What to do with $50,000 now

Low interest rates and the recent stock market surge make this a challenging time to find the best places for your extra cash.

2 of 10

Convert your IRA to a Roth

Starting next year, even couples who earn more than $176,000 a year ($120,000 for singles) can convert their traditional IRA into a Roth. Roths let you withdraw income tax-free when you retire, potentially saving you a bundle down the road. The catch? You'll have to pony up regular income tax on the conversion. For a couple with taxable income of $210,000 a year, $50,000 is enough to cover taxes for a conversion of $151,515 in 2010 (assuming tax rates remain unchanged).

NEXT: Prepay your mortgage

Last updated October 21 2009: 11:03 AM ET

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