Older adults were anxious about the economy long before this crisis. Retirees feeling very confident of a financial secure retirement fell to 29% in April down from 41% a year earlier, according to a survey conducted by the Employee Benefit Research Institute – the lowest level in 10 years. Younger folks trying to increase their income with better jobs are limited by the increasingly sour labor market. So how does one get wealth and keep it? Follow these tips:



• Keep your mind on your money and your money on your mind- Don't obsess about losses or gains but now is the time to focus on getting every percentage of interest or capital gain that you can. Review all cash and CDs and keep looking for higher interest rate offers.

• If you own rental properties, lock in high rental rates with a lease. If not, don't forget to increase the rent each year by at least the Consumer Price Index rate of inflation.

• If you own stocks or stock mutual funds, don't go crazy changing things around. Keep a diversified portfolio of different kinds- large cap, mid-cap, small cap, international, etc. Also keep a diversified portfolio of different styles- growth, value, blends, core, etc.

• Watch your tax bite. It's not what you earn but what you keep. Take all of the deductions you legally can. Get a leg up on any capital gain distributions before the end of the year so there will be no tax surprises. Call or email your mutual fund distributor to find out what capital gain dividend distributions you will be paying taxes on. I am expecting a lot of people to be in for a surprise of big losses on their statements and big tax liability for the end of the year. Be forewarned!

• Don't ever think you can sit in cash and be okay. You won't. That's a guaranteed loss. Inflation will eat away at your investment and job earnings as your expenses go up.

• Very few people get rich working. You have to make your money work for you. That means having investments like stock, bonds, mutual funds, real estate, etc. With investing that means risk. With risk comes reward. Figure that at least once and probably more you will end up losing money. So what? Painful yes, but a necessary part of getting rich and staying there.

• Don't let greed overtake good common sense. If it is too good to be true- it is. Most people get rich slow not fast and they develop good habits that preserve their wealth, too. As your net worth grows and you commit to more investments, don't let anyone talk you into putting the whole wad into one venture. It is much easier to bounce back from a small loss than a large one.

Remembering that you have to invest to keep ahead of taxes and inflation will motivate you to grow rich and by diversifying and accepting losses along the way, you will preserve the wealth that you accumulate.