April 2025 Financial Planning Strategies
It’s been an eventful week, to say the least which brings to our April 2025 Financial Planning Strategies.
The tariff plan announced by President Trump was more aggressive than expected, and the market’s reaction—driven by uncertainty about what lies ahead—has brought us uncomfortably close to bear market territory. While pullbacks, corrections, and even bear markets are part of a normal market cycle, this would mark the third one since 2020, which understandably may leave you feeling uneasy.
When I talk with clients about investment strategy—especially newer ones—I emphasize that over the past century, markets have weathered countless forms of volatility. What’s made the difference is staying invested. If we resist the urge to abandon equities entirely, history shows we eventually ride the roller coaster back up.
I hope our past conversations have helped you feel grounded during periods like this. Based on the recent discussions I’ve had, many of you seem to be staying focused on life: work, kids’ activities, fishing trips, taxes, and Spring Break plans—not glued to your accounts. That’s a good sign.
Still, I know not everyone feels that way. Some of you are watching the headlines closely, feeling anxious. If you haven’t fully bought into the idea that “this has happened before, and it will be okay,” here are a few reminders that may help ease your mind:
If you’re still working, and your portfolio is built for long-term growth, you likely have 3–6 months’ worth of living expenses in an emergency fund, separate from the market. That buffer means you’re not forced to sell investments while prices are down.
If you’re retired or approaching retirement, we’ve likely adjusted your portfolio to include more fixed income. That shift helps reduce your market exposure and overall portfolio risk. But if you’re feeling panicked and your portfolio is still heavily in stocks, this might be a sign we need to revisit your risk tolerance. Sometimes, simply moving from individual stocks to diversified ETFs can help reduce risk without stepping completely away from growth opportunities.
So, what can we do right now?
One smart move is tax-loss harvesting. In taxable accounts, we can sell investments that are currently worth less than what we paid, realizing a capital loss. Then, we reinvest that money into a similar investment to stay in the market and catch the rebound. Those losses can offset capital gains—and if there aren’t any this year, we can use up to $3,000 to reduce ordinary income, with the rest carried forward to future years.
At the end of the day, having a solid plan in place before market disruptions like this is key. It doesn’t just ease the heartburn—it also shows us where the plan might need some fine-tuning going forward.
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