If you're like most people, you probably bring your automobile to a professional mechanic for routine maintenance. You see a doctor when you have concerns about your health, and for regular exams. When the need for legal counsel arises, you consult an attorney. All of us rely on the expertise of others. It's no different when it comes to personal finances--most people could benefit from working with a financial professional. Here are some good reasons to do so:

You don't know what you don't know

No one can be an expert on every subject. Managing your finances on a day-to-day basis is one thing; implementing a comprehensive investment plan to fund your retirement while setting aside funds for your child's education is something else. That doesn't mean that you're not capable of doing it, only that you shouldn't underestimate the expertise needed to put together an effective plan. If you're going to go it alone, you'll need to educate yourself, and that brings us to the next point ...

You have good intentions, but never set aside the time

There's an entire industry built around providing individuals with the tools they need to do their own financial planning. Books, magazines, websites, calculators, worksheets, and videos all empower individuals to take a more active role in their financial future, whether they're working alone or with a financial professional. Not one of these tools, however, will help unless you set aside both the time to learn to use the tool, and the time to apply the tool to your own situation. Working with a financial professional forces you to stop procrastinating, and shifts the time commitment from you to the professional.

Doing it all yourself isn't efficient

There's a long list of things that we could do ourselves but choose to pay someone else to do for us instead. For example, you could paint your house, but you may be happy to pay someone else to do it. Why? It's more efficient. You can spend the time working on other things and, if you choose the right professional, it will probably be done faster and better than if you did it yourself. The same goes for working with a financial professional.

You're not objective

It's hard to look at your own situation objectively. Having someone else with experience analyze your financial condition can be extremely helpful. And, in cases where you and your spouse aren't on the same financial page, a financial professional can listen to all concerns, identify underlying issues, and help you find common ground.

Keeping up with change is a full-time job

In the last two years, there have been at least five major pieces of tax legislation signed into law. Even seasoned financial professionals have had a difficult time keeping up with the changes. Not understanding how these changes might affect your financial plan could be dangerous, but understanding the changes takes time and effort.

You see the trees, but not the forest

A good financial professional can help you see the big picture. He or she can show you how your financial goals are related--for example, how you might save for both your child's college education, as well as your own retirement. He or she can work with you to prioritize your goals, implement specific strategies, and choose suitable products or services. A financial professional can also stay on top of your plan to make sure it remains on track, recommending changes when conditions, or your circumstances, dictate.

When times are tough, that pool of dollars sitting in your 401(k) plan account may start to look attractive. But before you decide to take a plan loan, be sure you understand the financial impact. It's not as simple as you think.

The basics of borrowing

A 401(k) plan will usually let you borrow as much as 50% of your vested account balance, up to $50,000. (Plans aren't required to let you borrow, and may impose various restrictions, so check with your plan administrator.) You pay the loan back, with interest, from your paycheck. Most plan loans carry a favorable interest rate, usually prime plus one or two percentage points. Generally, you have up to five years to repay your loan, longer if you use the loan to purchase your principal residence.

You pay the interest to yourself, but ...

When you make payments of principal and interest on the loan, the plan deposits those payments back into your individual plan account. This means that you're not only receiving back your loan principal, you're also paying the loan interest to yourself instead of to a financial institution. But the benefits of paying interest to yourself are somewhat illusory.

Here's why. To pay interest on a plan loan, you first need to earn money and pay income tax on those earnings. With what's left over after taxes, you pay the interest on your loan. When you later withdraw those dollars from the plan (at retirement, for example), they're taxed again because plan distributions are treated as taxable income. In effect, you're paying income tax twice on the funds you use to pay interest on the loan. (Note: Special tax rules apply to Roth 401(k) contributions.)

The opportunity cost

When you take a loan from your 401(k) plan, the funds you borrow are removed from your plan account until you repay the loan. While removed from your account, the funds aren't continuing to grow tax deferred within the plan. So the economics of a plan loan depend in part on how much those borrowed funds would have earned if they were still inside the plan, compared to the amount of interest you're paying yourself. This is known as the opportunity cost of a plan loan, because you miss out on the opportunity for more tax-deferred investment earnings.

Other considerations

There are other factors to think about before borrowing from your 401(k) plan. If you take a loan, will you be able to afford to pay it back and continue to contribute to the plan at the same time? If not, borrowing may be a very bad idea in the long run, especially if you'll wind up losing your employer's matching contribution.

Also, if you terminate employment, your plan may require that your loan become immediately payable. If so, and you don't have the funds to pay it off, the outstanding balance will be treated as a taxable distribution to you, and if you're not yet 59½, a 10% early distribution penalty may also apply to your taxable balance.

