Debt ceiling: What should I do with my money?

The Experts:

Liz Weston, personal finance columnist for MSN Money and author of the book, "The 10 Commandments of Money."

Herb Morgan, President & Chief Investment Officer, Efficient Market Advisors, a firm in Del Mar that specializes in investment advising.

Jon Sundt, President & CEO, Altegris Investments, a firm that specializes in alternative investments in La Jolla.

Wondering what to do with your money in light of the political and financial debates going on in Washington D.C. over the debt ceilng?

We asked three experts what you should do with your cash, your portfolio and your credit cards.

Here is what they had to say:

Should I take cash out of the bank?

Weston: An FDIC-insured bank account is probably the safest place to put money you may need in the near future, such as an emergency fund. If you have your cash in a money market, you're getting an even worse return and no federal guarantees, so you should move it to a bank account regardless of what might happen with Congress.

Morgan: No, cash in a bank is insured up to $250,000. No banks are in danger of failure in the event the U.S. defaults in the future. The one thing I really want to get across the people, especially seniors and Social Security recipients, is that your check is going to be there. There is no need to panic.

Sundt: No I don’t think it’s any time to panic. This is not 2008.

Should I move my investments from the stock market into cash or into funds?

Weston: I don't advise making big, drastic moves with your long-term investments. You could move it all to cash, Congress could make a deal, and you'd miss out on the "relief rally." That said, expect the stock market to be extremely volatile while Congress dithers and to really take a dive if we default.

Morgan: No. There is a 99 percent chance they will approve a deal which will send the market soaring higher if it has reform in it. There is less than 1 percent chance of a bad outcome.

Why is everyone infatuated with the idea of investing for the worst? Selling has costs and likely tax implications. It’s very shortsighted, it’s like playing chess and only thinking one move ahead. If you must do something, take out less than 1 percent and bet against the market but be prepared to lose it, just like at the Blackjack table.

Sundt: I think the key to investment success is diversification, investors need to have an all weather portfolio. In our business we are big proponents of alternative investments, these are investments that have the potential to make money in rising and falling investments.

People that are invested in “long onlyâ€