What the experts say

Serious about selling?

One thing is sure about this housing ­market, said Beth Braverman in Money. “No one is going to want a home that doesn’t seem like a bargain.” So if you’re hoping to sell in a hurry, price your house at least 10 percent below similar houses in the same neighborhood. But that’s just the start. Prices are also being driven down by homes forced into sale because of foreclosure. “Since your house won’t be cheaper than the distressed property down the block,” it needs to look a heck of a lot better. “Focus on cosmetic improvements that will bring the most buyers to your door.” To make the house seem bigger in the listing, photograph it with a wide-angle lens. And create a “snazzy online presence” to target the biggest segment of the market—first-time buyers. Finally, be ready to sweeten the deal by, say, picking up the tab for closing costs or “throwing in some new appliances.”

The back door into a Roth

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New rules for Roth IRAs will soon give high-income investors access to “one of the best deals in retirement planning,” said Kelly Greene in The Wall Street Journal. The rules, which go into effect Jan. 1, 2010, eliminate the $100,000 income limit for converting a traditional tax-deferred IRA into a Roth, for which “virtually all income growth and withdrawals are tax-free.” Doing so will mean paying income tax next year on all your previous pretax contributions and earnings. But “the law does provide some wiggle room” by allowing you to spread that bill over two tax returns, and your total tax debt will almost certainly be higher if you wait until retirement to pay. Income caps will still apply to new Roth contributions, but there’s even a way around that: Open a traditional IRA now, contribute the maximum amount, then roll that over to a Roth come January.

Good time for active funds

“In a typical year, at least two-thirds of actively managed funds fail to beat index funds,” said Steven Goldberg in Kiplinger.com. But the next year or two won’t be typical. In the aftermath of the bear market’s “indiscriminate havoc,” many “really junky stocks” have outperformed quality ones. So it may make sense in the short term to invest with a mutual-fund manager whose aim is to beat the market. The tax situation also favors active managers right now. Index funds trade infrequently and usually have a lower tax burden. But in a down market, actively managed funds can use recent losses to offset gains going forward. Buy in right now, and “you likely won’t owe any capital-gains taxes on an actively managed fund for many years to come—unless you sell the fund.”