What's Your Plan?"Everybody's got plans . . . until they get hit."—Mike Tyson For the Next Market CorrectionWhat Issues Should I Consider During A Recession Or Market Correction?

This checklist covers many of the issues to consider during a recession or market correction. 

It addresses some strategies particularly useful when the valuations of the markets are low (such as Roth Conversions and gifting strategies) as well strategies to mitigate the negative impact (cash flow becoming tight). 

This can help to pivot a conversation away from one of fear of the future to one where you consider strategies to take advantage of low valuations. 

CASH FLOW ISSUESWill your cash flow be tight? You may need to prioritize your obligations, and take advantage of opportunities to extend due dates or alter payment schedules, minimizing fees, penalties, and any negative impact upon your credit. 

• Reexamine your budget looking for areas to reduce spending, especially discretionary expenses. 
• Fund any shortfalls strategically, using the most advantageous source of cash. 
• Do we need to review or increase your emergency fund? If so, let's evaluate the size of your fund and assess the number of months that it can support your living expenses. 

TAX PLANNING ISSUESDo you have an annual gifting strategy in place to pass assets to your heirs? If so, consider gifting assets (up to $16,000, per person, gift tax-free) now, while valuations are low, and while support may be particularly helpful to the donee. Are you in a position to help family members in need of financial assistance? If so, consider making intrafamilial loans when the AFR is low. This avoids gift tax, locks in a favorable interest rate for the borrower, and can act as an “advance” on an inheritance when structured with your heirs. Do you need to update your estate plan?If so, consider the following: Review the impact of any change in asset values upon the ultimate distribution of your estate including probate and non-probate assets. Consider implementing wealth transfer techniques that take advantage of low valuations and rates (such as GRATs, CLATs, IDGTs, and private annuities). Reference the “What Issues Should I Consider Before I Update My Estate Plan?“ checklist.LONG-TERM PLANNING ISSUESDo you have a mortgage or debts?If so, consider if you should refinance any debts now while interest rates are low. Do you want to rebalance your investment and retirement accounts? If so, consider the following: Revisit your target asset allocation and overall investment philosophy. Identify holdings that you have retained only because of their low basis, and consider reducing your position while valuations are low, minimizing realized gains. As always, exercise discretion and discipline, taking a long-term view and prudent action. Do you have extra cash that is not earmarked for an upcoming expenditure? If so, consider investing it to take advantage of low valuations. Do you typically make contributions to a traditional IRA or Roth IRA? If so, consider making a contribution now, to take advantage of low valuations. Are you a small business owner? If so, you may be eligible for a small business loan, or other forms of federal, state, and community...