Best Tips For the Worst Year

2008 has been a challenging year for everyone. How you position yourself at your job or business and how you position your finances will be crucial for attaining wealth and keeping it. Here are 5 quick planning tips that you can use:

1. Certificate of Deposits currently have higher rates than money market funds. A nice trick is to "ladder" different CDs with different maturity dates so you have access to funds at any time. Check out the latest rates at Bank Rate.

2. Pat yourself on the back if you have 30% or less in losses on your investments. That's right- give yourself a reward. Currently the Dow, and the Nasdaq are down a lot more than that so you would have accomplished what 95% of all active fund managers couldn't do ---beat the market.

3. Review your losses and gains from your statements. Sell some losses and some gains to offset one another. This will result in zero taxation and allow you to rebalance your portfolio to the asset allocation you prefer. It's painless and easy and gives you a fresh start to getting you back in positive territory.

4. Don't repeat mistakes of this past, and don't dwell on them either. Large losses are due to having too much exposure in one asset class or style. Don't do it again. Learn from your mistakes and keep your portfolio diversified across all asset classes and styles- even if you think bonds are boring.

5. Pat yourself on the back for not investing with Bernard Madoff- think of all the rich people that are now poor and remember that you are haven't lost everything. You have a lot to be thankful for. Make a list so you don't ever forget.

Remember that part of being wealthy is having the right mindset. Many people are still bringing in big bucks in salary and investments because they keep their focus on what they want and the action on how to get there. Sounds overwhelming, doesn't it? Start with a large goal and break it down to the specific action for each quarter that you will need to do to get to where you want. Smaller chunks of to do lists are more manageable than large airy fairy goals that you have no idea on how to make happen. Allow yourself to fail too. Goals will change and action plans will change like the wind but the energy to move forward for the better must keep on. Don't get stuck on doing the same thing over and over and not getting the results you desire. Take the leap to change and fail -again and again until something wonderful clicks. Then you will know you are on the right path.

Don't let another day pass without a commitment to your goals and an action plan to get there.

2008c Fern Alix-LaRocca CFP R All Rights Reserved

Interested in more wealth building tips by Fern Alix LaRocca, a fee-only Certified Financial PlannerTM with over 24 years in the industry? Get a free ezine and bonus wealth building report at http://wholeheartedway.com

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How the Best CD Rates Can Become the Worst

Are the best rates today the worst Cd rates on certificates of deposits in the future?

If you are looking for a way to save your money for the future, there are few, if any, better choices to make than certificates of deposits (CDs). CDs are a great way for banks and investors to benefit from one another. The investor can place their money into a CD, where they will not have access to the money for a specific period of time. The bank will guarantee a certain interest rate on the deposit, and will use the deposit to provide loans to customers. Rates are much higher than the interest rates on savings accounts in most cases, and the best CD rates look like a good investment. But if you aren't careful, you could be losing out on a chance to earn a higher return.

CD Rates and the Economy

Certificates of deposits are in a state of constant flux. The interest rate that the bank is willing to offer will vary with supply and demand. When the economy turns downward, investors become less willing to risk their money on the stock market. Instead, they will look for the the best CD rates, and invest their money there instead. When certificates of deposits are in high demand, the banks feel confident in lowering the interest rates, meaning that the rates go down, and the returns on the investments are lower.

When the Best Rates can Become the Worst

Before investing money in certificates of deposits, it is important to take into consideration the way that CD rates might change in the near future. If there is a reason to expect the economy to improve, for example, the interest rates will go up in order for the Best rates to remain competitive.

The problem is, the previous CD rates are fixed, and will not change. This means that today's best rates could be equivalent to tomorrow's worst. In other words, it may be worth holding off on an investment if the economy is expected to improve. On the other hand, if the economy is expected to take a downturn, it is a good idea to invest in the highest yielding CDs as soon as possible, before the rates drop.

Stacey Nelson

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