SMART MOVES

• If you’re considering a career switch or starting a business, build up a cash reserve equal to six months’ living expenses and reduce your debt even if it means selling assets. Page 81
• Unless the IRS owes you more than $ 1,500 for 1989, filing electronically to get your refund early doesn’t pay. Page 32
• Looking for a long-term haven for your IRA? Consider Mutual Beacon, an equity fund that outpaced its category over the past five years with a robust 19.4% annualized return. Page 44
• Planning to be in the market for a home mortgage this year? You’ll find that it’s ARM time again. The vagaries of the bond market have made adjustable-rate mortgages about two percentage points cheaper than their fixed-rate alternative. Page 18
  Looking for a stock bargain with a stout income kicker? Take a look at Ford. Its share-price/cash-flow ratio stands at a low 2.5. It’s better poised to weather an economic downturn than competitors GM and Chrysler are, and its current yield is a comforting 7%. Page 59

THINK IT OVER

• So you want to cash in on Europe in the ’90s, but you think big stocks are overexposed. Think small — as in foreign emerging growth companies. A solid bet: the T. Rowe Price International Discovery Fund (up 41.7% for 1989; no load; 800-638-5660). Page 118
• Now may be just the time to head back into Ginnie Maes. The market for these pools of government-backed mortgages has stabilized, and new issues were recently yielding around 9.75%. Page 34
• Kinder, gentler mutual funds like New Alternatives (up 26% for 1989; 5.6% load; 516-466-0808) could clean up during the ’90s from the greening of America. Page 116

PICK OF THE MONTH

• The right cellular phones, portable faxes and laptop computers now enable you to drive your office to work. Page 100

CUT YOUR TAXES

• Tax-advantaged flexible spending accounts are better deals than ever. Your employer now reimburses you for a medical bill even if your account doesn’t yet match the amount. Page 168
• If you do your own return and own a computer, size up tax preparation software. Among the best values: Personal Tax Preparer (Parsons Technology, $49; 800-779-6000). Page 168
  To avoid losing up to $ 1,440 in child-care credits when you file this year, report the name, address and Social Security number of your child-care worker. Page 163

SOLID GOLD

• Nike. The athletic shoe superstar ($52.25, OTC) is floating on Air — and a low P/E ratio of 8.8. Diversification could help produce a lay-up to $70 a share by year’s end. Page 59

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