Thomas Bayer, CFP®, MT, Wealth Planner
tbayer@haverfordquality.com

When the Markets Give You Lemons, Make Lemonade 

We live in an unpredictable world where tax laws shift, markets swing, and headlines often evoke fear. It is natural for investors to feel uneasy during periods of market volatility. However, a well-structured wealth plan, grounded in long-term thinking and personal priorities, is a powerful tool for navigating choppy waters. We believe as an investor, you can ease growing concerns about the unknown by focusing on what you can control today.  

 
So, What Can You Control?  

1. Planning for Major Life Events 
   While you can’t always choose the exact timing of retirement, a business transition, or education expenses, you can plan ahead. In volatile times, flexibility is key – consider adjusting the timing of major withdrawals or deferring nonessential expenditures to let markets recover. It is important to analyze the potential benefits of waiting versus acting now based on your personal situation. 
2. How Much You Save 
   Savings is a first line of defense. If possible, continuing to save – even when markets are down – allows you to take advantage of lower prices and dollar-cost averaging. Don’t let fear derail your discipline. In fact, down markets can be a great time to reassess contribution levels or take advantage of depressed valuations in retirement accounts. 
3. How Much You Spend 
   Spending habits have a profound impact on long-term success. It is important to distinguish between needs, wants, and legacy goals. Managing cash flow and being intentional with spending allows you to enjoy today while preserving your plan for tomorrow. 
4. Asset Allocation and Investment Risk 
   Downturns are an opportunity to revisit your asset allocation and risk tolerance – are you taking too much risk or not enough? Rebalancing your portfolio helps ensure it remains aligned with your long-term goals and may even enable you to buy undervalued assets at attractive prices. 
5. Your Legacy 
   A meaningful legacy isn’t just about leaving behind a financial inheritance. It is about using your wealth with purpose during your lifetime and beyond.  Take the time to reflect on your intentions when developing your wealth plan as a way of ensuring your values continue to have a positive impact and your intentions are carried out.  

Tools like family gifting strategies, donor-advised funds, and thoughtfully structured trusts help ensure your wealth is used intentionally. Your legacy should reflect not just what you’ve built, but what you’ve chosen to do with it.   

 
Putting the Plan into Action  

Here are some practical strategies we guide clients through in challenging times:  

• Roth Conversions: When asset values are low, converting traditional IRA assets to Roth IRAs can be a tax diversification strategy. You will pay tax at current rates and enjoy tax-free growth going forward.  

• Tax Loss Harvesting: Strategic sales of positions at a loss can offset current or future capital gains. These tax savings can help reduce the overall impact of a downturn.  

• Leverage Strategic Gifting: Depressed asset values can highlight an opportune time to transfer wealth to heirs or charities. Gifting assets that are likely to rebound—either directly, through an intra-family loan or through a trust—can reduce future estate tax exposure and shift potential growth out of your taxable estate. It is a way to maximize both generosity and efficiency.    

• Put Cash to Work: If you have excess cash, consider deploying it gradually into the market. Lower valuations may offer attractive entry points for long-term investors.  

• Review Your Plan: Revisit your goals, time horizon, and spending needs. A strong plan is designed to weather downturns, but adjustments may be warranted based on life changes.  

 
Staying Grounded Through Uncertainty  

The hardest part of navigating volatile times as an investor may be avoiding emotional decisions. The impulse to “go to cash” or “wait it out” can lead to missed opportunities. Staying invested is critical to long-term success, in particular because you never know when the upturn will occur.  

Wealth Planning isn’t about timing markets – it’s building a strategy that can adapt and endure. When uncertainty rises, it is not time to retreat – it is time to lean into your plan. Because when the market gives you lemons, with the right guidance and strategy, you can make lemonade.  

The information provided is not intended to be and should not be construed as legal or tax advice or a legal opinion. Haverford does not provide legal or tax advice. You should contact your legal or tax advisor regarding your specific tax situation prior to taking any action based upon this information.