There are two ways to view the stock market today. In these troubling economic times, it is difficult to know what you should do with your money. Portfolios are losing money on a daily basis and panic is setting in for many. A cool head should prevail. There are several trains of thought on this subject and the following are just two:

The first view is that this is an investor’s dream. Stocks are so low that it is time to jump in and buy quality stocks at some of the lowest prices you may ever see. Of course, no one actually knows when a stock has hit bottom, but there are many great opportunities available today. There are wonderful stocks that can be purchased way below their usual value. Large investors are buying and selling everyday in this market environment in hopes of making huge profits off of these troubled times.

The other view of what to do in the current market environment is to set it and forget it. As has often been the case, many advisers believe in long-term investment. If you are in the market for the long term, the ups and downs of the market should not really make a difference to you. This is a good time to continue your dollar-cost averaging as though there were no large fluctuations in the stock market. Over the long run, this is considered to be one of the best ways to invest. You may not make a killing, but you will likely survive very nicely. This has long been the advice of many experienced stockbrokers and financial advisers and it may well pay to follow this route during these turbulent times.

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For the last few months the stock market has been fluctuating everyday based on the latest news of the financial crisis which exists today. The week ending October 10, 2008, however, will be remembered as one of the most volatile ever and we can only hope that it will not be repeated again in the near future.

Stockholders witnessed a week whereby the Dow Jones, which represents blue chip stocks, had an eight-day loss of just under 2,400. This was the worst week ever recorded for the Dow. The Standard & Poor’s 500 index also produced its’ worst week in both points and percentages.

The market was so crazy by Friday that the Dow average fell 696 points in the first 15 minutes after opening, and spent the remainder of the day spiking and falling drastically. The Dow last week was down 18.2 percent. This was actually a larger percentage loss than during the Great Depression, when it had finished the week ending July 22, 1933 wit a recorded loss of 17 percent.

Other stock indicators were mixed and there was some hope in that the Russell 2000 index of small companies actually showed positive results and this has always been considered to be the beginning sign of an improving market. Let’s hope that this proves true this time, also.

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People today are outliving their savings and are extremely worried about their future. Since no one knows how long they will live, it’s difficult to determine how long your savings will support you. What do you do when you run out of money? There are a few ways to prepare for the later years, but each has a negative side.

For many years people have been supplementing their retirement funds by owning an annuity. A fixed annuity will provide a specific amount of money to you for as long as you live. If you choose a different option, it will continue to support both you and your spouse for the remainder of your years. The negative side, however, is that when you and your spouse pass away, there will be no inheritance for your family. The insurance company keeps the remaining funds in your account.

A new product being introduced by the mutual-fund industry is “managed payout” funds. These are designed to provide a steady income flow but allow your assets to go to your heirs after death. You keep control over your money and fees are generally low. Some offer the option to choose a specific time period over which you would receive payments. They do, however, have more risk as there are no guarantees how long your monthly income will last or whether or not the amount will remain the same.

Many large mutual-fund companies are today advising investors to purchase both of the above plans. One will guarantee a specific income for life, while the other will supplement that income and still return, upon death, your fund balance to your heirs.

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