"Covers? What do you mean?" I inquired. And in his own boyish terminology, he launched into a long description justifying moon's requirements for blankets to protect itself against weather's elements. To me, his ideas were plausible and thoughtful.

As an investor, it may serve you well to consider your portfolio's protection. Have you protected your investments during this year's volatile cold snap and will you have necessary diversification to enjoy a potential market re-heating? The following may assist you in all types of markets.

For individual stock investors, a defensive posture served them well during recent bear market. By employing "tight" stop losses, they created downsize protection. Even if sell price seemed undesirable at that particular time, building a cash position with such proceeds allowed investors a chance to re-enter market at lower levels. Risk of principal still existed in such scenarios and this strategy will not guarantee you a positive return. For many, this strategy is not proper.

•How long have you been in home? •Will improvements increase property value? •Are you making improvements to increase energy efficiency? •Will improvements be made in one fell swoop, or in stages? •What is current outstanding balance on your mortgage? •What is appraised value of home? •How much will improvements cost? •What improvements will be tax deductible? •Do you have other revolving debt that you would like to pay off at same time? •Are you making improvements because you plan to sell property?

The New Tract Home Blues

Buyers of newly-built homes are often tapped out after making initial down payment and closing costs, including upgrades to amenities and inevitable need for new furniture. Shortly thereafter, they realize they’d like to make additional improvements to really have home of their dreams.

If you’re planning on putting down roots (pardon pun), landscaping may be in order. The developer may have been kind enough to make front yard a perky green, but if back yard is a disturbing brown color sparse with weeds, you may be entertaining vision of a pool or deck.

Look into option of a Home Improvement Loan with a fixed interest rate as a 2nd Trust Deed. This type of loan does not require you to have equity built up in existing mortgage. The maximum loan amount could go as high as 125% of current appraised value of home, and you can make improvements yourself or go extra mile and hire a contractor if job requires architectural design, permits and inspections.

The Major Overhaul

If you have built up equity in your home and are geared up for some major renovation, Home Equity Line of Credit (HELOC) is probably your best bet. This adjustable loan allows you to use your equity as a line of credit, so if you have improvements that are phased in over time you can simply write a check when you need to pay a bill.