To begin with, let's define subprime loans. Generally speaking, a subprime loan is a mortgage made to a borrower who might not otherwise qualify for a loan. Subprime lenders typically charged these borrowers higher interest rates, but some subprimes were adjustable rate mortgages (ARMs), which meant they carried a lower rate for the first few years of the loan. Many subprime borrowers took out ARMs, hoping their credit would improve enough for them to qualify for a better rate before the mortgage rate was adjusted upward. When this didn't happen, they were hit with higher payments and many faced foreclosure. Because many of these mortgages had been resold and then packaged into other financial vehicles, the bad loans hurt these investments.

• Contributions to Section 529 plans - If you have a child (or grandchild) that will be headed off to college in a few years, you may want to contribute to a Section 529 college savings plan. Your earnings and withdrawals will be exempt from federal taxes as long as the money goes toward paying college costs. There may be additional tax benefits to those who participate in their own state's plan. Also, you can contribute generous amounts to your savings plan. Plus, you can change beneficiaries; if you've been putting money in a Section 529 plan for your child or grandchild, and he or she decides to forego college, you can transfer the money to another family member.