At Hill Investment Group, we’ve found that when a few clients ask similar questions, many more are likely thinking the same thing. To better serve you, we’re introducing our “Hey Hill” newsletter series—addressing common client questions and sharing our perspective.

To submit a question for a future post, email us at service@hillinvestmentgroup.com

Is a Roth IRA Conversion Right for You?

Roth IRA conversions can be a valuable, but often misunderstood tool in long-term financial planning. When thoughtfully timed and executed, they may provide tax advantages, increased flexibility, and legacy planning benefits. But like most financial strategies, they’re not one-size-fits-all.

So how do you know if a Roth conversion might make sense for your situation?

What Is a Roth Conversion?

A Roth IRA conversion means moving money from a pre-tax retirement account—such as a Traditional IRA—into a Roth IRA. You’ll pay ordinary income taxes on the converted amount in the year of the transfer. From that point forward:

• Your investments may grow tax-free inside the Roth
• You can make tax-free withdrawals in retirement (if IRS rules are followed)

In essence, you’re trading a tax bill today for the potential of tax-free growth and withdrawals in the future.

Who Might Want to Consider a Conversion?

A Roth conversion may be worth exploring if:

• You expect to be in a higher tax bracket later
• You can pay the tax bill from non-retirement assets, leaving your retirement funds intact
• You’re in a temporarily low-income year (e.g., early retirement, career break, or sabbatical)
• You’re planning for heirs—Roth IRAs aren’t subject to required minimum distributions (RMDs), which may make them attractive in legacy planning
• You don’t need the money soon—the longer Roth funds grow tax-free, the more powerful the benefit

How It Can Support Your Long-Term Plan

When aligned with your overall strategy, a Roth conversion can:

• Reduce future RMDs and lower taxable income in retirement
• Diversify your tax “buckets,” giving you flexibility in how you draw income
• Potentially ease your heirs’ future tax burden by leaving them tax-advantaged assets
• Help you build more predictable after-tax income over time

It’s a classic example of playing the long game—something we believe in deeply at Hill.

When It Might Not Make Sense

A Roth conversion isn’t ideal for everyone. It may not be the right move if:

• You’d need to use retirement funds to pay the conversion tax
• You’re already in a high tax bracket and expect it to be lower in the future
• You’ll need access to the converted funds within five years (each conversion starts a separate 5-year clock for penalty-free withdrawals)

The Bottom Line

Roth conversions can be powerful, but the decision is nuanced. The tax rules are complex. The upfront cost can be significant. And timing matters.

That’s where we come in. Through our advisory relationships, we help clients model the long-term impact of a Roth conversion—year by year—so they can move forward with clarity and confidence.

At Hill, we don’t just focus on what’s smart today. We help you make decisions that align with your long-term goals and legacy.

Thinking about a Roth conversion? Let’s explore whether it’s a fit—for your plan, your family, and your future.

Book a time to talk.

Disclosures:

Hill Investment Group is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. The information provided is for educational purposes only and should not be construed as personalized investment, tax, or legal advice. Roth IRA conversions involve complex tax considerations and may not be appropriate for all investors. Consult your tax advisor or financial professional before implementing any financial strategy. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results.

At Hill Investment Group, we believe markets work, evidence beats opinion, and taking the long view is the smartest path to long-term success. But none of that matters without the right people. That’s why we’re excited to introduce our newest team member, Ryan Clinton, who joins us as Portfolio Manager for both Hill Investment Group and Longview Research Partners.

Ryan joins us from Dimensional Fund Advisors (DFA), where he spent nearly six years in a variety of investment and portfolio management roles. His work focused on portfolio implementation, trading strategy, and client communications, and included direct experience managing several of Dimensional’s core ETFs. This background aligns closely with our evidence-based investment philosophy and supports the continued evolution of The Longview Advantage ETF (Ticker: EBI). [Read the complete press release here.]

Just as there are multiple dimensions to how we invest, there are many dimensions to our team. Please enjoy getting to know Ryan a bit more, in his own words.

Disclosure:
The Longview Advantage ETF (Ticker: EBI) is offered by Longview Research Partners, an affiliate of Hill Investment Group. Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. Investors should carefully consider the fund’s investment objectives, risks, charges, and expenses before investing. This and other important information is contained in the prospectus, which may be obtained by visiting [Insert ETF link here]. Please read the prospectus carefully before investing.

When my husband and I got engaged, we did what most couples do—we planned a wedding, dreamed about our future, and tried to figure out how to merge two different systems of “doing money.” Somewhere between cake tastings and choosing a venue, we met with a pre-marital counselor. Of everything we talked about, one idea stuck with me:

“To most people, money is either power or security.”

Understanding which it is for you—and for your partner—can be the difference between financial tension and financial teamwork.

At Hill, we regularly walk couples through these kinds of conversations. Many of the couples we meet share core values (like a love for travel or a desire to raise a family), but are still working through the logistics of, “How do we actually combine this all?” and, “What shared values around money do we want to build from?”

In these discussions, we cover topics like:

• What should stay “yours,” what becomes “ours,” and what needs to remain “mine”
• How to build an emergency fund that feels safe and sufficient for both partners
• When it may make sense to pay down debt versus investing for the future
• Tax-efficient account structures and developing a clear savings strategy
• When to begin thinking about estate planning
• Planning for big goals like kids, real estate, or education

What we appreciate about these conversations is that they’re part financial planning, part real talk. We help couples organize their accounts and align their savings with their goals—but we also make space for the deeper stuff.

What does financial security look like to each of you? Who’s the natural saver, who’s the spender? Do you feel more confident when you can track every transaction—or does that stress you out?

Sometimes it takes a neutral third party to open the door to better understanding. In our experience, couples don’t usually argue about the numbers—they struggle to see each other’s financial values or life experiences clearly. And there’s research to support that insight. One study from UCLA found that couples who pooled at least some of their finances reported higher relationship satisfaction.¹ The researchers also noted that shared accounts may support transparency, reduce conflict, and promote long-term planning.

Of course, there’s no one-size-fits-all answer. Some couples prefer the simplicity of pooling everything. Others value some financial autonomy. Still others are blended families managing multiple generations, stepchildren, and pre-existing commitments. Wherever you fall, what matters most is being intentional—and finding a structure that reflects your reality and values.

As you might guess, we’re strong advocates of simplicity. Whether it’s consolidating accounts, automating savings, or establishing shared systems, simplicity creates clarity. And clarity opens the door to better conversations.

So if you—or someone you care about—could use help having these conversations or setting up better systems, know that we’re here. Whether it’s your first time talking openly about money, or your tenth, we’re ready to guide the conversation with care, curiosity, and a bias for action.

Taking the Long View together starts with a strong foundation—and a shared understanding of what money means to each of you.

Book a time to talk here.

¹ Pooling Finances and Relationship Satisfaction. Gladstone, Garbinsky & Mogilner (2018). Available via UCLA Anderson Review.

Disclosures:
The information provided herein is for educational purposes only and should not be construed as investment, legal, or tax advice. Hill Investment Group (“Hill”) is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. All investing involves risk, including the possible loss of principal. Readers should consult with their legal or tax professional regarding their individual circumstances.