A handful of Burney clients have asked Adam Newman and Andy Pratt about a Roth conversion idea that's been marketed heavily to affluent investors lately. The hosts call it the J-curve Roth conversion strategy. You fund a private investment through a traditional individual retirement account (IRA), wait for the early markdown that private funds tend to show, and convert to a Roth IRA while the value sits low. Adam isn't convinced that markdown ever reverses, since it reflects a discount for illiquidity and risk, and higher fees and possible IRS scrutiny can eat into whatever the conversion saves. Andy prefers simpler moves, like holding tax-efficient exchange-traded funds (ETFs) in taxable accounts and saving the Roth IRA for the assets with the highest expected growth.

Adam and Andy also react to the Federal Reserve's recent quarter-point rate hike. They look back at how the S&P 500 has behaved in the year after the Fed starts raising rates, explain why the rate itself tends to follow economic conditions, and share what they plan to watch as markets head into the fourth quarter of 2026.

⏱️ Timestamps: 

• (00:00) Welcome to Episode 65

• (00:34) The most dangerous phrase in investing and financial planning

• (04:00) Real estate write-offs, 10 to 15 years later

• (05:17) Opportunity cost and the next best use of your money

• (06:15) Why the lowest possible tax bill can leave money on the table

• (07:17) The tax idea du jour and the J-curve Roth conversion strategy

• (09:43) How the strategy works inside an IRA

• (11:29) What the early markdown tells you about risk

• (13:27) Simple asset location moves across taxable, traditional, and Roth accounts

• (14:46) Fees and an easier way to time a Roth conversion

• (16:06) IRS scrutiny and the conservation easement example

• (18:00) The Fed raises interest rates

• (19:45) What rate hikes have meant for stocks, and signals versus drivers

• (24:54) Podcast disclosures

Resources:

Long Story Short website |burneywealth.com/podcast

Follow Burney Wealth Management on LinkedIn | www.linkedin.com/company/burneywealthmanagement 

Follow Adam Newman on Linkedin | https://www.linkedin.com/in/adam-newman-cfa-cfp%C2%AE-48853916/ 

Follow Andy Pratt on LinkedIn | www.linkedin.com/in/andyjpratt/ 

#TaxPlanning #RothConversion #RetirementPlanning #FederalReserve #WealthManagement

The Burney Company is an SEC-registered investment adviser. Burney Wealth Management is a division of the Burney Company. Registration with the SEC or any state securities authority does not imply that Burney Company or any of its principals or employees possess a particular level of skill or training in the investment advisory business or any other business. This content is for informational and educational purposes only. It is not intended as personalized investment advice, legal advice, tax advice, or a recommendation.