Step #3:
Give your money market mutual fund a check-up

As we predicted last October, money market mutual funds could be in jeopardy thanks to sub-prime mortgages, which triggered the current financial meltdown. Yes, those bastions of safety, with yields higher than bank money-market accounts, might be hiding some nasty surprises. In fact, one of the first money funds ever created recently "broke the buck," meaning it closed below $1 a share, which is not supposed to happen.

Be sure your money market fund is one issued by a very large company such as Vanguard or Fidelity. In these tough economic times, you want to be certain there is enough money available to keep the $1 a share value with a cash infusion if more financial institutions fail. For complete comfort, accept lower yields and switch a Treasury money market fund.

Read our full alert on the dangers of money market mutual funds and get out advice on what to do now.

Next: What to do if the worst happens (or has already happened) to you