We read all the personal finance news for you. Then we tell you what you need to know.

Lessons from the Madoff Scandal

Lessons Learned from the Madoff Scandal
FiLife Take: The lessons we should take away from the Madoff scandal aren’t exactly the ones the media has been relaying, says James B. Stewart. We don’t all need to become forensic accountants, but you need to watch out for a few red flags when making an investment.

Always check to make sure that a recognizable firm audits a potential investment manager’s books. If you don’t know the firm - research it.

For more on the nature of Ponzi schemes and where they came from, check out this post.

Investor Tools for 2009

Fidelity Rolls Out Some Holiday Goodies
FiLife Take: As we get closer to 2009, it can’t help but start to look way better than 2008. Here are toys for investors to enjoy heading into the new year. Fidelity has a more interactive site, get free financial advice and more.

Fidelity’s new site features financial news and tools for managing your portfolio. Through the end of 2008, the American Institute of Certified Public Accountants has their expert members on hand to answer your financial questions. Or you can just talk to our gurus. They are one click away.

Investment Lessons for the New Year

12 Lessons for Investors From 2008
FiLife Take: This year was rocky for some and down right awful for others. But we’ve learned some new valuable lessons and had other oldies but goodies reinforced. Here are 12 lessons Brett Arends will be taking to 2009.

Lesson number one? Take charge of your finances. It’s hard for some people to make the time, but you should understand where your money is invested and why.

Still scratching your head over your finances? Ask one of our gurus a question for personal advice here.

New Years Quiz: Predictions for 2009

What Will Happen in 2009?
FiLife Take: Think you can predict what 2009 will bring in the financial world? Barron’s is ready to give you that challenge with this quiz. The winner gets a year subscription to Barron’s and $100 or lunch in Manhattan with Andrew Bary.

Travel Experiences Trump Tangible Goods

Christmas in Slovakia? It’s All About Priorities.
FiLife Take: Steve Yoder calls himself a “selective spendthrift” when it comes to family vacations. He and his son, Isaac, describe how these intangible experiences are worth more than spending money on more tangible goods.

Your perspective depends on how you view being “rich,” Steve says. His family is rich with experiences, but they spend less on ”stuff,” like brand new cars.

Hello New Year, Goodbye 2008

Say Goodbye and Good Riddance to 2008…
FiLife Take: This year brought many financial fears to fruition. Craig Karmin takes a look at what happened in 2008 and what we’re going to have to face in 2009.

The markets won’t rebound just yet, says Karmin. But stocks are priced right to buy now, if you have a longer-term view of a decade or more.

Reduce Your 2008 Taxes

Last-Minute Tips for Slashing ‘08 Taxes
FiLife Take: We’re about to move on to 2009, but there are still ways you can cut your 2008 taxes, says Tom Herman. He lays out some basic rules and how to lock in valuable deductions.

If you don’t have cash to donate, Herman suggests charging your donation. Even if you pay off the card next year, the donation is deductible for 2008.

Pocket Profile: Madame X of My Open Wallet

An anonymous NYC blogger, Madame X has made her mark in the personal finance blogosphere. Her blog, My Open Wallet, has been featured in the New York Times, Business Week, Marie Claire and more. She took the time to talk to us about her financial goals and living frugally in NYC.

The Basics:

Name: Madame X
Age: Close to 40
Day Job: Publishing

According to our Stackers:
Household Income: Greater than 81% of Americans.
Rent/mortgage: 11% of Americans pay more in rent.
Student Loans? None! Top percentile.
I paid them off a few years ahead of schedule when I was about 28. That was a proud moment.
Credit Card Debt? None! Top percentile.

What are your two favorite financial products? Why?
1. Not sure what counts as a “product.” I love using Quicken to organize my finances and stay constantly aware of my spending and net worth.

2. I also am very fond of my United Mileage Plus Visa card. I like spending on a credit card as much as possible, so I have records of the expense and it can be downloaded into Quicken. I also love earning the miles—I’ve gotten several free tickets that made vacations much more affordable.

What are your least favorites? Why?

Right now I think my 401k and E*Trade accounts are my least favorite, but only because they are down by such huge percentages!

The Bigger Picture:

What PF achievement are you most proud of?
I’ve managed to save quite a bit of money while living in NYC, which isn’t easy to do, especially when you work in publishing. I’ve managed to get a few promotions over the years, but for most of the time I’ve lived here my income has been relatively low by NYC standards. I’ve always maximized my 401k and tried to keep my living standards relatively frugal, while still managing to treat myself and have fun.

Tell us about your blog.
I started My Open Wallet in July of 2005, at a point in life when I realized how much money underlies every aspect of my life and every decision I make. By writing about money, I can post about almost anything and manage never to be off-topic! I sometimes offer tips and suggestions and explanations, but for the most part, I don’t give advice. I’m not an expert and I would not feel comfortable trying to take on some all-knowing role. I just like to show readers how one person can live within her means in NYC, with all her questions and successes and failures. I also love to explore the psychology and sociology of money, and share stories that will inspire laughter or debate. I think many readers share this fascination, and enjoy the light-hearted tone of my blog.
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Consumers Still Buying Botox

Botox Remains Popular in Downturn
FiLife Take: Some people are struggling to pay their mortgages - others are struggling to ward off wrinkles. Even in this economy, there hasn’t been a decrease in enhancement services such as Botox.

Instead of one invasive and expensive surgery, patients enjoy the pay-as-you-go qualities of Botox injections. And some patients view the treatments as an investment in their self-preservation, reports the Wall Street Journal.

Low Rates Bring Influx of Mortgage Applications

Mortgage Applications Surge on Falling Rates
FiLife Take: Falling interest rates have brought a surge of mortgage-loan applications, with a large number requesting refinancing rather than new purchases. The housing market is still unsteady, so it’s unclear if all the applications will receive loans.

However, banks may receive more pressure from the government to increase their lending with the rise in potential mortgages, given the bailout money they received.

Wonder if you should refinance now with lower rates? Have a pressing mortgage question? Ask our mortgage guru to break it all down for you.