Financial Opportunities

Financial Opportunities

As we continue to manage your investments during the current pandemic it is important to keep a focus on the 3 L’s that we use to help you build your goals. Reviewing the Lifestyle that you want to live, now and into the future, the Loved Ones that you want to support, and the Legacy that you want to leave behind, means that we need to augment our actions on a regular basis, especially through changes in the market. In order to optimize the path toward achieving your goals, there are a few potential ideas to consider that may help position you in a more optimal way as we return to post pandemic life.

2020 IRA contribution:

Many of our clients make an annual contribution to their IRA at the end of the year or even before they do their taxes the following year. We think with the recent decline in the market due to Covid-19 pandemic it may make more sense to contribute now for 2020 and take advantage of this market downturn.

Roth IRA conversions:

If you have been considering or currently implementing a deductible IRA to Roth IRA conversion now might be a better time to make that conversion. During this pandemic account balances are down so as we make that conversion the tax impact may be less onerous than when your account is worth more.

Contribute more to your 401k:

If you have been fortunate enough to continue your employment at this time and have reduced current expenses because of the current stay at home orders. Now might be a great time to increase your current 401k contribution allowing yourself to dollar cost average this current market downturn.

Refinancing your current Mortgage:

One of the current positives to come out of this current crisis is record-low mortgage rates. If you have been considering refinancing your current mortgage this may be a great time to check in with your financial advisor to see if this opportunity might be right for you.

Tax Loss Harvesting:

Tax loss harvesting is a practice that involves selling investments in order to secure a loss. This often takes place near the end of the tax year, as investors look to offset as many capital gains as possible. The recent COVID-19 led market selloff presents investors with an opportunity to harvest those losses either on investments that they may not want to hold anymore or to generate a loss even on a position they intend to hold.

Stimulus Checks:

For those receiving stimulus checks it may be prudent to pay upcoming bills. One strategy to also consider is using a third to pay off high-interest debt (such as a credit card), placing a third into your rainy-day fund, and a third into investments. One strategy does not fit all, and it can be customized to meet your goals.


As the market has shifted considerably over the last two months the investments that you previously held, say 60% stocks and 40% bonds, have grown at uneven paces. Bonds have grown more than stocks, so your investment mix could very well be near something like 50% stocks and 50% bonds. This is a strong time to see how you are invested, and to re-adjust your investment selection given all the market volatility. While we actively rebalance your accounts with HFS. If you have a retirement plan with your employer, or other personal investment accounts, then this current environment is an ideal time to review rebalancing these accounts.

Required Minimum Distributions (RMDs):

Just because the CARES Act waived RMDs for 2020 does not mean that you cannot still withdraw money if you so wish. One possible use for that money is a Roth Conversion. After all, if you inherit an Individual Retirement Account in 2020, then you have a maximum of 10 years to withdraw the entire balance, and the same goes for your beneficiaries.

If any of these ideas seem as if they would apply to your situation, please contact our office to schedule a time to review with your advisor. We will review your goals and current position with you so we can make an appropriate recommendation based on your situation. Please feel free to share this information with your family and friends in case any of them would see value in exploring these ideas.

Thank you for this opportunity to serve you and your family. We look forward to working with you to continue building toward your goals into the future.

Written by: Todd Rohrer

These are the opinions of Todd Rohrer and not necessarily those of Cambridge, are for information purposes only, and should not be construed or acted upon as individualized investment advice. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal. The strategies discussed herein are not designed based on the individual needs of any one specific client or investor. In other words, it is not a customized strategy designed on the specific financial circumstances of the client. However, prior to opening an account, Cambridge will consult with you to determine if your financial objectives are appropriate for investing in the model. You are also provided the opportunity to place reasonable restrictions on the securities held in your account.


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