Additional preparation includes keeping a reasonable amount of money in cash, or at least, very safe investments. Money you expect to spend in the next few years doesn’t belong in the stock market, much less next quarter’s estimated tax payment or a down payment for an upcoming home purchase.

A good plan not only tells you what to do in a bear market (stay the course, rebalance, continue to invest), it tells you what not to do. It will tell you to avoid changing your asset allocation, panic selling, market timing, stock picking, using actively managed mutual funds, and other activities that have been shown to decrease long-term returns.

Once you are in a bear market, all you have to do is follow your previously written plan. Lots of investors don’t realize they need a written plan, so a bear market often provides the impetus to do some real financial planning. Here are some other useful things you can do in a bear market.

No. 1: Do Nothing Major

The most important consideration, assuming you have a reasonable mix of diversified investments like index funds, is to make no major changes. “Stay the course!” Jack Bogle, founder of The Vanguard Group Inc., famously said. Some people find it easier to stay the course if they are not frequently reminded about poor performance. They avoid financial news like the plague, turning off CNBC and avoiding investment magazines. While no long-term investor needs to check their investments every day or even every month, if you know your plan is reasonable and your portfolio is diversified, you may find it better not to look at investment statements until the bear market is over in a few months, or even a couple of years.

No. 2: Tax Loss Harvest

While it’s no fun to lose money, at least in a taxable account Uncle Sam will share your pain. When recently purchased shares of an index fund go down in value during a bear market, you can swap them for shares of a similar, but not “substantially identical” (in the words of the IRS), index fund. Without significantly changing your asset allocation, you have booked a capital loss that you can use against future capital gains and even $3,000 worth of ordinary income each year.

No. 3: Rebalance the Portfolio

When you set up your portfolio, you choose to take on a reasonable amount of risk, often defined by a ratio of stocks to bonds or other safe investments. In a bear market, that ratio is likely significantly changed. It’s time to rebalance the portfolio back to the original ratio, essentially forcing yourself to sell high and buy low.