Volatile market conditions can create problems for many investors, but there are also opportunities for the people who play their cards right. “Investor sentiment about international markets (particularly China’s) and domestic economic growth has led to the volatility in the major indices that we have seen in the past few months.” This article discusses some of the things that investors can do to profit in a volatile market. If a traditional retirement plan has been taking a beating because of the market, then now might be a good time to convert the retirement plan into a Roth IRA. The lower prices in the traditional IRA will mean a lower tax bill when it is converted into a Roth. This article also discusses the gifting strategies that people can employ. People also need to understand the dollar-cost averaging strategy as well as the IRS Wash Sale Rule which are both explained in this column.
See Mark P. Cussen, Top Tax Planning Tips for Volatile Markets, Investopedia, February 26, 2016.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
