With adverse events often comes great opportunities!
The recent market decline as well as interest rate changes and other economic events will present great financial planning opportunities for everyone. Here are just a couple of things to consider:
- Do you have a mortgage? If the rate is over 3.25%, it might be time to refinance. Low rates now can save a significant amount over the long term. They may not be this low again for a long time. Let me know if you need a referral to a mortgage professional.
- Traditional to Roth conversion – if you are retired, it might be a great time to convert some of your IRA into a Roth IRA. With the Secure act pushing RMDs out to 72, this is a great planning opportunity.
- Tax loss harvesting and re-balancing. If you have a taxable account and haven't re-balanced for fear of taking the gain, you may have an opportunity now. You could take some tax losses then, repurchase similar holdings. (Maybe even offset the Roth Conversion)
- Reinvested Dividends and Capital Gains – As the markets decline, the automatic purchase and reinvestment of dividends means you are automatically buying shares at a lower price. When the market rebounds you will have more shares at a higher value.
If you would like to know more about these strategies, please contact me.