Two local financial advisors give their advice on your money - KLTV.com - Tyler, Longview, Jacksonville |ETX News

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Two local financial advisors give their advice on your money

The number one question in thousands of East Texan's mind is, "Is our retirement money safe?"

New tonight, KLTV 7's Layron Livingston has some tips for east Texans young and old to protect their investments both long and short term.


A free-fall for the Dow, yesterday, dropping nearly 800 points. But not too free - more than a trillion dollars were lost.

"On average, stock markets decline 30 percent. This market has declined right at 30 percent since October of last year."

Financial consultant Stephen Mills says market ups and downs are normal, but the circumstances do call for a certain type of risk management no matter where you are in your financial portfolio.

If you intend on working for 20 or more years, Mills says, don't panic, and don't take your money out of the market.

"This market is ideal for someone who is currently building for retirement."

Especially those who participate in company 401k programs, which Mills says you should continue to do.

"You're buying shares at cheaper prices in this market. Eventually when the market recovers, those shares will be worth more than you pay for them."

For those approaching retirement, Mills says it pays to be a bit more conservative.

It's good to have investments outside the stock market in things like treasuries, CDs, and money market funds - buffers just in case the worst case scenario gets even worse.

"For people that are in retirement, this is a difficult and challenging environment."

To protect your nest egg, he recommends short and medium term treasury bills and notes, high grade corporate bonds. Retirees can also minimize their risk with things like gold and other commodities.

"They may miss a portion of the recovery when it comes back, but what they cannot afford is a substantial decline in the value of their account," said Mills.

Joy Adams is a financial advisor.

"Different parts of the market do better than other parts, plus depending on risk tolerance and time frames, different investments are suitable in those categories than others," said Adams.

In other words, spread your wealth around and be patient.

"The credit crunch is going to wash itself out of the economy, it's going to take a while to do that, it's going to be painful on the way out, but our market is very resilient. There is a tomorrow."

Layron Livingston, reporting. llivingston@kltv.com

 

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