In times of market turbulence, investors may wonder how long the roller coaster ride will last, and whether they need to get off at the next stop.

Even those who have traditionally made all the right moves, such as investing for the long term and keeping their portfolios diversified, might find it difficult to keep their emotions in check.

It’s important to remember that weathering market downturns and corrections is a normal part of the wealth-building process. Since 1928, the S&P 500 has experienced a correction—typically defined as a decline of at least 10 percent from recent highs—every one to two years, on average. And each time, it eventually recovered lost ground and moved to new heights.

Instead of making knee-jerk reactions during difficult times, investors should focus on their long-term plans and take deliberate steps that can further those goals.

“We can’t control what’s going on in the market, but we as investors are not completely powerless,” says Angie O’Leary, head of Wealth Planning at RBC Wealth Management–U.S. “There are things we can do to strengthen our financial health in a down market.”

Here are seven important strategies to consider during market turbulence.

1. Revisit your wealth plan with your financial advisor

Even if you have a solid plan, you should be prepared for your net worth to take a hit, depending on your asset allocation. But as long as you stay invested, the loss is merely a paper loss, and doesn’t become a realized loss until you sell. History tells us that recoveries happen, and in those situations, the best offense has been a good defense that holds the line.

So take this opportunity to ask big-picture questions about your wealth plan. Have your goals changed? Is your risk tolerance and time horizon still appropriate, and does your portfolio still have an appropriate level of diversification? Having this conversation with your financial advisor can help redirect your focus out of the short-term uncertainty and back to planning for the long term instead.

2. Review sources of liquidity to cover surprise expenses

Uncertain times may lead to unexpected expenses. Create a liquidity plan that includes an emergency fund, as well as access to credit and lending. This can be a vital safety net if you’re unable or don’t want to tap into your other investments because they’re impacted by the market, or are more illiquid or inaccessible.

3. Retirees and near-retirees should conduct an income check-up

Market volatility can take an especially significant toll on those in or near retirement. That makes it critical to work with your financial advisor to understand how the market, inflation, taxes, interest rates and other risks could impact your nest egg and income needs.

In some cases, annuity strategies can make sense to proactively plan guaranteed income streams for essential expenses during retirement. This approach can take pressure off having to take larger distributions for recurring expenses during volatile periods.

4. Consider opportunities within your portfolio to tactically harvest losses for tax purposes and reposition your portfolio for growth

This can be especially impactful if you have realized gains and see an opportunity to trade up in quality, growth potential or even to better align your portfolio with your personal values. Keep in mind that even if you don’t use losses generated in the current year to offset gains, those losses may be carried forward to future years. Consult your tax advisor to determine if this strategy makes sense for your particular tax situation.

5. Consider a Roth IRA conversion

With a Roth IRA conversion, you convert some or all of your money in a traditional IRA into a Roth IRA, and owe income taxes on any funds you convert. A down market could be a good time to consider a Roth IRA conversion or partial conversion, because when your IRA’s value is lower, the tax liability of a Roth conversion would also be reduced. Once converted, your assets can grow tax free and your withdrawals in retirement are also tax free. You may want to consider spreading out your planned Roth conversion over the course of the tax year by using smaller conversions, in case markets continue to drop further. Your financial and tax advisors can help you assess if this strategy is right for you and your particular situation.

6. Lower your tax bill through charitable contributions

Giving to charity can provide personal fulfillment by supporting a cause you’re passionate about, while also providing income and estate tax benefits. For example, if you’re over age 70 ½, you could consider a qualified charitable distribution, where you can donate up to $108,000 (2025 amount) from an IRA directly to a charity. This would reduce your income for the year by the amount of the donation, though you won’t be able to take the charitable deduction.

7. Discuss plans to reduce estate tax exposure

Consider timely strategies that work well in down markets, such as annual gifting or trust strategies using depressed stock. If you have concerns about federal and/or state estate taxes, one of the guiding planning principles is to transfer assets that have significant growth potential using as little of your gift-tax exemption as possible. Depressed market conditions set the stage for this scenario ideally. It’s important to have a solid wealth plan in place prior to considering these gifting strategies, but a down market can be a great opportunity to effectively gift depressed assets.

The bottom line

Focus on your plan, not on the market. Don’t jeopardize your long-term investment strategy out of fear or other emotional decisions. If you’ve created a strategy that reflects your risk tolerance, time horizon and financial goals, and you make the relevant adjustments over time, you’ll give yourself the ability to look past today’s headlines.

This article was updated in April 2025.