CFP Board eNewsletter

	CFP Board eNewsletter \| Nov 2006

	(Reprinted with Permission)

	Reasons To Be Cheerful
	To Buy or Not to Buy
	When Did You Last Check Your Credit Report?
	Planning Your First Visit with a Financial Planner
	Recent Financial Alerts
	About This eNewsletter

Reasons To Be Cheerful

Even the best economists can sometimes find it hard to count their blessings. It should come as no surprise then that the average consumer occasionally misses the good financial news amid all the headlines about housing market troubles, high gas prices, failing pension schemes and the rickety Social Security system. There’s plenty of good news out there, though, if you know where to look. Take America’s negative personal savings rate, the tendency of consumers as a whole to spend more than they earn. Turns out that things may not be as negative as they seem. In August, the U.S. Department of Commerce estimated that the country’s personal savings rate was -0.5%; in other words, Americans are in the red. But that figure includes expenditures—like money spent on education—that could also be classified as investment, which will have a financial pay off in the future. Adjusted for considerations like this, the personal savings rate doesn’t appear quite so dire (though it’s still a good idea to save more!). Read more about financial news to be thankful for.

To Buy or Not To Buy

It was December 2003, and Judith Levine was fighting her way through the Christmas rush on the slushy streets of New York City. During the previous two weeks or so, she had spent about $1,000 on presents, maxed out her credit cards and was, as she describes it, "tapping the ATM like an Iraqi guerrilla pulling crude from the pipeline." After one of her sodden shopping bags split open, spilling gifts and tree ornaments onto the sidewalk, she realized she had had enough. Together with her partner, Paul, she decided to buy nothing in 2004 except the bare necessities. Read about what Levine learned from a year of frugal spending in the complete article from best-selling author James Geary.

When Did You Last Check Your Credit Report?

Your credit report can affect your applications for credit, insurance, employment, or renting a home. Credit reporting companies gather information from many sources about where you live, how you pay your bills and whether you've been sued, arrested or filed for bankruptcy. With all that information, it’s up to you to check your credit report to make sure the information is accurate, complete and up-to-date and that the report doesn’t show any signs of identity theft. Let us know how long it’s been since you last checked your credit report.

Take Our Survey

Do you plan your shopping with a list? We asked that question in the September "It’s Your Turn" newsletter and found the number of people who claim to always shop with a list was double the number of people who claim never to use lists when shopping. More than 50% of survey takers indicated they shop with a list always or more often than not.

Planning Your First Visit with a Financial Planner

New experiences – no matter how rewarding they may turn out to be – can be intimidating. Meeting for the first time with a professional from whom you’re seeking assistance can be one of those situations. When you’ve made the decision to seek professional help with your finances and have taken action to find a financial planner, there are steps you can take to make your first meeting both a pleasant and productive one. Read more about preparations you can make before visiting a financial planner.

Recent Financial Alerts

NASD recently issued an investor alert about unsolicited e-mails many are receiving. These e-mails appear to be a personal e-mail sent to your address in error, but they quickly move from chit-chat to a description of what may be a hot stock pick. NASD warns that these e-mails are likely to be part of "pump and dump" scams, which involve the recommending a company's stock through false and misleading statements (the pump) in the hopes of creating demand for the stock. If the stock price soars, the scammers then sell off their shares (the dump), which causes the stock’s price to drop and can leave investors with worthless, or near worthless, stock. NASD provides tips to help you avoid being scammed.

Another investor alert was recently issued by the North American Securities Administrators Association (NASAA) regarding recent "hack attacks" in which criminals broke into online trading accounts and made unauthorized trades worth millions of dollars. NASAA provides tips to help you protect yourself online.

Read more about these and other financial alerts at www.CFP.net/learn/alerts.asp.


	About This eNewsletter
	You are receiving this e-mail because you subscribed to CFP Board's eNewsletter. Periodically, CFP Board will e-mail you "It's Your Turn," which includes information about financial planning, consumer alerts, financial planning tools and resources and much more. Suggestions and feedback are welcome at mail@CFP-Board.org.