What to look for in a Financial Planner

First, and foremost, your financial planner should have impeccable credentials. They should be free of black marks on their regulatory or disciplinary records. Second, they should act solely in your best interests, not theirs or act on behalf of their company's product.

Ask if they receive a commission for any product they suggest. It's okay to ask questions. In fact, be a pest!

Remember that there is no such thing as low risk, high return. And "market timing" is a myth. You cannot ride the market like a roller-coaster and think you know when to get off.

Finally, no one can predict certainty. As we all know, life is unpredictable. So be conservative and recognize your own limits. Most people aren't honest with how much investment risk they can handle. Try and visualize how the risk you face may actually play out. For example, if you have $1000,000 to invest with high risk, ask yourself how would your life change if in a year your investment dropped to $70,000? Gaining an accurate assessment of your risk tolerance is very important!

For more information reference Ron Lieber's article "Rules for the New Reality" NYT (February 26, 2009)

Certificate of Deposit

There are plenty of places to shop for the best C.D. rates, including Bankrate.com and MoneyAisle.

According to an article published by the NYT, as long as you don't invest more than the F.D.I.C. limits, you don't need to worry about loosing your money. The F.D.I.C. currently offers insurance of up to $250,000 per person per bank but that figure will fall to $100,000 for some types of accounts at the end of the year. Also, some off-shore C.D.s are not covered by the F.D.I.C.

Cramer: 20 Stocks for Life

Here is Jim Cramer's list of 20 great stocks with long-term potential:

1. Caterpillar (CAT)

2. Glodman Sachs (GS)

3. ConocoPhillips (COP)

4. XTO Energy (XTO)

5. Transocean (RIG)

6. Hologic (HOLX)

7. Inverness Medical Innovations (IMA)

8. CVS Caremark (CVS)

9. McDonald's (MCD)

10. Freeport-McMoRan (FCX)

11. Hewlett-Packard (HPQ)

12. Corning (GLW)

13. Google (GOOG)

14. International Game Technology (IGT)

15. Pepsi (PEP)

16. Procter & Gamble (PG)

17. New York Stock Exchange (NYX)

18. Union Pacific (UNP)

19. Boeing (BA)

20. Sears Holdings (SHLD)

Click here for a current update on how there stocks are trading. For more stock advice from the Mad Man himself, visit Thestreet.com

Jim Cramer: Six Steps to Smart Budgeting for Life

hen trying to get their finances in order, people commonly ask "How should I go about putting together a solid long-term budget?" According to Jim Cramer, there are six (6) steps to smart budgeting for life:

1. Learn from the past: Put together a comprehensive record of your past income and spending;

2. Judge your past: How much could you have saved?;

3. Create your short-term budget (ie 3 months and 6 months);

4. Create your long-term budget by incorporating your future expenses like buying a house;

5. Hold yourself accountable each month, which is the single most important thing you can do to plan for long-term wealth; and

6. If you fail, take drastic measures. For example, automate your savings or drastically cut expenses.

For more information read Jim Cramer's book "Stay Mad for Life" (Simon & Schuster 2007)

Jim Cramer: How To Stop Yourself From Becoming Poor

According to Jim Cramer, everyone must do the following three things to avoid becoming poor:

1. You absolutely must create a budget for yearly, monthly, and even daily expenses;

2. You must have health insurance; and

3. You cannot carry a balance on your credit card

For more information about Jim Cramer, visit The street.com.