Allan Sloan, Fortune magazine's editor at large, in a recent article in the Washington Post titled, Don't Fear Market Turmoil - Invest Safely and Save, begins by asking the question:

What should you do with your investments if you hear that the Dow has suddenly dropped 1,000 points in 20 minutes?

In my financial planning practice I too ask clients how they react to huge drops and swings in the stock market. It's an important question to discover whether or not you're running your financial life properly.

My favorite line is the one how he ends the piece - "Be careful, be prudent, and live below your means."  Just like the guiding words in the book, Your Money or Your Life, you just can't go wrong with advice like that.

Check out Sloans entire article for some solid, level-headed advice on exactly what to do during these challenging and somewhat volatile times.

photo by Mike Licht