It’s well-reported now that January’s much-anticipated rule changes for Roth IRAs didn’t resonate with boomers. A recent survey found that advisors are doing little to educate their clients on the rules and potential benefits, though.
Advisors Trusted Advisor, a practice management consultancy firm, surveyed 242 investment advisors in April and May. The survey found 4 percent of clients have taken it upon themselves to ask about Roth conversions. Just over 14 percent of advisors have introduced the subject.
The study found that 6.3 percent of higher-earning clients (those with over $100,000 in modified adjusted gross income) expressed interest in learning about Roth conversions, compared with 3.5 percent of lower-earning clients. Yet, despite this disparity, 24.2 percent of advisors are discussing conversions with lower-earning clients, compared with 14.3 percent of higher-earning clients.