“It is always wise to look ahead, but difficult to look further than you can see.”

- Winston Churchill

Welcome to Money-Smarts, MsMoney.com's weekly newsletter of financial facts, features, and tools. Money-Smarts is designed to provide quick and useful information to help secure your financial future. Enjoy, and tell a friend about MsMoney.com!

In This Week's Issue:

• Market Summary for Friday, March 9, 2001
• Tips for the Week: Daily Advice to Help Get You Through the Week
• Read the Latest: Going Clubbing
• Run the Numbers: How Much Life Insurance Do You Need?

Market Summary for Friday, March 9:

Close

Net Change

Percent Change

DJIA

10644.62

-213.63

-1.97%

NASDAQ

2052.78

-115.95

-5.35%

S&P 500

1233.28

-31.46

-2.49%

30-Year Bond

5.32%

-----

N/A

Source: Reuters

Tips for the Week: Daily Advice to Help Get You Through the Week

Monday: Want to learn more about investing and teach your kids about the market? Get your family together and start your own investment club. Have everyone agree on a long-term goal--a family vacation, for instance--and then decide jointly on which investments will get you there.

Tuesday: Be smart: buy disability insurance. Although it can be expensive (between 1-3% of your income), it’s necessary protection: 1 in 8 people will suffer from a severe disability during their lifetime. Learn more about disability insurance.

Wednesday: You probably already know you should have a will. But there are other legal documents that may prove to be just as valuable to your estate plan--a durable power of attorney, living will, and health care power of attorney. Learn more about estate planning.

Thursday: In a rising housing market, own your home for at least 2 years before selling. If you sell within 2 years, your profits will be subject to capital gains tax. Learn more about buying a house.

Friday: Thanks to the power of compounding, the younger you start investing, the more your money will earn--by a substantial amount. Learn more about the power of compounding.

Read the Latest: Going Clubbing
Laugh, Eat, Make Money--What Could Be Better?

By Kara Stefan

An investment club works like a mutual fund, only with the following differences:

• You know all the other investors.
• You do your own research and stock selection.
• It costs less since you’re not paying a money manager.

But belonging to an investment club entails certain responsibilities. You have to commit an upfront flat sum contribution and/or a monthly contribution of anywhere from $25-$75. You agree to conduct a portion of the ongoing stock research. And you agree to meet regularly with your club members. Some clubs meet once a month, others once a week.

For this reason, it’s a good idea to join an investment club with people you like, and with whom you enjoy spending time. That’s why a lot of women gravitate towards all-women clubs--generally considered warm, engaging networks.

Sandy Beckwith, a Rochester, New York native who’s a member of an all-women’s investment club there, says her group is very supportive and nurturing. “Whenever anyone has a personal crisis, we take a few minutes at the beginning of the meeting to deal with it--even if that means having a good chuckle about it,” says Beckwith. More-->

Run the Numbers: How Much Life Insurance Do You Need?

Calculate how much life insurance coverage your family may need to cover future expenses in the event of your untimely death.

Questions

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