Top 6 Tips for Surviving the 2008 Financial Crisis

<h1>Top 6 Tips for Surviving the 2008 Financial Crisis</h1>Author: <a title="Martina Sonneveld" href="http://www.articlesbase.com/authors/martina-sonneveld/110415.htm">Martina Sonneveld</a> 
In my previous article I promised I would expand further on the importance of personal wealth protection. Given the turbulence in the markets and the fear that’s all around us, I thought it would be best to put this topic on hold and instead provide some guidance on how to survive the financial crisis. Being undoubtedly in a bear market (falling market) since August last year, the first question you might ask is how much longer will this last? Excluding the bear market of 1929, which lasted for several years, the average bear market lasts for 14 months. This implies that, statistically, we are nearing the end. However, there is no guarantee; statistics can only provide us with an indication, not concrete answers. No one can say with certainty when the current bear market will end, however the following general tips can help guide you through the rest of 2008: 1. Stay calm Don’t be swayed by the crowds and sell your investments; just ensure you have a well diversified portfolio that can weather the storm. 2. Look at how the current market decline has affected your portfolio You should factor in the great returns you’ve experienced in previous years. 3. Accept risk A portfolio of shares or property is by nature volatile and will produce negative returns from time to time. 4. Adopt a long-term approach Investing in shares and property pays off over the longer term. 5. Keep positive The investment house UBS has forecasted a yield of 6.6 % (inclusive of imputation credits) on the ASX top 200 stocks. This means that even as the capital value falls, you will receive good income. If dividends are higher than 4%, the market offers good value. 6. Look at investing! In most cases share markets bounce back well before the end of a recession. Provided you have a long-term investment focus, now could well be the best time to buy! If you’d like for me to send you some material which supports the above, please click here to contact me. I’d be more than happy to share these with you.About the Author: Twelve years ago, Martina searched for a financial adviser to help her achieve a financially secure future but she felt that the industry lacked a genuine warmth, and concern for her individual situation. 
 
Rather than settle for second best, she decided to become a Financial Planner and provide the service that she herself wanted. 
 
Martina’s willingness to engage with her clients, understand their personal dreams and care about their financial future quickly elevated her to senior strategist and planner in a highly reputable financial planning practice, specialising in more complex strategies for wealthy clients. 
 
Now through EasyLiving Wealth Creation, Martina offers a boutique advisory service advising and mentoring professionals and small business owners, creating unique strategies to help them achieve their goals within a specific time frame. 
 
Martina is authorised to provide advice on the following financial products – Managed investments, Superannuation, Personal Insurance, Shares and Self Managed Super Funds. 
 
She is a Certified Financial Planner, a member of the Financial Planning Association and an authorised representative of Securitor Financial Group Ltd ( ABN 48009189495, AFSL 240687) 
a.	Have a look at Anderson Gray Worldwide - <a href="http://www.anderson-gray.com"><a target="_blank" href="http://www.anderson-gray.com">http://www.anderson-gray.com</a></a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/wealth-building-articles/top-6-tips-for-surviving-the-2008-financial-crisis-727316.html" title="Top 6 Tips for Surviving the 2008 Financial Crisis">Top 6 Tips for Surviving the 2008 Financial Crisis</a>

In my previous article I promised I would expand further on the importance of personal wealth protection. Given the turbulence in the markets and the fear that’s all around us, I thought it would be best to put this topic on hold and instead provide some guidance on how to survive the financial crisis.

Being undoubtedly in a bear market (falling market) since August last year, the first question you might ask is how much longer will this last?

Excluding the bear market of 1929, which lasted for several years, the average bear market lasts for 14 months. This implies that, statistically, we are nearing the end. However, there is no guarantee; statistics can only provide us with an indication, not concrete answers.

No one can say with certainty when the current bear market will end, however the following general tips can help guide you through the rest of 2008:

1. Stay calm

Don’t be swayed by the crowds and sell your investments; just ensure you have a well diversified portfolio that can weather the storm.

2. Look at how the current market decline has affected your portfolio

You should factor in the great returns you’ve experienced in previous years.

3. Accept risk

A portfolio of shares or property is by nature volatile and will produce negative returns from time to time.

4. Adopt a long-term approach

Investing in shares and property pays off over the longer term.

5. Keep positive

The investment house UBS has forecasted a yield of 6.6 % (inclusive of imputation credits) on the ASX top 200 stocks. This means that even as the capital value falls, you will receive good income. If dividends are higher than 4%, the market offers good value.

6. Look at investing!

In most cases share markets bounce back well before the end of a recession. Provided you have a long-term investment focus, now could well be the best time to buy!

If you’d like for me to send you some material which supports the above, please click here to contact me. I’d be more than happy to share these with you.

Twelve years ago, Martina searched for a financial adviser to help her achieve a financially secure future but she felt that the industry lacked a genuine warmth, and concern for her individual situation.

Rather than settle for second best, she decided to become a Financial Planner and provide the service that she herself wanted.

Martina’s willingness to engage with her clients, understand their personal dreams and care about their financial future quickly elevated her to senior strategist and planner in a highly reputable financial planning practice, specialising in more complex strategies for wealthy clients.

