Most investors are taught one golden rule: don’t time the market. And for long-term growth, that advice usually makes sense. But when it comes to inherited IRAs and retirement tax planning, blindly following that rule can be an expensive mistake.

In a recent episode of Leibel on Fire, Leibel Sternbach explains why market downturns can actually present some of the most valuable planning opportunities—especially for those dealing with inherited IRAs.

The key distinction is this: investment strategy and tax strategy are not the same thing. While it’s nearly impossible to consistently time the market for growth, taxes operate under a completely different set of rules. The tax code doesn’t care about long-term averages—it cares about values on the day you take action.

Why Inherited IRAs Are Different

Under current rules, most inherited IRAs must be fully distributed within 10 years. That creates a ticking tax clock. Every dollar withdrawn is taxable income, and poor timing can push you into higher tax brackets and increase what you owe the government.

Market downturns change the math.

When asset values drop, so does the tax cost of taking a distribution or completing a Roth conversion. You can either think of it as paying tax on less money—or converting more assets for the same tax bill. Either way, the outcome favors you, not the IRS.

Market Corrections Are Predictable—Even If Crashes Aren’t

No one knows exactly when the next crash will happen, but market corrections themselves are not rare surprises. Historically, markets experience:

• Roughly a 5% correction every few months

• About a 10% correction every year and a half

• A 20% or greater downturn every few years

Because these declines are normal, they can be planned for. The opportunity isn’t about panic selling—it’s about preparation.

The Real Advantage Goes to the Prepared

The biggest mistake Leibel sees inherited IRA owners make is failing to plan. Without a strategy in place, decisions get rushed, opportunities are missed, and the government effectively takes control of the outcome.

Successful planning means knowing in advance:

• When you would take distributions

• When Roth conversions make sense

• What tax brackets you’re trying to stay within

• How market declines affect your long-term plan

When markets drop, those who are prepared can act quickly. Those who aren’t often miss the window entirely.

Why Doing Nothing Is Still a Decision

Even choosing not to act is a decision—but it needs to be intentional. Tax laws change. Market values change. Account balances change. Without regular review, what once made sense can quietly become costly.

Inherited IRAs reward proactive planning and punish passivity.

Take Control Before the Government Does

If you don’t make a plan, the government will make one for you—and it will not be in your favor. The difference between a thoughtful strategy and a reactive one can easily add up to hundreds of thousands of dollars over the life of an inherited IRA.

That’s why Leibel and his team offer a free retirement and tax SWOT analysis. They look at your strengths, weaknesses, opportunities, and threats—and help you map out a strategy before the next opportunity appears.

If you have an inherited IRA or are planning for retirement distributions, now is the time to act.

Schedule your consultation here: https://www.yields4u.com/pages/book