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Market Jitters? Smart Tax Moves Boomers Should Be Thinking About Now
If you're near retirement — or already there — market dips hit differently.
When you're still in your 30s or 40s, a downturn is just a blip on a long timeline.
When you're in your 50s, 60s, or beyond?
It feels a lot more personal. A lot more urgent.
You’re not just managing money anymore.
You’re managing peace of mind.
Here’s the good news:
Even when markets wobble, there are still smart, proactive moves you can make — especially when it comes to your taxes — to protect your retirement lifestyle.
And no, we’re not talking about investment advice.
(You have enough people yelling about the stock market already.)
We’re talking about practical tax and planning strategies you can control, no matter what Wall Street is doing.
1. Take Advantage of Tax-Loss Harvesting
If some of your investments have lost value, you might be able to use that to your advantage at tax time.
Tax-loss harvesting means selling investments at a loss to offset gains elsewhere, potentially lowering your overall tax bill.
Even if you're not selling everything, realizing some losses can:
Offset capital gains (short-term or long-term)
Reduce taxable income up to a certain limit
Help you rebalance your portfolio without a huge tax hit
Important: this isn't about panic-selling.
It’s about being strategic with what’s already down — and turning a temporary setback into a real-world tax benefit.
2. Consider "Bunching" Your Deductions
Thanks to the higher standard deduction, many retirees don’t itemize anymore.
Which means smaller deductions (like medical expenses or charitable gifts) often don’t help much year to year.
But when economic uncertainty hits, bunching your deductions can make a big difference.
How it works:
Instead of spreading charitable donations or big medical procedures over a few years…
You group them into a single year to push your deductions higher than the standard deduction.
One "bunched" year = bigger write-offs = bigger tax savings.
The next year, you can go back to the standard deduction if it makes more sense.
3. Be Smart About Retirement Withdrawals
Down markets make withdrawal strategies even more important.
You don't want to sell investments at a low just to fund basic expenses.
But you also don't want to blindly pull from tax-deferred accounts without considering the tax hit.
Now is the time to work with a tax professional on:
Strategic withdrawals that balance taxable, tax-deferred, and tax-free accounts
Required Minimum Distributions (RMDs) planning if you're 73 or older
Minimizing spikes in taxable income that could trigger higher Medicare premiums or other taxes
In short:
The order you withdraw money matters, especially when markets are shaky.
4. Keep an Eye on Roth Conversion Opportunities
Market downturns can actually create opportunities for Roth conversions.
When account values are lower, you can potentially convert more assets to a Roth IRA with a smaller tax bite.
The benefit?
Future withdrawals from Roth accounts are tax-free.
If you're near retirement, doing smaller, strategic conversions during down years can create more flexibility and lower taxes later.
But be careful:
Roth conversions impact taxable income now — so planning (not guessing) is critical.
5. Remember: Tax Planning Isn't Just for April 15
In an unpredictable economy, smart tax moves aren't about scrambling in March.
They're about planning all year long.
Adjusting strategies if income drops or rises
Timing deductions
Managing your income streams carefully
Being ready to pivot if new tax laws or incentives pop up
The goal:
Make your money last longer by legally reducing what you owe and keeping more of what you've earned.
Because you didn’t spend decades building your savings just to let taxes take more than their share now.
Smart Moves Start with a Smart Plan
You deserve more than generic advice.
Our team works closely with Boomers and near-retirees to build customized tax plans that stay flexible — no matter what the markets or headlines are doing.
Contact us today and let's make sure your next moves are the right ones for you.
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Rose Tax & Financial
Cedar Crest, New Mexico 87008
Sat: 10:00am to 2:00pm
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