Scottrade is the best discount stock broker. At least that's what members of the American Association of Individual Investors say. They've given Scottrade top marks for overall satisfaction four years in a row.

TD Ameritrade, Fidelity, Charles Schwab and E-Trade Financial came in second through fifth in the association's 2007 survey.

A discount broker may provide information about a stock or mutual fund, but it doesn't offer advice on where to put your money. That's what distinguishes it from a full-service broker.

It's a little surprising that Scottrade does so well with the do-it-yourself set since it charges $7 for an online trade -- twice as much as some competitors.

But you only need $500 to open an account, there are no annual or monthly maintenance fees, and it's relatively easy to speak with someone in person at more than 300 offices across the country.

Find out more at www.scottrade.com.

September 6

Interest.com’s weekly survey of CD rates found the average annual yield for a:

• Five-year CD edged down to 4.0% from last week's 4.01%. And except for a recent six-week increase, the yield has been trending down over the past 14 months. It is one-fifth of a percentage point lower than the 4.20% it was paying one year ago, and it's only one-quarter-point higher than the 3.77% of September 2005.
• One-year CD held at 3.75% -- slightly below 3.77, where it had been for eight of the previous 14 weeks. It has moved within a narrow range since the first of the year, and it currently is just below the 3.78% it paid one year ago. But it is more than three-quarters of a point higher than the 2.99% you could get in September 2005.
• Six-month CD fell to 3.53% from 3.55%, where it had been four of the last five weeks. Prior to that it held at 3.58% for four weeks. It is just below the 3.6% of one year ago, but it is almost a full percentage point higher than the 2.6% of September 2005.
• Three-month CD was unchanged at 2.91%. It is just a tad higher than the 2.89% of last September, but the yield is three-quarters of a point higher than it was two years ago.

You can check here for the best CD rates from local and national banks.

August 27

Keep your employer’s stock out of your 401(k) account.

You already depend on your job for a paycheck, health insurance, life insurance, maybe even a pension. So don’t put all of your retirement fund eggs in that basket, too.

This is a rule we should all be following after the spectacular collapse of WorldCom Inc. and Enron Corp. wiped out the retirement savings of so many of their employees.

Yet a survey by the Employee Benefit Research Institute found that employees with no restrictions on how much company stock they can own have an average of 25% of their 401(k)s invested in those shares. A quarter of workers over 60, the most vulnerable because they’re closest to retirement, have more than half their retirement plan in company stock.

Don’t use your contributions to buy those shares. If an employer matches your contributions with company stock, sell it and move your money to other investments at least twice year.

Click here to learn more about Interest.com’s 6 simple rules for a successful 401(k).

August 11

If your savings and pensions don't guarantee a comfortable retirement, and extra cash could buy you peace of mind, a reverse mortgage might be the answer.

It's a simple way to use equity you've built up in your home to get a guaranteed source of income, with no restrictions on how the money is spent, no obligation to pay it back, and no risk of losing your home, no matter how long you might live.

We don't think you should plan on a reverse mortgage as your primary source of retirement income. There are significant costs and it's no substitute for a corporate or government retirement check, and a well-funded 401(k) or IRA.

But more than 76,000 senior citizens got a federally insured reverse mortgage in 2006, up from 6,637 in 2000. Should you consider one?

Click here to learn more about how reverse mortgages work and whether they’re right for you.

August 7

The average annual growth for a 401(k) account is 8.7%.

That’s counting contributions and earnings, but subtracting any withdrawals. (Nearly one out of every five 401(k) participants eligible to borrow against their retirement plans has done so.)

It was calculated based on the average balance for accounts that existed from 1999 through 2006 and shows how well employees investing in 401(k) plans can do despite the stock market’s ups and downs during that time.

The average account balance rose from $67,760 to $121,202, according to the Benefit Research Institute and the Investment Company Institute.

The median account balance (meaning half were worth more and half were worth less) increased from $24,898 to $66,650.

Let us help you get started, boost your contributions, invest wisely and make the most of your retirement savings with our 5 simple rules for a successful 401(k) account.

July 24

Once you retire, the order in which you draw down your savings is important. You want to maximize your income and make your assets last as long as possible, by using your least-taxed savings, first.

Begin by tapping any tax-free savings you have in a Roth IRA. Since you paid taxes on the contributions, you don’t owe the government a dime on any withdrawals once you reach 59 ½.

Then move on to taxable accounts not held in other types of retirement plans. Profits from stocks, bonds or mutual funds you’ve owned for more than a year are taxed at 15%.

