Nobrainer’s Think Tank

Sometime, maybe a year ago, I heard Lenny Dykstra on a local radio station talking the local radio station talking about Lenny Dykstra’s transformation into an uber-successful stock picking/investing guru. He apparently appears on TV regularly, has until recently been making picks for thestreet.com, and maybe even publishing other newsletters. He even had Jim Cramer in his corner, “He is one of the great ones in this business. Lenny Dykstra.” It all sounded a bit sketchy to me. Well guess who’s just filed for bankruptcy?

The 46-year-old has no more than $50,000 of assets and between $10 million and $50 million of liabilities, according to a petition filed Tuesday with the U.S. Bankruptcy Court in the Central District of California.

Dykstra’s filing comes in the wake of more than 20 lawsuits he faces tied to his activities as a financial entrepreneur, including The Players Club, a glossy magazine for athletes he had helped launch in 2008.

According to an April article on ESPN.com, Dykstra put his net worth at $60 million, and also owned a black Rolls Royce Phantom and Gulfstream II jet.

Thanks to Fark for the heads up.

Update: Here’s the audio I heard from 3/17/2008. The guys on the radio were really just talking about Dykstra’s appearance on HBO’s Real Sports.

Update 2: For more Lenny goodness, try reading this GQ article from a photographer who worked for him, or this ESPN article, or this DeadSpin post with some video from a more recent HBO Real Sports segment.

The treatment of IRAs is changing in 2010, and from what I’ve read, the new rules could be a boon for those who like the Roth IRA but find themselves locked out by income limits.

Right now, you’re only able to convert a traditional IRA to a Roth if your adjusted gross income is less than $100,000. However, in 2010, this limit is scheduled to be lifted, and the Roth IRA option will be available to almost anyone with earned income.

By converting to a Roth IRA in 2010, you’ll spread any taxable income created by the conversion evenly across 2011 and 2012, unless you choose to recognize the income in 2010. Keep in mind that when you convert, all pre-tax contributions and earnings will be subject to taxation at ordinary income tax rates.

I believe this means that if you are locked out the Roth IRA for 2009, you can effectively contribute to a Roth by simply contributing to a regular IRA in 2009, not claim it as a deduction, then roll it into a Roth in 2010.

There’s a chance, and talk to your favorite tax/finance professional to make sure, that you could contribute to both the Roth (if you meet the income requirements) and the regular IRA in 2009 and then roll the regular over in 2010 to effectively double the annual contribution limit.