Herewith, a few words of advice for dealing with the recession and personal financial losses. I copied it from I don't remember where. Buy lots of cheap stocks too, if you have the money. Stocks can only go up, in the long term. My simple formula for financial security? Always, always live below your means and save the difference.
Deal with Debt: If you have debt, pay it down. Better still, eliminate it completely. Going forward, pay cash for everything you buy. That may keep you from making some purchases; if so, that's good.
Downsize Your Life - Before it Downsizes You: Differentiate between things that you want, and things that you actually need. By streamlining your life, you'll rediscover that some "things" (time with your family) are more important than other things (a plasma TV).
Stay in, Don't Cash Out: If you're a decade or more away from retirement, everything we know about market probabilities and recorded history suggests the better option is staying in the market, as opposed to cashing out. But don't go crazy, either. We also know that balanced funds, hard assets and a solid emphasis on income offer the best shot at higher returns over time.
Be Real: If you're already retired, and your "nest egg" has been eviscerated, conduct a realistic appraisal of your financing needs. If you realize you can't risk losing part - or all - of the money that you still have invested in the markets, talk to your financial advisor immediately. It may be better to pull out of the markets and move on to safer choices.
Downsize Your Life - Before it Downsizes You: Differentiate between things that you want, and things that you actually need. By streamlining your life, you'll rediscover that some "things" (time with your family) are more important than other things (a plasma TV).
Stay in, Don't Cash Out: If you're a decade or more away from retirement, everything we know about market probabilities and recorded history suggests the better option is staying in the market, as opposed to cashing out. But don't go crazy, either. We also know that balanced funds, hard assets and a solid emphasis on income offer the best shot at higher returns over time.
Be Real: If you're already retired, and your "nest egg" has been eviscerated, conduct a realistic appraisal of your financing needs. If you realize you can't risk losing part - or all - of the money that you still have invested in the markets, talk to your financial advisor immediately. It may be better to pull out of the markets and move on to safer choices.
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