How to Think About This Bear Market

Estimated Taxes Due Today | The 12 Best ETFs to Battle a Bear MarketThe 12 Best ETFs to Battle a Bear Market | Created for {EMAIL} | [Web Version]( June 15, 2022 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [Twitter]( [Instagram ]( [Youtube]( [SIGN UP]( ⋅ [WEBSITE]( [] What's in the Works [] Would a bear market, by any other name, smell as badly as this one does? Perhaps not, muses Dan Wantrobski, technical strategist and associate director of research at Janney Montgomery Scott. Wantrobski argues that unlike price and value, time is one thing investors can never recover … and that factor should influence how investors deal with the current downturn. “If you knew the markets were going to decline -20% next week, but then would rebound and recover all nominal losses within the following week, would you panic?” he asks, self-answering that long-term investors likely wouldn’t flinch in the face of such knowledge. But not so if investors knew that after a 20% decline, markets wouldn’t fully recover over the next decade. “This is the key time component to structural bear markets – where equity returns are flat or negative for several years, and where long-term investors can capitalize by making some strategic adjustments in their asset allocations and portfolio holdings.” [2022's Hottest Electric Vehicle Stocks]( This year could be the biggest one yet for the unstoppable electric vehicle megatrend -- but if you're looking to take advantage, the time to act is now. These 11 stocks have the potential to deliver life-changing profits as EVs continue to disrupt the automotive industry. [Download the report here.]( [READ MORE]( ADVERTISEMENT [] Latest [] Wantrobski believes this bear market fully belongs in the former camp, going so far as to say it doesn’t even warrant the traditional label of an [“official bear market”]( when viewed through the lens of long-term investing. “Though we don’t want to whitewash any of the pain that equity investors have experienced thus far this year, our belief is this: the current correction cycle, though deepening in price destruction over the near term, is not the beginning of a structural downturn in the U.S.” The practical takeaway? Most buy-and-holders would do well to stay the course. Break out your checkbook if you're self-employed, have a side gig, or have other income not subject to withholding – [an estimated tax payment is due today for income earned in April and May](. The U.S. tax system operates on a "pay-as-you-go" basis, which means the IRS wants its cut of your income when you earn it. For most people, taxes are paid periodically through paycheck withholding. If you're retired, you can have [taxes withheld from Social Security payments and retirement plan distributions](. However, if you have sources of taxable income that aren't subject to withholding, it's up to you to periodically pay the IRS by making estimated tax payments. Use IRS Form 1040-ES and the related instructions to calculate the proper amount of your payment. There are several ways to pay estimated taxes, including by check, cash, money order, credit card and debit card. There are many online payment options, too. The instructions for Form 1040-ES describe the various payment methods allowed. If you don't pay enough tax throughout the year – either through withholding or estimated tax payments – you could be hit with an IRS penalty. However, the penalty doesn't apply if you owe less than $1,000 in tax. You can also avoid the penalty if your 2022 withholding or estimated tax payments equal at least 90% of your 2022 tax liability, or 100% of the tax shown on your 2021 return (110% if your 2021 adjusted gross income was more than $150,000). Free download, [The Kiplinger Letter's Forecast](. No information required from you. [Millions Use This Retirement Planner To See If They Are On Track]( Compare scenarios to see what impact today's changes could have on your retirement tomorrow. Find out how much you can afford each month with our data-driven spending plan. Easily include additional sources of income such as Social Security, rental income, pensions, and windfalls. 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