I’d like to start a retirement account for my 1-year-old daughter, but I don’t want to use a custodial account. Are there any low-hassle options?

Joe Sharp, Rochester, N.Y.

We admire your long-term planning. However, there are no actual “retirement accounts” for the diaper set. Most planners recommend custodial accounts, because they allow you to manage assets on your child’s behalf—and offer the potential to have earnings taxed at a lower rate than if they were in the parent’s name alone. Still not for you? You can save independently, experts say, by funneling the money into no-load, broadly diversified mutual funds or CDs. Then when your daughter is older and earning an income, you can contribute those savings to an IRA up to the yearly limit allowed by law, says Susan Hirshman, a financial planner and president of She Ltd., a financial-literacy consultancy firm. Of course, until that time, you’ll have to take the annual tax hit.

My new employer doesn’t have a 401(k) plan. What should I do with the account from my old job?

Donald Tampubolon, New York City

Essentially, it’s time to get rolling. In the absence of a new 401(k), you can roll your balance into an individual retirement account (IRA) without a tax hit. That way, you won’t get smacked with the 10 percent early withdrawal penalty you’d face if you cashed out the plan before reaching age 59½, and you can keep adding to the money you’ve already saved—something you couldn’t do if you opted to keep the money parked in your old employer’s plan. Plus, the money you’ve already contributed can continue growing tax-deferred, says Bill Losey, a certified financial planner in Wilton, N.Y. Then, if your new company does eventually launch a 401(k) plan, you may be able to roll the IRA into that.

The common advice is to not open any new credit before applying for a mortgage. If I lease a car, how will it affect my credit score, and how much time should I allow before I try to buy a home?

Ron Sim, Los Angeles

You might want to hold off on that new ride. In the world of FICO credit scores, leasing a car and getting a loan to buy one are treated the same way. “New credit implies a higher level of risk,” says Barry Paperno, the consumer operations manager for myFICO.com. Signing those lease forms means you’re essentially opening a new account, which can lower your credit score. And it could take up to a year to resuscitate your magic number—assuming you pay all your bills on time.

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Saddled with vacant units , retirement communities across the country are trying to lure new buyers by any means necessary – from adding cushy amenities and special move-in deals to lowering prices on homes. And with summer fast approaching, one tactic is becoming especially popular: the “test drive.”

Retirement communities in Arizona, California, Florida and other vacation destinations are pitching older Americans so-called retirement getaways, a few nights in a model home with access to all the luxury amenities. Their hope, of course, is that you never want to check out. And while no national data exists on how many communities are pushing these test drive programs, “they’re definitely becoming more common,” says Andrew Carle, the founding director of the senior housing administration program at George Mason University. The Trilogy at Monarch Dunes near San Luis Obispo, a beachfront community for those 55 and older, is promoting the two-night “test drive” package for 9 per person or couple it launched about a year ago. Valencia Reserve, a 55+ community near Palm Beach, is busy marketing their two-night, three-day “stay and play” getaway program for a night. And on top of the dozens more communities offering such deals, there are plenty others that will gladly arrange your very own test drive if you ask, says Carle.

For retirement communities, the test drive strategy seems to be working. For example, since January 2010, the Trilogy at Monarch Dunes reports that more than 20% of the couples who bought their test-drive package went on to buy a home – about 32 couples. Across the Robson Resort Communities’ seven retirement properties, roughly 75% of the 3,200 people who participated in its getaway program are now permanent residents, according to a spokesperson for the company. “It’s a good sales tool for communities because people might have doubts, but when they get there they can see the advantages and disadvantages,” says Sandra Timmermann, executive director of the MetLife Mature Market Institute.

And these communities, which were hit hard by the economic downturn in 2008, need all the help they can get, experts say. In the past four years, occupancy rates in retirement communities have fallen about 5 percentage points to 87.6%, according to the NIC MAP Data & Analysis Service. Meanwhile, prices have slumped: The median price of a new age-qualified home in an active adult community has dropped 6% from its peak in 2005 to 0,000, according to a January report from the Metlife Mature Market Institute.

