INVESTORS have been put through the wringer as the market closes in on a third year of negative returns, making monthly 401(k) and brokerage statements painful events for many.

"Beaten up, very insecure, lacking confidence, sort of disgusted with the markets, disgusted with their 401(k)," said David Root Jr., a Pittsburgh financial planner. "What I have been hearing is 'I keep putting money in my 401(k), and I keep losing money.'"

Still, investors must take an active role in managing their money. Here are moves some experts recommend for the new year:

Rebalance your portfolio. Make sure your portfolio has the right mix of stocks, bonds and cash to meet your goals, said Margaret Jones, chief executive of Whittlinger Capital Management in Minneapolis. This may mean selling off a portion of your winners and dumping losers to offset any capital gains, and reinvesting the proceeds, Jones said.

"People got hurt because they weren't diversified," she said.

Return to stocks. "If you're out of the market, you need to get back into the market," said Chuck Carlson, chief executive of Horizon Investment Services in Hammond, Ind. "You need to start taking advantage of price [discounts] we've had in the last three years."

Carlson said the outlook is better for growth than value stocks next year.

Sandy Liotta, resident manager of Merrill Lynch's Towson office, recommends high-quality stocks and those that pay a high dividend.

High-quality stocks "tend to be the names that you heard of, and names that constantly grow their profits and earnings," she said. These stocks are less expensive now than some riskier stocks with an emphasis on capital appreciation, she said.

Liotta said dividend-paying stocks should do well as baby boomers age and there's an increased demand for these income-producing shares. "If we have a slower growth environment, dividend yield might make up more of the performance than capital appreciation," she added.

Others recommend dividend-paying stocks because they expect that Congress next year will reduce or eliminate the income tax paid on dividends.

Prune bonds. If you own individual bonds that are maturing or can be "called" - redeemed by the issuer - in the next three years, you can likely sell them now at a premium, said Thomas Grzymala, a financial planner in Alexandria, Va.

Park the proceeds in a short-term municipal or taxable bond fund, he said.

Contribute more to a 401(k). Next year, the amount workers can contribute annually to a 401(k) goes from $11,000 to $12,000. Workers 50 and older can contribute up to $14,000 next year, up from $12,000.

But the weak stock market has caused some workers to stop contributing to their 401(k) or to transfer 401(k) money out of stocks and into bonds and money market funds, said Jonathan Murray, senior vice president of Legg Mason Wood Walker Inc. in Baltimore.

"People should do exactly what they don't want to do," Murray said. Not only should workers increase their contributions, but they should invest in stocks to meet long-term retirement goals, he said.

"If you do what feels right emotionally, and you put your money in a money market fund today earning 1 percent because it's 'safe,' it will take you 72 years to double your money," he said.

Refinance a mortgage. It's not too late to refinance and take advantage of low-interest rates, even if you refinanced a year ago, said Liotta.

"If someone is going to stay in the house greater than a couple of years, it might make economic sense to refinance because interest rates haven't been this low for many decades," she said.

Refinancing can also free up cash so you can increase your 401(k) contributions, she said.

Pay off credit card debt. There's no better return on your money now, experts said. "If you paid off a 12 or 15 percent credit card, you are making 12 or 15 percent on your money. You are not getting that in any stock market these days," Grzymala said.

Develop a financial plan. People "used to think a financial plan was just about investments. Now they are realizing it's about accomplishing what they want out of life," said Peg Downey, a Silver Spring financial planner.

A thorough plan will make sure you have the appropriate insurance and estate documents, Downey said.

Get financial records in order. This is one of the best things you can do for your loved ones, who might be left struggling to piece together your finances in the event of your death, said Joel Ticknor, a financial planner in Reston, Va.

Write down where you keep your insurance policies, a list of investment accounts and the names and numbers of your financial adviser, broker, lawyer, accountant and other key people, Ticknor said.

To suggest a topic, contact Eileen Ambrose at 410-332-6984 or by e-mail at eileen.ambrose@baltsun.com.