5. Upgrade to a safer stockbroker.

I can’t stress enough the importance of checking out your broker's financial health, especially if you've got an account worth more than $500,000 (the limit on insurance provided by the quasi-governmental Securities Investor Protection Corp.).

Of the biggest discount brokers, Fidelity boasts the strongest balance sheet by my calculations. Schwab and TD Ameritrade are in robust health as well. I continue to have reservations about e*Trade and advise you to stay below the SIPC limit if you do business with the firm.

Among the second-tier brokers, my favorites in terms of financial strength are Ameriprise and Scottrade.

6. Donate appreciated stock to charity.

For tax purposes, if you've held a stock for more than a year, you can deduct the fair market value of the gift, rather than your cost basis—a nice incentive to give away stock that has gone up dramatically since you bought it. The fair-market-value rule comes in especially handy for donating units of a master limited partnership, because your cost basis in an MLP declines over time (increasing your tax liability should you decide to sell, rather than give the units away).

Not sure where you want the money to go? Set up an account with Fidelity Charitable Gift Fund (800/262-6039 or www.charitablegift.org). You can deposit cash or securities; if securities, Fido will sell them and invest the proceeds in your choice of 13 mutual fund pools. Then, at your leisure, you can make grants to your favorite charities in amounts of $100 or more. Minimum to open an account: $5,000.

7. Take a knife to your insurance costs.

I recently spent an evening counseling a couple with young children. These folks had an ample income, but couldn't seem to make ends meet. As we peeled back the onion, it soon became apparent they were laying out far too much for life insurance. Instead of costly whole life, I recommended a 10-year level term policy with AIG Life (800/586-3072 or www.aigtermlife.com). For $250,000 of coverage, a 40-year-old male pays only $14.44 a month. Females are even less!

You may be overpaying for auto or homeowner's insurance, too. GEICO (800/861-8380 or www.geico.com) is well known as the low-cost provider for auto insurance in many jurisdictions. GEICO is also trying to horn in on the homeowner's market, so you may find it worthwhile to request a quote on both types of coverage.

Even if you prefer to stay with your local agent, ask about the cost of combining your auto and homeowner's in one policy. Often, you can save as much as 15% by purchasing an omnibus policy from a single company. That's what I did—and even GEICO couldn't match the rates I got from a smaller regional insurer.

Have I given you enough to chew on? I hope so. But don't chew so long that you wear your teeth down! If you can put just a couple of these ideas into practice, I'm confident 2008 will be one of your best investing years ever!

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