As happens every year at this time, the financial books for the previous year close, and it doesn't take long for "experts" to start looking into various and sundry crystal balls to figure out what's in store for the year ahead.

Could we do any less than offer to you the Dolans' outlook for 2008? Of course, we couldn't!

Actually, there are some serious trends playing out this year that will affect your finances - from the economy to housing prices to a volatile stock market, not to mention record oil prices!

With a laundry list like that, you may believe that our outlook for 2008 is a bleak one. While we do believe 2008 will be a year not for the faint of heart, the good news is we can still have a successful and profitable year! We want to lay out for you what we see as the roadmap to that success.

In the midst of all the financial turmoil swirling around us, our mantra will be: KEEP IT SIMPLE, STUPID. That's right, this tried and true wisdom of the ages will be crucial for us this year. KISS investors should be able to weather whatever this new year brings -- be it a tsunami, earthquake, hurricane or just a few showers -- and stay on the path to growing their wealth.

Here's our take on what we expect to be some of the biggest issues in 2008, as well as our advice for you on each:

Real Estate: The only voices currently cheerleading for this sector came from the National Association of Realtors - and why not? This group is the most heavily invested in housing prices turning around. But behind closed doors, our guess is the "happy masks" come off and the hand-wringing begins.

Mortgage defaults continue to rise, housing prices continue to fall (the national average is down 10%; some hard-hit areas are down 20%), and a whole new batch of adjustable rate mortgages (ARMs) will reset higher again this year! (Click here to learn more about how all of this affects you and what you can do about.)

Loss of equity in homes was estimated to be a staggering $1.2 TRILLION last year, making homeowners feel a lot poorer. You only have to look at the disappointing retail sales figures for the latest Christmas season for confirmation that folks are not spending as much. Even Internet sales failed to better their growth in 2007.

As you may recall, home equity gains fueled consumer spending in '05 and '06. But with housing prices flat or lower, and many mortgage lenders refusing to lend, the American consumer is going to have to start buying the old-fashioned way - with CASH, if they still have any!

Our advice: If you're buying a home this year, stick with a fixed-rate mortgage! If you have an adjustable mortgage and plan to be in your home for at least five years, refinance to a fixed-rate loan now. And, you probably figured this already, but we recommend you not invest in real estate in 2008.

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