Today’s Smart Money Question:
(Click the featured times below to jump forward in the episode)
Here Are Just A Handful Of Things You’ll Learn:
We expected to see some volatility this year but 2022 has been a challenge on many fronts. As inflation rises and the market continues to drop, we wanted to take some time to talk about the current investing environment and what you can do to position yourself properly.
The stock market can be unpredictable, but your investing strategy shouldn’t be. On today’s show we’ll explain why you need to stay the course and find opportunities, even in a down market.
Opportunities are out there. But most importantly, don’t panic. Don’t go to cash. Don’t get scared. That might be easier said than done in the moment, but your financial plan is constructed to navigate good and bad times.
Here are some things to consider during a market like we’re experiencing now.
Tax-loss harvesting
This is something to look into, especially with after-tax money. Are there certain investments that are down that we can sell? We can recognize a loss and look for other investments that have gains on them and sell those as well. There are certain rules around this, and we can walk you through how this works.
Tax buckets
What tax bucket is the majority of your assets in? Remember, there are only three buckets – pre-tax, after tax and taxable.
We can look at your taxable income and whether we should do Roth conversions and other moves. You’ll still have to pay taxes when you do a Roth conversion, but if you’re moving the same amount of shares at a lower value, your tax cost will be lower.
Of course, you’ll want to assess your current mix of investments and decide if they still fit your risk profile. Use this as an opportunity to further evaluate and better understand your portfolio.
If you have questions, get in touch with us and let’s discuss it further.
Listen to the full episode or use the timestamps below to jump to a specific section.
3:35 – Don’t panic
4:14 – Tax-loss harvesting
5:51 – Tax buckets
8:46 – Roth
12:00 – Your investment mix
“The markets have been heading down. This is one of the most critical times for investors to stay disciplined.“
-Matt Hausman
Additional Podcast Episodes:
- Retirement Statistics – How Do You Measure Up?
- Spending More Money in Retirement Than You Make
- The Fear of Spending Money in Retirement
Do You Have A Smart Money Question?
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The host: Matt Hausman – Contact – Resources – Call: 610-719-3003
