I have been reading lots of articles and sites about the current state of the market, including the Bank of America and Merrill Lynch merger, the bankruptcy of Lehman Brothers and the bailout of AIG. These money management tips might help you in this crazy time. The personal finance advice I have been reading has already calmed me down.
From CNN.com and Gerri Willis:
The SIPC (Securities Investor Protection Corp.) will give you up to $500,000 per account. The FDIC will insure up to $100,000 in an FDIC-insured bank for traditional savings, checking, CD or money market account. Joint accounts are insured up to $200,000.
From The Wall Street Journal on MSNMoney.com
* Start seriously cutting back on expenses.
* Set up a home-equity line of credit while you still can.
* Refinance your mortgage.
* Don’t wait for your worst investments to “recover.” Stop waiting for them to “recover” before you sort out your portfolio.
* Don’t panic. The media does tend to panic. While the situation is serious, there is a frenzy going on.
* When it comes to your short-term money needs, nothing has changed. You can get a one-year CD paying 5% right now, and it’s federally guaranteed.
* If you are investing for five years or more, buy some stock.
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