The recent increase in interest rates has resulted in lower asset prices across the board. For investors, it’s always beneficial to be aware of ways to minimize the impact of unfavorable market conditions. In this episode, Grant dives into five key measures investors can take to protect their investments in down markets and how to benefit from tax planning opportunities that arise in times of low business profitability.
Show Notes
[01:46] Market Conditions – Grant discusses some of the recent negative changes in financial markets and the reasons behind them.
[02:41] Tax Loss Harvesting – Grant explains how to harvest losses by strategically selling securities in your portfolios, as well as the IRS rules associated with this maneuver.
[08:34] Accelerating Income – Down markets are often associated with a time of poor business profitability. Grant dives into how business owners can take advantage of lower tax brackets in tough times.
[13:53] Active Mutual Funds – Grant shares how down markets can affect active mutual funds and what investors should keep in mind about how this affects their tax bill.
[19:38] Rebalancing – When markets are down, the balance of different asset classes in an investment portfolio is going to change. Grant dives into why investors should rebalance their portfolios.
[22:04] Putting More Money to Work – Grant explains how savvy investors can take advantage of down markets by strategically adjusting their contributions to investment vehicles such as 401k plans or SEP IRAs.
Resources
Episode #61: Tax Gain Harvesting: What, Why, and How
Episode #16: Savvy Investing in Bear Markets