LIVING WELL

Most seniors need to follow expert financial advice, and stay in the market.

ALAN ABRAMS

Special to The Jewish News

f you've been putting all your

nest eggs in one basket, the
financial gurus would like to
have a word with you. And that
one word is: diversify.
The ups and downs of the stock
market this year have underscored
the need for older Americans to
diversify their assets. That means
determining how much of your
estate will be in stocks, bonds, CDs
or real estate. Whether you are in

12/25
1998

112 Detroit Jewish News

your 50s or retired, coming up with
tives and your risk tolerance level.
that answer could be the most
Bernstein uses a seven-point list to
important financial decision you
determine a client's investment objec-
make.
tives as well as constraints.
When it comes to
The first of the two
investments, the key is
items on the list of
Above: U' Liam Messner, le
to do a complete asset
investment objectives
and Ha: old E Rouen, right,
allocation," said Marry
is determining your
review Victor R oss' por olio.
Bernstein, senior vice
return requirements.
president of private
Is your objective long-
banking and investments and senior
term capital growth or to pass money
portfolio manager at the National
on to your children? Is it to make your
Bank of Detroit in Southfield.
investments grow for a set number of
That means honestly appraising
years and live off the income? Perhaps
such vital factors as investment objec-
it is to have money for gifting and

"

charity? Or is capital preservation your
most important issue?
Your risk tolerance is the second
item. Out of all the different risks in
all the investment markets, how
important to you are drops in the
value of your assets? Obviously, if you
are very sensitive you have a low toler
ante. However, if your money is in
stocks and you believe that the market
falls off but eventually will come back,
your tolerance level is much higher.
But you alone must determine it.
Here are Bernstein's five con-
straints: