http://www.moneysmartz.com/weblog/ Moneysmartz helps individuals easily navigate through the chaos and clutter of the Web to the information and advice they need to make smarter financial decisions. en Copyright 2008 personal+finance money Sun, 01 Jun 2008 12:33:10 -0600 http://www.movabletype.org/?v=4.21-en http://blogs.law.harvard.edu/tech/rss Do-it-yourself or get help? This question, a dilemma for many, will occur early and often during the course of your financial life. As your personal finances become more complex, you will inevitably need help from an investment professional. The following tips will help you make an informed selection:

• Determine your personal finance objectives and think about the services that will meet these objectives. For example, are you saving for retirement, protecting against risk, preparing your estate, or putting money aside for the education of your children? These are just a few of the potential questions that will help determine the financial services you are seeking. Financial services fit into an array of disciplines, including financial planning, estate planning, retirement planning and preparation, tax planning, investment management, college financing and planning, and insurance. Investment professionals may specialize in one discipline or offer services in several areas. Don't worry if you can't think of a complete list of financial services to meet your needs, because, after all, this one important reason for getting help.
• Ask trusted sources like friends and relatives for the names of investment professionals. Keep in mind that everyone's financial situation is unique, so what is good for your neighbor, may not be good for you.
• Don't use titles or generic terms to make your selection. According to the Financial Industry Regulatory Authority ("FINRA"), the largest non-governmental regulator for all securities firms doing business in the United States, titles like Financial Adviser or Financial Planner can be used by investment professionals that may not "hold any specific designation."
• Understand professional designations. The list of designations continues to grow, with each one representing something different. FINRA lists almost 100 designations. There are requirements for each designation, so when an adviser lists a credential, ask questions about the meaning of the designation and where to go to verify the designation. For example, to verify the credentials of a purported Certified Financial Planner, visit the Certified Financial Planner Board of Standard's search page and enter the name of the professional. To understand the meaning of a designation, do a Google keyword web search using the designation title. For example, Google keyword search "CFA" links to the CFA Institute, the organization offering the Chartered Financial Analyst designation.
• Conduct face-to-face interviews with prospective investment professionals. FINRA suggests the following questions: "areas of specialization, professional designations, registrations or licenses, education, work history, investment experience, products and services, and disciplinary history." Be sure to ask about compensation, which may be hourly, a flat annual fee, commission based, percentage of assets managed, or a combination of commissions and fees. Ask if the professional or their firm receives additional compensation for selling particular investment products. Finally, in the case of a professional offering investment products, ask if their firm is a member of the Securities Investor Protection Corporation ("SIPC"). According to FINRA, "the SIPC provides limited customer protection if a firm becomes insolvent."
• Verify state and federal regulatory registrations of the investment professional and their firm. Ask the prospective professional if they and their firm are registered at the state, federal, or at both the state and federal level and the actual name of these regulatory authorities. Once you have the name of the regulatory authorities, visit them online or call to verify registration. Many investment professionals and their firms are registered by FINRA, so a great place to start is FINRA's BrokerCheck, "a free online tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers." In addition, FINRA provides links to state regulatory authorities.
• Ask for references. Going the extra mile and checking references is worth the effort when considering that you may be entering into a lifelong relationship with the selected investment professional.
• Make sure the services being offered fit your unique needs and situation. Every investment professional should tailor a solution unique to you and your situation. Beware of professionals offering "one-size-fits-all" services.

Ultimately, selecting an investment professional is your responsibility, so whether you choose to do-it-yourself, or partner with one or many investment professionals, you control your financial destiny.

Suggested Sites: FINRA, Securities and Exchange Commission, CFP.net, Financial Planning Association

Guide Categories: Financial Planning, Insurance, Investing, Estate Planning, Retirement Planning, Tax Preparation and Planning, College Financing and Planning]]> http://www.moneysmartz.com/weblog/archives/2008/06/investment_professional_selection_tips.php http://www.moneysmartz.com/weblog/archives/2008/06/investment_professional_selection_tips.php Financial Planning Investing The Moneysherpa Pages Sun, 01 Jun 2008 12:33:10 -0600 2008 started with such promise. Sure, the danger signs were everywhere, but like every New Year, optimism prevailed. Well into 2008, many wish for another new year and an end to the stream of economic woe and confusion. Before throwing in the towel, Moneysmartz offers the following ideas to survive and thrive:

• Take stock of your current financial situation. Begin by calculating your net worth and determining if you have enough saved in an emergency fund. You might find that you are in better shape than you thought or that you need to act right away to shore up your financial situation.
• Prepare a budget. Sites like Mint.com make it easy and it won't take as much time as you think.
• Assess your protection against risk by inventorying your insurance coverage. In the event of a worst-case, you'll be happy you took the time.
• Avoid making investment decisions based on emotion. Understand your risk tolerance and investment time horizon to avoid selling low and buying high.
• Learn more about the big economic issues of the day so you can make smarter and more informed decisions.
• Try not to lose sleep over a loss in your home value if you don't intend to sell, refinance, or get a home equity loan. The market will eventually recover. This provides small comfort to those facing a reset on their mortgage interest rate or foreclosure, but for the majority of homeowners, a reset or foreclosure is not a concern.
• Reduce your daily spending through frugality. Go to sites like Valpak.com for money saving coupons.
• Focus on the areas where you have more control, including your job, your education, your health, and your family. If you are worried about losing your job, then prepare your resume, start calling your friends, and prepare for a change.

Like every economic cycle, this storm will pass and make way for a better day. Understanding this may be half the battle to begin enjoying the rest of 2008.

Suggested Sites: NetWorthIQ, Mint.com, A.M. Best, Insurance.com, CCH Financial Planning Toolkit, About.com Economics, FrontDoor, Federal Reserve Education: Foreclosures, About.com Frugal Living, Cool Savings, Vault.

Guide Categories: Assessing Your Financial Situation, Financial Calculators, Financial Goal Setting, Financial Planning, Insurance, Investing, Investment Time Horizon, Economics, The Federal Reserve Bank, Stagflation, Mortgages, Real Estate, Foreclosures, Frugality, Coupons, Compensation and Benefits.]]> http://www.moneysmartz.com/weblog/archives/2008/05/surviving_and_thriving_in_2008.php http://www.moneysmartz.com/weblog/archives/2008/05/surviving_and_thriving_in_2008.php Financial Planning The Moneysherpa Pages Sun, 25 May 2008 09:56:16 -0600 Chances are you don't have enough insurance coverage. In fact, according to the Insurance Information Institute, nearly 60% of American homes are inadequately covered. So if you think you fall into this group, here's a way to get motivated to get the insurance you really need. Visualize your worst-case scenarios. It's a difficult way to plan, but if a worst-case occurs, you will be thankful you took the time to think ahead. To learn the basics of insurance planning and start filling gaps, visit the MSN Money and Marketwatch guide "Making sure your insurance fits." The Moneysmartz Insurance Guide offers even more links to relevant and reliable sources of Insurance information and advice.]]> http://www.moneysmartz.com/weblog/archives/2008/05/worst_case_insurance_planning.php http://www.moneysmartz.com/weblog/archives/2008/05/worst_case_insurance_planning.php Financial Planning Insurance The Moneysherpa Pages Fri, 16 May 2008 20:30:40 -0600 Spring is finally here, your house is full of clutter, and you are looking for a few extra dollars to pay for the rising cost of gas. If you are willing to invest some sweat equity, then a garage sale is a great way to clean and get some green. Before getting started with your garage sale, visit the Yardsalequeen.com for common sense tips and more links. Wondering how to price your items? Visit Your Garage Sale Source for pricing ideas. Try Craigslist to find and advertise your garage sale. For example, if you live in Denver, visit Google, type keywords "craigslist Denver garage sale," and click "I'm feeling lucky" to view the Craigslist Denver garage sale classifieds page. In addition, many local newspapers host garage sale pages with maps and information, so try Google keyword search "your city garage sales." Finally, if you are pressed for time or feeling charitable, find a local Goodwill to donate your stuff.]]> http://www.moneysmartz.com/weblog/archives/2008/05/garage_sale_tips.php http://www.moneysmartz.com/weblog/archives/2008/05/garage_sale_tips.php Money Management The Moneysherpa Pages Sat, 10 May 2008 08:46:21 -0600 Money Magazine's 2008 Real Estate Survival Guide offers a tale of a world turned upside down with growth predicted for Syracuse, Buffalo, and Scranton, and dire times for the darlings of real estate, including Los Angeles, Miami, Phoenix, and Las Vegas. With projected eye-popping real estate price declines, what can we do to survive and for the select few, even prosper?

The Money Magazine Real Estate Survival Guide offers facts, tips, and insight. Here's how to make the most of the guide:

• Get the facts about your market including home price data for 381 markets.
• Learn the new rules of real estate including how homes will be financed in the future, what to ask your next mortgage broker, and a video on real estate trends.
• Try to stay positive, but if you must wallow in a little misery, take consolation in tales from the California bust.

Like the boom, bust, and boom of economic cycles, this correction will pass, leaving us with new opportunities and a greater understanding of the risks associated with real estate.]]> http://www.moneysmartz.com/weblog/archives/2008/05/money_real_estate_survival_guide_08.php http://www.moneysmartz.com/weblog/archives/2008/05/money_real_estate_survival_guide_08.php Real Estate The Moneysherpa Pages Fri, 09 May 2008 08:40:03 -0600 Wikipedia, an online encyclopedia open to editing by anyone, was the first of many collaborative web-based resources. Squidoo, a relatively new entrant into the space, with an emphasis on openness, declares, "Everyone's an expert on something!" This is bad news if you are looking to use Squidoo for definitive financial advice, but good news if you are looking for fresh perspectives on your personal finances.

To get the most from your visit to Squidoo, the following tips will help guide your way:

• Use the search bar at the top of the Squidoo home page and enter a financial keyword. Let's try personal finance.
• Note the terminology on the search results page. A Lens is a page created by someone. A LensRank™ "is the secret Squidoo algorithm for ranking lenses. A LensRank of #1 is best! (Ex: LensRank #14 beats out LensRank #39,999)."
• Sort search results by LensRank or Recently Updated.
• Buyer beware. Lenses come in a variety of shapes and sizes, including thinly veiled advertisements with links to more obvious advertisements. Like so many web 2.0 websites, the ranking system is not foolproof.
• Patience is a virtue. You'll have to do some digging to find gems. Here are two (we had to do a lot of searching to find these examples): The Best Personal Finance Websites and CFP.

With a fresh way to present the expertise of the masses, Squidoo offers a new, but not necessarily improved, view on your personal finances.]]> http://www.moneysmartz.com/weblog/archives/2008/05/squidoo_personal_finance.php http://www.moneysmartz.com/weblog/archives/2008/05/squidoo_personal_finance.php The Moneysherpa Pages Thu, 08 May 2008 19:55:22 -0600 A recent survey by AARP Financial MoneySmarts found that Americans confusion about financial jargon leads to mistakes and lost opportunities. If you have slogged or searched your way through the mass of financial services information on the Web, or even talked with a financial adviser steeped in technical terminology, then the study results are not a surprise and are not necessarily that helpful. However, the AARP Financial microsite offers a solution, an easy-to-use tool to convert financial jargon into plain language. In case you were wondering, MoneySmarts is not related to or affiliated with Moneysmartz.]]> http://www.moneysmartz.com/weblog/archives/2008/05/moneysmarts_jargonator.php http://www.moneysmartz.com/weblog/archives/2008/05/moneysmarts_jargonator.php Financial Services The Moneysherpa Pages Tue, 06 May 2008 20:37:24 -0600 As the experts bemoan the low personal savings rate in the United States, hovering around zero percent, it's interesting and perhaps instructional to compute the modern day equivalent of a "millionaire."

Before determining the magic number, a base year and inflation index are needed. First, and somewhat arbitrarily, 1955 will be the base year, a time of growth and tranquility, with "millionaire" entering popular culture and representing affluence and the "good life." Next, the Consumer Price Index (CPI), a measure of the average change in prices over time in a market basket of goods and services, will be used as an index to convert 1955 dollars to 2008 dollars.

Using a CPI inflation calculator with 1955 as the base year and the CPI as the inflation index, the magic number is a little over $8 million.

Your reaction to this number may be a shrug of the shoulders, but if you are in 20's, 30's and even 40's, with diminished prospects for receiving Social Security, being a "millionaire" may not be enough to sustain you during your golden years.

The good news is that even if you don't reach $8 million, you have plenty of time to save.]]> http://www.moneysmartz.com/weblog/archives/2008/05/eight_millionaire.php http://www.moneysmartz.com/weblog/archives/2008/05/eight_millionaire.php Retirement Planning The Moneysherpa Pages Mon, 05 May 2008 20:09:55 -0600 "The most important investment you can make is in yourself." Like much of the Q&A during yesterday's Berkshire Hathaway annual meeting of shareholders at Omaha's Qwest Center, Warren Buffett and Charlie Munger offered plenty of common sense wisdom and investing advice, including tips on a variety of topics:

• Self-Improvement: Invest in your mind and body. Your best asset is yourself.
• Investing: For smaller portfolios, invest in a low cost index fund like Vanguard.
• Business Ownership: If you have a great business, then don't sell. Your business is worth more every year. If you are looking to monetize your investment, sell to someone who will be a good steward of what you have created.
• Reading Suggestions for Kids: Start with your local newspaper. The more you learn, the more you will want to learn.
• Recommended Book About Investing: The Intelligent Investor, by Benjamin Graham, especially chapters 8 and 20.
• Fish of the Day Investment Ideas: Avoid them, as most are a way to sell more. For example, the 130/30 Long-Short Equity Fund.
• Business School: Most important concepts that should be learned are "how to value a business" and "how to assess market fluctuations."

For more wit and financial wisdom from Warren Buffett, visit the Moneysmartz Warren Buffett page.]]> http://www.moneysmartz.com/weblog/archives/2008/05/tips_from_the_woodstock_of_capitalism_08.php http://www.moneysmartz.com/weblog/archives/2008/05/tips_from_the_woodstock_of_capitalism_08.php Investing The Moneysherpa Pages Sun, 04 May 2008 08:53:43 -0600 Until the introduction of the Forever stamp last year, the frequent rise in the price of United States Postal Service (USPS) first-class postage presented an annoying dilemma for those left with unused and under priced stamps, waste money by combining two one-ounce first-class stamps or buy smaller denomination stamps to use with the now under priced first-class stamps.

Thanks to a little USPS creativity, the dilemma can be avoided through a Forever stamp, postage purchased today that is good for mailing "one-ounce first-class letters anytime in the future -- regardless of price changes."

With another penny price hike set for May 12, raising the price of a first-class stamp to 42 cents, we are faced with another, more pleasant dilemma. Stock up on the 41-cent Forever stamp today, and save a penny, or wait and buy a 42-cent Forever stamp on or after May 12. Regardless of your decision, the Forever stamp will probably save you a few pennies and make your life a little easier. To purchase stamps online, visit The Postal Store.]]> http://www.moneysmartz.com/weblog/archives/2008/05/the_forever_stamp.php http://www.moneysmartz.com/weblog/archives/2008/05/the_forever_stamp.php Money Management The Moneysherpa Pages Thu, 01 May 2008 05:01:19 -0600 The worst time to realize a provider of financial services does not care is when you need their help the most. If you have ever been treated like a number by a testy customer service agent or been caught in the endless loop of a convoluted interactive voice response system, then you know how important it is to choose wisely when looking for financial services like credit cards, banks, and brokers.

Epinions, started in 1999 and now owned by eBay, offers user generated reviews about a wide range of products and services to help you avoid poor customer service and get the facts before, not after, you buy.