Still, plan loans may make sense in certain cases (for example, to pay off high-interest credit card debt, or to purchase a home). But make sure you compare the cost of borrowing from your plan with other financing options, including loans from banks, credit unions, friends, and family. To do an adequate comparison, you should consider:

Interest rates with each alternative
Whether the interest will be tax deductible (for example, interest paid on home equity loans is usually deductible, but interest on plan loans usually isn't)
The amount of investment earnings you may miss out on by removing funds from your 401(k) plan

Yes, beginning in 2008, you can make a rollover from a 401(k) plan (or other qualified employer plan, 403(b) plan, or governmental 457(b) plan) to a Roth IRA, as long as you meet certain requirements.

First, you must be entitled to a distribution from your plan. Generally, you can access your account when you terminate your employment. But, in some cases, you may also be able to make in-service withdrawals of your or your employer's contributions (for example, at age 59½). The terms of your plan control, so talk with your plan administrator or review your plan's summary plan description (SPD).

Second, your distribution must be an "eligible rollover distribution." In general, this is any distribution you receive from the plan that isn't a hardship withdrawal, certain periodic payments, or a required minimum distribution.

Third, you must meet income guidelines. You can roll over funds from a 401(k) plan to a Roth IRA only if your modified adjusted gross income is $100,000 or less (this dollar limit applies whether your tax filing status is single or married filing jointly). If you're married filing separately, you can't make a rollover at all. (These limitations will be repealed in 2010.)

You must include in gross income any amount that would have been taxed if the distribution had been paid to you, and not rolled over. But that's the price you have to pay to be able to receive tax-free qualified distributions from your Roth IRA in the future.

In most cases you should elect a direct rollover, where your 401(k) plan transfers the funds directly to your IRA. If instead the plan pays you, you'll have 60 days to complete the rollover, but your 401(k) plan will be required to withhold 20% of the taxable portion of your distribution.

Note: If you have funds in a Roth 401(k) or Roth 403(b) account, different rules apply. If you receive an eligible rollover distribution, you can generally make a tax-free rollover (direct or 60-day) of those funds to a Roth IRA without restriction.

Online banking: faster, better, and cheaper? As with anything, there are pros and cons; here are some to think about.

Pros

Convenience: Online banking sites are open 24/7. You can check your accounts and pay your bills in the middle of the night or on the weekend, all while sitting comfy in your jammies and bunny slippers.

Organization: All your account information is displayed in an organized fashion. You won't need to keep a shoebox full of old monthly statements, canceled checks, and ATM slips -- you can go paperless.

Automation: You can schedule bill payments to occur automatically, and once you've entered pertinent information, you won't have to keep doing so for subsequent transactions.

Bells and whistles: Many online banking sites offer account aggregation (managing several accounts from one site) and compatibility with money-management programs. Some also offer stock quotes, portfolio management programs, and e-mail alerts of various types.

Cons

Fear of cyberspace: Not everyone is computer literate. Setting up online banking accounts can take time, and using them requires a bit of savvy.

You still have to go to the bank: To make deposits (other than direct deposits), you generally have to mail in a check, or go to a brick-and-mortar office or an ATM. (These last two options get a little tricky if the bank is an online-only bank.)

Where's the beef?: Because online (especially online-only) banking services may not keep "real" records of transactions (and may keep online records only for a certain period), you may want to "call for backup" by printing out copies of your online statements and images of your canceled checks, particularly important ones, such as those that show tax payments. While this somewhat defeats the idea of going paperless, you may be able to get by with fewer shoeboxes.

In today's global economy, more people than ever are working abroad. If you're contemplating a career move overseas, here are some things you should know.

Passport and visa requirements

Generally, you'll need a valid passport and visa (or work permit) to work abroad. If you're working for a global company, it might obtain the visa for you. Otherwise, you'll need to apply on your own. Your chances for obtaining a visa are best if you have a special skill that would make you an asset to a prospective employer. The U.S. State Department posts specific visa requirements (as well as travel warnings) for foreign countries on its website at www.travel.state.gov

Citizenship

No matter how long you work abroad, you'll remain a U.S. citizen, as long as you don't formally renounce your citizenship. And if you have a child born overseas, he or she will be a U.S. citizen too (assuming at least one parent is a U.S. citizen, the child enters the U.S. or is formally admitted, and other requirements for citizenship are met).

Taxes

Just because you're earning income outside the United States doesn't mean you won't owe income taxes to Uncle Sam--the United States taxes Americans on income no matter where in the world it's earned.

But there is some good news. Even though you'll still have to file a federal income tax return, if you meet certain requirements you may be able to exclude up to $87,600 (in 2008) of foreign earned income. You may also qualify for the foreign housing exclusion and the foreign tax credit. For details, see IRS Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.

But the tax laws of other countries vary widely. Although there's no guarantee you won't be taxed twice, most Western countries have tax treaties with the United States that attempt to eliminate double taxation. For a list of these countries, go to www.irs.gov and search "income tax treaties A to Z."

Also, any property you transfer while working abroad may be subject to federal gift tax, no matter where the property is located. And if you keep your U.S. residence while working abroad, you may still owe state income taxes.

