Wall Street bust-up: Panic proof your money, now!

The author, Anil Rego, is the Founder and CEO of Right Horizons, an Investment Advisory and Wealth Management firm that focuses on providing financial solutions that is specific to customer needs. Anil tells you all about tax planning, wealth management and investment planning.

Clearly, the current US bust-up has indeed caused a lot of fear. It's probably the right time, then, to stick by these words of wisdom. Here's how:

Cover the basics

Have a back up plan in case of a layoff. Ensure that key contingencies are taken care of. Here is how you can do that:

• Create an 'emergency fund'. Keep at least one-three months' expenses in your bank account to take care of your home.
• Take a family floater plan. This is a single policy that takes care of the hospitalisation expenses of your entire family. It will ensure that the family's medical needs are taken care of.

Make an investment plan

Do not panic. Instead, review the lessons you have learnt from previous market miseries and make necessary adjustments to your long-term investment strategy.

Equities

If you have been investing through the systematic investing route (SIP), continue. This is also probably a good time to start investing. Choose diversified equity funds.

You can consider investing in capital protection schemes offered by various mutual fund houses and insurance companies. This helps when market movement is unpredictable.

Gold

Gold and silver continue to be safe havens. Invest in them, but try and do it systematically over a period of time.

Property

Steer clear of real estate for a few quarters. The current crisis, which has arisen due to sub-prime losses, is likely to create uncertainty in real estate markets.

Final verdict

The long-term India growth story remains intact and there are good opportunities to invest. However, a diversified approach is the need of the hour. In fact, lump sum investments / systematic transfers can be considered with a two-three year horizon.

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