To combat my slowing metabolism and rapidly increasing weight gain, I started an exercise regime. One of my routines is a daily three-mile walk at the local (air-conditioned) mall. Although I love walking, this practice requires discipline. Some mornings I resemble a mutilated rag doll, limping and dragging my arms. Other mornings I pass other walkers with stride. No matter how I feel when I wake up, I walk every morning. I've made a commitment.

Being the overachiever that I am, I went all out the first week and wound up with three blisters and a sore thigh muscle. This happened before I heard about the 10% rule. For example: You begin walking 10 minutes a day for the first week. You then increase your time 10% to 11 minutes every day the next week. You continue this increase with time and/or speed until you reach your own physical potential. It takes time to build stamina and to condition your body and to break in those new walking shoes.

It occurred to me that my daughter and I could apply this rule to our savings and investments. At the beginning of the year, we believed we didn't have enough money to begin building a portfolio. Our finances were totally out of shape. Since then, my daughter and I have learned to cut back on our expenditures and put that money into investments. The small nips and tucks in our spending were enough to cause withdrawal symptoms at first, but we were committed to this exercise.

The next month, we saved more money. Although we didn't increase our savings or investment input by 10%, we can say we improved, with the benefit of stronger and healthier habits. Recently, we discovered that a goal of a small monthly percent increase in savings is a great tool in long-range planning. Since this discovery, we've saved more each month. We've managed to purchase a few dozen shares in several companies at our BUYandHOLD account. It takes time and stamina to build a strong diversified portfolio, too.

Another reason I began this walking program was because I've seriously underestimated how long I would live. When I was younger, life after thirty seemed impossible. A younger soul might think my life is kaput at 46, but my situation is quite the opposite. I've never felt more alive and vital. As a result of this discovery, I want to stay in shape for the next 46+ years.

My "there's no life after thirty" attitude affected my long-range planning, however. I've avoided opportunities to stay in shape, to save, and to cope with the years ahead. This year, my goals are to change these habits. You know from recent articles that I've dealt with life and health insurance. Now that these obstacles are out of the way, my focus is fixed on IRAs. Saving money in an IRA, in my opinion, is an Olympic event. To me, this effort isn't a three-mile walk in the mall. It's pumping big iron. It's the high jump. It's the ultimate in discipline, practice, confidence, and commitment.

Cora has helped with my fear of IRAs. When I mentioned "IRA" to Cora, she asked, "What's it mean, mom? I Are Awesome? I Are Amazing? I Are Astonishing?" Her solutions to the IRA acronym were just the thing I needed to push me over the edge into IRA training.

An IRA is an Individual Retirement Account, a savings plan that gets special tax treatment at the federal, and sometimes state, level. Since we're halfway to the end of 2001 and the end of its tax-saving opportunities, this tax-favored status is the object of our attention. The ability to save on taxes is what distinguishes an IRA from an ordinary savings account; but, you have to play by the rules to get the tax savings, and IRA rules are stricter than those for ordinary savings accounts. This is where I hit the wall. I abhor rules, and I also want to retrieve my savings without a major penalty if I need the money for any reason.

Cora and I were unclear about the rules for the different IRAs. We had choices with Traditional IRAs, Roth IRAs, Education IRAs, SEPs and more. It's important to review these rules for your own situation before making a decision on your retirement savings plan. Our situation will differ from yours, but all of us have the same focus by using this tool: We want higher returns on our savings without paying Uncle Sam any more than necessary for the honor of living in this great country.

Fortunately, BUYandHOLD has super information on IRAs. As usual, Cora and I began our investigations with a bit of education. In BUYandHOLD's IRA ABCs (that's a mouthful!), you'll find the IRA Timeline. Take a look at this brief history of the IRA, and browse through the different plans to see which saving opportunities might fit your goals.

Next week, you'll hear about a discovery Cora and I made on another IRA plan. If you have fears and disdain about time and rules regarding your money, this idea may help you. It involves some strategy and a bit of guilt. I don't know about you, but these tools have always worked fine for me.

Lately, when I think about "putting it away" I think about investing for our future. This intake doesn't expand my waistline, but it's still an exercise in discipline. BUYandHOLD tends to make this commitment easier with their equipment. I like to think of them as the fitness center for our financial health.

Until next week,

Linda Goin