Ever since Federal Reserve Chairman Alan Greenspan indicated that short-term interest rates would rise gradually, Americans have been bracing themselves for a period of rising interest rates.

Although higher rates are a sign of an improving economy, interest-rate hikes are often used to help counter inflation and an overheated economy. However, the Federal Reserve generally is cautious and avoids raising rates too high or too fast in order not to stifle economic growth.

American investors are pouring money into international stock funds at a rate that is likely to set a record. Seeking an alternative to less-than-stellar U.S. stock market performance, investors increased their holdings of international mutual fund shares by $56.6 billion during the first nine months of 2004. At that pace, it seemed likely that 2004 inflows would surpass the record $58 billion of new money that flowed into international funds in 1994.

Looking back over the past year, it's easy to see the attraction. The MSCI EAFE Equity Index, a measure of the stock performance of 1,100 companies in 20 countries, mostly in Europe and the Far East, was up 23% for the 12-month period ending September 30, 2004. That's far ahead of the 14% return from the S&P 500 during the same period.

When crude oil prices drive gasoline prices higher, consumers may feel the pinch at the pump and notice the impact of rising oil prices on their investments. Many businesses around the country may be affected - from companies that make oil-based products to the airline industry.

According to a Federal Reserve Bank of Dallas study, nine of the 10 U.S. recessions since World War II were preceded by spikes in oil prices. But because of lessons from the oil price spikes and energy shortages of the 1970s, 80s, and 90s, the ripple effect of higher oil prices on today's U.S. economy is not as great. Nowadays, the economy generates more of its gross domestic product from the service sector, which is less dependent on energy sources than the manufacturing industry.

It's nice to have a choice. But when you're able to choose from thousands of possibilities, as in the case of deciding which of 8,000 mutual funds to add to your portfolio, a decision can be overwhelming.

Evaluating every option would be unrealistic. It may be more effective to identify the type of mutual fund that is appropriate for your situation. Here are some basic types of mutual funds and why you may want to consider them.

More than half of Americans aged 50 and older are worried about having enough money for retirement.

One way investors can help ensure that they have enough money for a long retirement is to consider annuities. An annuity is a long-term financial vehicle that can be used to provide income in retirement. During the accumulation phase, the contract can be funded with a lump sum or a series of payments, and any earnings accumulate tax deferred. A fixed annuity specifies the interest rate that will be paid for a certain number of years; any guarantees are contingent on the claims-paying ability of the issuing insurance company.

Financial planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child's education or planning for retirement.

The financial planning process, as described by the CFP Board, consists of six steps that help you take a "big picture" look at where you are financially. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals.