The Stocks Support Center

The Journey:
Just Found Out
Dealing With It
Recover & Thrive
Worst Case

Facing the Initial Impact of Stocks

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Stocks

Every person is unique, but when you face a challenge like a stock market crash, you are never alone. Countless men and women have faced the exact same problem and have survived and thrived. The following guide is designed to help you navigate your journey with the best information and resources that helped other survivors when they faced the same challenge.

TSC has scoured the Internet and assembled links to the very best resources about the stock market: Articles, blogs, forums and tools that can help you make better decisions and take action to overcome the range of physical, emotional and other challenges that you face.

As you’ll see, we always welcome your ideas and suggestions to make this Stock Market Guide even more helpful to survivors like you.   

JUST EXPERIENCING STOCK PROBLEMS

Survivors Say: Best Resources for Handling Stock Downturns

The Big Picture

In 2008, stocks lost a significant portion of their value. Though much attention has been paid to large corporate losses, untold thousands of investors lost significant portions of their nest eggs. Learning to deal with those losses and recoup the losses to begin again is difficult, but vital.

The first step in dealing with stock market turmoil is to know how to read your portfolio statement so you can determine what is going on with your investments.

If your money is invested in a 401(k), then you need to find out how your company deals with the money you invest with them.

MSN Money: 7 Hot 401(k) Trends

Educating Yourself About Stocks

Learning to research stocks means reading about the companies and knowing how to read the various numbers, ratios and financial figures attached to a specific stock. Online tools are great for educating yourself about stocks.

Your World

A stock market crash is a terrible event for anyone who has money invested. Surviving the crash means staying strong – and usually staying the course with your stocks as well.

CNN Money: Survive Stock Drops - and Profit From Them

Stock Market Myths

  • Investing in stocks is like gambling.
  • Only the rich come out ahead in the stock market.
  • Falling stocks will eventually go back up.
Investopedia: The 5 Biggest Stock Market Myths

Dealing With Stocks

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Information and Recommended Links for Various Groups

Survivors of all age ranges say these are the best guides -- check them out to find out your age-appropriate options:

Ways to Build Your Portfolio


Create an Investment Plan


Having a good investment plan is step one in rebuilding your portfolio after a stock market crash. Perhaps before the crash, you knew how much you needed to save to reach your goals. By doing your own financial homework, and even with the help of a financial-planning professional, you'll  need to re-evaluate those goals to see if they are still realistic, then determine how you can best reach them.

Prepare for the Rebound


Though some individual stocks won’t necessarily go back up, the stock market as a whole eventually will. Once you reassess your goals and put a solid investment plan together, you can focus on other priorities and wait patiently until the market goes upwards again.

MSN Money: How to Thrive When This Bear Dies

Reassessing Debt Load to Handle Financial Stress


While some people used the stock market as a retirement or college fund, others depended on the assets they had there as a regular spending account. If you based your expenses on your stock market returns,  you'll now have to rethink your entire financial life. Start by making a family budget that is based on your steady income instead of your investment returns.

NOLO.com: How to Make a Budget and Stick to It

Creating a Support Circle

  • Set up your TSC Survivor Profile
  • Join support groups of other survivors or set up your own
  • Interact and provide updates on your profile or our forums

Financial Professionals Who Can Help


To delve back into the stock market, it's wise to find a financial professional who can help you.

Stockbrokers are people who make the market trades for you. Some brokers give personalized service, while others serve more as a clearinghouse that wait for your contact. The type of stockbroker or brokerage firm you need depends on your comfort level.
Financial planners work with you to put together a plan for your entire financial future. They help with all aspects of your financial life, including tax planning, investing and budgeting.

The Emotional Roller Coaster


A financial downturn can wreak havoc on your emotional life as well as your portfolio. Educate yourself to help you overcome this downturn in your life so that you can prepare for recovery. You can also get and offer advice about investing strategies from other people in your situations at online forums.

Books Investors Recommend

What People Who’ve Suffered from Stock Drops Wish They’d Known

Communicating with Your Financial Professional

  • Let your financial professional know when you think you’re in over your head and need help. The financial markets are complex and unless you have a good amount of time to devote to learning about it, you probably don’t understand everything. Don’t be shy about asking.
  • Make it clear that you’re in charge. Financial professionals are making decisions with your money, but it's your money. If you feel they're taking on more risk than you want to take with your money, be firm and tell them to stick to your investing goals.
  • Insist on getting the time you need to make a clear decision.

Dealing with Stocks: Information and Recommended Links for Family Members

       

How you can help

  • Be a shoulder to cry on. If you know of someone who’s lost big in the stock market, offer your moral support.
  • Give your loved one some time to bounce back. Some people have lost significant amounts of money, so he may need to mope for a bit before he's ready to jump back into more financial planning.
  • Give advice only if you’re asked. While offering support is good, trying to tell the person what she could do better can cause hard feelings. Wait to let your loved one come to you with the topic of financial planning for the future.

What to say 

  • "I’m sure this is devastating for you. I’ll be here for you if you need anything.”
  • "You are not your financial portfolio. This doesn’t define you, and you will move on."
  • “Let me know if you need any help. I’m here.”

What not to say

  • "Lots of people lost more money than you." 
  • "Why did you make such bad investments?"
  • "That’s why I’ve never invested in the stock market."

Things you can do for a loved one who has lost money

You cannot replace the money or the time he has poured into choosing stocks and making a financial plan. At this point, giving your emotional support is the best thing. Once he feels less gloomy and sees a silver lining in rebuilding his portfolio, you can nudge him in the right direction and help him  get started again.

How to build a support network

  • Set up your TSC Co-Survivor Profile
  • Create a support group for your friend or family member.
  • Interact and provide updates

Recover & Thrive

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Having a new financial plan that takes the changes in the market into consideration will help calm your fears. Once you’ve looked at your statements and know where you stand, you can begin to recover.

See Where You Are Financially

Net worth is the amount of your assets minus the cost of your liabilities. Use this calculator to determine your net worth.

AARP.org: Net Worth Calculator

Find Out What You Need for Retirement

Now that you know what you have, find out what you need to have when you retire -- and how to make it last during retirement. This number may be frightening, but it will help put you on the right track.

Make a Budget for Future Investing

Investing won’t happen unless you make it a priority. Rework your budget to find out where your  investment money will come from. With the right strategy, you can get started without significant capital.

Motley Fool: Investing on a Budget

Worst Case

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If you’ve lost more than you can recoup before retirement, it's best to earn as much as you can to make up for your losses. Though it’s a disappointment to delay your  "golden years", you may have to postpone retirement for a while. If you are already retired, another options is to seek out low-stress, part-time work to give you a stream of steady income.

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