Money management

* Late payments and credit

Q: Because of a job change, I recently have been late on a couple of my credit card payments and once on my auto loan. How much have I damaged my credit?

A: You may not have damaged your credit at all, depending on how late you made the payments. Although your credit card or auto finance company may have charged a late fee, the credit reporting agencies consider a payment late on the 31st day after the payment was due.

* How to address estate planning

Q: I'm relatively new to my practice and have a wife and a baby. Where should I begin when it comes to estate planning, and what should I focus on for now?

A: Work closely with a financial adviser and estate attorney to develop an estate plan that meets your personal objectives:

Will. With a will, you direct when, to whom, and in what amounts your assets are distributed. Also, you select the executor or personal representative; i.e., the person who is responsible for the disposition of the estate.

Guardianship. In your will, you can specify the person who is to be guardian of your minor children, and you can waive the requirement of a bond. You also can specify who will manage your children's inheritance, how the money is to be spent, and at what age your children will receive the money directly.

Living will. The advanced directive permits you (the patient) to communicate, in advance, the medical care decisions you would make regarding your care should you be rendered incapacitated.

Power of attorney. This document gives one or more people the power to act on your behalf.

* Hit the books

Q: Can you recommend a book to help beginners learn about managing money?

A: A great book about managing money for beginners is The Wall Street Journal Lifetime Guide to Money: Strategies for Managing Your Finances.

* Learn about closed-end funds

Q: One of my colleagues was talking about a closed-end fund. What is this, and when might it be a good investment option?

A: A closed-end fund is a type of investment company, similar to a traditional "open-end" mutual fund. Unlike a mutual fund, a closed-end fund does not continually issue shares. Instead, a fixed number of shares trade on an exchange or over the counter, and an investor seeking to purchase or sell shares must pay whatever the market will bear. This situation is in sharp contrast to one involving a traditional mutual fund, where the market forces are on the fund's holdings, not the fund itself.

Inside closed-end funds and traditional mutual funds are portfolios of investments (stocks and bonds). The net asset value (NAV) of the investments in the fund is its total assets minus its total liabilities. You calculate the NAV of a single share by dividing the fund's NAV by the number of outstanding shares. This is the price per share you see listed in the newspaper or on the Internet.

With closed-end funds, however, there is a second value: the actual price the market will bear to purchase the closed-end fund. Remember, you are not purchasing and selling a closed-end fund from a mutual fund company; you are trading on an exchange or over the counter. Because of the relatively lax reporting requirements (compared with traditional mutual funds), the market for closed-end funds is somewhat limited. This reality can present opportunities for the conscientious investor.