The tax issues involved with working overseas can be complicated; you may want to consult a tax professional experienced in international tax matters.

Health care

Most U.S. health insurers don't provide coverage to Americans living abroad, so consider purchasing a supplemental policy that will cover any health-care expenses you incur overseas. (Some countries may require you to have such coverage in order to get a visa.) Make sure that any private policy includes emergencies and medical evacuations.

Banking

The availability of online banking and brokerage accounts makes it easy to manage your money in the United States while working abroad--all you need is an Internet connection. However, you might also need to open an account at a local bank, if for no other reason than to get cash. If you'll be converting local currency to U.S. dollars (or vice versa), make sure you understand how the exchange rate works to maximize your take-home pay.

Research, research, research

These are only a few of the issues you're likely to face. The best thing you can do to prepare is to research as much as you can ahead of time. The more you know, the more rewarding your experience is likely to be.

The collapse of the subprime mortgage market and the jitters it's sending through the entire economy contain lessons for us all. Here are a few:

If it sounds too good to be true, it probably is. Based in part on wishful thinking ("housing values will always appreciate") and in part on misleading information ("that's a great rate"), many homebuyers became convinced they could afford mortgages they later found they really couldn't. Similarly, many investors were led to believe that mortgage-backed securities were all about huge rewards with minimal risk. So, the lesson here is: When faced with what appears to be a rosy best-case scenario, always remember to ask "But what if ...?"

Experience counts. When seeking a mortgage broker, loan originator, investment firm and/or fund manager, check out their credentials, and look for those with lengthy experience who are respected within their fields.

Read (and understand) the fine print. Many people, both homebuyers and investors, got burned in the subprime mortgage mess because they didn't know the details of the contracts they entered--and the devil is always in the details. Review all mortgage documents and/or investment prospectuses carefully before you make a commitment. If you don't understand the ramifications of what you've read, seek assistance from an unbiased qualified professional.

The best regulation is self-regulation. Federal regulations designed to protect the consumer cover many loans resold to quasi-government agencies like Freddie Mac, and loans insured by the Federal Housing Administration also carry strict guidelines. But oversight of these loans is not always as diligent as it should be. What's more, many mortgages are now originated by unregulated nonbank lenders. As a result, you shouldn't assume that governmental and/or institutional regulations will always protect you from getting into financial trouble. Only you can do that.

The Economic Stimulus Act of 2008 (H.R. 5149) was passed by Congress on February 7, 2008, and was signed into law by President Bush on February 13, 2008. The primary purpose of the Act is to provide economic stimulus through recovery rebates to individuals and temporary incentives for business investment.

Recovery rebates to individuals

The Act provides a tax rebate to lower- and middle-income working (earning a paycheck in 2007) families as follows:

• Eligible individuals will receive an amount equal to the lesser of their net income tax liability or $600 ($1,200 if married filing jointly).
• Additional rebates of $300 will be paid for each child of an eligible taxpayer.
• A minimum tax rebate of $300 ($600 for married taxpayers filing joint returns) will be paid to taxpayers with earned income of at least $3,000. Social Security retirement benefits, as well as compensation and pension benefits paid to disabled veterans are included for the purposes of determining income eligibility for rebates.
• Rebates are phased out for taxpayers with an adjusted gross income (AGI) in 2007 of $75,000 ($150,000 for married taxpayers filing joint returns).

The following illustrates how the rebate works:

For individuals:

The amount of the rebate phases out at a rate of 5% of AGI above $75,000, ending at $87,000.

For married taxpayers filing jointly:

The amount of the rebate phases out at a rate of 5% of AGI above $150,000, ending at $174,000.

• Individuals must file a tax return for 2007 to receive the rebate
• The Secretary of the Treasury is directed to pay tax rebates as rapidly as possible (as early as May).
• The Act prohibits payment of rebates after December 31, 2008, and payment of a rebate to a taxpayer without a valid identification number (i.e., Social Security number).
• Similar tax rebates are provided to residents of the Commonwealths of Puerto Rico and the Northern Mariana Islands.
• The payment of a tax rebate will not be considered income for purposes of determining eligibility for federal and federally-assisted state benefit programs.

Business incentives

• Under Section 179, small businesses may write off up to $250,000 (up from $128,000) of capital expenditures incurred in 2008. The maximum investment phase-out threshold for such expensing is increased to $800,000 (up from $510,000).
• The Act increases to 50% (from 30%) the amount of the adjusted basis of certain depreciable property (e.g., equipment and computer software) that may be claimed as a deductible expense in 2008.

Increasing loan limits

The Act also temporarily allows the government-sponsored mortgage finance companies Fannie Mae and Freddie Mac (as well as the Federal Housing Authority) to buy individual home loans worth up to $729,750, up from the current jumbo loan limit of $417,000.