Today we explore some of the most common questions that people ask during a market decline. We discuss what a financial advisor does and doesn't do for their clients in bear markets, whether you should refinance, and the benefits of tax-loss harvesting. Listen in to hear what you could be doing to stay proactive during this market decline.
Youtube recap here: https://youtu.be/QUCpQcf2vu8
Financial advisors can be a great resource during a stock market decline. The fear you feel in these situations can be paralyzing. If you don’t have a financial advisor to help you act in your best interests, you may end up not taking any action at all. So what are some things a financial advisor can do for their clients during these challenging times?
One way to give yourself a bit of control during times when life is feeling out of control is to consider refinancing your home. Since mortgage rates have declined in recent months now may be the right time for you to refinance. You’ll want to analyze what your break-even point is to see if it is worth it. There are many different ways you can go about refinancing. You could use a mortgage broker, you could go through your own bank, or you could use an online mortgage lender. Listen in to hear the differences between those 3 options.
We all feel the urge to do something right now. But instead of doing something that could be detrimental to your wealth, tax-loss harvesting can give you the opportunity to do increase your wealth over time. The biggest question we hear surrounding tax-loss harvesting is why would I want to lock in losses? The answer is don’t think of it as a loss, but an exchange. You are taking that loss to reinvest in something similar. Look at tax-loss harvesting as a one way to help you rebalance. Find out if tax-loss harvesting is right for you by listening to Allison Berger’s excellent analysis.