As the Coronavirus pandemic continues, the economy lost 701,000 jobs in March alone. Dustin Stanley, financial planning advisor of Strategic Wealth Designers, explains ways to minimize damage to your money as well as your future financial plans.
Stanley says, “Don’t bury your head in the sand”. You see that your portfolio has some significant losses and you think that there is nothing more you can do. You can potentially rebalance your portfolio and still match your goals. He explains, “You don’t want to lock in this loss. There are still investments if you were to sell low and buy low then you are still able to ride the market back up when it takes back off”.
Many people are looking to retire in the next year or so and it’s possible that your account has already dropped up to 30%. It is important to find security and peace of mind in your wealth management advisor. Dustin Stanley recommends working with a financial planner that understands that the market goes through cycles. He goes on to say that you may have to work a little bit longer before you retire but you could position yourself so you can ride the market as it goes back up and potentially be able to retire at the time you originally planned.
Lastly, experts are predicting a possible tax tsunami from all the debt the country has endured during this pandemic. The national debt is rising as the stimulus money adds up which will eventually increase tax rates. Stanley states, “Right now we are probably in one of the lowest tax environments we are going to see for a long, long time if not ever”. With values currently down in the market, now would be a good time to convert your IRA’s and 401(k)’s into a Roth account.
For more information regarding Roth conversions or all things financial planning in the viewing area visit https://Fox59.com/news/strategic-wealth and if you have a question for Dustin send an email to email@example.com.