Local adviser weighs in on investments

Tuesday, September 30th 2008, 10:45 pm
By: News 9

By Dave Jordan, NEWS 9

OKLAHOMA CITY -- A leading investor said the only people who should be concerned right now are short-term investors, those who have planned to retire within a year or were planning on buying a house.

Experts said everyone else should be fine because the market is on its way to correcting itself.

Signs of incline were evident Tuesday as the market closed up 485 points. The uptick came amid hopes Washington will pass a bailout bill by the end of the week, but it was largely due to investors buying up bargain stocks.

A growing number of individual investors are worried about their financial future which seemed to be in peril Monday. According to Bill Trammell with Edward Jones, the stress could be unjustified. He said the worst thing investors could do is pull their money out of the market.

"They're looking at short-term drops and taking long-term forever losses if they get out at this point," Trammell said.

Trammell advises someone between 25-years-old and 35-years-old to have six months of emergency cash on hand and 80 percent of their investment in conservative quality mutual funds, preferably in a variety of companies.

"Diversification is the key to success in this industry," Trammell said.

Investment goals shouldn't change much for those in their 40s, although Trammell recommends having 60 to 70 percent of your investment in the market.

"Those people are five, 10, 15 years from retirement needing that money," Trammell said.

As for investors in their 50s and 60s or anyone planning retirement within five to six years, Trammell suggested having less than 60 percent of your investment in the market, with a slight change.

"Maybe move a little more of your position to growth and income verses high-growth area or aggressive," Trammell said.

As for the rest of an investment, Trammell said that money should be in bonds. He does not recommend buying individual stocks because he claimed they are too risky.