The theme this week on the Retirement Quick Tips Podcast is: Stock Market Correction Is Here…What To Do Now

Today, I’m talking about the best thing you can do during a stock market correction. Many people think that you just have to sit tight and do nothing. That’s wrong. You can do something, just as long as you don’t sell you’re stock portfolio, there’s plenty you can do.

The most important thing you can do during a stock market correction, and especially a worse drop of 20%, 30% or more, is rebalance your portfolio to add to stocks.

Some other things you should do: 

• Continue adding to retirement accounts if you’re still working. If you have a stable job and you can afford to increase your contributions, a market downturn is an excellent time to accelerate your savings, and buy on the cheap. 
• Do you have cash lying around. Savings rates are still higher relative to historical norms. With low rates and inflation torching that cash you have in your savings accounts, a downturn is an excellent buying opportunity to selectively put cash to work. 
• Convert money to Roth - take advantage of depressed portfolio values to reduce your tax bill and capitalize on tax free growth when things recover. Putting some real $s to this…If you have 100 shares of a stock to covert to a Roth from a Traditional IRA - you still convert those same 100 shares to a Roth, but $100 shares valued at $80 6 months ago, might be worth only $50-60 today. Same shares converted, but you pay less tax because the value of what you convert over to the Roth is less. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance