Home

12/4/2008

Fort Worth, TX – Recent financial and economic developments have unnerved some of the heartiest investors. Here are some hints that will help you deal with the current economic instability.

There are some things that you should do to cope with the economic situation. Refresh your memory about government programs that protect investments and savings and be sure that you are taking full advantage of them. Stay current on what is happening in economics and finance so that you can make an informed adjustment to the situation if necessary. Get your personal finances in order; this is a good time to pay down your debt. If you have been planning to retire in the near future, you may want to re-evaluate your plans and at least wait until you can judge what the long-term impact of the downturn will be on your personal situation. Contact your financial advisor for advice about your individual financial condition.

There are also some things that you should not do in response to the current economic instability. Don’t panic and sell off your stocks and mutual funds; all that will do is convert your paper losses into real ones. If you have been making regular contributions to a savings or investment program, continue to do so. Don’t try to deal with the market downturn by switching from “investing” to “speculating”; that may only compound your problems rather than your interest. Finally, be cautious about taking on new debt.

While we shouldn’t under-estimate the seriousness of the economic downturn, at the same time we should not over-react to the situation. This is a good time to reflect on your saving, investing, and spending and make any needed adjustments.