Ask Yourself These 19 Questions First

Why Preparation Beats Prediction

Recession or market drops aren’t a matter of if, they’re a matter of when. And while we can’t control the timing, we can control how we prepare.

Think of it like a hurricane warning. You don’t wait for the wind to knock your door down before you buy batteries. Similarly, smart financial planning isn’t about timing the market. 

It’s about asking the right questions before things get rough. That’s exactly what this insight is about.

I’ve compiled a list of 19 questions to ask yourself during recession or market drops. These questions touch on everything from cash flow and retirement to taxes, estate planning, and small business relief.

There’s just one really important thing to keep in mind: you’ll only get the answers if you download the full PDF guide Recession or market drops, 19 questions your financial advisor should be reviewing with you.

Asking the Right Questions in a Stock Market Downturn

When the market dips or the economy slows, most people react emotionally. Fear kicks in. 

Some pull out of investments. Others freeze altogether.

But a calmer, more confident approach starts with questions like:

• Is my emergency fund enough to cover 3–6 months of expenses?
• Should I rebalance my retirement accounts while valuations are low?
• Can I convert some of my traditional IRA into a Roth this year?

These aren’t just “nice to consider” questions. They’re critical in protecting your financial foundation.

19 Questions Your Financial Advisor Should Be Reviewing With You

Below are a few teaser categories, each packed with insightful prompts in the full downloadable guide.

Cash Flow & Emergency Planning

• Will your cash flow be tight during the recession or market drops?
• Do you need to increase your emergency savings?
• Have you experienced a layoff or reduction in income?

If those hit a nerve, you’re not alone. Consider someone who assumed her 3-month cushion was more than enough. 

But when both her freelance income and her partner’s salary took a hit, things got stressful fast. We had to rework their budget and look for areas to cut back before they dipped into savings.

Investments, Retirement, and Rebalancing

• Should you keep investing when the market drops?
• What happens if you’re withdrawing from your retirement account?
• Is now the time to do a Roth conversion?

We go deeper into these in the guide, especially since topics like Roth IRAs are commonly misunderstood. If you’re not sure which is better for you, check out our guide on Roth IRAs.

Debt, Mortgage, and Refinancing

• Is now a good time to refinance your mortgage or other debts?
• Can you lower your monthly payments to improve cash flow?

Sometimes, the best move in a downturn is just reducing monthly pressure. That may involve refinancing or consolidating. 

If you’re navigating this for the first time, you might find our Financial Planning for Beginners helpful.

Tax Opportunities

• Are you sitting on a tax-loss harvesting opportunity?
• Should you adjust your charitable giving strategy this year?

Our post on how to save money on taxes outlines several tax-smart strategies that complement what you’ll find in the downloadable checklist.

Long-Term & Estate Planning

• Have your estate plans changed due to shifts in the market?
• Is now the time to make gifts to your heirs or update your trust?

If these are questions you have, you might also want to read: How much can I give my kids before paying IRS gift tax?

Why the Answers Matter (and Where to Get Them)

The truth is, many of these questions aren’t simple yes or no choices. The right answer depends on your goals, income, family needs, and risk tolerance.

That’s why I created a free, easy to understand guide that gives you not only the questions, but also the answers and next steps. You can use it as a:

• Personal financial stress test
• Conversation starter with your spouse or advisor
• Planning tool to turn panic into clarity

You don’t need to be a financial expert to understand it. I wrote it to turn complexity into clarity, just like I do at A Small Investment, LLC.

And if you’re still figuring out whether you need help managing this on your own or with a professional, this insight on how much a financial planner costs clears up the confusion around fees.

Ready to Get the Guide?

You can download the full PDF guide, “19 Questions to Ask During a Recession or Market Drops”, when you sign up for our insights newsletter.

It’s a small investment of your time for a big return in clarity and confidence.

Click here to subscribe and download the guide.

We promise not to clutter your inbox. Just helpful tips, once a week or so, written for real people who care about making smart financial decisions.

What’s Next: You Don’t Have to Guess

You don’t have to predict the next market bottom. You just have to be prepared.

Start by asking the right questions. Then get the guide and let’s make a plan that works for you.

For more personalized help, visit our Start Here Page, or explore more topics from our Insights library.

And remember, you’re not alone. A little preparation goes a long way.