Editor's Note: Suze Orman will be on AC360° tonight at 10pm ET to discuss how to keep your money safe. One way: check out her new partnership with the FDIC at myFDICinsurance.gov. On that site you can use her calculator to make sure the money you put in the bank is safe, and backed by the FDIC.
Personal Finance Expert
I know this is a very scary time for all of you. Every day brings news of another Wall Street meltdown that triggers a big market loss. So far this week we have had two days when the major stock indexes lost more than 3%. AIG, the world’s largest insurance company, was on the brink of its own meltdown; for any of you with an AIG policy, that had to have ratcheted up your blood pressure. The Reserve Primary Fund—which is a large institutional money market fund—had to reduce its price from $1 to 97 cents, committing the cardinal sin of safe investing by “breaking the buck.”
It is perfectly reasonable to feel like the sky is falling. But I need you to listen to me: There is no need to panic. In fact, if you do panic and make rash financial moves today you will probably do the most damage to your long-term financial security.
Here’s what I DO WANT YOU TO DO HOWEVER:
Keep Your Money in the Bank.
I want you to open up another browser window on your computer right now and go to your bank’s website. Scroll around and look for the FDIC insured label. Seriously, go do that right now, I’ll wait.
I really enjoy your insight and great advice! You were great on Larry King and AC360, thanks for all that you do. PS-It's cute when you wink at the camera. You're so cool with a great sense of humor. Obviously, I'm a fan of yours, hope you have a great day today.
Hi Suze, I'm so glad that Anderson had you on his show. I've listened to you and watched you on your own show. I also have some of your books. You explain things so well in terms we can all understand. Thank you for all of your advice. Hope to see more of you in AC360!
Are you not distrustful that this is now the third major bailout using taxpayer money? And that our government thinks they can solve this with new legislation created in less than 48 hours (with one Senator not surprisingly saying "We dont even know what derivatives are")
All of this being done for our "financial survival" Wasnt it the survival of our way of life that prompted Irag?
Yes, there is a crisis but government bailouts coming perilously close to Socialism is not the answer–unless they admit that is what they are doing. This is the privileged passing taxpayer funded bailouts to save the privileged. Yes, the middle class is emperiled but only to the tune of tens of thousands or hundreds of thousands, not the millions that the privileged have at stake.
Let this thing run its course and dont use my tax dollars to save the reach again.
Suze keeps speaking to young people who have 20 30 years wait for market change, but I am 75 years old and all our money is invested in Ameriprise Financial diversified stocks. Would we be better off taking our money and invest in municipal bonds?
Thanks for the advice Suze. Months ago when it was apparent that the market was going to be so volatile this year I moved my 401K moneys into stable fund accounts for the year. I looked yesterday and while I haven't made any money or recouped much of the loss I had before I moved it, its at least not losing any more. I have other accounts though that aren't as lucky and I'm trying not to panic. Its hard with the nonstop bad news though. Thanks for the info you gave – it helps – a lot.
It is a very uncertain time, but I may be too much of a peppy Pollyanna, because I believe we will survive this meltdown. I think when we are in a crisis, Americans forget politics for a short time and work together. Now if we could get them to come to the table on all of our problems! Love your advice, Suze. You always have concrete solutions to big problems. Thanks.
Lorie Ann, Buellton, Calif.
I'm looking forward to seeing you tonight.
I have been investing with the wonderful help of family for many years. I feel confident in having my money invested in the S&P 500 ETF's. I know not to worry or make any rash decisions. Thank you for your great advice. I am lucky to have put down the 25% on my home loan. You can't get something from nothing. Our bank is a credit union and they are very conservative and didn't go into taking risks on home loans. That old saying if something seems to good to be true it is. You said a while back everybody was watching and doing nothing because they were all making money.
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