Save for your children’s education – Open a 529-college savings plan or a Coverdell Education Savings Account. You can contribute $2000 per year to an Education Savings Account and there is no annual limit for 529 plans. And guess what? These plans are not just for children. If you are considering going back to college or graduate school, you can open a college savings plan for yourself. You will save on taxes and if you end up not going to school, you can always transfer the money, tax-free, to another 529 plan for your children or spouse.

The 529 plan was named after the section of the federal tax code that governs them, 529 plans are tax-advantaged programs that help families save for college. Selecting a plan requires homework. Almost every state offers at least one 529 plan, and the tax advantages, investment options, restrictions, and fees can vary a great deal. Beginning in 2002, even more choices may become available, as many colleges will be able to offer 529 plans too.

Before buying a 529 plan, you should find out about the particular plan you are considering. Request an offering circular or official statement from the plan sponsor or your financial professional. Most 529 plans provide this document on their Web sites.
  ¶ 9:34 AM

  Max out on retirement savings programs – YOU need to fund your retirement account as early and as much as allowed. The reality is people REDUCE their retirement contributions when things go bad. This is never a good idea. OK, you say you can't max out your retirement savings program because? Well, at least keep contributing and promise yourself to increase each and every year. Believe me, you will be very thankful.
  ¶ 10:41 AM

  Examine your financial portfolio – Begin RIGHT NOW by checking your stocks, bonds, and mutual funds to see how they are performing and whether they still meet your goals. Further more, make sure that you do this at least twice a year. As you know by what happened in 2001, things change.....
  ¶ 3:58 PM

  Determine your income tax bracket – Do you know what your tax liability will be? Knowing your marginal income tax bracket will help you know how much to withhold from your pension income. Check with your tax advisor or you can do it yourself using a software tax program.
  ¶ 9:21 AM

  Eliminate debt – OK, providing you have accomplished item number one, take your extra money and pay off debt that is not tax deductible. Start with high interest items first, like CREDIT CARDS! To put it simply, credit cards are the kiss of death to retirement. Yea, you can use them, JUST DON'T BUILD UP DEBT.
  ¶ 6:42 PM