Today’s Hack:
What do you call what just happened in the market? Do you know what tax loss harvesting is? Should you be rebalancing? Find out in today’s show!
Click the timestamps below to jump ahead in the episode…
Other Retirement Facts:
What financial terms should you know during the pandemic (or just in general)? While some of these may be familiar already, they have definitely come up more so recently as they’ve been increasingly relevant due to coronavirus. Do you know all of these financial terms?
For starters, what should we call what just happened? Is it a bear market? Was it a market crash? What are the technical definitions of those two things and did the downward motion in the market this spring qualify?
Between the market volatility and high numbers of unemployment, does the market directly correlate with the economy? What’s the difference between a recession and a depression? As we open up some parts of the country to allow more businesses to operate, we’re hoping to avoid a depression. We’ve never seen so quick of a market drop in history though, and industries are going to come back slowly instead of flipping a switch back on.
Other terms you’ll learn about in today’s episode of Phil’s Tax Hacks include what a VIX is, the strategy behind tax loss harvesting, what index funds and whether or not they may help people, and what rebalancing is. With all of these terms and strategies, reach out to a qualified financial advisor before taking any action steps with your financial plan.
Listen to the entire episode or click on the timestamps below to skip ahead to learn more of a specific term.
1:55 – What to call “what happened” in the market?
3:44 – What are the different shapes of the market and what do they mean?
4:59 – Does the market directly correlate with the economy?
6:38 – What is a depression?
8:43 – What is a VIX?
9:38 – What is tax loss harvesting?
12:35 – Do index funds help people avoid some of the problems?
17:26 – What is rebalancing and how often should we do it?
A Quotable Moment:
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