Now through EasyLiving Wealth Creation, Martina offers a boutique advisory service advising and mentoring professionals and small business owners, creating unique strategies to help them achieve their goals within a specific time frame.

Martina is authorised to provide advice on the following financial products – Managed investments, Superannuation, Personal Insurance, Shares and Self Managed Super Funds.

She is a Certified Financial Planner, a member of the Financial Planning Association and an authorised representative of Securitor Financial Group Ltd ( ABN 48009189495, AFSL 240687)
a. Have a look at Anderson Gray Worldwide - http://www.anderson-gray.com

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/wealth-building-articles/top-6-tips-for-surviving-the-2008-financial-crisis-727316.html

Article Tags: Wealth, Financial, Market, Investments, Creation, Crisis, Portfolio, Returns, Falling, Anderson, Gray, Martina, Sonneveld

Related Videos
Related Articles
Ask / Related Q&A

Play

Financial Strength Leads Markets

Play

Learn about the Emerging Markets Index

Play

How a Market Maker Work

Play

Smart Money Moves to Make in a Financial Crisis

Play

Financial Planning in Today's Market

Latest Wealth Building Articles
More from Martina Sonneveld

There Is No Destination In Investments!

By: Mike Williams, CFA | 18/12/2009
What are your financial goals? Do you want to be rich? Do you have a destination? What are you going to do once you get there?

Do You Have Enough Legs?

By: Mike Williams, CFA | 18/12/2009
Do you have enough retirement wealth? If you're counting on the normal retirement sources like social security and corporate pention plans you're screwed!

Millionaires in the Making. 5 Tips for Building a Million Dollar Income

By: Ben Frank Jr. | 17/12/2009
When you know what to do and how to do it, the chances that you will succeed are greatly enhanced. Ready to build a six or seven figure income? Ready to be in business for yourself, successfully? Are you ready to build a million dollar income? Then the following 5 tips will set you ahead of the masses who also have these goals, but who will never likely reach them.

Wealth Building Strategies. How to Earn Massive Amounts of Money in Business

By: Ben Frank Jr. | 17/12/2009
Ready to make more money than ever before? Ready to multiple income streams that work on autopilot? Lets look at some wealth building strategies that can be used for making millions of dollars in your own business, or starting one from scratch. They are simple and can be mastered by anyone with a little practice and patience, and they have proven over the years to develop large incomes for anyone who masters and uses them.

The Millionaire Mindset. 5 Key Success Factors for Achieving Financial Freedom

By: Ben Frank Jr. | 17/12/2009
There are 5 key success factors for achieve financial freedom. All self made millionaires portray these qualities to some degree, which is why many people refer to them as traits of the "millionaire mindset." Regardless of what you call them, they are essential aspects of high achievement, whether it be in business, with your money, or with any other goals that you may have.

12 Months of Christmas Holiday Tips for Money Savings

By: Matthew J. Gruenke | 17/12/2009
12 months of Christmas? Holiday tips for money savings provide simple ways to celebrate without all of the holiday stress. Typically, Americans spend an excessive amount of money during the holidays. Most do not have the money to spend. You will find 12 money saving ideas to help you create a memorable stress-free Christmas.

How to avoid your next financial crisis

By: Stanley Ang | 17/12/2009
I want to begin by sharing that this is something close to my heart and I believe will be close to many people’s hearts as well. I went through a period of unemployment and understand how it feels to have money keep draining out with nothing much to fall back on. Eventually I found a government job which would offer me job security. As I became more financially educated, I discovered soon that this job does not offer financial freedom, and will not give me the kind of lifestyle I want.

How to Build Wealth in a Down Economy Or Recession

By: Stacy O'quinn | 15/12/2009
With economic times not where we want them to be today, the bottom line is how do you survive? Do you suddenly have to tighten your budget and deal with increased stress? Is it possible that you could get laid off tomorrow, if so then what? Can you truly plan a family vacation for the summer not knowing what will happen next? People always ask are we really in a recession? It is my profound belief that if you are not better off right now then you where last year..

How to Protect Your Personal Wealth and Your Family

By: Martina Sonneveld | 18/01/2009 | Wealth Building
Did you know “only 55% of parents claim to have any form of life cover?” This startling research was revealed by the IFSA (Investment and Financial Services Association) in their report “A nation exposed: closing the protection gap.” Furthermore, the level of cover most of these people had was so low it did not even classify as adequate. So why is this? The IFSA found there were two main reasons .....

Dare to Think Differently for Investment Success

By: Martina Sonneveld | 18/01/2009 | Wealth Building
With so much gloomy economic news lately, many investors are caught up in the pessimism infecting the market. These investors are running scared and deciding to exit their positions, preferring to incur a capital loss than to risk losing even more......

Comparing 2008 to 2009: What Lies Ahead?

By: Martina Sonneveld | 18/01/2009 | Wealth Building
At risk of stating the obvious, most of us will remember 2008 as the year the financial market collapsed and share markets crashed. It’s not nice reminiscing. But honestly speaking, the stock market has almost halved in value. Real estate prices.......