(MONEY Magazine) – MONEY FLASH Let' s get serious about stock market reform by Jerry Edgerton To restore investor confidence, the major exchanges have proposed new trading rules. But if small investors are truly going to be protected, the fixes must be more than cosmetic. Real reform is needed -- now. Page 60

COVER STORY: CASH Riding high on rising rates by Clint Willis Whether you' re seeking safety, superior yields or a combination of both, cash is once again the king of your investments. If interest rates keep rising over the next few months, returns on many cash investments will get even better. But among the cash alternatives, yields vary widely -- as does the degree of safety and liquidity. Here' s how to create a portfolio offering the highest return consistent with your goals. Page 62 -- Profile: A saver worries about inflation. Page 64 -- Profile: A couple seek safe growth. Page 65 -- Q& A: Money fund expert William E. Donoghue explores the cash alternatives. Page 66 -- Profile: An investor aims to stay liquid. Page 68 -- Money Tip: High jinks with high yields. Page 68 -- At a Glance: How 10 different cash investments compare. Page 72

How to hang on when loan rates go up by Robert J. Klein With lending costs headed skyward and adjustable mortgages proliferating, borrowers should make sure that their ARMs do not exceed their grasp. Plus, the interest hikes pose a special threat to holders of a home- equity line of credit. Page 77 -- Chalk Talk: Which index is your loan tied to? It can make a big difference. Page 80

FEATURES One Family' s Finances: Why temping is a risky business by Suzanne Seixas Warren and Anita Harder joined the growing work force of nomadic professionals who love the freedom that comes from working temporary jobs. But their choice of lifestyle has its drawbacks. Today, although they make good wages, they have no company health plan or disability insurance and they face a gathering pile of debt. Our advisers think the price they pay for their freedom is too high. Page 89

MONEY' s All- Pro Stockbrokers by Junius Ellis Dull markets provide the true test of a broker' s mettle. Ingenuity and a dedication to their customers' interests rather than commissions are the hallmarks of excellence among professional stock advisers. In selecting our team of top brokers we focused on these and other key attributes that distinguish the All- Pro from the journeyman. Page 104

Those $*&*!! % statements by Bruce Hager You know that they' re important, but sometimes they can be so confusing that it' s hard to figure out what they really mean. This series, starting with mutual fund statements, will help you find out. Page 114

Mailbox to microwave to mouth to mmmmmm ! by Debra Wishik Englander With a credit card and a phone call, you can send scrumptious food to a friend as a gift -- or to your own home -- overnight. Here' s a sampling of the best mail- order fare. Page 120 -- The Pros' Picks: Food critics Craig Claiborne, Mimi Sheraton and other writers and chefs reveal their favorites. Page 126

SPECIAL REPORT: THE POWER AND PRODUCTS OF AARP The empire called AARP by Eric Schurenberg and Lani Luciano You may already know that the American Association of Retired Persons has nearly 30 million members. You may be one of them. What you probably don' t know is that under its nonprofit halo, AARP is not only a feared lobbyist but also a marketer of awesome proportions. Page 128

Should AARP handle your finances? by Eric Schurenberg, Marguerite T. Smith, Lani Luciano and Mary Granfield You can invest in AARP mutual funds, buy AARP health, auto and homeowners insurance, open an AARP credit union account, take an AARP vacation, order AARP drugs and even turn over your tax return to an AARP volunteer. Whether you ought to is another matter altogether. Page 148

DEPARTMENTS 4 Editor' s Notes: Why you need to know about AARP 9 Wall Street: The best stocks for tough times 21 Money Helps: Answers to your questions 29 Money Update: You and your 401(k); beware of covered calls; tax preparers turn peddlers 39 Investor' s Scorecard: Settling credit- card billing errors 47 Fund Watch: Opportunities in closed- end bond funds 167 Investing Basics: Why you should respect dividends 172 Index: The most useful articles of the past 12 months 179 Model Portfolio: Seeking security on an unsteady income 182 Mail: Letters from our readers 187 Money Profile: Why the top inflation forecaster is bearish 191 Your Taxes: The high cost of underwithholding 192 October Checklist: What you should do this month

COVER SUBJECT Cash investors (from left), Keith Riegelsberger, Jay Meena, Christine Sanders- Meena and Lynn Swickert. Cover photographs (from left) by: Bill Ballenberg, Rosanne Olson, Jonathan Levine.