Market downturns and economic slowdowns can feel unsettling—but they’re also opportunities to take control of your financial life. Here’s a quick, actionable checklist of things to do during a bear market or recession. No panic-selling required.
Revisit Your Financial Plan
Check in on your goals: has anything changed? Did you forget to plan something?
Make sure your investments align with your time horizon and risk tolerance.
Rebalance Your Portfolio
Reallocate to your target mix if markets have shifted your percentages. This doesn’t mean you want to radically overhaul how you’re invested, just go back to your baseline.
Stay diversified to manage risk.
Boost Your Emergency Fund
Aim for 3–6 months of essential expenses. But, it’s okay to have more if you feel more comfortable this way. We have a lot of clients who prefer
Add to savings now if your income is steady. Set a new, higher goal.
Take Advantage of Tax Moves
Harvest investment losses to offset gains.
Consider Roth conversions at lower asset values.
Max out tax-deferred accounts like IRAs, 401(k)s, and HSAs.
Keep Contributing to Retirement
Continue automatic 401(k) contributions.
Market dips can mean more shares at lower prices.
Stay on Track with College Savings
Keep funding 529 plans—lower markets = better long-term buying opportunities.
Review financial aid options if your income changes.
Use Dollar-Cost Averaging
Invest a fixed amount regularly. If you’ve already been doing this and have extra funds available, it’s a great time to boost your investing rate.
Smooth out the impact of volatility by considering alternative investments. Also always keep in mind the goal is to buy low and sell high.
Review Insurance Coverage
Make sure your life and disability insurance meet your current needs.
Consider an HSA-eligible health plan for tax perks and flexibility.
If you’ve been investing your HSA, but you’re feeling cash crunch and have money in the health savings account, you can put money in now.
Manage Debt Smartly
Refinance if you can lock in a lower rate if rates fall for mortgages, car loans, etc.
Prioritize high-interest debt for payoff first.
Invest in Yourself
Upskill or learn something new to improve future earning potential.
Consider career coaching, certifications, or online courses.
Update Estate Planning Documents
Confirm your will, powers of attorney, and beneficiary designations are current.
Review any trusts and gifting strategies if it’s time to refresh.
Talk to a Financial Planner
Get expert insight and a second opinion before making big moves.
Avoid emotional decisions by relying on your plan and a trusted partner.
Final Thoughts
A bear market or recession doesn’t mean you have to freeze. Take action on the items above to strengthen your financial future—calmly and strategically.
Need help putting a plan in place? We’re here to help.
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