Thursday, September 18, 2008

Troubling News but Don't Panic

Once again, it is impossible to open the newspaper or watch the news without coming across financial news stories that make you want to run screaming for the hills. The key thing to do during turbulent times such as we are facing now is to remember what your long term financial plan is and not make decisions based upon the hysteria resulting from recent events. If you haven't done so, I encourage you to develop or re-evaluate your financial goals and the steps you are taking to reach them. Hopefully, your investment portfolio is diversified and will allow you to weather this current storm.

Remember that savings and checking accounts in FDIC insured banks are guaranteed up to $100,000. If you have investments in a brokerage account they too are insured against the failure of the brokerage company (up to $500,000) but not against declines in the values of your investments. When it comes to the insurance of your financial assets, having access to current statements is critical so that you can prove how much money you had in your savings account or how many shares of a specific stock or mutual fund you own.

Keep your chin up. The financial news is bound to get better eventually.


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