Planning in a Volatile Market: 5 Strategies You Can Act on Now

Periods of market volatility can feel unsettling, even for seasoned investors. When headlines are loud and portfolios are fluctuating, it’s easy to wonder: Am I still on track? Should I be doing something different?

At times like these, it helps to focus on what’s within your control—thoughtful financial planning—rather than shifting policies and short-term swings.

Here are a few key strategies we believe are worth considering while markets are in flux:

1. Let the plan be your guidepost

Volatility is part of investing, and a good financial plan is designed to weather it. The principles behind it, including diversification, asset allocation and regular rebalancing, have been stress-tested through decades of market history. While no one can predict short-term moves, these time-tested strategies can keep you on track through a wide range of environments.

If you don’t have a financial plan, this could be  the perfect time to create one. It provides a framework for decision-making during uncertain periods, and clarity when you likely need it most.

2. Unlock tax planning opportunities

• This may be  an ideal moment to revisit your tax strategy. A few ideas:
• Tax return review: It's tax season, so send us your return and let us review it. We use our expertise and advanced tools to help identify meaningful planning opportunities.
• Roth IRA conversions: If you’ve been considering a Roth IRA conversion, now may be the time to act. Converting assets while values are temporarily down reduces the upfront tax impact and maximizes long-term tax-free growth.
• 2025 Roth IRA contributions: Whether it’s a direct or backdoor Roth IRA contribution, making it earlier in the year lets your money start working sooner, which can be particularly beneficial in a recovering market.

3. Revisit wealth transfer strategies

Volatile markets can create appealing opportunities for wealth transfer, particularly when asset values are temporarily lower.

• Grantor retained annuity trust (GRAT): A GRAT allows you to transfer future appreciation with little or no gift tax. A GRAT opportunistically created in a declined market could potentially save tens of thousands of dollars in estate taxes.
• Grantor trust substitution: Most grantor trusts have the ability for substitution of equal value. If a grantor holds an asset in their taxable estate and that asset has significantly been reduced in value with future substantial upside, this asset can be substituted for an asset held in the grantor trust without additional gifting consequences. 

These are advanced strategies. Timing matters, and they are not without risk. We can walk you through what may make sense for your family.

4. Consider equity compensation moves

For those with employer stock or options, market pullbacks may offer opportunities:

• Stock options: If you have vested stock options, a down market can reduce the taxable income triggered at exercise, while also starting the holding period for long-term capital gains.
• Employee stock purchase plans (ESPPs): Down markets often create a “double discount” on shares purchased through an ESPP—because of both lower share prices and incentives built into the plan. Enrollment periods vary, so now may be a good time to re-evaluate your participation.

5. Evaluate re-financing opportunities

Interest rates recently touched new lows across all major mortgage types. If you purchased or refinanced within the past 12 months and your current rate is more than 1% higher than what’s available today, it may be worth exploring refinancing options.

In times like these, planning likely adds the most value

When the market feels out of sync, thoughtful planning can become your most powerful tool. If any of these strategies resonate, or if you simply want to check in, your Corient Wealth Advisor is here to help you make informed decisions and stay aligned with your long-term goals.

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