Yo. Thanks for thinking of me. I didn't really go on the boat this year; that was just wishful thinking.

Let me begin by saying that I'm not a licensed financial advisor, and anything i say should be thoroughly checked and re-checked before you act upon it.

That said, I did major in finance, I work for a bank, and I share a suite with our top wealth management guys in the bank. I've also recently become an avid reader of some of the more popular personal finance authors, especially those who write on Yahoo! finance. I don't claim to be an expert, but I've learned a little bit here and there in the past few years since college.

Since you asked two rather specific questions, I'll address those individually:

1) How can I best optimize my retirement strategy with my 403b?

First of all, if you're not contributing enough money per paycheck to earn the full employer match (if any), do that. No matter what you invest in, you can't turn down free money.

Second, determine how long you want to remain working, and then how long you think you'll need to draw from those retirement funds. This will determine the risk tolerance you're willing to take in comparison to how much you'll need and how long it will take to accumulate that wealth. A great way of assessing your situation is by using the online calculators and surveys like those available at www.ingretirementplans.com. ING is who we use at the bank, and I really like their layout and approach to investing. They'll come up with some recommended allocations by account type (i.e. 25% bonds, 20% large cap value funds, etc.) You don't have to follow those allocations verbatim, but they are good guidelines for your allocation strategy while taking account your risk tolerance. Now, compare these guidelines to your 403b and see how they stack up. Are you too risky? Too conservative? Since you're most likely looking at a long horizon until you begin to withdraw these funds (age 59.5 at the earliest, right?), there's plenty of time to find a strategy that works for you and adjust it on an as-needed basis as you approach that retirement age. One thing I will recommend is that you do not neglect international funds within your 403b if they are available to you. Given our trade deficit, the strengthening of the EU, the growth of emerging nations such as China and India, and the implicit weakening of the dollar as a product of these things, you'll want a piece of the action. Don't go crazy with international funds, just find a percentage that works for you.

Third, examine the holdings of the equity and bond funds you're investing in. Basically, make sure you're diversified and not just investing in the same thing in two separate funds.

Fourth, once your strategy is in place, don't freak out if your allocations change by a few percentage points. Fluctuations in different sectors can cause your portfolio to seem "out of whack," but don't overcompensate by actively adjusting your percentages. I'd say examining your allocation on an annual basis and then adjusting if needed would more than suffice.

That's basically it for your 403b. Use every financial resource available to you, come up with a plan, and then stick to it.


2. How can I save more without taking on too much risk?

I'll go with the basic "live beneath your means, stick to a budget, and pay yourself first" cliches on this one. A three year horizon is relatively short in investing terms, but if you're disciplined in your approach, you'll get there. This is not the place for speculative investments. What I recommend (and do myself) is to set up an online savings account at an INGdirect or HSBC Direct. (www.hsbcdirect.com). I personally use HSBC, and they are currently paying 5.05% APY on their online savings account. If you go that route, set up a certain percentage of your paycheck to automatically be deducted from your checking account and placed into this fund. Once it's there, don't touch it!

I'm sure you have other questions, but I'll stick to that for now.

In addition to Suze Orman (who gets a little preachy for me, but she's got some good things to say) I recommend David Chilton's "The Wealthy Barber" for a no-nonsense, layman's approach to financial planning. For software, I use Quicken, but only for budgeting and monitoring my accounts. They've got some retirement/tax/insurance stuff built in, but I haven't delved into that just yet. Finally, I'd recommend visiting www.choosetosave.org for a wealth of information about planning as it pertains to all aspects of personal finance, from shopping for a new car to making sure you have enough money to retire.

Good luck!