{"id":32788,"date":"2018-11-08T13:06:23","date_gmt":"2018-11-08T18:06:23","guid":{"rendered":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/?p=32788"},"modified":"2018-11-08T15:46:56","modified_gmt":"2018-11-08T20:46:56","slug":"advisers-say-investors-should-not-panic-even-when-stock-market-shows-signs-of-dropping","status":"publish","type":"post","link":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2018\/11\/advisers-say-investors-should-not-panic-even-when-stock-market-shows-signs-of-dropping\/","title":{"rendered":"Advisers Say Investors Should Not Panic Even When Stock Market Shows Signs Of Dropping"},"content":{"rendered":"<figure id=\"attachment_32789\" aria-describedby=\"caption-attachment-32789\" style=\"width: 241px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-32789\" src=\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2018\/11\/planning-tips-vahanian-vc-241x300.jpg\" alt=\"\" width=\"241\" height=\"300\" srcset=\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2018\/11\/planning-tips-vahanian-vc-241x300.jpg 241w, https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2018\/11\/planning-tips-vahanian-vc.jpg 724w\" sizes=\"auto, (max-width: 241px) 100vw, 241px\" \/><figcaption id=\"caption-attachment-32789\" class=\"wp-caption-text\">Jeff Vahanian of Vahanian &amp; Associates in Saratoga Springs.<br \/>\u00a92018 Saratoga Photographer.com<\/figcaption><\/figure>\n<p>By Jill Nagy<\/p>\n<p>Sit still. Hold tight. Don\u2019t panic. That sums up the advice of some financial advisors to investors feeling a bit seasick in a volatile market.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>From 1980 to the late October 2018 market drop, there have been 36 corrections in which the market fell 10 percent or more, said Jeff Vahanian of Vahanian &amp; Associates in Saratoga Springs. In each case, the market recovered and continued moving upward.<\/p>\n<p>The worst thing an investor can do is to sell when the market drops and then miss the upswing that is likely to follow, he said.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Tim Pehl of Luther Forest Wealth Advisors agreed.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>\u201cWe try to keep our clients on the straight and narrow,\u201d Pehl said. His advice to nervous clients: \u201cStick to your plan.\u201d<\/p>\n<p><span class=\"Apple-converted-space\">\u00a0<\/span>\u201cPeople with good rules, good discipline, and good habits do well,\u201d noted Vahanian.<!--more--><\/p>\n<p>There is not much new in the way of new laws and regulations this year, both said. However, Pehl highlighted a possible source of tax savings that, after being temporary, is now permanent: the ability to make charitable contributions from an IRA account, thereby avoiding taxation of the funds.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Where it really comes into play, he said, is with taxpayers unable to itemize deductions under the new tax law. \u201cThis is one of the biggest pieces of advice that we are giving out this year,\u201d<span class=\"Apple-converted-space\">\u00a0 <\/span>he said.<\/p>\n<p>Pehl was skeptical about some New York state innovations intended to ease the effect of new ceilings on the deduction of local taxes. New York state allows employees to reduce their payroll and withholding and receive a tax credit in exchange. There is also the scheme to allow taxpayers to make charitable contributions to local taxing authorities instead of paying taxes. In both cases, the IRS opposes the scheme.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>\u201cI\u2019m not sure exactly where it stands,\u201d he said of the payroll-reduction scheme. \u201cYou don\u2019t want to be a guinea pig on this. Wait until the dust settles.\u201d<\/p>\n<p>On the whole, Pehl is upbeat about the effect of the new federal tax laws. He thinks most people will find their taxes reduced. That was what they found when they did tax analyses for most of their clients after calculating 2017 taxes. A big advantage for many taxpayers is that \u201cthe alternate minimum tax was pretty much wiped out,\u201d he said.<\/p>\n<p>While urging steadiness, Vahanian acknowledges that it is a \u201cgreat challenge\u201d for him to get clients to focus on the long term during this time of political divisiveness, social unrest, and global trade tensions.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>\u201cIn the short term, the market is a voting machine,\u201d he said, \u201cIn the long term, the stock market is a weighing machine, weighing the value of a company.\u201d<\/p>\n<p>As a corollary to advice to try to ride out the ups and downs of the market, Vahanian advised people not to put money into the stock market that they will need in the short term.