Positives in a Down Market

Everybody is looking for positives in the markets over the past few weeks. While we feel it’s important to stick to your plan, here are a few additional things that might make sense for you given today’s market:

Tax loss harvesting

With stocks being down significantly over the past few weeks, do you have some losses in a taxable account you can take? You can sell your position to book the loss and then reinvest in a different security so you don’t miss out on any upside that may occur, should the markets reverse course. You have to be sure to meet the wash sale guidelines, but this loss can be used to offset taxable gains (or potentially income) for the coming year.

Roth Conversion

With the recent changes in the inability to do Stretch IRA’s, does it make sense for you to convert any IRA dollars to a Roth IRA? Now might be a great time to consider this, as you will be converting while prices are low and possibly benefit from, effectively, a “tax-free” rebound.

These are two ways you can benefit from the current market conditions while still sticking to your plan. Reach out to your advisor and see if either of these are right for you.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.