood for me:

“As many as it takes.”

This may be the millionth time that I have talked about Roth conversions, but for the person asking the question, it might be their first.

We forget that as financial advisors, don’t we? We get so tied up in our own careers that we forget the people who are entrusting us with their life savings have simple questions on complex topics and need us to help them navigate what makes the most financial sense for them.

So as long as prospects or clients have the question, we will keep answering it — as many times as it takes. Here is how I am improving the way that I communicate this strategy to clients.