Money Management Isn't a Game of Hokey Pokey

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Too often we think of money-management as an all-or-nothing proposition: We either have to retire at the minimum or maximum age; We either have to get in or out of the stock market.

But planning for your retirement isn't a game of hokey pokey. You don't have to put your whole foot in or your whole foot out. Here are five instances in which finding the middle ground may be the wisest decision for your situation.

1. Go for Broker?
Sometimes you should listen to the e-Commerce baby and sometimes that kid should just suck on a bottle. Not every investment transaction requires a full-service broker -- or any broker.

When you're comfortable with a particular decision, consider using a low-commission broker or a no-load fund company to execute the investment. Seek out the expertise of a full-service broker when you want recommendations and need some guidance.

2. Hold Half/Sell Half
Investing these days is more frightening than swimming in a shark tank. (Actually, there are a lot of similarities.) If you can't decide whether to hold onto or sell a particular mutual fund or stock, why not sell half now and half later? That's the strategy followed by many professional investors when they want to cut their risk of selling an entire holding at too low a price.

3. Roth IRA Now or Later
We've heard so much about Roth IRAs in 2010 because you can now convert your traditional IRA into a Roth, regardless of income level. Of course there's a catch: You have to pay taxes on the conversion now, instead of down the road when you withdraw the money. That big tax bill can be daunting, so perhaps it's best to convert just a portion of your traditional IRA into a Roth.

4. Defer or Accept SSI
Social Security doesn't look all that secure right now, which means deferring collection can be something of a gamble. Should you take the money at the earliest possible age of 62 or wait until your normal retirement age? The answer depends on your employment situation and available liquid assets. If you're solvent, have a steady income and can wait, it makes sense to start collecting your check at the mid-point, collecting minimal payments now or waiting until the latest date possible.

5. Long-Term-Care Insurance
LTC insurance is pricey, confusing and a bit of a gamble, so it’s an insurance purchase where compromise is advisable. Instead of choosing from maximum coverage that allows for every contingency or going buck naked without any coverage, consider a basic policy with budget-friendly premiums that offers moderate protection.