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Dear Deborah

Expert Financial Advice

Dear Deborah,

I'm going to get a considerable amount of money from a severance contract soon. I hope to get another job soon, but I want to have money set aside should I be out of work for a while. Where would be a good place to keep my money?

If you're looking for a place to keep your money where it's readily available and safe, I'd recommend an FDIC-insured money-market account or savings account. Consider keeping about six months' equivalence of living expenses. Certificate of deposit (CD) rates are about the same as money-market and savings account rates. So if you want liquidity, it's probably better not to get locked in with CD's right now.

You can take the money that's above the six month's amount and put it in a short-term bond fund. The yields are considerably higher than money-market yields. You may want to look at a short-term bond index fund, which offers a mix of bond funds.

Dear Deborah,

My husband and I want to get term-life insurance, since we presently don't have any. What would be a good way for us to shop around for life insurance quotes?

According to the Wall Street Journal, some life insurers have been raising costs by about 5%-15% since the beginning of the year. Premiums may continue to rise because of higher costs for capital and reinsurance. So the sooner you purchase a life insurance policy, the more money you'll probably save.

You can go to the online insurance broker AccuQuote.com to easily compare term-life insurance rates. AccuQuote represents top-rated life insurance companies, such as Prudential, American General, Lincoln Financial Group, and Fidelity Life. AccuQuote is recommended by The Consumer Federation of America.

Once insurers have received a completed application, they generally won't raise the premiums on a policy. The application process typically takes 30 or more days.

Deborah Nayrocker writes on personal money management topics, showing others how to take control of their financial future. An award-winning writer, she is a regular guest contributor to CBN.com and a finance columnist with Crosswalk.com. Deborah is the author of The Art of Debt-Free Living and Living a Balanced Financial Life. Learn more about her work at a local Christian bookstore near you or on her website  www.artofdebt-freeliving.com

If you would like to ask Deborah a financially-related question , click here or email us at info@mtlmagazine.com.