Investing ideas aggressive and conservative

Invest per your age

Bellevue, Wash.-based Certified Financial Planner Lee S. Martin recommends clients invest based on their age. He says to take your age and that is how much you should have in bonds and cash investments.

If you are 60, have 60 percent in bonds and cash, and the rest in stocks. Or if you're 30, by this strategy, you should have 70 percent in diversified stock.

“People often move toward a conservative position as they age.”

"Most people tend not to be able to tolerate as much risk in reality as they might think in their own minds," Martin says. "This (strategy) keeps the average (person) more likely to stay invested in a volatile market rather them moving out of 100 percent stock position to cash based on pure emotion."

This strategy also makes you constantly rebalance your portfolio regardless of market conditions.

"People often move toward a conservative position as they age, wanting to preserve what they have built up," Martin says.

Good time to buy bonds

Municipal bonds will produce good tax-free yields while "you're sitting on them," Charney says. "ETF (exchange-traded funds) municipal bonds are selling at 90 percent of what a taxable Treasury bill is selling, and yet they're tax free."

Charney says everybody is scared of bonds right now.

"You want to go the opposite direction where everyone is scared," he says. "If you're staying in the investment grade municipal bonds, I don't think there's any concerns on that at all."

Convertible preferred stock or convertible bonds are "an interesting place to be at this time, because when the market takes off, a convertible bond or convertible preferred stock can be converted into the company's common stock," Charney says. "You could buy a (convertible bond) and if that underlying stock goes up, there's a conversion factor; you can actually convert it over.

"So the market stays low, it's going to act like a bond and not really take the big hit. It'll take a little bit, but not a big one. And then if the market takes off, which I think it will, then you make money on the upside. It's kind of playing both sides of the game."


          Connect with us

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

Need to invest $3K for the long term?

Dear Dr. Don, What's the best place to invest $3,000 for the long term? I'm interested in earning the best rates with low or no fees. Thanks, -- Cheryl Compounds Dear Cheryl, You've got (at least) three questions to... Read more



Sheyna Steiner

3 must-do’s before investing

It takes money to make money. The best investor in the world won't get anywhere without frugality, saving and a commitment to living debt-free.  ... Read more

Partner Center

Connect with us