Surviving a down market – most investment advisors, authorities have not lived through a bad market. It's easy to look good in the market of the nineties. The illusion is that it will never go down. The reality is that the market will eventually tumble. It is overvalued and driven by a heated economy. Be wise.

Bull markets eventually come to an end. The present bull market is a not as bullish as it seems. A large segment of the market has been lagging behind the Dow.

Before investing your money you should have an emergency fund. An emergency fund allows you to pay your bills and living expenses if your income is disrupted. Depending on the stability of your job and your ability to find other employment, an emergency fund should cover your expenses for a 3 to 12 month period.

Before investing you need to determine what your goals are and the purpose of the investment. For example, if you need the money for a specific reason, two years from now, you would be sure that the investment is safe and liquid. A retirement plan for a young individual, on the other hand, could be more flexible. The retirement fund could be invested in less liquid assets and absorb a higher level of risk.

Know yourself. Can you tolerate high levels of risk. Will you lose sleep worrying about your investments. If you lose money, will you jump out of a window or shoot your stock broker?

To learn more about investing, attend one of our Investment Seminar -- IFI Investment Seminar

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