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The days of the individual retirement account “stretch” are long gone. But the appeal of Roth conversions is enduring — especially under the current tax rates.

Expiring provisions of the Tax Cuts and Jobs Act at the end of 2025 that mean lower taxes on the conversion, the fact that Roth IRAs carry no required minimum distributions and, of course, the duty-free withdrawals for the owner or their heirs add up to a compelling case, according to Sarah Brenner, the director of retirement education with consulting firm Ed Slott & Company. The first Secure Act was a “game-changer for IRAs and Roth IRAs” due to the new obligation for beneficiaries to empty the accounts within a decade of inheritance, and Secure 2.0 “made some changes around the edges,” she said in an interview.

The situation for traditional IRA owners is “kind of like ripping off a Band-Aid,” in which they should just “get the pain over with,” Brenner said, pointing out that clients often have a misconception that “you’ve got to do it all” even though “it’s not all-or-nothing” because they could simply do a partial conversion as well.

“The Secure Act changed the game, and it has definitely led to, I would say, an even stronger case for Roth conversions,” she added. “You work with the rules you have, and you have a 10-year rule.”

READ MORE: Final IRS rules to IRA beneficiaries: Get going on those RMDs already

After four straight years of pushing back the implementation of that rule, the IRS has indicated that it will be going into effect at the beginning of 2025. Next year was already going to turn into one of the most consequential for tax policy in recent decades because of the possible sunset of the lower tax brackets and many other parts of the Tax Cuts and Jobs Act that will be high on the agenda for the next occupant of the White House and lawmakers in control of Congress.

Tax experts have been extolling the continued virtues of Roth conversions since passage of the first Secure Act in 2019.

“Though considerations around Roth IRA conversions have changed as a result of the Secure Act, Roth IRAs still offer advantages to account owners and beneficiaries,” certified public accountant and planner Joseph Doerrer wrote the following year in the Journal of Accountancy. “Roth IRAs are tax advantaged, and owners of Roth IRAs aren’t required to take RMDs. This can prove helpful in retirement, as it allows a larger amount of assets to remain in the account. Not having to take RMDs can also help account owners avoid creating unwanted taxable income, giving them more flexibility in retirement. Beneficiaries will enjoy a simpler tax situation, versus beneficiaries of traditional IRAs, due to the tax-free nature of their distributions from the account.”

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It’s not unusual for stores to make changes to policies and practices over time. And Costco is no exception.

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In recent months, Costco has taken to installing membership card scanners at the front of its stores. And the general consensus is that Costco’s goal in doing so is to put an end to membership sharing.

Indeed, Costco has been cracking down on non-members by banning them from its food courts. This change seems to fall in line with that strategy.

But actually, there’s another big reason Costco opted to install membership card scanners. And it’s one that could benefit you a lot as a regular shopper.

If you’ve ever shopped at a Costco store before, you most likely encountered a lot of people. Costco stores tend to see a lot of foot traffic in general. But sometimes, that traffic can be inconsistent, making it harder to ensure an adequate supply of inventory.

During the company’s most recent earnings call, President and CEO Ron Vachris explained that the purpose of the new scanners isn’t just to make sure that non-members aren’t sneaking in. It’s also to track inventory based on the number of customers who are coming into the store at different times.

As he said, “It gives our operators real-time traffic counts throughout the day. So, we’re able to adjust front-end lines that we need to open and close lines based on the fluctuations of business. We can monitor our fresh foods a little better because we know what the traffic counts look like and so forth.”

Another reason behind the decision to install scanners is to see if memberships are up for renewal. If so, Costco can direct members who need to renew to customer service so they don’t hold up the checkout lines. And given the store’s notoriously long lines, that’s a good thing.

As Vachris said, the scanners have “taken the friction of membership verification away from the front-end registers and moved that to the front door, where we’re able to look at people’s membership status. We let them know if their renewal is due before they get to the front end.”

It’s clear that Costco has been making changes in recent months, including implementing a fee hike that raised the cost of a Gold Star membership from $60 to $65 per year and the cost of an Executive membership from $120 to $130 per year. But ultimately, even that change has the potential to lead to a better customer experience.

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It’s all about trust.

The nation may have left the gold standard behind in 1933, but Costco (COST) shoppers have proven that gold is a red-hot buy.

