Sep 29, 2008 9:56 pm US/Central
Expert Advice On Protecting Your Money
CHICAGO (CBS) ―
Many Americans are wondering what they should do to protect their hard-earned money as the stock market tumbles and politicians argue over a solution to the economic crisis.
Nicole Bernardi-Reis has made sacrifices and lived conservatively. Even still, she finds herself asking that very question, worried about what the market will mean to her long-term financial future.
"I think there's a lot of fear out there right now," Bernardi-Reis, a freelance producer, told CBS 2's Kristyn Hartman. "Now what's kind of frightening to me is that because of the economy as a freelancer, I don't have any jobs coming up."
Add to that the stress of a mortgage and the fact the market was down Monday and the worriews prompted Bernardi-Reis to check on her nest egg.
"I called my uncle who's my financial advisor," she said.
Mario Bernardi, Chief Operating Officer of David A. Noyes and Company, says one of the most common questions is "What should I do with my money?"
"You should be sticking to your financial objectives and the strategy you've laid out," he said in answer to a very common question these days. "Now is not the time to panic or to take knee-jerk reactions."
Christine Benz, Director of Personal Finance for Morningstar, couldn't agree more. When people ask her if they should move their money out of mutual funds into something like a CD, she advises against it.
"The downside of that is that even though it will buy short term comfort, your money isn't going to grow," Benz said.
She also tells them when you're out, it's tough to get back in in time to capitalize on a turn-around.
One other thing Benz said to keep in mind is if your 401k is spread over mutual funds and you maintain your contribution, "as the share price goes down, you're buying more shares, so when market does turn around it's going to increase on all those shares."
Those points reassured Bernardi-Reis, who knows what she's going to do.
"Sit tight. We'll just ride it out," she said.
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