Issues to Consider During a Recession or Market Correction
The market continues its rollercoaster ride this year as inflation remains high. Even though the economy posted two straight quarters of negative GDP growth, the government maintains that the US is not in a recession. At least not yet.
Despite all the uncertainty and media noise, there are plenty of planning and investment opportunities to make lemonade out of lemons.
What should you do during a market downturn or potential recession?
If you’re gainfully employed and invested in a low-cost, diversified portfolio for the long term, then doing nothing is likely in your best interest!
That said, it does’t hurt to take a look at your overall financial health during times of uncertainty, if for nothing else, to remain assured that everything will be okay.
Click here to download my new checklist: “What Issues Should I Consider During a Recession or Market Correction.”
A few of the most impactful considerations include:
Maintain an adequate cash reserve
Invest excess cash to take advantage of a down market
Make IRA contributions for the year now (if you haven’t made them already)
Consider a potential Roth conversion
Harvest losses in taxable accounts
Do you have questions about planning and investing opportunities during a market downturn? Reach out to me at Ben@coveplanning.com or schedule a free consultation call.
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Ben Smith is a fee-only financial advisor and CERTIFIED FINANCIAL PLANNER™ (CFP®) Professional with offices in Milwaukee, WI, Evanston, IL and Minneapolis, MN, serving clients virtually across the country. Cove Financial Planning provides comprehensive financial planning and investment management services to individuals and families, regardless of location, with a focus on Socially Responsible Investing (SRI).
Ben acts as a fiduciary for his clients. He does not sell financial products or take commissions. Simply put, he sits on your side of the table and always works in your best interest. Learn more how we can help you Do Well While Doing Good!
Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. I encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Ben Smith, and all rights are reserved. Read the full Disclaimer.