Sound Financial Advice by David McPherson, founder of Four Ponds Financial Planning LLC, Falmouth and Mansfield, Mass.

Lessons for investors one year after Madoff arrest

A column I wrote a year ago for ABCNews.com on the Bernard Madoff scam led to my appearance on the public radio program Marketplace Money this weekend. The show's producers -- who read the original column -- asked me to discuss lessons individual investors should take away from the biggest Ponzi scheme ever. Here's a link to the interview.

Marketplace Money airs at various times on the weekend at various public radio stations around the country. In the Boston area, it airs at 4 p.m. on Sunday at WGBH 89.7 FM. If you have a chance tomorrow, tune in, and then let me know what you think.

Personal finance gift ideas

This week for ABCNews.com, I offer suggestions for holiday gifts with a personal finance slant. The list is by no means comprehensive, but it goes well beyond the usual savings bond.

Catching up on other recent columns:

• Why You Should Stick With Stocks / Nov. 24, 2009
• Roth IRAs to Expand / Nov. 10, 2009
• Be Smart About Mutual Funds Without the Court's Help / Nov. 3, 2009
• Brace Yourself: The Benefits of Flexible Spending / Oct 27, 2009
• Index Funds vs. Actively Managed Funds: Which is Better?/ Oct. 20, 2009

Time to dump that fund?

This week for ABCNews.com, I consider a reader's question about when is it time to dump a lousy mutual fund. The answer, in part, is to be sure you're making the right comparisons. 

Worried investor? Start with bonds

Today for ABCNews.com, I suggest that investors who remain frightened by the stock market consider investing in bonds to start. The idea is to build up their investing confidence and then move slowly into stocks.

A savings balancing act: Retirement and college

Today on ABCNews.com, I advise readers it's best to focus on saving for retirement first and college second. This principle is widely accepted within the financial-planning world, yet many parents find it hard to accept.

The bottom line is you can't afford to wait on saving for retirement.

Current stock market: Approach with caution

This week for ABCNews.com, I take a look at the six-month rally in stock prices and whether that means it's "safe" to invest in the market now.

My bottom line advice ? Approach with caution.

Obama launches retirement savings effort

President Obama over the Labor Day weekend announced a series of initiatives aimed at boosting retirement savings. The effort amounts to a series of rule changes adopted by the IRS such as allowing automatic enrollment in SIMPLE IRA plans offered by small businesses.

I applaud the president's focus on the retirement issue, but in my column for ABCNews.com this week I explain why the announcement left me underwhelmed.

Let's hope there's more to come on this issue.

Student Loans vs. Retirement Savings - ABC News

This week for ABCNews.com, I field a reader's question about whether retirement savings should be used to pay off a student loan. The short answer: No. Read why.

In the same column, I also answer a question about contributing to a 401(k) plan after age 70.

New GI Bill kicks in

In my latest column for ABCNews.com, I take a look at the benefits available to vets under the Post-9/11 GI Bill that took effect Aug. 1. That means its earliest beneficiaries will be starting their academic careers this fall semester.

The benefits may not be as extensive as the original GI Bill, but they are certainly worth utilizing. One nice feature is the ability for current active duty personnel to transfer their benefits to a family member such as a spouse or child.

The previous week, I wrote to warn small investors against investing in shares of the old General Motors that now languishes in bankruptcy court. Despite what I think was a pretty clear warning, some readers emailed asking about how to buy the old GM stock, which is almost certain to be worthless when the bankruptcy case closes.

Using 401(k) funds to pay off mortgage

In today's ABCNews.com column, I respond to a reader's question about whether 401(k) funds should be used to pay off a mortgage after a layoff. My answer in this case: Not now. I explain the ugly tax consequences of taking a big lump sum withdrawal to pay off the mortgage. My advice is to use non-retirement savings first if the family's current income is not enough to meet the mortgage payment and then non-retirement savings if necessary.

If the 401(k) funds are needed, then small monthly withdrawals are better than a single lump sum withdrawal.