But for consumers, these plans aren’t all fun and sun. While some programs are free, many more come with a pricetag ranging from to about 0 per night. And with meals and transportation typically not included, consumers should be prepared to shell out hundreds more, experts say. Potential buyers can also expect to sit through at least one sales pitch. To test drive Pebble Creek in Phoenix, for example, you will spend about an hour with a sales associate, who talks about the community, gives you a tour and hands you a personalized itinerary for the weekend, including dinner with a resident couple, says a spokesperson for Robson Communities.

On top of that, some communities require that you meet other specific criteria before letting you stay with them. For example, Casa de Manana in La Jolla, Calif., requires that you make an initial guided tour of the premises – and show that you can afford to buy a home – before allowing you participate in its “guest stay” program.

Still, for those retirees or soon-to-be retirees who are already researching where to spend the next phase of their lives, these programs may be worth the cost and hassle. “You’ll learn whether the people are friendly, what the food is like, if you’ll like the climate,” says Timmermann. At the very least, it may be a less expensive way to see a vacation hotspot than booking your own vacation, say experts. SmartMoney.com looked at five high-end retirement communities located in vacation destinations that allow you to test drive their services.

Last year was the perfect storm for converting traditional IRAs into Roth accounts. Previous restrictions on conversions were removed, and you could spread the taxable income triggered by a 2010 conversion evenly over 2011 and 2012. What about this year? Conditions are still favorable for high earners who believe their tax rates in retirement will be the same or higher than their current rates. Here’s what you need to know when considering a 2011 conversion.

Conversion Basics

A Roth conversion is treated as a taxable distribution from your traditional IRA because you’re deemed to receive a taxable payout from your traditional account with the money going into the Roth account. So a conversion will generally trigger a federal income tax bill — and maybe a state income tax bill, too. However, two big positive factors may outweigh the current tax hit.

* The conversion tax hit is lower if the value of your traditional IRA has still not fully recovered from the 2008 stock market meltdown.

* More importantly, today’s federal income tax rates might be the lowest you’ll see for the rest of your life. So you’ll pay the relatively low current tax rates on the conversion income and avoid potentially higher future tax rates on the entire post-conversion increase in the value of the Roth account. That’s because qualified Roth withdrawals taken after age 59½ are totally free of federal income tax.

The conversion strategy is probably a good idea for most higher-income folks, and this year everyone qualifies — even billionaires. The same was true last year. Before 2010, the conversion option was only available if your modified adjusted gross income was 0,000 or less. While there are no current indications Congress will reinstate the income restriction, you never know. The only certainty is that it doesn’t exist right now.

Consider Multiyear Conversion Strategy

The extra taxable income triggered by a Roth conversion is added to your ordinary income from other sources (salary, self-employment income, short-term capital gains, alimony received and so forth). So if you convert an IRA with a large balance, it could push you into a significantly higher federal income tax bracket (say from 25% to 33% or even 35%). The conversion income also increases your adjusted gross income (AGI), which could trigger a bunch of unfavorable phase-out rules, such as the ones affecting the child tax credit and the college tuition credits.

To avoid this, consider converting a large traditional IRA balance (or balances) to Roth status in stages over at least two years. For instance, you could convert half of your traditional IRA balance this year and the other half next year. This multi-year approach could prevent the extra income triggered by converting from pushing you into much higher tax brackets and negating too many AGI-sensitive tax breaks. If this multiyear deal sounds good, I recommend starting this year because the 2011 and 2012 federal income tax rates are probably as good as they are going to get. After 2012, all bets are off.

Don’t Forget the Impact of 2010 Conversions

If you are spreading the income from a 2010 conversion over 2011 and 2012, you already have some conversion income on the books for this year and next year. So if you do another conversion this year, your 2011 income will be that much higher. If you do another conversion in 2012, next year’s income will be that much higher. Take that into account when estimating the tax hit from a 2011 or 2012 conversion.

Never Fear: You Can Reverse Ill-Advised Conversions

Another great thing about the Roth conversion strategy is you can change your mind. You have until October 15 of the year following the conversion year to re-characterize (unwind) your converted account (or accounts). For example, say you convert a traditional IRA into a Roth account between now and year-end. Then the value of the converted account takes a dive. In this bleak scenario, you would have to pay 2011 income tax on value that disappeared. Thankfully, you have until Oct. 15, 2012, to re-characterize the converted account back to traditional IRA status. It’s as if the ill-advised conversion never happened, so you won’t owe any 2011 taxes on the now-unwound conversion.