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3 Smart Actions in Down Markets

Updated: Apr 27

If you looked at your accounts today you might be concerned about all of the red, but don't fret there are a few things that actually make more sense to do when markets are down ๐Ÿ‘‡


1.) Buy more shares

2.) Convert shares from traditional IRA to Roth IRA

3.) Gift shares of stock


-Following a dollar cost average approach to investing allows you to purchase more shares at times like this and less shares when markets are up.


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-When you convert from a traditional IRA to a Roth IRA the dollar amount of the conversion could be taxed at ordinary income tax rates. A great trick is to convert shares instead of cash. This allows you to convert more shares for the same dollar amount (dollar value of each shares is less). This means you can have the growth of more shares in your Roth and potentially pay less in taxes.


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-The advantage to gifting shares of stock while they are down is the same as the conversion example. There is an annual dollar limit on gifts before gift tax has to be paid. When shares prices are down, you could potentially gift more shares and still be under the annual gift tax exclusion.

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