When it comes to investing, we would all like to have a crystal ball. On Monday, Sept. 15, the Dow Jones Industrial Average dropped more than 500 points, its largest decrease since Sept. 11, 2001. It plummeted another 77 points Sept. 29, rebounded 485 points Sept. 30, only to dive again Oct. 2 (348 points) and Oct. 3 (313 points). And, like all Americans, Cornell staff and faculty members have watched the news and wondered what they should do about their retirement investments.

To lend some perspective during these uncertain times, Mary Zielinski, assistant director and manager of retirement programs in Cornell's Benefit Services office, provides some answers to investment questions that are at the top of the list in calls to the Benefit Services and investment firms' offices.

Has Benefit Services seen an increase in inquiries since the markets took such a plunge?

Yes, we have had an increase both in calls and appointments. In general, people are concerned and watchful, but not panicked. That is good, because that means they can make wise decisions for the longer term. Our investment firms have also experienced increased phone calls and appointments and have had a spike in online transactions.

What are staff and faculty most concerned about?

Most want to know whether they should move their investments or change their future allocations. Some who were planning on retiring also want to know if they should still plan to retire or hold off for a while.

How do you answer these concerns?

We know it is hard to watch your life savings diminish so radically. And Cornell staff and faculty will soon receive their quarterly statements from the investment firms, which will make what we have heard on the news more real on a personal level.

But the advice of investment professionals has not changed: As long as you review your allocations at least once a year to make sure your investments are appropriate to your age and when you expect you will begin to need to draw on them for cash, you will be able to weather the market over the long term better than someone who "chases" the market, looking for the quick win or just-in-time bailout.

Our investment firms can help review your allocations and make any suggestions to help you get the balance right.

What if I already know I put too much in stocks? Should I change now before it gets even worse?

Again, that may depend on your age and when you plan to need the money. If you will not need to use these funds in the near future, selling a fund that is decreasing in value now is sure to mean a loss. Over time, the value of that fund may go up again, and that would be the time to sell.

In fact, many of those who have a high tolerance for risk or are young are now buying stocks. They are counting on the markets rebounding sometime in the months or years ahead and making a profit then.

But if you are nervous about your current investments, a less risky way of rebalancing or diversifying your portfolio is to change future allocations -- investing your funds, going forward, into more conservative funds.

Can you give some examples?

Remember, investing in mutual funds is not like investing in a single stock: The fund is made up of a great many stocks and often bonds and other investments as well. Our investment firms know how risky or conservative each of their mutual funds is, and they can guide you to take less risk.

In general, asset allocation funds are more balanced between stocks and bonds; they fluctuate, but not as dramatically as mutual funds that are comprised mostly of stocks. Life Cycle Funds are a great option because they are managed to become less risky and more conservative the closer you are to retirement, so you don't have to rethink your investments every few years. For those who want the most conservative fund, the Freedom Income Fund is a good choice; it is specifically designed for those who are retired or very close to retiring.

What about annuities such as the TIAA Annuity?

These are also a safe investment, as they have an insurance component that guarantees your principal. In exchange for that safety, however, there are restrictions on how much you can take out of the annuity at any one time.

This sounds too complicated. How can I get help?

All of our investment firms are listed on the Web, at http://www.ohr.cornell.edu/whatsNew/whatsNewBenefits/benefitAppts.html. I would encourage you to call them to change allocations or to make an appointment. Representatives are on campus a great deal, so it is possible to get an appointment without waiting too long.