financial advisors

A 12 year-long bull market run recently came to a close, and many Americans have experienced the effects. For those nearing or in retirement, this can be especially worrisome. If you’re wondering what your course of action should be right now, you should consider your risk tolerance, where the market is heading, and how you can minimize your taxes. These are three questions a financial advisor can help you answer.

What Is My Risk Tolerance?

If you don’t want to put off retirement or downgrade your retirement lifestyle, you may want to reassess your risk tolerance. Risk tolerance can change with age. If you haven’t changed your investment approach in a decade, it can help to talk with an advisor who can help you quantitatively and qualitatively assess your risk tolerance. You might consider how you will cover your basic living expenses and your desired retirement lifestyle. From there, an advisor can help you decide on an appropriate investment strategy designed for your unique financial situation.

Where are the Markets and Economy Headed?

The first quarter of 2020 was a rollercoaster, with record single-day drops and gains. It was the Dow’s worst first quarter in history, and oil had its worst quarterly performance ever. Some say we’ve hit bottom on the market and it’s time for a recovery, while others say there are further drops to come. While no one has a crystal ball, an advisor can give you a sense of how past recoveries have played out, and where certain sectors of the market could be headed based on their research and analysis.

How Can I Minimize My Taxes?

There could be several ways a financial advisor can help you with tax strategies. Every part of a financial plan is connected, including an investment strategy and a tax minimization strategy. If you’ve sold off losing investments this year, you might be able to deduct those losses from your taxes if you itemize. Or, if your 401(k), IRA, or other retirement account balance has gone down, you might consider a Roth conversion. In this case, you would pay tax on the amount converted now, and then enjoy tax-free withdrawals later in retirement. If you take Required Minimum Distributions from your retirement accounts, note that Congress has suspended RMDs for 2020 in an effort to help those whose accounts took a hit recently.

One of the advantages of going to one professional for all of your financial planning needs is that everything from investment strategies to tax minimization works together in one overall plan. We can create a retirement plan that helps to mitigate risk in a down market. If you need to update or create a plan, reach out to us to schedule a complimentary financial review.


The commentary on this blog reflects the personal opinions, viewpoints, and analyses of BML Wealth Management’s employees providing such comments and should not be regarded as a description of advisory services provided by West Wealth Group, LLC. The views reflected in the commentary are subject to change at any time without notice. Nothing on this blog constitutes investment advice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future returns.

Investment advisory services through West Wealth Group, LLC, an SEC Registered Investment Adviser. BML Wealth Management and West Wealth Group, LLC are affiliated entities. Insurance Services are offered through BML Wealth & Insurance Services, California Insurance License #0M15550.

We do not provide tax or legal advice. All individuals are encouraged to seek guidance from qualified professionals regarding their personal situation. Any references to protection benefits or steady and reliable income streams in this guide refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products.