The 'August' fall in the stock market still has many of us at the edge of our seats. With their wealth and dreams on the line, who wouldn�t be! And after the last US market crash during late 2007, all people want to do is keep their wealth safe. While this fall doesn�t seem as bad as the recession right now, many of us are already in a state of flux, unsure of what we should do.
Over the past few weeks, several people have been asking the same question
� �What should I do now?� Does one take their money out and start preparing for a market meltdown or should they stay put and continue investing? It has been observed that an overwhelming majority of people wanted to just stop investing and keep their money safe.
While 'protecting' your investment is the most natural thing to do, following up on your dreams and goals is also an important aspect of life itself. Realizing those dreams is what we live and earn for. And putting a halt to them is not the answer. Here are seven things you shouldn�t do when you find yourself in this situation:
Don�t proceed without planning: Things may seem bad at the moment, but pulling out of your investment without a second thought is as dangerous as self medication. If you do find yourself in such a situation, plan on how you would like to retreat your investments. Abruptly stopping all payments on the same, will not only cause disharmony in your money matters but also put an end to all your dreams.
Don�t panic: Panic is the most natural state of mind, when things go haywire. If you do find yourself in this situation, have a calm discussion about how you should proceed. Panicking will only cause more grievances and force you to make bad decisions. An apt move to make at this point would be to speak openly to a certified financial planner who will be able to guide you in the best possible manner.
Don�t end your financial plan: Investing during times of financial crunch, especially for retirement, may sound unreasonable to many, but remember that this investment is being done for your future. If you are currently investing in a plan, try to continue the same instead of putting it to a complete halt. You can always rework your monthly investment to suit your financial needs.
Don�t get carried away with the market: The volatility of the market may scare you and your financial plans, but it is best not to be carried away by this fear.
Don�t get emotionally carried away if you see the market falling and avoid taking impulsive decisions. Keeping your money safe is the key.
Don�t be influenced by short term losses: The term loss itself will set of various alarms in your head. If you find your investments and stock options under this position, try not to get ahead of yourself. If you have used a particular tool for a long term plan, then these losses would not affect very heavily on your plans or your investments.
Do not ignore the importance of family in financial decisions: The breadwinner of the family is usually the one to make decisions. However, it is important that you keep your family in the loop of the current situations, as it is also their financial future that depends on this. You may not be able to change the outcome of the markets, but you can keep your family�s future safe.
Don�t give up: One cannot stress on this enough. You cannot give up on the idea of having a financially secure future, just because the present situation seems murky. Remember to always have a contingency plan that will help you during such situations. This would ensure that your present and your future safety are withheld. This situation will pass, and all you need to remember is that there are people who can guide you and support you in times of financial turmoil.
While it�s easier said than done you can protect your own future through these simple methods. All you need to do is just keep the faith.
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