Draw down tax-deferred retirement accounts, such as traditional IRAs or 401(k) plans, next. You'll owe taxes on withdrawals at your current income tax rate – 15% or 25% for couples with taxable income between $15,650 and $128,500 this year.

One exception to the rule: When you reach 70 ½ years old you must begin making minimum withdrawals from traditional IRAs and 401(k) plans or pay onerous penalties. So you’ve got to do that even if you haven't exhausted other, less taxable assets.

July 20

At some point in your life an insurance agent will try to sell you an annuity, often at a free lunch or dinner that promises investment advice.

But no matter how fearful the pitch might make you, there are just better ways to save for retirement.

An annuity's chief selling point is security, playing on the common fear that we'll outlive our savings.

The problem is that you'll pay dearly for the security, paying an extraordinary collection of fees and receiving a pretty puny check for the amount you've invested.

Click here to learn more about why you shouldn't buy annuities.

July 11

The best rates are often available on odd-term CDs -- that mature in five, seven, 11 or 13 months.

Banks do that so that existing customers won't be offered the higher rate when they're asked to renew a standard six- or 12-month CD. Sometimes the fine print on special offers even says, "New deposits only."

But we've never heard of a bank refusing to let existing customers take advantage of a special offer. You just have to ask.

You can find odd-term specials by doing an Internet search for terms like "7-month CDs," checking newspaper ads, window banners and bank Web sites. Pay particular attention to separate listings for specials or links to "Special Offers."

Don't commit your money to a six-month or one-year CD without first asking the bank if it has a special offer or a higher rate on an odd-term CD.

Click here for more ideas on how to make the most on your CDs.

July 10

The average American smoker spends $1,600 a year on cigarettes.

If you quit smoking and invest that $133 a month in CDs earning a modest 5% a year, you'll have almost $21,000 after just 10 years.

Earn a more robust 8% a year by investing in mutual funds through your employer's 401(k) retirement plan and you'll have nearly $25,000.

Increasing your payroll deductions by $133 a month makes it easy to save. You're stashing away money you would have spent and therefore won't miss and you'll lower your taxable income by $1,600 a year. That can save you another several hundred dollars come tax time.

July 7

The 17th annual Retirement Confidence Survey found that a substantial number of workers now realize that the shift from traditional pensions to 401(k) plans affects them personally.

“Unfortunately, only 24% of those affected indicate that they will save more on their own, and only 8% indicate that they will save more in the employer's plan as a result of these changes,’’ says Jack VanDerhei, a Temple University professor, and co-author of the study.

It found almost half of workers saving for retirement report total savings and investments (not including the value of their primary residence or any defined benefit plans) of less than $25,000.

Indeed, the majority of workers who have put no money aside for retirement have little savings at all. Seven in 10 of these workers say their assets total less than $10,000.

The survey is sponsored by the nonpartisan Employee Benefit Research Institute and Mathew Greenwald & Associates, a survey research firm.

July 4

Mutual funds designed to track a large segment of the stock market, such as the S&P 500, have a well-regarded booster.

"Index funds beat the majority of amateur- managed money or professionally managed money,” Warren Buffett told shareholders at this year’s annual meeting of Berkshire Hathaway, his investment company.

That’s not a new position for the world’s richest and most renowned investor. And it makes index funds a great choice for retirement plans such as 401(k)s and IRAs.

"There's nothing wrong at all with not knowing how to evaluate individual stocks,” Buffett has said in the past. “If you're reasonably sure that American business will do well over the long term, then invest for the long term in a broad index fund. ...

"Buy in installments, over time. Look for low fees. You may get a higher gross return with an actively managed mutual fund than with an index fund, but your net return after fees are taken out may be lower."

June 25

You should follow investments on a regular basis but don't obsess over daily fluctuations in stocks and mutual funds -- especially if they're in a 401(k) or IRA retirement account.

Saving for retirement or a kid’s college education requires long-term thinking. Adjustments should be made two or three times a year -- not two or three times a month.

The decision to buy or sell a particular stock or fund should be based on its performance over a period of years.

The best way to filter out the market's short-term volatility is to evaluate the change in value four times a year, at the end of each quarter (March 31, June 30, September 30, and December 31).

It's also a great time to add up the total value of your investments, celebrate your progress and use it as an incentive to keep saving.

Click here for more advice on how to make the most of your retirement savings.

Have a question about your finances? Ask us at editors@interest.com