TRANSCRIPT:

Hello and welcome back. My name is Greg Vojtanek of Fade In Financial and this is part three of a video series called What To Do During A Recession or a Market Pullback. Today I’m going to be talking about investments.

Do you want to rebalance your investment and retirement accounts? If you do, consider a few of the following things. Revisit your target allocation. For example, if you have a 60-40 portfolio, is that something you still want to do? Or has everything been adjusted just because of the markets and you have to rebalance your portfolio to make sure it’s in accordance with your overall philosophy and your overall goals?

Number two in rebalancing. Identify the holdings that you have that are at a very low cost basis and consider reducing your positions in those. Because if you plan on selling those anyway, or you need to sell some of these, then that could reduce your overall tax liability.

Lastly, exercise discretion. Use discipline. It’s very difficult to do, one of the hardest things to do when you’re investing, especially during a recession or a market pullback. But, usually, taking a long-term approach is the most prudent action to take.

Let’s move on to if you have extra cash that is earmarked for an upcoming expense. You might want to consider investing that money in order to take advantage of these lower valuations. Now I’ve heard this called stocks are on sale or getting in while the market is in a down cycle.

And finally, do you typically make contributions to a Traditional IRA or a Roth IRA? Similar to what I just said, you might want to consider making those contributions now while the market is low.

So those are just some things to consider, certainly not everything. Your situation is different. As always, do what is right for you. Stay tuned for video number four of this series. So I hope to see you in that one. Thanks again for watching.