If you are like many Americans, you may be carrying more credit cards in your wallet than dollar bills. Overall credit-card debt has reached around $785 billion, which translates into $7,500 for the average household.

Some forms of debt, such as auto and home loans, can be invaluable because they help people purchase expensive assets that would be difficult to obtain otherwise. Alternative forms of debt, such as credit- card debt, can give people a false sense of financial security.

In March, the Federal Reserve raised key short-term interest rates for the seventh time in nine months. As with other rate increases, policymakers said the decision was based on attempts to contain inflation.

The Fed raised the two key rates by 25 basis points (one-quarter percent) each, as it has done at each of its past six meetings. The increases came as no surprise, but they were couched in stronger language than the Fed has used since it began a rate-raising cycle in June 2004.

According to a recent study, 83 percent of people started working with a financial professional to build a retirement fund. Given the complexity of the rules surrounding IRAs and employer-sponsored retirement plans, it's easy to understand why.

Consider the distribution rules. After age 59½, you can begin withdrawing funds from tax-deferred retirement plans and avoid the 10 percent early- withdrawal penalty. If you decide to wait, you generally must begin taking required minimum distributions (RMDs) from these plans once you reach age 70½ (Roth IRAs and annuities are exceptions). In succeeding years, minimum annual distributions must be taken no later than December 31. Failure to take the required annual distribution could result in a 50 percent income tax penalty on the amount that should have been withdrawn.

Personal injury lawsuits seem to be America's latest craze. As a result, litigation is often the unintended outcome of many common accidents and misunderstandings. Not only are more individuals being sued, but juries are becoming less sympathetic to defendants. Between 1996 and 2002 (the latest year for which data is available), the dollar value of jury awards increased by 112 percent!

In this type of environment, even the maximum coverage on your homeowners and auto insurance policies may not be enough to fully protect your assets against a potential lawsuit. Umbrella liability insurance can provide an extra layer of protection to safeguard your assets.

A 2004 Investment Company Institute study confirmed the popularity of mutual funds among middle-income Americans who are planning for retirement. In line with popular wisdom, these investors typically adopt a buy-and-hold strategy, waiting out periods of market decline in the hope of reaping long-term gains.

Considering the large number of investment options available to working Americans, why do so many people continue to hold mutual funds? The answer may lie in the potential benefits.

It seems like "snail mail" these days only yields bills and catalogs, but many of us look forward to one certain piece of mail each spring - our tax refund.