According to 2001 book entitled Are You Normal About Money? by Bernice Kanner, seventy-two percent of mutual fund investors never read accompanying prospectus. I admit literature can be boring, however it can be extremely insightful as well. Look at portfolio holdings and determine primary sector allocations. You will also develop a good idea of fund's turn-over ratio by reading prospectus.

You should be aware of driving forces behind all your funds' returns. Are your funds allocated in strong positions and equally strong sectors? Or, is money manager hanging onto dreams and ideas of yesterday, hoping that six-dollar stock will return to eighty by year-end?

It is a good idea to evaluate your portfolio periodically and ask yourself "Why do I own these positions?" Time passes and your goals either change or come to fruition. Seasons change and you should adapt accordingly, why not institute diligent tactics for your savings? The thought you put into such procedures may help protect your net worth.

Wardlaw's belief is that familiar life elements best illustrate practical investment strategies; not typical investment jargon. With that philosophy, the author assists financial planners/advisors, brokerage firms, periodicals, and other investment information syndicates create informative and entertaining articles. For comments and questions, please contact the author at tools2invest@yahoo.com or visit www.tools2invest.com

A construction loan is an alternative to HELOC for borrowers who don’t want to use or don’t have equity, and this type of financing can be used for construction on an existing dwelling. The lender will ask a lot more questions about what borrower wants to do with money, and home owner will need architectural designs, permits and a licensed general contractor on board.

Construction loans are short-term loans that usually require interest-only payments until completion of construction, but balance is due when construction is done. Most often, that is managed up front by setting up construction-to-perm financing. In this scenario, loan is automatically rolled over into permanent financing at a fixed rate when construction is complete, and a rate-lock agreement can be purchased to carry borrower through that period of construction.

Another option – depending on value of your home and local loan amount limitations – is FHA 203(k) Program. This financing is designed for purchase or refinance and rehabilitation of properties that meet FHA guidelines. This is worth looking into if you need to bring a property up to compliance standards, finance eligible energy efficient improvements, or turn a single-family owner occupied dwelling into a duplex to accommodate Mom or Dad!

Just a Facelift, Please!

If you want to sell your home and you simply want to improve curb appeal, it makes sense to go with a HELOC. Make sure you are aware of current market value of homes in your area to make sure you’re not going over limit on fair market value of your home. You’ll want to get a return on your investment!

If you’ve had your home on market too long and have not been able to sell, you might want to make some changes to give it a fresh new look and bring back passion you once had for your home. Your mortgage consultant will help you weigh out your options for financing based on your outstanding mortgage balance, income and credit score.

Regardless of your reason for home improvement, make sure you share your goals with your mortgage consultant. He or she can walk you through various loan options and confer with your tax advisor to make sure you’re getting best deal possible.