| It's September, 2008 and we Baby Boomers are | | | | · Don't carry balances higher than the |
| having our first experience trying to deal with living | | | | guaranteed amount (usually $100,000) in any single |
| on a fixed income as we watch our retirement | | | | account in a banking institution in the United States. |
| savings spiral downward. The anxiety resulting from | | | | The FDIC (Federal Deposit Insurance Corporation) |
| the fear of running out of money is palpable. We | | | | guarantees money up to the specified amount. Check |
| would do well to sit back with a cup of calming tea | | | | with your bank to be sure what the limits are. If you |
| and review what the investment sages say about | | | | have funds in a single account beyond the |
| preserving retirement savings. | | | | guaranteed amount, should the bank fail, you only |
| · Don't ever leave your investment manager | | | | get a partial return of your funds over the |
| out of decisions you make about spending large sums | | | | guaranteed amount. What options do you have? |
| of money. Our investment broker happens to be a | | | | Move funds to another banking institution or several |
| family member, and we frequently kid him about | | | | others if you have that much uninvested cash. Or, if |
| consulting him on every decision we make, except | | | | you want to leave all your cash in one bank, talk with |
| groceries and gas. That's an obvious exaggeration, | | | | your banker about options for multiple accounts, |
| but the reality is that any major purchase needs to | | | | usually with different and multiple owners or |
| be considered thoughtfully and with good counsel | | | | beneficiaries (differing names on accounts). |
| from trusted professionals. | | | | · Stay in close touch with your investment |
| · Be sure your investment portfolio is | | | | manager. Be an active partner in making decisions |
| diversified. That is it needs to be spread over | | | | about your portfolio. Stay current with trends in the |
| domestic as well as foreign funds; large, medium and | | | | stock market, realizing you don't understand it fully, |
| small companies; stocks, bonds, CDs, mutual funds | | | | but nevertheless trying to respond appropriately to |
| and treasury notes are the most common varieties | | | | its volatility. You are the only person who can define |
| of investments available. And having cash on hand is | | | | the level of risk you can handle. |
| always a good plan. The percentages of your | | | | The talking heads in the financial world predict 1000 |
| investment in each of these categories need to be | | | | bank closures before the current recession is over. |
| determined in consultation with your investment | | | | Be prepared for the impact that crisis will have on |
| manager and dependent upon the level of risk with | | | | your life. |
| which you are comfortable. | | | | |