With the unemployment rate on the rise and the economy in recession, many Americans - especially those over 50 - are struggling to cope with disintegrating disposable incomes and early retirement. Baby boomers are asking - quite desperately - how they can hold onto the cash already in hand and ensure it is protected.

Experts agree that safeguarding cash should be a priority. Tantamount to growing a retirement account is keeping it secure, earning a better- than- ave rage interest rate and ensuring that the money is accessible when needed. To achieve all three, consider the following strategies:

• Open a High- Yield Savings Account - Depositing 10 to 20 percent of your income in a bank account that guarantees its interest rate will be in the top 10 percent of all rates for the life of the account will keep money safe while also easing the pressure in times when money becomes unexpectedly needed for emergencies.

• Get the most from FDIC insurance - While the majority of banks offer customers $250,000 in FDIC insurance for an account, some institutions are now offering up to $750,000 in FDIC insurance. This allows customers to keep their large investments in one place without assuming unnecessary financial risks.

• Take a look at short- term bank certificates of deposit - By placing at least half of the balance in three- and six- month CDs, the money will earn a competitive rate but remain accessible. CDs are a smart, safe, and simple way to invest for potentially high yields, and peace of mind. Plus, when it is time to roll over, CDs may offer additional returns.

• Check out highquality, low- cost money funds - Putting the rest of the cash into a money- market fund allows for instant liquidity through checks - and solid earnings that don't cost an arm and a leg in fees.

In a sluggish economy, retirement accounts can fizzle fast. That's why it is imperative that the cash in hand is safe, accessible, and earning a good rate of return. A few simple changes now can pay large dividends tomorrow. Stretch each dollar to meet expenses without dipping into retirement funds. Enjoy retirement, rather than sweating the bills.

About the A uthor: J.

Randall Waterfield, CFA, is

the co- chairman and

co- CEO of Waterfield

Financial Services.