{"id":894,"date":"2019-03-07T19:36:34","date_gmt":"2019-03-07T19:36:34","guid":{"rendered":"http:\/\/s876455381.onlinehome.us\/?p=894"},"modified":"2020-05-14T20:50:22","modified_gmt":"2020-05-14T20:50:22","slug":"how-to-prepare-your-portfolio-for-a-market-downturn","status":"publish","type":"post","link":"https:\/\/frischfinancial.com\/staging\/how-to-prepare-your-portfolio-for-a-market-downturn\/","title":{"rendered":"How to Prepare Your Portfolio for a Market Downturn"},"content":{"rendered":"

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”3.22″][et_pb_row admin_label=”row” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”]<\/p>\n

Steps that you can take right now<\/strong><\/p>\n

<\/p>\n

<\/p>\n

\n<\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n

What goes up, must come down\u2026and then go back up again? Regardless of how well equity markets have performed over the last few years, downturns in the stock market and the U.S. economy are common. The severity of these downturns varies and is based on many variables. So\u2026..what is your plan to successfully manage your portfolio before, during and after the next downturn? What factors should you consider before making any changes? While there are no perfect answers to any of these questions, there are strategies you can begin to implement to prepare for this eventuality.<\/p>\n

<\/p>\n

<\/p>\n

What does your big picture look like?<\/strong><\/p>\n

<\/p>\n

<\/p>\n

It\u2019s always a good idea to have a solid understanding of your personal and overall financial goals, both short and long term. Are you preparing to pay for a child\u2019s college tuition in the near future? Are you close to retirement? Do you have a young family and need to support them both today and in the long term? Or, are you in your early thirties, in stable employment, without dependents and looking to grow your wealth?<\/p>\n

<\/p>\n

<\/p>\n

Each of these possible scenarios would likely have differing abilities to tolerate the ups and downs of the market. Risk tolerance is the extent to which you, as an investor, can accept this volatility and the potential losses which may occur. Using a risk calculator, such as one from Riskalyze, can help assess your specific situation, taking into account multiple factors which may influence your tolerance. Investing strategies can then be created or altered accordingly.<\/p>\n

<\/p>\n

<\/p>\n

Taxes<\/strong><\/p>\n

<\/p>\n

<\/p>\n

Are you working within a taxable account or tax deferred account (such as an IRA or 401(k))? If within a taxable account, you must consider the potential capital gains tax impact if sales are made. You also need to know if gains are short-term (held less than one year) or long-term (held longer than one year) as the tax rates are different. You do not pay taxes when you sell securities within your tax-deferred accounts. Instead, you only pay taxes when you take distributions from tax-deferred accounts.<\/p>\n

<\/p>\n

<\/p>\n

Investment strategies to consider<\/strong><\/p>\n

<\/p>\n

<\/p>\n