Taking action for your money: What to do with your investments while the Dow drops

Large drops in the Dow have many people wondering, how this will effect their retirement and if they should be doing something differently.

We have seen some record drops in the Dow just this week and Carl Carlson from Carlson Financial thinks it is worrying people.

First Carlson said if changes do need to be made with investments to bring in more downside protection, don’t make those changes when the market is dropping like this. Stop, breathe, relax, and don’t panic. He suggests going into a wait and see mode.

While you are in the 'wait and see' mode there are things you should be doing during the waiting period.

Carlson said as soon as you enter that 'wait and see' mode, get busy. Get busy figuring out how your investments should be allocated and how much of your money should be risky, how much should be safe and how much should be somewhere in between.

Here's how he said to figure those things out - two words, financial plan.

The plan is how you figure out what percent of your money should be in safe investments, risky investments, and in-between.