<\/p>\n<p>While the timeworn advice to diversify and not put all of one\u2019s money into stocks is still good, both Pehl and Vahanian<span class=\"Apple-converted-space\">\u00a0 <\/span>acknowledged that alternatives that yield good income are limited. Pehl thought that short-term bonds could make sense as interest rates increase. Vahanian pointed to real estate as another investment vehicle that can protect buying power.<\/p>\n<p>Most portfolios recovered from the 2008-09 recession, Pehl said he expects them to recover from the recent downfall as well.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Jill Nagy Sit still. Hold tight. Don\u2019t panic. That sums up the advice of some financial advisors to investors feeling a bit seasick in a volatile market.\u00a0 From 1980 to the late October 2018 market drop, there have been 36 corrections in which the market fell 10 percent or more, said Jeff Vahanian of [&hellip;]<\/p>\n","protected":false},"author":196,"featured_media":32789,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-32788","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-year-end-tax-planning"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\r\n<title>Advisers Say Investors Should Not Panic Even When Stock Market Shows Signs Of Dropping - Saratoga Business Journal<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2018\/11\/advisers-say-investors-should-not-panic-even-when-stock-market-shows-signs-of-dropping\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Advisers Say Investors Should Not Panic Even When Stock Market Shows Signs Of Dropping - Saratoga Business Journal\" \/>\r\n<meta property=\"og:description\" content=\"By Jill Nagy Sit still. Hold tight. Don\u2019t panic. That sums up the advice of some financial advisors to investors feeling a bit seasick in a volatile market.\u00a0 From 1980 to the late October 2018 market drop, there have been 36 corrections in which the market fell 10 percent or more, said Jeff Vahanian of [&hellip;]\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2018\/11\/advisers-say-investors-should-not-panic-even-when-stock-market-shows-signs-of-dropping\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Saratoga Business Journal\" \/>\r\n<meta property=\"article:published_time\" content=\"2018-11-08T18:06:23+00:00\" \/>\r\n<meta property=\"article:modified_time\" content=\"2018-11-08T20:46:56+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2018\/11\/planning-tips-vahanian-vc.jpg\" \/>\r\n\t<meta property=\"og:image:width\" content=\"724\" \/>\r\n\t<meta property=\"og:image:height\" content=\"900\" \/>\r\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\r\n<meta name=\"author\" content=\"jessewinters\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"jessewinters\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2018\/11\/advisers-say-investors-should-not-panic-even-when-stock-market-shows-signs-of-dropping\/\",\"url\":\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2018\/11\/advisers-say-investors-should-not-panic-even-when-stock-market-shows-signs-of-dropping\/\",\"name\":\"Advisers Say Investors Should Not Panic Even When Stock Market Shows Signs Of Dropping - Saratoga Business Journal\",\"isPartOf\":{\"@id\":\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2018\/11\/advisers-say-investors-should-not-panic-even-when-stock-market-shows-signs-of-dropping\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2018\/11\/advisers-say-investors-should-not-panic-even-when-stock-market-shows-signs-of-dropping\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2018\/11\/planning-tips-vahanian-vc.jpg\",\"datePublished\":\"2018-11-08T18:06:23+00:00\",\"dateModified\":\"2018-11-08T20:46:56+00:00\",\"author\":{\"@id\":\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/#\/schema\/person\/b937a48daf87d7a8bd713a73b5d6a1ae\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2018\/11\/advisers-say-investors-should-not-panic-even-when-stock-market-shows-signs-of-dropping\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2018\/11\/advisers-say-investors-should-not-panic-even-when-stock-market-shows-signs-of-dropping\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2018\/11\/advisers-say-investors-should-not-panic-even-when-stock-market-shows-signs-of-dropping\/#primaryimage\",\"url\":\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2018\/11\/planning-tips-vahanian-vc.jpg\",\"contentUrl\":\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2018\/11\/planning-tips-vahanian-vc.jpg\",\"width\":724,\"height\":900,\"caption\":\"Jeff Vahanian of Vahanian &amp; 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