1. Turn off the boob tube and stop listening to the talking heads.

They’re more interested in bumping up their media ratings points than providing solid investment advice.

2. Make sure you’ve really diversified your portfolio…

…with big slugs of both domestic and foreign equities. Global Equity has had a lousy beginning to 2008, but it could be the perfect core fund for someone who can’t afford a plethora of fund minimums yet wants both domestic and foreign shares.

3. Don’t time the market.

You can’t sell out of the market before it goes down and get back in before it goes back up. Market-timing is a fool’s game.

I can already tell that at least two clients of mine demanded they be sold out, only to watch the market move lower initially, then much higher than where they started. Neither has called to get back in, and I’m guessing it’s simple embarrassment.

Not only will they have to pay taxes on the gains they cashed out, but now their actions are looking, well, silly.

4. If you’ve got some cash, put it to work now…

…not when you’re assured the markets are going up and everything looks perfectly calm and safe. Remember that you were saving it for a rainy day? Well, it’s not pouring, but it’s also not bright and sunny on Wall Street.

5. Reduce portfolio risk if you’re sleepless.

Not everyone is made of the sternest stuff. If you’ve been stressed by the market turmoil and lie awake worrying about it, then maybe it’s time to take some risk out of your portfolio permanently.

To do that…