Consumer Reports Money Adviser took half a dozen bits of commonly repeated wisdom and reevaluated them in light of events such as the current mortgage and credit meltdown. Among them:

“Pay yourself first” — CRMA has advised it often: consumers should build their savings automatically by direct depositing money in a tax-deferred retirement plan such as a 401(k). But does that suggestion hold if you carry large balances on credit cards or other high-interest loans? No. Unless you are making fabulous returns on your savings and investments—higher after taxes than the double digit cost of your credit-card debt—deal with your debt first

“Borrow from your home for nearly everything” — If your credit is good and your home equity is still a significant part of your home’s estimated value, you remain a good candidate for a home-equity loan or HELOC. But even if you qualify to borrow against your home, proceed with caution. If you have an open HELOC, don’t close it, but view it as an emergency backup. Using your HELOC or loan to maintain or enhance your lifestyle—paying for a flat-screen TV or a dream vacation—means your cash flow is out of whack. Those kinds of purchases should be built into an annual budget, financed by income and savings.

“Focus on the payment, not the total cost” — The auto financing business thrives because so many consumers look at monthly payments and not the total cost. How else to explain the seven-year car loan which can add $6,000 in interest for a $22,000 Toyota Camry? Instead, keep your eye on the total cost. And when you’re buying a big-ticket item, remember that what may seem like small additions compared with the overall price can add up to significant, and often unnecessary outlays.

Consumer Reports Money Lab: Target-Date
Retirement Funds Have Stark Differences

Target-date retirement funds—designed as a basic Buy and Hold investment to be added to when you retire—are among the hottest investment products of the past few years. The Consumer Reports Money Lab found some stark differences among the three largest target-date fund groups which account for 80 percent of the business: those offered by Fidelity, T. Rowe Price and Vanguard.

The returns of the three largest target-date funds generally fell within 2 percentage points of each other, despite very different asset allocations. For example, Vanguard’s target-date funds, which are a collection of its own index funds (hence the low expense ratio), carry very little cash, while Fidelity has as much as 10 percent cash in its 2015 Freedom Fund. But this was just a recent snapshot: CRMA experts also looked at the asset mix of the funds over the past three years. While the stock allocations of the Fidelity and T. Rowe Price funds seemed to be constant over that time, Vanguard managers appear to have had a change of heart—twice. In 2007, the fund’s managers raised the stock allocation in the Vanguard 2015 fund, then more recently reversed course and returned to their 2006 levels.

CRMA’s advice to investors: Periodically check the updates that the fund sends to make sure the autopilot is on the right course.

How to Decide if Long-Term-Care Coverage Makes Sense for You

Long-term health care can be expensive: The average monthly cost for a one-bedroom assisted-living facility in 2008 is $3,008 and home health care aides cost about $29 an hour. You might be able to cover some of the expenses with a long-term-care insurance (LTC) policy, but it can also be pricey and you might pay for it for decades before you even use it. And such policies often provide only limited benefits with many restrictions. 

CRMA experts offer the following tips to help decide if an LTC plan is a good idea.

In general, if you have a net worth below $200,000 to $300,000 (not including your home) an LTC policy won’t be an affordable option and you will probably rely on government programs should you need long-term care. If you have assets of about $2 million or more, you should be able to pay for care yourself. If you fall in between, you’re a more likely candidate for an LTC Policy.

In your 40s — There is very little reason to buy a plan at this age. You have time to ramp up your savings and prepare to pay for care out of your own assets. And although your premiums would be lower now, you’re likely to be paying them for 30 or 40 years. Financial planners advise that it’s more important at this age to have life and disability insurance.

In your 50s — This is probably the best time to begin reviewing your options for financing an LTC policy. If you expect to work to age 67 or 68 and can afford the premiums, you can buy a policy that allows you to pay it off in ten years, so you don’t have to pay it off in retirement.

First, consider whether or not you might be facing years of expensive care. If dementia, neurological disorders, or chronic conditions like diabetes run in your family, it raises those odds. If your relatives tend to live a long time, you might also want coverage.

In your 60s — If you’re healthy, this might be the best time to shop for a policy if you decide you want one. The average age at which most people sign up for LTC coverage is 61. If you wait much longer, you run into insurability and affordability issues. If you don’t qualify for an individual plan, you might be able to get group coverage at work or through a professional association that offers one. Premiums will be cheaper and you won’t need to pass a medical exam, although you’ll probably have to buy a one-size-fits-all plan, which may not be your best option.

Consumer Reports Money Adviser is a monthly newsletter that answers tough money questions and provides expert financial advice. Its proven information and successful strategies make any financial decision an easy one. Each month, CRMA provides feature articles and helpful investment, savings, and spending advice that will prepare consumers for anything life may bring them.