How to deal with the banking crisis

September 16, 2008 9:30:45 PM PDT
With the ongoing crisis in the financial sector, what should you do with your money? The experts say, ignore the impulse to move your cash around.

"It's better to stay calm and relaxed and think about what's happening at the stock market over the last 20 years. It's gone up and down and eventually in the long run, it gets back to normal," said John Matthews of Villanova Univeristy.

"I'm a big believer in not doing anything panic-oriented," said Ken Podell of First Financial Group. "The market is so down right now that if people move all of their assets out of stocks, they're just compounding their misery that the market is already giving them and locking in their losses."

If you're a customer of AIG, and you're concerned about the government's $85 billion loan to keep the company afloat, be patient. Experts who spoke with Action News Tuesday say it's still a developing situation, and you should wait until the dust settles before making a move.

When it comes to retirement, remember: this could be an unbeatable opportunity.

"People are terrified about the state of their 401K's. They are and one thing they need to know is that if they're more than 10 years away from their retirement, this is a fabulous buying opportunity. You don't need to want to be buying high, that's not the way to make money in this market, it's to be buying low," said Podell.

Click here to get the latest Philadelphia news and headlines from across the Delaware and Lehigh valleys.


Load Comments