The following tips should help you get the insight you need from Epinions:

• Visit the Personal Finance find and compare home page.
• Choose the category the fits your need, for example, banks.
• Enter the name of your prospective bank in the search box at the top of the page, for example, Wells Fargo.
• Sort by date to read the most recent reviews first.
• Be wary of firms with a few reviews as the sample may be too small to provide reliable guidance.
• If you find bad reviews, then be sure to balance them with the positive attributes of the reviewed company that are most important to you. However, remember that this is the best time to find another provider of services, before you make a long term commitment

A little research using Epinions today will help you avoid big headaches in the future.]]> http://www.moneysmartz.com/weblog/archives/2008/04/epinions_and_better_financial_services.php http://www.moneysmartz.com/weblog/archives/2008/04/epinions_and_better_financial_services.php Financial Services The Moneysherpa Pages Wed, 23 Apr 2008 06:25:51 -0600 How much will you need to retire comfortably? It's a question being asked a lot these days by providers of retirement planning services. ING joins the fray with a tool consisting of six questions to calculate your "Your Number." Don't be surprised if your number is shockingly high, particularly if you are nearing retirement and don't have a start on your nest egg. Rest easy, the ING microsite offers links to professional advice. The power of the "Your Number" campaign is that after taking the quiz, it's hard to forget your number, and even more difficult to remain passive about saving for retirement. ]]> http://www.moneysmartz.com/weblog/archives/2008/04/your_number.php http://www.moneysmartz.com/weblog/archives/2008/04/your_number.php Retirement Planning The Moneysherpa Pages Wed, 16 Apr 2008 06:04:35 -0600 On the family cruise of a lifetime, you slip, fall, and break your arm. You require emergency medical attention. Do you have insurance?

As spring break travel peaks and preparation for summer travel begins, a review of travel insurance may help avoid catastrophe if the unthinkable happens on your next trip.

According to the Insurance Information Institute, there are four major types of trip insurance, including trip cancellation insurance, baggage insurance or personal effects coverage, emergency medical assistance, and accidental death.

There are a number of travel insurance providers and comparison sites including InsureMyTrip.com, AIG Travel Guard, CSA Travel Protection, Travel Insurance Services, and many others.

For more travel insurance information and links, visit About.com Personal Insurance. If you work with or know a travel agent, then be sure to talk with them for additional information.

Being prepared before vacation, including purchasing adequate travel insurance, will help give you the peace of mind to enjoy vacation. ]]> http://www.moneysmartz.com/weblog/archives/2008/04/travel_insurance.php http://www.moneysmartz.com/weblog/archives/2008/04/travel_insurance.php Insurance The Moneysherpa Pages Sat, 12 Apr 2008 02:02:12 -0600 During market tumult, investors seek investments that help them look toward the future with confidence. The recent Money Magazine 70 recommends mutual funds that should be of comfort during good and bad times. The Money Magazine selection criteria includes mutual funds with "low expenses, a strong record for putting share-holder interests first, a consistent investment strategy and experienced managers." The result is above average performance, with over 70% of the selected mutual funds outperforming their category average. Leading fund families Vanguard, T. Rowe Price, and Fidelity are well represented with 23, 8, and 4 funds on the list respectively.]]> http://www.moneysmartz.com/weblog/archives/2008/04/the_best_mutual_funds.php http://www.moneysmartz.com/weblog/archives/2008/04/the_best_mutual_funds.php Investing The Moneysherpa Pages Tue, 08 Apr 2008 04:43:22 -0600 With higher gas prices, lower home values, and a weak stock market, now is a good time to find ways to cut costs. Coupons offer a quick and easy way to begin saving money today. For grocery coupons and online deals, visit CoolSavings, SmartSource, and Valpak. For a complete list, visit the Moneysmartz Coupons page.]]> http://www.moneysmartz.com/weblog/archives/2008/04/coupons_and_online_deals.php http://www.moneysmartz.com/weblog/archives/2008/04/coupons_and_online_deals.php Money Management The Moneysherpa Pages Mon, 07 Apr 2008 08:06:40 -0600