The Dow and Stock Market went down (and then up). Now what?

3 Ways You Could Make Or Save Money

The market seems to be doing somersaults, doesn’t it? First stock prices fell after the Coronavirus news, then the Feds lowered interest rates.

Times like this can feel uncertain, but there are also opportunities for long-term investors. Here are 3 ways you could make or save money during a market decline.

As financial advisors, we are here for you as a resource. If you or a friend, neighbor or loved ones have any questions or concerns about your finances — before you or they make a decision — give Eric Williams or Adam Obrecht a call at 515-224-7849.

1. Refinancing your mortgage

Interest rates hit a record low this week of 3.13 percent for a 30-year fixed mortgage. If your current rate is above 3.5 percent, it might be worth a look. Why are interest rates low? Because when traders take money out of stocks and move it into bonds, it drives interest rates down.

2. Funding your retirement account

Yes, that’s right. It might be wise to move money into a Roth IRA or traditional IRA, and there’s still time for 2019 contributions before the tax deadline in April. When you purchase stock during a downturn, when the stock price is lower, you can buy more stock than if the price was higher. The same goes for mutual funds and other investment vehicles. Essentially, during a downturn, when you invest you get more bang for your buck.

3. Moving retirement money for tax-free growth

While this might not make sense for some investors, others may find a Roth Conversion a great way to give retirement accounts a boost during a market downturn. Roth Conversions are popular among early retirees who have a smaller income than normal, and business owners with variable incomes year-to-year.

At AO Wealth Advisory, we promise one-on-one communication and a long term relationship to pursue your financial goals. We promise to be very open with you, use simple terms instead of industry jargon, and give honest advice at every stage. We will have straightforward conversations on costs and always invite questions.  

A.O. Wealth Advisory offers a guided path to focus what you earn, invest and give. Our team offers personalized strategies to help make sense of the investment landscape. Make an appointment for a complimentary consultation today at 515-224-7849. Advisory services offered through A.O. Wealth Advisory, LLC, a registered investment adviser