6 of 21
BACK NEXT
6. Convert your old IRA to a Roth
There's a lot to like about Roth IRAs, particularly this: When you pull money out of one in retirement, you'll owe no taxes on it. Zero. That's a great hedge against the growing risk that taxes will be higher in the future (does the $490 billion deficit ring a bell?).

You can convert a regular IRA into a Roth if your income is $100,000 or less (and starting in 2010 the income restriction disappears), but you have to pay taxes on the sum being converted.

The silver lining: With the S&P off 20%, there's less to be taxed on today. If your IRA was entirely in an S&P 500 fund and you're in the 28% bracket, you'd pay $2,800 less to convert a $50,000 IRA now than you would have last fall.

NEXT: Make sure your cash is really safe

Last updated August 16 2008: 4:37 PM ET
More Galleries
For sale: Steve McQueen's 1967 Ferrari The red 1967 sports car is expected to fetch millions at auction. More
The 13 most WTF gadgets From the weird to the gross, these 13 gadgets will make you wonder why they even exist. More
Best-loved cars in America These cars and trucks topped J.D. Power's APEAL survey, which measures how much owners like their new vehicles. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.