Sure, it’s an investment, but it’s also “reflecting this yearning for real money,” economist and senior fellow at the Independent Institute Judy Shelton told Yahoo Finance executive editor Brian Sozzi on Yahoo Finance’s Opening Bid podcast (video above; listen below). “Gold is kind of a surrogate for the real economy, and it represents commodities but also that traditional role of money you can trust.”

The wildly popular Costco bullion was introduced to warehouse club members last year via 24-karat 1 oz bars. The product has flown off the shelves, with Costco raking in a reported $200 million per month in gold bar sales. Demand has been so great that the retailer has begun to offer platinum bars.

According to Shelton, the gold rush at Costco likely has personal meaning to the financially skittish consumer. Over the past few years, consumers have become accustomed to watching inflation spike as high as 9% while the US dollar lost 20% of its purchasing power. This hasn’t exactly stoked Americans’ confidence.

Judy Shelton will be at Yahoo Finance’s Invest conference in November. Register to attend here!

The sudden rise in gold’s popularity could also relate to consumers’ overall trust in the precious metal and what it represents. “It’s a meaningful unit of account. It works across borders,” she said. “It has universal value, and it’s highly recognized.”

Precious metals such as gold are currently having a solid ride. Year to date, gold prices are up 31.72% to $2,750 an ounce. Silver and platinum prices are up 41% and 3%, respectively.

UBS chief investment officer of the Americas, Solita Marcelli, said the gold price rally has further room to run, citing the potential for more interest rate cuts and worsening geopolitical tensions.

“Despite the rally, we think gold’s hedging properties remain attractive. Alongside physical gold, investors may consider exposure through structured strategies, ETFs, or via gold miner equities. Investors unaccustomed to the volatility of individual commodities may also consider exposure via an actively managed strategy that seeks to deliver alpha over comparable passive indices,” Marcelli wrote in a note to clients.

Three times each week, Yahoo Finance Executive Editor Brian Sozzi fields insight-filled conversations and chats with the biggest names in business and markets on Opening Bid. You can find more episodes on our video hub or watch on your preferred streaming service.

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In my 401(k) retirement plan, I’m 82% stocks. I’m 65 and still working. Should I be moving my stocks to bonds?

-Bob

While it’s not a satisfying answer, the real answer is that “it depends.” The decision of whether to shift your 401(k) to a more conservative asset allocation will depend primarily on your longer-term goals, personal drivers of your risk/return profile and the asset allocation in your other accounts, if applicable. (And if you need help picking a suitable mix of stocks and bonds, consider speaking with a financial advisor.)

Before making any asset allocation decisions, I suggest you start by reflecting on your long-term goals for these savings. What do you intend to use the money for? Gaining a clear understanding of your longer-term goals will largely inform your time horizon, risk tolerance and return objective, the three inputs which collectively drive asset allocation decisions.

If your goal is to use the entirety of these savings for income when you eventually retire, then your time horizon will be your remaining time working plus your retirement years. With this goal and time horizon, you’ll need to evaluate your retirement readiness in the context of all sources of retirement income, including your 401(k) plan, other investment and savings accounts and Social Security, among others.

If you feel that you are behind in saving the amount required to support your desired level of spending in retirement, you will likely have a higher return objective since you need to achieve additional growth in your portfolio to advance your retirement goals. A higher return objective is generally associated with taking on more risk. Prioritizing capital appreciation by maintaining more exposure to stocks could be necessary in this situation. However, if you are confident that the various sources of retirement income can support this spending, you might have a lower return goal that emphasizes capital preservation rather than growth. Shifting to a more conservative allocation in the retirement plan could be prudent.

Perhaps you have built up more than enough savings to support your retirement and wish to pass on some of your assets to future generations. Multigenerational goals will require a different outlook. In this case, maintaining a more aggressive, equity-oriented asset allocation could make sense since the time horizon will extend beyond your retirement period into the next generation(s). (And if you need help setting financial goals, like retiring by a certain age, a financial advisor can help.)

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When thinking about asset allocation and risk tolerance, an often-overlooked consideration is the nature of one’s income stream. If you are a business owner, then your net worth is likely tied up in the equity value of your business. Because business ownership carries an inherent level of risk, maintaining a conservative allocation in your investment portfolio could be warranted.

