Shrewd investors look for opportunities no matter how bad the economic outlook. With their investments down from the glorious highs of only a few months ago, some clients (particularly those hovering around retirement) may be seeking advice on Roth individual retirement account (IRA) conversions.

Of course, no situation is the same, and advice must account for all the variables for each client and their family. Still, Roth conversions are among the transactions advisors need to consider in their quest to minimize taxes and maximize retirement income.

Here is my quick guide to client conversations about Roth IRA conversions. These are rules of thumb. You need sophisticated financial planning and tax calculation software to provide the best advice.

What are the short- and long-term benefits of Roth conversions?
A Roth conversion involves liquidating assets in a tax-advantaged account like a traditional IRA or 401(k), paying taxes on the withdrawal, and then funding a Roth IRA. So, in the short run, investors will pay taxes (more on that later).

The Roth IRA offers these benefits:
• Investors don’t pay taxes on future withdrawals (making Roths a nice rainy day fund).
• There are no minimum required distributions for Roth IRAs as there are for traditional IRAs and 401(k)s. RMDs can drive up taxes for people age 72 and older.
• Roth IRA assets can pass tax-free to heirs (rules apply, of course).

Under what circumstances should investors (and their financial advisors) consider a Roth IRA conversion?
Many investors benefit from conversions under these conditions:
• When they are just entering retirement.
• When they haven’t filed yet for Social Security benefits.
• When they are still years away from having to take RMDs (now starting when they are 72).

Describe further those investors for whom Roth conversions make the most sense.
Such investors have at least moderate-size IRAs and brokerage accounts and don’t foresee needing all their assets to pay day-to-day expenses in retirement. They have annuities or pensions and delayed Social Security files to optimize their benefits.

Married couples with a significant age gap may also be good candidates. When one spouse—assumed to be the older one—passes, the widowed spouse will have a lower tax bracket and, with an inherited Roth, require less income from traditional IRA or 401(k) withdrawals.

Very wealthy investors will often benefit from well-planned conversions, even when taxed at relatively high brackets. And investors with company founders’ shares priced below their market value can avoid taxes entirely by transferring technically worthless stock into a Roth account.

When should an investor not do a Roth conversion?
Most investors shouldn’t while they are still working. They should wait until they are in a lower tax bracket before withdrawing money from IRAs, 401(k)s and similar accounts.

Investors should also avoid making too-large conversions in a single calendar year but stagger conversions over several years.

No one should do a Roth conversion out of fear of future tax rate increases. Those are simply unpredictable.

Who should stay the course and keep their tax-qualified savings in those accounts?
Investors with modest IRAs and brokerage accounts will benefit little from Roth conversions. New retirees in good health are also probably better off using some of their tax-advantaged savings to finance living expenses and delay Social Security (to age 70, if possible) to get the maximum benefit from the government.

What techniques can make Roth conversions more valuable?
Asset location is the practice of choosing what investments to place in what accounts based on the tax treatment of the accounts. Applying this to Roth conversions means that investors should locate their high-returning assets in those accounts.

Another technique applies again to couples with a significant age gap. When an older spouse makes voluntary IRA withdrawals to fund Roth conversions it can help minimize RMDs and provide for the younger spouse when widowed.

Are Roth conversions a good tool for estate planning?
Yes, they are an excellent tool. Heirs who inherit Roth IRAs aren’t taxed on withdrawals. They are taxed on withdrawals from traditional IRAs (which sets up a complicated situation for their financial advisors, tax accountants and heirs to figure out).

Remember this: Conversions need to occur over many years and they depend on the tax brackets of the investors in those years. Figuring these out requires software that combines an accurate tax calculator with multi-period projections to inform the investors’ choices.

Most of the Roth conversion calculators that investors find online aren’t up to the task. They look only at a Roth conversion in a single calendar year and assume it’s possible to estimate future tax rates on withdrawals from qualified accounts. They’re as good as a broken analog clock is in providing the time: It’s accurate for one minute, twice a day.

Advisors who stay close to their clients and are agile—revising recommendations with market returns and clients’ situations—will benefit by retaining more assets under management and possibly earning the business of younger family members and associates.

Paul R. Samuelson is the chief investment officer and co-founder of LifeYield.