As COVID-19 continues to transmit around the globe, the uncertainty for what the future may bring has left many investors uneasy. During this unprecedented time, it may seem like you have little control over your investments and financial future. However, there have been some opportunities brought on by the recent bear market that you can act on. Here’s a few we’ve implemented with our clients:

  • Financial Planning: review your financial plan and future goals to reinforce the asset allocation and selected investments. This helps maintain a long-term investing mindset. Don’t have a plan? It may be time to create one
  • Rebalancing: review asset allocation and determine if any tactical changes could position you for more upside potential as the market stabilizes and trends upward.
  • Cash Reserves: assess the amount of cash you have on hand. Anything in excess of 3-6 months of expenses could be invested at attractive valuations as a result of the recent market downturn.
  • Tax-Loss Harvesting: for any investments in a non-tax qualified account that are currently at a loss, could be sold to realize the tax loss and then reinvested. Please consult with your tax advisor before taking this step.
  • Roth IRA Conversion: with the recent market downturn, it may make sense to convert your IRA into a Roth IRA. You would pay the taxes on your IRA now (most likely less taxes than just 2 months ago), which would then allow your money to grow tax-deferred and come out tax-free in retirement. Again, please consult with your tax advisor.
  • Mortgage Refinance: with the fed cutting interest rates, we recommend homeowners consult their mortgage professional to see if they can refinance at a lower interest rate. This could save thousands over the long-term!

 

Our team understands these times can be unsettling for even the most steadfast investors and are here to help in any way we can. If nothing else, we wish you and your families a safe and healthy future!

Contact us!