Keys to Weathering Market Volatility - Prospect

We believe that an informed client is the best

client. We will keep you updated on issues that

may affect your financial situation. Additionally,

please keep us informed of any changes in your

circumstances, such as health issues, shifts in

your retirement goals, or the sale of a home. The

more we know about your unique situation, the

better we can advise you.

A skilled financial professional can help

simplify your journey toward achieving your

goals. By understanding your needs and

objectives, we can create a plan tailored to

your situation. As always, we appreciate the

opportunity to assist you with all your

financial needs.

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Your Complimentary Starter Session™ Today!

Financial Planning and Advisory Services are offered through Prosperity Capital Advisors (“PCA”), an SEC registered investment advisor. Registration as an investment advisor does not imply a certain level of skill of training. Wealth

Management Strategies and PCA are separate, non-affiliated entities. PCA does not provide tax or legal advice.

Tax Planning During Market Volatility

Navigating market volatility can be frustrating. The good news is that investors could

possibly take advantage of potential strategic tax planning opportunities during these times.

• Roth IRA Conversions – While this is a complex strategy that you should discuss with a financial

professional before implementing, converting to a Roth IRA during a market downturn can potentially

maximize tax-free growth in the future. By converting when the value of your traditional IRA is lower due

to a market downturn, you will pay taxes on a smaller amount, and any subsequent market recovery

will be tax-free within the Roth IRA.

• Tax Loss Harvesting – Downturns can provide opportunities to “harvest” capital losses. Investments

that are valued below their cost basis can be sold and the losses taken can be used to offset capital

gains. If losses exceed gains for the calendar year, up to $3,000 may be used to offset ordinary income,

and unused balances can be carried forward to future years. Please note that you should talk with us

or a tax professional about doing this because rules like you must wait 30 days to repurchase the

security to avoid a “wash sale” need to be followed.

• Gifting to Family Members at Reduced Prices - When equity prices are down, you can gift securities

at lower values using less of your annual or lifetime gift tax exemption. Like the other items on this list,

we recommend you coordinate these with us or a qualified professional to fully understand the rules

and effects, but this strategy can prove to be effective during market downfalls.

Complimentary Starter Session™

One of our goals this year is to help more people with their financial decisions.

If you are not a client of Wealth Management Strategies, we would like to offer you a

complimentary, Starter Session™ at absolutely no cost or obligation.

Please call 252-451-0488 for more information or to schedule your Starter Session™!