You will likely want to take a similar approach if you don’t own a business but your income fluctuates meaningfully from year to year. Conversely, if your income is highly stable then you might have more flexibility to take risks with your investments. Income-based factors are one input into your ability to bear risk.

Health is another factor that contributes to your ability to accept risk. Do you currently have, or expect to face, elevated healthcare expenses? If the answer is yes then you might want to reduce the risk profile of your retirement plan by shifting some assets to cash and bonds. However, if you have long-term care or other arrangements in place you might be able to accept more risk in your portfolio.

It is also helpful to reflect on your own behavioral approach to investing. This is commonly referred to your willingness to accept risk. Are you able to stomach equity market drawdowns and potentially use them as buying opportunities, as we experienced in 2018, 2020 and 2022? Or did you sell on the way down during those challenging periods? Together, ability and willingness to accept risk form your risk tolerance.

The biggest risk to success with a stock-heavy portfolio is selling when the market turns against you. Having the fortitude to stick with positions during volatile periods in the market indicates a greater willingness to accept risk. This can nudge your risk tolerance upward and justify holding a larger relative equity allocation. (A financial advisor can help you create an investment plan and stick to you.)

It’s critical to then compare your goals, risk tolerance and return requirements to the asset allocations across your accounts and make sure they match.

Investors in their 60s will typically hold between 40% and 60% of their invested assets in stocks. Holding 82% of your retirement plan assets in stocks could be a sound decision if you own other accounts that are allocated more heavily towards bonds and cash. If that is not the case, then reducing the stock allocation in your 401(k) or other accounts could be beneficial. (And if you need more help making these decisions, consider matching with a financial advisor.)

Of course, it is critical that you align this overall asset allocation with your long-term goals, time horizon and risk/return objectives – age is not the only criterion!

While age represents an important driver of asset allocation decisions, additional factors should be considered before shifting your portfolio from stocks to bonds. We encourage you to look beyond age to understand your longer-term goals and where you are currently in relation to those goals. It is also important to think critically about other factors that might adjust your personal risk profile and return requirements upward or downward.

Lastly, evaluate your asset allocation holistically, incorporating any other investment accounts you own in addition to your 401(k) plan. In doing so, you can more accurately assess your time horizon, risk tolerance and return objectives, which will help you allocate among stocks, bonds, cash and other securities in a way that will put you on the best path to achieve your goals.

• Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have free introductory calls with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

• When talking with prospective financial advisors, it’s important to ask the right questions. As you consider your options, these are the questions you should ask an advisor to ensure you make the right choice.

• Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.

• Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with leads and offers marketing automation solutions so you can spend more time making conversions. Learn more about SmartAsset AMP.

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The post Ask an Advisor: ‘Should I Be Moving Stocks to Bonds?’ I’m 65 and Have 82% of My 401(k) in Equities appeared first on SmartReads by SmartAsset.

Stocks closed mixed on Monday as the 10-year Treasury yield rose and investors braced for a packed week of top-tier earnings that could drive or drag on a record-setting rally.

The S&P 500 (^GSPC) dropped almost 0.2%, coming off a fresh all-time closing high and a sixth weekly win in a row. The Dow Jones Industrial Average (^DJI) dropped more than 300 points, closing about 0.8% lower, while the tech-heavy Nasdaq Composite (^IXIC) closed up 0.2%.

AI chip heavyweight Nvidia (NVDA) gained more than 4% to close at a fresh all-time high, while iPhone maker Apple (AAPL) also eked out a closing record.

Meanwhile, the 10-year Treasury yield (^TNX) climbed 10 basis points to 4.18%, the highest level since July.

Whether records keep rolling in rides in large part on corporate results in the coming days. Earnings season ramps up this week, as over 100 S&P 500 companies are lined up to report. So far, 80% of third quarter updates from those on the benchmark have topped the mark.

Investors are on edge for Tesla’s (TSLA) report on Wednesday, after its robotaxi unveiling fell short of expectations. The EV maker is the highlight of the week amid questions about Big Tech performance, even after Netflix’s (NFLX) strong kickoff to the megacap season.

General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among several other big hitters on the earnings docket this week.

Boeing (BA) faces a double-whammy on Wednesday, when it’s expected to release earnings at the same time workers vote on whether to accept a tentative deal agreed with the union to end a five-week strike. Shares of the plane maker rose over 3%.

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