Eight moves for your money: whether the economy picks up steam or fizzles, these investment tips will help keep your finances together.

Interest rates are rising, the stock market is sliding, and the economy seems like it should be taking off, but it hasn't. With so much uncertainty, how can you be sure that you're making the right financial decisions to protect yourself from a prolonged period of sluggishness or to properly position yourself to take advantage of an economic resurgence?

As we approach the end of the year, there are a number of moves you can make to bring yourself closer to your financial goals. Start by implementing the following eight proactive steps:

I. Stay true to your financial goals and your investment strategy. Reaching your financial goals should be a priority, and no matter how much the market shifts, it's important to stay committed to these goals and to the strategy you've set up to get there. Selecting an investment strategy that has a track record of success and then committing to it is a major part of investing successfully. Jumping in and out of the market does not work.

"The market gyrations are short term," explains Walt Clark, president and CEO of Clark Capital Financial (www.clarkcapital.net) in Columbia, Maryland. He advises his clients to "look long term, particularly where it pertains to the stock market."

Clark says uncertainty over the war in Iraq and higher oil prices are suppressing the economy's growth. He believes the Federal Reserve's recent interest rate hikes are forecasting better economic times.

"Investors should position themselves to take full advantage of the economic swing and rebound in the stock market over the next three years," says Clark. "I'd recommend a good dollar cost averaging strategy because no one knows how low the market is going to go before it rebounds."

No matter what investment strategy investors choose, Clark emphasizes the adage "buy low, sell high."

II. Check your 401(k) asset allocation. Your 401(k) will be a major contributor to your retirement plan, so it's important to review the investments that you've selected to ensure that they are still in line with your financial goals. First, take a look to see if any of investments are "out of balance." Pierre Dunagan, CEO of The Dunagan Group in Chicago, says that since the stock market has been struggling, the ratio of stocks to bonds in your portfolio may have been affected. The ratio of stocks to bonds a portfolio will differ for each individual based on risk tolerance and age, but "it's not a bad idea to use the first number of your age with a zero behind it as the allocation of bonds you should have in your portfolio," says Dunagan.

Dunagan also advises investors to line up their 401(k) investments with their other brokerage accounts. "If you've determined that you should have 30% of your investments in bonds, it should be 30% throughout your entire investments, not just in your 401(k)."

III. Increase your 401(k) contribution. Investors should maximize their 401(k) plan to save for retirement. For 2004, you can save up to $13,000 before taxes toward retirement, which also lowers your overall tax bill. Also, some employers offer a dollar-for-dollar match on employee contributions, so check out how much of your contribution your employer will match and contribute at least that amount to gain the full benefit. An employer match on your 401(k) is like getting "free money"--a dollar-for-dollar match is a 100% return for your contribution.

Dunagan says that employees should aim to contribute at least 10% of their salary to a 401(k). "If you have failed to fund your retirement in earlier years, you may need to be even more aggressive," he says.

IV. Increase contributions to your emergency fund. Even though many have forecast good things for the economy, bad things can still happen. You need to be prepared in case of an emergency, so bolstering your emergency fund is always a good idea. Financial advisers suggest that you put away three to six months of expenses or more. Making small regular contributions to the fund is a good approach.

Kathleen Williams, CEO of the Williams Financial Services Group ([e-mail]) in Oklahoma City, says the money should be kept in a money market or savings account, where it is easily accessible. "That way, if the roof breaks, the car breaks down, or you have to fly across the country for a funeral, you don't have to use debt to take care of it." Williams also reminds investors that a medical emergency or disability may also strike. "You need to have some money to take care of yourself before social security or disability insurance kicks in."

V. Invest outside your 401(k). With social security in need of repair it's a good idea to save for your retirement through as many vehicles as possible. The why opening up alternative brokerage accounts is a must. Williams suggests that investors open up additional IRA accounts or variable annuities. "A Roth IRA can provide tax-deferred interest," she says.

Williams says opening additional accounts gives you access to different investment choices that can add diversity to your overall portfolio. She also says that considering real estate or real estate investment trusts as investments is a good idea.

VI. Lock in your mortgage at low fixed rates. As interest rates begin to rise, locking in at today's low mortgage rates is a good strategy. "If you are going to remain in your home for longer than the three to five years on most adjustable-rate mortgages, I'd lock in for the 30-year rate now," advises Dunagan. Even though the Federal Reserve raised interest rates, they are still close to historic lows.

Clark says that rates have nowhere to go but up, especially if the price of oil comes back down to a reasonable $26 to $29 a barrel, Since 90% of all goods and services are oil-based, when the price of oil declines, the price of goods will also decline so that consumers can spend more and the economy can strengthen.

Locking in a low 30-year mortgage eliminates the risk of rising rates and rising mortgage payments. Savings from such a move will occur over the long term, since your mortgage payments won't rise over the life of the loan. With an adjustable rate mortgage, you leave yourself open to interest rate volatility.

Dunagan adds: "If you have an adjustable-rate mortgage, and it will come due within the next year, and you plan on staying in your house for a few more years, consider refinancing into a 30-year fixed-rate mortgage now. Don't wait for it to lapse. If the economy begins to strengthen after the election, rates will begin to heat up. If that happens, it may be too late to get rates as low as they are today."

VII. Eliminate credit card debt. Higher interest rates mean higher interest on credit card debt. Take steps to eliminate this debt now before credit card companies start raising fees. The biggest danger to your financial freedom is credit card debt. The average credit card carries an interest rate of 13%--can you find an investment that will pay you that type of interest? Not likely. Why should you pay that type of money to the credit card companies? Begin paying off your smallest balance first, then tackle the largest balances. Each balance you pay off frees up money for your retirement and other financial goals.

VIII. Look for ways to reduce taxes. Studies show that if you pay fewer taxes on your investment returns, you'll make more money over the long term. So part of your investment strategy should be to avoid paying the highest level of taxes on your investments. Clark suggests that investors make the best use of their home by using the home equity line of credit for debt consolidation. He tells clients to avoid other debt like credit card or revolving debt and instead use their home equity line of credit, because the interest expense can be written off in most cases.

You can also defer your taxes by investing in annuities and IRA accounts. "If you invest in these vehicles, make an emphasis on investing in growth mutual funds and other growth-oriented investments that can help you build wealth." Clark says. The value of using this strategy is that these investments allow your money to grow tax deferred until retirement, where in most cases, you will be able to access the money at a lower tax rate than you can now.