NEW YORK (CNN/Money) -
The government warned Sunday that al Qaeda is targeting a handful of iconic financial institutions including the New York Stock Exchange, Citigroup and the International Monetary Fund.
As a result, Homeland Security Secretary Tom Ridge said that the threat level for the cities that are home to these institutions would rise to orange, an alert level indicating high risk.
What does it mean for investors and the nation's financial markets? Here are today's five tips.
1. Don't panic.
While the explosion of a car or truck bomb at one of the nation's financial institutions would be a tragedy, it would not stop the nation's financial markets.
After 9/11, these institutions developed backup systems that would take over in the event of a terrorist attack allowing customers to cash checks and take out money from ATMs. The New York Stock Exchange has said that it can continue to oversee stock trading even if its famous trading floor was out of commission because of a contingency trading floor and backup computer systems.
Communications systems between banks and federal regulators were also upgraded. And practice drills testing the backup systems in the event of a terrorist attack have been conducted.
In addition, the financial industry is less concentrated today than it was three years ago. After the World Trade Center disaster, many of the nation's leading brokerages and banks moved offices from Manhattan's southern tip to other parts of the city and even other states.
The result is that a single attack in the city's traditional financial district would impact fewer institutions and customers.
2. Resist the urge to sell.
When the markets finally opened after the September 11th attacks, the Dow, Nasdaq and S&P 500 fell sharply. The Dow plunged 685 points, the Nasdaq dropped 116 points, and the S&P 500 sank 54 points. Anxiety about a similar situation might lead some investors to consider unloading their investments.
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 CNNfn's Gerri Willis shares five tips on dealing with terror threats.
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It's natural to worry about the effect an attack could have on an individual's retirement or education savings. But any strategy you make out of fear -- whether putting all your money in gold coins or stashing it in your mattress -- is a fool's game.
Many analysts predicted a sell-off in today's trading. Instead, the markets have shown remarkable resilience. Let's face it, no one knows whether an attack will occur. You could easily do more damage to your portfolio unloading your stocks and bonds without thought to what price you're being forced to sell at.
Likewise, it doesn't make much sense to try to play today's fear by buying the stocks of defense or security companies. You're better off making investments you're comfortable with for the long haul, rather than trying to score a quick gain playing market fears.
3. Hold steady.
Instead of panicking, your best bet is to make sure all your financial ducks are in a row. Make sure that you have bank and 401(k) statements available and handy.
If you bank or trade stocks online, print out an update of your account holdings. Not only does this provide you a record of your holdings, but it also refreshes your memory about what accounts you have and exactly what they hold.
4. Maintain good habits.
Remember, that the 9/11 disaster resulted in the suspension of trading for four days. For that reason, don't make a major change to your portfolio now, unless it's essential.
You're better off scheduling periodic checks on your asset allocation to make sure that you're investing wisely.
5. Control what you can.
While it's true there's little you can do about the terrorist threats, do what you can to secure the safety of you and your family.
If you live in one of the cities where the terror threat is now at the highest level, make sure to have a disaster plan at hand. Decide ahead of time where you and your family would meet if a problem occurred. Make sure you have food and water handy at your office, and at home. Having land line phone numbers is essential. The 9/11 disaster interrupted cell phone service.
If you don't live in one of the cities targeted, control the risks you can. Check your home and life insurance to make sure you have adequate coverage. Create your own backup communication systems with friends and family.
Gerri Willis is a personal finance editor for CNN Business News. Willis also is co-host of CNNfn's Open House, weekdays from Noon to 12:30 p.m. (ET). E-mail comments to 5tips@cnn.com.
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