1. Don't let emotions affect your financial future- ie don't make poor sell decisions bc of short term market fluctuations.
2.Diversify, diversify, diversify- ex. if you had 50% of your portfolio in Lehman, you wouldnt be doing very well right now...keep an appropriate mix of stocks, bonds and cash based on your retirement goals and time frame. Use diversified mutual funds that own hundreds of stocks in hundreds of companies, or use Exchange Traded Funds
3. Be disciplined- continue to systematically invest in the markets through dollar cost averaging ( ie every paycheck continue to contribute to your 401ks, add to Roth IRA's etc.etc.)
4.Avoid market timing- trying to get out of the market at a high and get back in when things have settled down is impossible to do.....you'll end up getting in after the bull market has already started...STAY INVESTED!!!
5. Review your financial plan- Every year you should sit down with a financial planner to review changes, update rebalancing and your investments- see what opportunities can be taken or things to avoid.
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