The sensational headlines over the past few months may have you thinking about pulling out of the market, but peppered in among those doom and gloom proclamations is solid advice, urging investors to take advantage of a number of significant opportunities present in today’s market. Even during uncertain times such as these there are ways to turn your loses into gains if you just know where to look and whom to turn to.

I’d argue that there are genuine reasons for many investors to be concerned, today. People are watching their assets decline not knowing how long it will take to recover their losses. They’re scarred to talk to their bank or their big brokerage house, but don’t know how they are going to meet their financial responsibilities. It’s my job to understand what is important in their life and review what is being done on a planning basis to make sure their personal needs are being dealt with.

Financial advisors can help alleviate stress by reviewing your financial plan and evaluating where you are in terms of meeting your long-term goals. An advisor that works for an independent broker dealer is not beholden to any specific product or investment. They are able to provide objective counsel to clients without the undue pressure of sales goals or proprietary product restrictions.

If you don’t have a financial plan, now is the time to get one. An independent financial representative helps people define their goals and then find financial solutions to best fulfill those goals in good times and bad.

Today’s economic worries have people overwhelmed, and rightfully so. However by working together with a professional advisor, investors can take action and work through the current turmoil.

For example, with a broad array of asset classes in the red, you may decide to put some of those losses to work for you. Remember, each year you can reduce your ordinary taxable income by up to $3,000 in net capital losses. Particularly if you sold taxable investments at a profit this year, you might decide to sell some portfolio losers to offset those gains. Keep in mind that you’ll receive a preferred tax rate on long-term capital gains (gains on shares held for more than one year), but short-term gains (on shares held less than a year) are taxed at your ordinary tax rate.

Naturally, your sell decisions should consider the relative strength of each investment and general economic conditions, rather than be motivated solely by potential tax savings. What’s more, you need to be mindful of wash sales rules. That is, no loss will be allowed on your sale if you buy the same or substantially identical security within 30 days before or after the sale. Many financial advisors collaborate with tax professionals to help you reach your goals. If you have questions, consult your personal tax advisor.

Now also may be an ideal time to convert your traditional IRA to a Roth IRA while value is low. As background, when you convert a traditional IRA to a Roth IRA you must pay income taxes on the account balance. However, once those taxes are paid, all qualified withdrawals from your new Roth IRA are tax-free provided you hold your Roth IRA for at least five years and are at least 59 ½ years of age. While investors often see the benefits of adding a tax-free Roth to their portfolio, the cash outlay to pay conversion taxes can be a hurdle they just can’t clear.

However, if you hold a traditional IRA account that has declined in value over the past year, now may be a good time to convert to a Roth. Because the value of your IRA account is down, you will owe less in taxes now than you might have in the past. The extra bonus is that your new Roth will capture gains from the market’s eventual rebound on a tax-free basis.

You can convert your traditional IRA to a Roth IRA if your modified adjusted gross income (MAGI) is under $100,000. Note, however, that that income cap is scheduled to disappear in 2010, courtesy of the Tax Increase Prevention and Reconciliation Act of 2006. Therefore, after 2010, you can convert your traditional IRA to a Roth IRA, regardless of your income or filing status. (Currently, you cannot convert if you are Married Filing Separately, unless you have living apart all year.)

Keep in mind, that as you work through your qualifying calculations, although the proceeds from the conversion are taxable as ordinary income, they do not count towards your MAGI. That is, if you have $98,000 in MAGI, converting $1 million from a traditional IRA to a Roth IRA will not push you over the $100,000 Roth conversion limit.

As you contemplate portfolio moves, your advisor will help you not to be swayed by emotional responses to the market’s recent roller coaster ride. For example, after one of the most volatile weeks in Wall Street history and a series of unprecedented moves by the government, now may feel like a good time to cash out, or, minimally, to stop investing new money. You might bolster your argument to sell with the promise that you’ll re-invest once the market settles down. However, identifying just how narrow that window of opportunity is may change you mind. In 1994, a study authored by Dr. H. Nejat Seyhun, a professor of finance at the Ross School of Business at the University of Michigan found that, between 1963 and 1993, 95% of market gains were generated during a mere 1.2% of the trading days. Recently, Dr. Seyhun revised his study, incorporating data through 2004. His results were virtually unchanged: 96% of market gains between 1963 and 2004 occurred during only 0.9% of the trading days. Given those slim percentages, it’s likely that, by the time you’re feeling bullish again the market already will have rebounded significantly, shutting you out of those initial gains.

With that as a backdrop, if you have extra cash on hand and are decades away from retirement, equities’ 40% decline from last year’s high present an attractive buying opportunity. Whether the current bear market has reached the bottom or not is unclear, but stocks are certainly on sale. Rather than focus on a sector you perceive as safe, make broad-based contributions to the market on a regular basis. That practice, known as dollar cost averaging, ensures that you buy more shares when prices are down. If you are retired or on the verge of retiring, you’ll want to ensure you have enough allocated to cash and bonds to cover your living expenses for at least the next several years.

I understand that the market’s profound slide over the last few weeks has been unnerving so I continue to meet with my clients to ensure they are well positioned to manage any future volatility and to take advantage of new opportunities. The market’s behavior may be unprecedented, but we can ensure we make rational decisions by basing our moves on life’s goals, willingness to stomach the inevitable market swings, and time horizon.

Brett Ellen, founder and president of American Financial Network, is a financial planner and investment advisor representative with Securities America Advisors who specializes in wealth management and corporate benefit planning services. Additionally, Ellen established and is an active part of the Financial Solutions Alliance, a network of financial service providers from across the country that work collaboratively to address the financial and business needs of their clients. Unprecedented in his ability to serve both individual investors and corporate planners, Ellen is recognized by Securities America as their top advisor.

As a California native, Ellen believes strongly in giving back to his community. He and his firm actively support a variety of non-profit organizations. In 2008, the Muscular Dystrophy Association awarded Ellen the prestigious Humanitarian of the Year Award for his philanthropic endeavors and dedication towards making a difference. In 2001 he and his wife, inspired by their children, formed their own non-profit. TKOHelpingHands.org (Turn Kindness On) promotes community involvement and social responsibilities in young children. For more information about Brett Ellen, visit www.afn-net.com.

*Securities offered through Securities America, Inc. member FINRA/SIPC, Brett Ellen, Registered Representative. Advisory services offered through Securities America Advisors, inc., an SEC registered investment advisory firm. Brett Ellen, registered investment advisor representative. American Financial Network and Securities America are unaffiliated.