5 Smart Moves to Make in a Volatile Market
While periods of market volatility may bring challenges, they may also present opportunities. Taking a measured approach can help align your financial strategy with today’s conditions — while keeping long-term goals in view.
Here are five smart steps to consider in the midst of an unpredictable market climate:
1. Consider a Roth IRA Conversion
When stock prices dip, Roth IRA conversions can become more attractive. Why? Because you’re converting more investments at a lower value, this could allow you to convert a larger portion of your IRA for your planned tax cost, or reduce the amount of taxes owed from the conversion.
In a down market, this move may offer potential long-term tax benefits.
2. Let Go of Low-Basis Investments
Now is a strategic time to part with investments that have a low cost basis — those that would normally trigger a high capital gains tax if sold. If prices have dropped, the tax impact is reduced.
Selling these assets and reinvesting in a more diversified mix of investments may help realign your portfolio with your current goals and risk tolerance, with the potential to support future growth.
3. Invest New Funds
Market volatility often creates investment opportunity.
If you’re investing for the long term, now may be a chance to buy quality assets at lower prices. If you have dollars in a checking, savings, or a money market account that can be set aside for the future, consider putting those dollars to work while the prices are down.
Think of it as putting your dollars to work while they’re stretched further. Staying invested — and continuing to invest consistently — is a time-tested approach to pursuing long-term financial goals.
4. Rebalance Your Portfolio to Stay on Track
Many investors aim to maintain a mix of stocks and bonds aligned with their goals and risk tolerance—for example, 60% stocks and 40% bonds. But market ups and downs can shift that mix over time.
Rebalancing helps bring your investments back in line. It’s a disciplined way to manage your portfolio with intention, reducing overweighted areas and reinforcing your long-term strategy.
5. Stick to the Plan
Discipline is key during uncertain times. A well-built financial plan anticipates volatility and includes strategies to navigate it. You’ve articulated your goals and charted a course for your future. Don’t let short-term market movements derail that strategy.
Remember, this isn’t the first market downturn — and it won’t be the last. Diversification is a key principle that can help reduce risk and provide exposure to a range of opportunities over time.
Stay focused, stay patient, and stay the course.
If you’d like support in putting these strategies into action, we’re here to help you explore your options and stay aligned with your goals. Reach out to your advisor at Resolute Wealth to talk through potential next steps.
If you’re looking for help and aren’t yet connected with Resolute Wealth, we invite you to schedule an Introductory Call. We’ll take time to understand your financial picture and will explore how a thoughtful, disciplined approach can support your long-term financial goals.