Proactive Strategies to Guard Against Wealth Planning Risks During Market Volatility

Refining your asset location strategy while maintaining your target asset allocation can also yield benefits. Consider relocating your high-quality bond holdings to the leveraged account and shifting the more volatile securities like equities to your tax-advantaged accounts. This shift will likely reduce the volatility in the account associated with the debt and help avoid closing in on the loan-to-asset limits. You may trigger some gains but lock in some of those gains by investing in a less volatile asset.