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Ask Dr. Don
By
Don
Taylor,
Ph.D.,
CFA
•
Bankrate.com |
Dr. Don's top 10 for 2004
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6. Take a class
You don't have to take a college class to get educated about
investments, but spending some time learning about investments beats
going to the school of hard knocks. Several Web sites offer free tutorials,
like Bloomberg.com
or Smart
Money University. Bankrate also offers its Investing
Checkup, which covers a variety of personal finance topics.
Community education courses and college classes are
viable choices as well. A personal financial planning class will
look at everything from budgeting to investing and can be a better
choice than just learning about how to invest.
7. Organize your financial records
Maintain a list of your accounts, insurance policies, safe
deposit boxes, etc. and keep it where a family member and/or trusted
friend can find it. Note on the list where you keep your will as
well. Don't have a will? Find a way to put it in writing. This government
guide will help.
Do your spring cleaning early and be ready for the
tax man in April. Keep what you need and destroy the rest. This
government
guide to record keeping will help you decide what to keep and
what to destroy. Don't have a shredder? It's time to buy one. Identity
theft problems aren't going away, so let's work at making trash
theft a victimless crime.
8. Know your credit history
The Fair Credit Reporting Act spells out what creditors and
credit bureaus have to do to make your credit report an accurate
reflection of your credit history. There's a process for disputing
inaccurate information that allows consumers to correct mistakes.
This Bankrate
feature helps you succeed when disputing errors on your credit
report. This FTC
guide also provides details on the dispute process.
The three major consumer-reporting agencies (credit
bureaus) won't all have the same information about you. That's because
your creditors decide which credit bureau they will use in reporting
your payment history. Correct a mistake on one bureau's report and
the correction will be provided to the other two bureaus.
It's a good idea to review your reports at least once
every two years. That's because the Fair Credit Reporting Act has
a two-year statute of limitations concerning the liability arising
from negligence in the reports.
Some states require the credit
bureaus to provide their citizens with a free copy of their credit
reports; other states have limits on what the credit bureaus can
charge. But in most states you'll have to pay up to $9 for each
report unless:
- a company has taken adverse action against you,
such as denying an application for credit, insurance or employment,
and you request your report within 60 days of receiving the notice
of the action.
- you're unemployed and plan to look for a job within
60 days,
- you're on welfare, or
- your report is inaccurate because of fraud.
Don't forget your credit score in all of this. A credit-scoring
model uses the information in your credit report to estimate the
likelihood that you'll repay your debt. I wouldn't recommend paying
for credit scores from all three credit bureaus. Pick one and see
where you stand.
9. Be part of your community
Everyone wants to live in a great community, but it's people,
not houses, that make a community great. Be a better person and
you get a better community. Volunteer your time and get involved
in your community. You'll make a difference and feel great doing
it.
10. Make a list
So many people get caught up in the details of their everyday
lives that they forget what they're working to achieve. Figure out
what you want to accomplish in life and the strategies to achieve
those goals become apparent. Commit your goals to writing and they
become tangible. Work toward achieving those goals and they become
possible. It can all start with making a list.
-- Posted: Dec. 24, 2003
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