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.