{"id":1118,"date":"2023-12-18T06:00:00","date_gmt":"2023-12-18T06:00:00","guid":{"rendered":"https:\/\/scottmarsh.com\/?p=1118"},"modified":"2023-12-15T20:15:40","modified_gmt":"2023-12-15T20:15:40","slug":"how-to-survive-a-downturn-effective-tax-planning-investment-tactics","status":"publish","type":"post","link":"https:\/\/scottmarsh.com\/tax-planning\/how-to-survive-a-downturn-effective-tax-planning-investment-tactics\/","title":{"rendered":"How to Survive a Downturn: Effective Tax Planning & Investment Tactics"},"content":{"rendered":"\n
As Utah<\/strong><\/a> financial planners<\/strong><\/a>, one of the most frequent questions or concerns we discuss with the people we meet is market volatility and the impact a potential 2024 recession could have on their retirement savings and plans.\u00a0\u00a0<\/p>\n\n\n\n The good news is that there are tax planning and investment tactics you can take today to protect your hard-earned savings if there is a significant market correction in the coming months. <\/p>\n\n\n\n In this article, we\u2019ll look at four of the tactics:<\/p>\n\n\n\n There is a bottom line: You need a tailored financial strategy to manage your wealth’s complexities to make smart, informed decisions aligned with your long-term financial goals. <\/p>\n\n\n\n Asset location is a strategic approach to managing your investments that focuses on minimizing taxes. It involves contributing assets to different accounts to take advantage of their tax treatment. By strategically placing assets in tax-deferred, tax-free, and taxable accounts, you can navigate volatile markets more tax-efficiently, thereby preserving more of your wealth for your future use.<\/p>\n\n\n\n An asset location strategy aims to minimize taxes and maximize after-tax returns. <\/p>\n\n\n\n Here’s how it works:<\/p>\n\n\n\n Remember, it’s not just about the returns you earn but also about how much you keep after paying applicable taxes.<\/p>\n\n\n\n Tax lo<\/strong><\/a>ss harvesting<\/strong><\/a> is another strategic investment tactic that can be particularly useful during market downturns because it enables you to use portfolio losses to offset gains.\u00a0<\/p>\n\n\n\n Here’s how tax loss harvesting works:<\/p>\n\n\n\n This tactic is a valuable tool for long-term financial planning in and can contribute to improved overall portfolio performance.<\/p>\n\n\n\n Investment diversification is crucial, particularly in particular during market downturns.<\/p>\n\n\n\n Diversifying your investments across various asset classes, such as stocks, bonds, and real estate, can help spread your risk. Instead of putting all your eggs in one basket, you invest them in multiple baskets. <\/p>\n\n\n\n When one asset class experiences a downturn, others may perform better, reducing the overall impact on your portfolio. <\/p>\n\n\n\n During market downturns, the preservation of your retirement capital becomes paramount. Diversification reduces downside risk and creates opportunities in different sectors or industries that may perform better in a broad market decline.<\/p>\n\n\n\n Diversification is a long-term strategy that can help your portfolio produce better returns for less risk. <\/p>\n\n\n\n Behavioral finance examines how our psychological biases and emotions influence our financial decisions. At Scott Marsh Financial, we utilize behavioral finance as a way for you to make informed, disciplined decisions, in particular during volatile market conditions. <\/p>\n\n\n\n Here are ways that behavioral finance can help protect your wealth, especially during a market downturn due to a 2024 recession:<\/p>\n\n\n\n Since our inception in 1980, we have been an independent, boutique financial firm, guiding families across the United States in accumulating personal wealth and creating legacies for future generations. <\/p>\n\n\n\n Our commitment to providing you and your family with financial knowledge and information distinguishes us from other financial advisory firms in Utah. As an educator at Brigham Young University, Sco<\/strong><\/a>tt Marsh<\/strong><\/a> has emerged as a leading subject matter expert, influencing his local community and significantly impacting the broader financial field.\u00a0<\/p>\n\n\n\n We firmly believe that America’s financial success hinges on applying sound financial practices, habits, and methods, best acquired in an environment that fosters enlightenment and unbiased education.\n
Investment Tactic #1: Location, Location: Position Your Investments to Minimize Taxes. <\/strong><\/h2>\n\n\n\n
\n
\n
\n
Investment Tactic #2: Tax Loss Harvesting<\/strong><\/h2>\n\n\n\n
\n
Investment Tactic #3: Diversification<\/strong><\/h2>\n\n\n\n
Investment Tactic #4: Make Informed vs. Emotional Decisions<\/strong><\/h2>\n\n\n\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
About Scott Marsh Financial in Salt Lake City<\/strong><\/h2>\n\n\n\n
To learn more about our tax-efficient investment strategies, co<\/strong><\/a>nnect with us<\/strong><\/a> to schedule an introductory meeting.<\/p>\n\n\n