FINRA staff recommended measures that investors should consider to ensure financial security during periods of market turbulence.

In an Investment Alert, FINRA recommended that investors:

  • establish financial goals that include a "sound" long-term financial plan (e.g., investors aiming to save the IRS annual contribution limit in their companies' 401(k)s);
  • diversify investment holdings across all major asset classes, spreading stock holdings across various sectors, and varying the issuer and bond type within a bond portfolio;
  • set up automatic payment plans to pay off credit card debt and/or save for unexpected events;
  • consider interest-rate risks associated with bonds and fixed-income products, generally;
  • be aware of indications of fraud (e.g. pitches advertising "risk-free" investments); and
  • work only with registered broker-dealers.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.