My financial resolutions for 2009, #1

Editor’s note: As 2008 fades into memory (and not a moment too soon!), many of us see 2009 as a year for getting our financial houses back in order. We asked our resident money experts to share their  financial resolutions for the year ahead, and we’ll be posting those in coming days. If you’ve not finished your own list yet, maybe you’ll find something that’s applicable. Here, the first in the series.

I’ve set a very high bar for myself and my family this year:

1. Ratchet up retirement savings. My husband worked less last year, and I responded to our need for more cash flow by reducing my 401(k) contribution to 7 percent of my gross pay, still enough to get the full employer match. Now that he’s back to working full-time—we hope for a while—I’ve increased that contribution to 12 percent, and may go higher. I’m still fully invested in the same vehicle as before the crash: A low-cost target-retirement fund. I’m banking on stocks picking up steam again before I retire in another 15 years or so.

2. Shop for the best rates on safe investments. Our emergency cushion is in OK shape; we have enough to cover about eight months of expenses if one of us stops working. Now I’d like to move a portion—about two months’ worth—from an online savings account with a 2.5 percent annual percentage yield to a higher-yielding, six-month CD. At Bankrate.com, the top APY on those is currently 3.25 percent. I’m also looking into rates at credit unions, which can be higher.

3. Save in the five figures toward college. With our emergency cushion in place, we now need to supplement my 15 ½-year-old’s college fund, big time.

4. Watch mortgage rates. Interest rates for 30-year fixed, conforming loans are hovering near 5 percent. If they go a little lower—say, to 4.75 percent—we might refinance our 5.5-percent mortgage. I’d lower the payment, not take out more cash. Right now, I’m leery of taking on more debt. —Tobie Stanger, senior editor