| > | | | | end up with a solid financial plan. If you find yourself |
| Are you nervous about your personal finances? The | | | | teamed up with a inadequate or unethical adviser, |
| irrational exuberance of the 90s that led to | | | | and you have a good understanding of investing, you |
| double-digit gains for almost any investment portfolio | | | | are more likely to recognize bad advice. |
| is over. Now, you might consider yourself fortunate if | | | | Fear Creates Worry |
| your investments are losing less than the S&P 500. | | | | "Greed is good!" says Gordon Gecko (Michael |
| Add investment worry to the regular personal finance | | | | Douglas) in Wall Street. Recent investment losses, |
| worries of meeting your monthly budget, slaying the | | | | corporate scandals, and a stagnant economy refute |
| debt dragon, and starting/building that elusive | | | | that statement. Instead, a warning is emerging in |
| emergency fund. Will your savings and investments | | | | personal finance forums as we search and hope for |
| be able to meet your retirement, children’s | | | | indications that relief is in sight. Fear is bad! Fear has |
| college funds, and other goals? Although no one can | | | | driven many investors either to dump stocks and |
| see the future, there are things that you can do to | | | | load up on bonds, certificates of deposit and other |
| reduce your worries. | | | | conservative investments or, even worse, to stop |
| Knowledge Is Power | | | | saving and investing. This creates new problems. |
| Learn and become more skilled in financial matters. | | | | People will be incapable of achieving their long-term |
| The best way to improve your financial education is | | | | financial goals because their portfolio may now be so |
| to read personal-finance magazines, books, and even | | | | conservative that it won't deliver the returns needed |
| newspapers. The educational materials sent out by | | | | to retire in comfort, or they are simply saving too |
| mutual-fund companies and brokerages are also | | | | little. |
| valuable. You may come across conflicting information | | | | Faced with this fear and uncertainty, financial |
| and advice, but if you read widely, you will eventually | | | | knowledge is more important than ever. Instead of |
| get a better idea of how to manage your money. | | | | reacting to the market’s ups and downs, learn |
| Do-it-yourselfers are not the only people who can | | | | more about the characteristics of stocks, bonds, and |
| benefit from learning more. If you use a financial | | | | other investments; as well as the broad array of |
| planner and yet are knowledgeable about | | | | personal finance and money management topics. |
| investments, insurance, etc., you are more likely to | | | | |