-LRB- OPRAH.com -RRB- -- I know you 've got the major risks in your financial life well taken care of : Your 401 -LRB- k -RRB- is properly diversified to help you weather market volatility , and your reserve cash fund is on call to cover life 's inevitable emergencies . Good work ! But I 'm worried about your financial blind spots -- those pesky threats to your security that lurk behind seemingly sound decisions . Here are a few common traps , and advice to ensure that you wo n't get taken by surprise : Perils of plastic Good news : You 've sworn off credit cards . Goodbye insane interest rates and fees ! You 're sticking with your debit card from now on . Hidden risk : Debit card transactions are n't reported to the credit bureaus , so if you do n't use a credit card , you 'll have less of a payment history -- which hurts your FICO credit score . How to stay on top : I love , love , love that you want to use your debit card . But to keep your credit score solid , you still need to keep a few credit cards and use them at least once every few months . Even if you think you 'll never need to borrow again , your FICO credit score has a big impact . It can affect your auto insurance premium and whether a landlord will rent to you , and many employers even check it when vetting a job application . Cards issued by credit unions typically charge lower rates -LRB- generally limited to a max of 18 percent -RRB- and fewer fees . Check out CreditCardConnection.org to find the best options . Oprah.com : How to deal with credit card debt The bond issues Good news : You 're sleeping better than ever since you moved all your retirement money out of stocks and into bonds . Hidden risk : You 're approaching two land mines here . First up is inflation . Make it to age 65 and there 's a good chance you 'll live another 20 years or longer . -LRB- More on this in the next item . -RRB- Over a 20-year period , a 4 percent average inflation rate -LRB- the historical norm since the '50s -RRB- will reduce the purchasing power of today 's dollar to about 50 cents . That will make it very hard to maintain your standard of living in retirement . Bonds are n't an ideal inflation hedge , since their historical returns are typically not much better than the inflation rate . Making matters worse , because of the financial crisis and the Federal Reserve 's efforts to keep the economy growing , bond yields are at unprecedented lows . This is not a permanent situation . Soon -- maybe this year or next -- interest rates , and thus bond yields , will start to rise . When rates rise , the market price of bonds falls . That hurts your portfolio . How to stay on top : Every portfolio benefits from bonds ; they provide a cushion when the stock market hits a rough patch . But avoiding stocks completely could mean your investment wo n't grow any faster than the rate of inflation . As a general rule , your age is a good guideline for the percentage of bonds you want -- if you 're 55 , put 55 percent in bonds and 45 percent in stocks . If you 're worried about putting money in stocks right now , stick with mutual funds or exchange-traded funds -LRB- ETFs -RRB- that focus on dividend-paying stocks . The dividend payout is a steady stream of income , much like a bond , and right now the yield on some dividend portfolios is actually higher than the yield on a five-year Treasury bond . While dividend stocks have their own risk , if you have time on your side -- at least ten years -- you can pocket that nice dividend income today , ride out the volatility , and , over the long term , potentially earn inflation-beating gains . Oprah.com : How to go green on the stock market Live long -- and prosper ? How to enjoy a long , comfortable retirement Good news : You 're likely to reach a much older age than women of previous generations . Today a woman of 65 will probably live 20 more years -- 60 percent longer than her life expectancy in 1900 . Hidden risk : That means more years that your 401 -LRB- k -RRB- and IRA need to support you . How to stay on top : To enjoy a long , comfortable retirement , save more today . If you 're 50 or older , take advantage of the catch-up provisions : Instead of an annual 401 -LRB- k -RRB- max of $ 16,500 in 2010 , you 're entitled to invest $ 22,000 , and your IRA limit rises from the standard $ 5,000 to $ 6,000 . You may also want to retire later . Working until 67 or 70 gives those funds more time to grow -- which gives you more security . You do n't have to keep the high-powered career you have now ; a less demanding job will still bring in valuable income . Retirement loans : on borrowed dimes Good news : You 're in a pinch , but your company allows you to borrow from your 401 -LRB- k -RRB- . Hidden risk : Make that plural -- there are three problems with taking your company up on that loan . First , if you leave your job , voluntarily or not , you 'll typically have only a few months to pay back what you 've borrowed . If you ca n't , the loan converts to a withdrawal on which you 'll owe income tax , and if you 're under 55 you 'll also be hit with a 10 percent early withdrawal penalty . Second , when you pull money out of any investment , it 's no longer working for your future . Anyone who took a loan from their 401 -LRB- k -RRB- in early 2009 missed out when the S&P 500 stock index shot up more than 60 percent from March to December . That was a costly time to be out of the market . Third , your loan money will end up being taxed twice -- when you repay the loan it will be with after-tax dollars , and then in retirement , when you begin using your 401 -LRB- k -RRB- for living expenses , you 'll be responsible for the tax due on those withdrawals . How to stay on top : Make a 401 -LRB- k -RRB- loan an absolute last resort . A well-maintained emergency savings fund is a far better insurance policy against unforeseen expenses . As you know , I advise saving up eight months of living expenses -- especially now , when most unemployed people need at least six months to find a new job . Kids need the darndest things Good news : You 're expecting , or you have young kids . Hidden risk : You may not be providing enough security for your family if something happens to you . How to stay on top : You ca n't control fate , but you absolutely , positively can make sure that your children will be financially secure , no matter what . A term life insurance policy that 's at least 15 times your annual income will give your kids ' guardian plenty of money to raise them according to your wishes . I know that sounds like a lot , but these policies are remarkably inexpensive . Oprah.com : Discover the pleasures of pinching pennies Shaky foundations Good news : The steep decline in home prices means you can afford to buy your first home . Hidden risk : It 's easy to underestimate the real cost of home ownership . How to stay on top : Property tax , insurance , and maintenance can add 30 percent to your base mortgage . To see how that extra expense will affect you , plug in your price range for a home at BankRate.com to determine your monthly mortgage payment , and then add 30 percent to that figure . If the total is more than your current rent , spend six months `` playing house '' -- each month , deposit the difference between your rent and your probable mortgage payment into a separate savings account . If you ca n't afford this exercise , you ca n't afford to buy a home at that price just yet . And do n't forget : Before buying a home , you must have an emergency fund that can cover your expenses for eight months . If anything happens to your job or a big expense pops up , you 'll need to have the cash to pay the mortgage . Finally , do n't buy if there 's any chance you 'll move within five to seven years . If you sell a newly purchased house , you risk making too little on the sale to cover the typical 6 percent agent 's fee and your moving costs . I know the housing market 's rock-bottom prices are tempting , but it 's better to be safe than sorry . By Suze Orman from O , The Oprah Magazine © 2010 Subscribe to O , The Oprah Magazine for up to 75 % off the newsstand price . That 's like getting 18 issues FREE . Subscribe now ! TM & © 2011 Harpo Productions , Inc. . All Rights Reserved .