Sep 16, 2008 9:28 am US/Eastern
Panic On Wall St? What To Do With Your Money
Financial Experts Suggest 'Consumer Practicality'
NEW YORK (CBS) ―
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What to do with your money? Experts say don't panic. (File)
AP
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A trader works the floor of the New York Stock Exchange on Sept. 15, 2008.
Spencer Platt/Getty Images
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Traders work on the floor of the New York Stock Exchange on Sept. 15, 2008.
Nicholas Roberts/AFP/Getty Images
Maybe you're asking yourself what to do with your money. There is no easy answer to that question, but there are guidelines most experts agree on.
The pain on Wall Street is being felt like a pang in the chest on Main Street.
They've cleared their desks at Lehman. Now, many are worried they should clear their accounts with looming concerns over merger or bankruptcy. Advice from the experts: Be practical.
"Keep good records. If you have payments for bills that are auto-deducted out of your bank account you want to make sure you can get in touch with those providers and get the bills paid," said Geri Detweiler, a Consumer.com Consumer Advocate.
Words of encouragement:
"This is not going to be the Great Depression all over again," said NYU Stern Business School Professor Lawrence White, "my hope is that by the early part of next year, spring or maybe summer, things will have stabilized."
But until then, what to do with the 401K accounts, the IRA's and the pension plans?
Experts say think about it this way: You get something on sale, a 20 percent discount from where the market was last year. But what if you need money today?
"The good news is crunches like this don't last forever. So if you can afford to wait to get any loan, whether it's home or car, wait. Because odds are in a few months, it will be easier and cheaper to get that type of loan," said SmartMoney Senior Editor, Russel Pearlman.
So how did Wall Street get to this point? Many say too many loans were given and too many loans were taken. Everyone thought home prices would rise forever.
"We went to the frat party. We partied our butts off and now we're paying the price and this is a big hangover," Financial Advisor Jill Schlesinger pointed out with a fitting analogy.
Financial experts expect the "morning after" to be a tumultuous one, a clear signal that the "party" is very much over.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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