Before I give you the following Risky Financial Advice (RFA), please remember that I am an insurance agent writing a blog on prophecy. I am not a financial advisor (so if you follow my advice and I'm wrong, it's really your fault for listening to a prophecy-loving insurance salesman).
All joking aside, this is an important subject. The Dow is a little over 8500 at this point. I believe you should seriously consider moving your money out of the market right now. If you have a 401k or IRA, move it to a fixed fund. If they don't have a fixed fund, move it to the most conservative allocation possible. I'm not so positive on bonds either, so be careful. I'm not telling you to withdraw your money from your 401k and get hit with the penalty tax. I'm saying you should change your fund allocation. You have to make your own decisions on whether to keep your 401k/ IRA going.
If your money is in individual stocks, you should look for an opportunity to sell asap.
It would also be wise to have cash at home (in a safe) to last 30 days or so. I'm not predicting the end of the world here, just pointing out some prudent steps that all of us should take. Even though the FDIC guarantees your money in the bank, it may take a while for you to be able to access it. Nevermind the possibility of a "bank holiday" at some point.
I am not trying to freak anyone out or cause panic or worry. I am just trying to point out some wise steps for us to take that may help us care for our families should anything happen.
And to be quite honest, I also have a very bad feeling about the stock market.
Sounds like good sound advice! We moved 99% of our at risk investments and are very glad we did.
ReplyDeleteHey, thanks Another Generation-
ReplyDeleteI appreciate the feedback. It's always a risk to predict the market, but this was just a nagging thing for me. I felt I needed to "ring the alarm bell". Maybe it will save someone's finances...