Eight Strategies to Consider During Market Volatility
Why Planning Matters
Tariffs, geopolitical tensions, and economic shifts can tempt us to react to every headline—yet we rarely make our best decisions when we’re feeling anxious. In my decade of working with clients, I’ve seen firsthand how a well‑crafted financial plan—established before and maintained during volatile periods—empowers you to make stronger financial and life choices, even when the world feels upside down.
Timing the market perfectly—buying at the bottom and selling at the top—is virtually impossible (aside from perhaps Warren Buffett). Instead, understanding your plan—or having a trusted advisor to talk it through—lets you move beyond fear and into a more grounded mindset. If you don’t yet have a plan in place, I encourage you to start one today.
For those already on solid footing but looking to capitalize on current conditions, here are a few strategies worth considering for your personal situation.
Strategies to Consider
- Contribute Now
Make your IRA and retirement‑plan contributions early, taking advantage of lower market levels. - Explore Roth Conversions
Downturns can create tax‑efficient windows for converting traditional IRAs to Roth IRAs—even via Back‑Door Roth strategies. - Invest Idle Cash
Rather than waiting for “perfect,” use a disciplined dollar‑cost averaging approach to deploy cash at attractive entry points. - Manage Distributions
Revisit your withdrawal plan. Slowing or pausing distributions can help preserve liquidity until markets stabilize. - Rebalance Thoughtfully
Shift out of overvalued positions and into areas built for resilience—credit‑focused strategies, hedged equity, and high‑quality fixed income. - Harvest Tax Losses
Use market pullbacks to realize losses against gains—mindful of the wash‑sale rules—to help lower your tax bill. - Adjust Your Allocation
If your goals and risk tolerance permit, a modestly more aggressive mix can position you to benefit from lower prices over the long run. - Review Gifting & Estate Strategies
In a down market, gifting appreciated stock or funding vehicles like GRATs, CLATs, or IDGTs can be a powerful way to manage estate‑tax exposure and transfer wealth.
If you’d like to explore how these strategies apply to your situation, please reach out. We’re here to help you feel confident and prepared—no matter what the markets bring.
