Almost everyone is feeling the effects of one of the most spectacular market meltdowns in our lifetime, precipitated by the sub-prime mortgage meltdown. Just in the first 10 days of October, the market has lost over 21% and is now down 42% from its high of one year ago today. That is unprecedented in modern times.
There is nothing any of us can do about the markets or the economy as a whole. Here is a list, however, of things you can do, compiled from what the best advisors in the nation are telling their clients. I’ve added a few of my own:
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Turn off the TV
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If you are retired, review and amend your retirement cash flow plan
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Have a spending plan and control it
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Keep re-balancing your portfolio
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Keep adding to your retirement plan: IRA, 401k, SIMPLE, etc.
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If you are retired, keep one year’s spending in a money market
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Keep the job you have, or if you don’t have one find one
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Invest in developing yourself
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Remind yourself this crisis is for a season and that you are not alone in your fear
