Investing For Your Security

Social Security reform, market fluctuations, and inflationary pressures mean you've got to take an active role in securing your finances. Our expert panel of money managers tells you what to do with your money now.

fund, is a great place to start. Read the business periodicals. Talk with your friends and look at what other people who have more experience are doing.

Place the maximum amount of money in your 401(k), or at least equal the money that is matched by your company. That’s free money sitting on the table, in terms of return, against your investments. And then stay abreast of what’s happening to Social Security so that if we do move toward separate Social Security investing accounts, you’ll be knowledgeable and ready to make your choice if it affects you.

Parrish: I’d advise investors to maintain a long-term focus when investing in equities or fixed income. Stay away from market timing because sitting on the sidelines in cash, waiting for the market to go down, is the best way to miss out on great opportunities. And resolve to fund your Roth IRA this year and every year.

Ray: Unless you’re an experienced investor, consult a financial adviser and always invest with a long-term time horizon and a long-term view. Sit down with
your investment professional and create an asset allocation program that you can stick with over the long term. Ultimately, the systematic [dollar-cost-averaging] investment approach works best because when the prices are high, you buy less. And when the prices are low, you buy more. Lastly, diversification is always a great tool. You should have exposure in different asset classes and you should spread your money across different sectors within the market. Have faith and good luck.
Larry Jones NCM Capital Management
Franklin Resources: The company has about $380 billion under management and it has a large percentage of international holdings. Investors will look to diversify their holdings in a global manner, so exposure to international assets will grow faster than domestic. Priced in the mid-$60s, it could get up to $90.

Schering-Plough: The firm has a joint venture with Merck to create a new cholesterol-lowering product that has better performance than Lipitor, a $10 billion product. It could become the fastest growing drug company over the next five years. Priced around $20, it could reach $35.

Walt Disney: We hope they will bring in new management in June 2005 that will produce dramatically higher returns on assets. They have improved ABC, and some of its underperforming assets have turned upward. The company has the potential to go from $28 to $45.

Company (Exchange: Ticker)

Price at Recommendation*

24-Month Price Target

Franklin Resources (NYSE: BEN) $64.99 $90
Schering-Plough (NYSE: SGP) 19.93 35
Walt Disney (NYSE: DIS) 28.15 45
Sources: Yahoo! Finance, Larry Jones
*As of jan. 21, 2005


Theodore Parrish G.W. Henssler & Associates Ltd.
Pfizer: The company’s pipeline is strong and growing. I think the litigation risks are overplayed. This company has great financials, immense cash flow, and it’s going to have a major acquisition soon. You’re going to get double-digit returns going forward, maybe even more.

Affiliated Computer Services: This business process outsourcing company

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