'It's like it's April 1930 and the Depression is just underway'

[Generic Brad]

11. I've got a plan

I moved my entire 401k into the lowest risk option available to me a few weeks ago. And then I have been building up my savings and have moved it to brokerage account I recently established. Now I sit and wait.

The moment the market drops four consecutive days or loses more than 10% (I'm expecting an unprecedented 20-30% drop) I will reallocate my 401k to stocks and invest my brokerage dollars into specific index funds I have been watching. I am not out to get rich, but I am not out to be poor either.

Last year I invested in some annuities and high yield CD's that will pull in around 3% over the next few years. I know that sounds anemic now to those heavily involved in the stock market, but at least I am positioned on those investments to continue earning money if other investors are wiped out.

I took a similar approach in July 2008 and didn't lose any principal when the bottom fell out. My only regret back then was that I did not have any money available to put into stocks when things looked dire.