Preparing For Tomorrow

The markets are down today, March 10, 2008. We have reached a new low for 2008. Oil hit an all time record of $108/barrel. Experts are saying bad things about the future in light of this and the sub-prime mortgage mess. What should you do?

1. BREATHE
2. KEEP YOUR FOCUS ON THE LONG TERM
3. BREATHE AGAIN
4. GET READY FOR TOMORROW

SOME THINGS YOU SHOULD GET READY TO DO:

• If you have securities in an after tax account that have gone down sell them for a tax loss after you have done your homework on what you want to buy. If you want to buy them back, you need to wait at least 30 days or it is a wash sale and you will not be able to take the loss on your taxes.
• Keep on top of mortgage rates, I would avoid Countrywide since news came out of a FBI investigation, and they seem to be higher than others anyway. If you can get a mortgage rate that is at least 1% less than your current rate without paying any points give it a look.
• Research - Look for opportunities in good investments that are being treated badly. It is always good to pay 30 cents on the dollar.
• Keep investing in your retirement account. This is long term money and you really hurt yourself when you break your discipline and stop buying, especially as things are cheaper.
• If you have your retirement accounts invested the way you want them, leave them along.

Shut off of the TV, go for a walk, hug your loved ones, and get a good night sleep. The future is best handled by people who do not panic. Panic is a sign of a lack of preparation and understanding. The future is best handled by people who have a plan and invest with discipline and are prepared to take the next step.