Here is a list of actionable items for you to consider during any market correction.
1. Meet with a qualified and experienced CERTIFIED FINANCIAL PLANNER™ professional to discuss your financial goals.
2. Discuss any planned actions with your tax professional.
3. Don’t abandon rational investment strategies because the market has become irrational.
4. Step away from the over reactive media.
5. Avoid acting on impulse, or overreacting.
6. Review your long-term goals.
7. Consider having a ROTH conversion conversation with a CERTIFIED FINANCIAL PLANNER™ professional and your tax professional.
8. Consider making your IRA and/or ROTH contributions as allowable.
9. Consider increasing your retirement account contributions if you are currently employed.
10. If you have reached the age when you are required to take a minimum distribution (RMD) from your IRA and you don’t need the cash, consider an In-Kind Distribution with your RMD.
11. Consider tax loss harvesting, a strategy that may help you manage your tax obligations.
12. An opportunity may exist to buy shares of a security you currently hold, or have had your eye on, at a lower price.
13. Consider temporarily reducing your portfolio withdrawals and lifestyle expenses during a market correction, or periods of prolonged volatility, if you are receiving portfolio distributions.
14. Evaluate your portfolio strategies to ensure alignment with your long-term financial goals.
15. Know the level of investment risk you are willing to accept and know the level of risk in your portfolio.
17. Consider having a small portion of each portfolio dedicated to cash.
18. Evaluate the appropriate amount of emergency cash to have on hand and not invested in the “market”. Contact me about my Safety Net strategy for more details.
19. Consider rebalancing your account, which is the process of buying and selling to return each holding to its intended weighting of the portfolio.
20. Consider Dollar Cost Averaging, a strategy where you invest a certain amount of money at regular intervals.
21. Invest for your children and grandchildren in an appropriate account such as a ROTH, 529Plan or custodial account.
These actionable items should be discussed with a CERTIFIED FINANCIAL PLANNER™ professional and tax professional as not all these items are appropriate for everyone. Do be mindful of your options, don’t follow the herd or go it alone.
Discussing and integrating tips and strategies like these within unique situations are part of the experience clients get here at Creative Retirement Solutions Group. As a client you will receive sound financial planning and insightful investment wealth management so that you may focus on yourself, your family, your career and enjoy retirement.
Would you like to discuss these strategies further?
Together, we can work to keep you on-track towards your financial goals. Request a consultation with me to learn more.
Read more articles by Chris Balcerowiak