We hear weekly from so many readers who fear that they'll make the wrong investments. But doing well with your family's finances involves some very simple principles.

First, you're light-years ahead of most families if you can avoid these key mistakes:

Neglecting health insurance, property insurance, life insurance, disability insurance and/or a plan for long-term care in case you or someone you love has to go into a nursing home.

Relying too heavily on your employer and the value of your home for retirement income. Many pension plans are underfunded. Housing prices fluctuate. Consider starting and/or contributing to your own retirement plan.

Failing to have an estate plan so your loved ones are sure to get your money when you die. Don't yet have a will? Get one. Make sure it's up-to-date. Own a business? Make plans so your business can be passed on to the right people. Establish a business succession plan.

Gambling with investments. Don't bet the ranch on one thing. Invest in a mix of stocks, bonds and cash, or mutual funds that invest in a variety of securities.

Misunderstanding bonds. As interest rates rise, the value of your bond drops if you must sell it and vice versa. If you're holding your bond to maturity, this likely isn't important. You're guaranteed by the issuer to get your principal back. However, if you invest in a bond mutual fund, in which the manager constantly buys and sells bonds, expect to lose principal in a rising-rate environment.

You also can help secure your family's wealth by saving on life insurance. Individual life insurance should cost less this year, according to the Insurance Information Institute. Reasons: People are living longer, so mortality charges are lower. Plus, hot insurance industry competition keeps a lid on prices.

These steps can help lower life insurance premiums even further:

Quit smoking. Nonsmokers pay lower life insurance premiums.

If you're younger, consider term insurance, which has no "cash value" or savings component.

Eat right and exercise. Get your cholesterol level below 200 milligrams per deciliter, the target set by the National Cholesterol Education Program for those over age 20 who do not have heart disease. Keep it there. With some insurance companies, if you can get your underwriter to qualify you as a "preferred risk," you save almost 50 percent on premiums.

Shop for policies with low numbers on two measures, the "Net Payment Cost Index" and "Surrender Cost Index." The Net Payment Cost Index is important if your concern is the final death benefit. Compare the Surrender Cost Index if you expect to surrender the policy and hope to take its cash value.

Now that interest rates are on the rise, there are lots of attractive higher-yielding, lower-risk investments. The higher the yield, the greater the risk. Here are some tips.

Corporate and municipal bonds rated AAA by Standard & Poor's and Aaa by Moody's are issued by the financially strongest corporations. Risky bonds are rated below triple B.

Insured municipal bonds are backed by the AMBAC and MBIA, two large municipal bond insurance companies. These companies only insure municipal bonds that are rated AAA and Aaa by Standard & Poor's and Moody's.

Fixed annuities offered by insurance companies rated A+ and A++ by A.M. Best and AAA by Standard & Poor's are lowest-risk.

Shop the highest-yielding federally insured savings accounts and CDs at www.bankrate.com. Shop money market mutual funds, which are not federally insured but invest in short-term debt, at www.iMoneyNet.com.