Worried about the crisis on Wall Street? Luckily, there are a few things you can do to protect your finances amid the storm!
- Check Your Bank Accounts - Many banks are federally insured through the Federal Deposit Insurance Corporation (FDIC), but there are some banks that aren't insured. It is important to make sure that you are so you aren't at risk if your bank goes bankrupt!
- Check Your Brokerage Account - Many brokers are also federally insured through the FDIC, but again not all of them. Brokers are finding themselves in just as much trouble as banks, so it's important to check so you aren't at risk if your broker is in trouble too!
- Cash is King - The montra used by hedge funds around the world right now is also true for individuals. Interest on bank accounts like ING Direct and HSBC are paying a healthy 3% or so, which is much better than many investments! Perhaps its time to keep more of your money in cash...
- Don't Speculate - Huge banks and corporations are trading at in the pennies right now after collapsing. Stocks like Freddie Mac and Fannie Mae as well as Lehman Brothers may seem cheap, but buying penny stocks like these are not a good idea! These stocks are now worthless - the only traders are dreamers!
- Don't Panic, The World's Not Ending - Experts on Wall Street know that the best time to buy is when everyone is selling. Right now, everyone is panicing and selling. Instead, investors should hold onto their investments and keep buying stocks now while they are low instead of later when they recover!