Do you know what types of companies your mutual funds invest in? A new Wall Street Journal blog, FiLife
, pointed to two free services where you can find out. Calvert, a mutual fund company that runs "socially responsible" mutual funds, provides a service called Know What You Own
. Just type in the name of your mutual fund, choose from a list of issues, and you can see if any of the companies it invests in make tobacco products, for example. Another organization with a free screening tool is Invested Interests. Its Mutual Fund Social Screen Tool
requires your name and e-mail address (and it'll encourage you to open an investment account, which you don't need to do), but it covers more issues than Calvert's service.
Matt's View
These are helpful tools for all who want to put their money where their values are.
Just because an organization you want to do business with asks for your Social Security Number doesn't mean you need to provide it. According to a Time magazine article, only a handful of organizations actually need your number: Your employer, your bank, and your doctor (if you are on Medicare or Medicaid). However, it may take a lot to convince those making the request that they don't, in fact, need your number. The Time reporter tried signing up for phone service and ended up talking to eight different people before she found one who told her they could accept other forms of identification such as a Drivers License.
Matt's View
It may be a hassle to avoid giving out your Social Security Number, but it's worth it. As the article pointed out, if someone steals your credit card number, they can run up charges on your account, but chances are good that the credit card company won't make you pay. On the other hand, if someone gets your Social Security Number, they can open new accounts in your name, which you may not discover for months or even years. Undoing that damage, according to the Federal Trade Commission, costs victims an average of 60 hours and nearly $1,200.
If you've ever rented a car, you know the drill. The rental clerk recites an ominous list of expenses you could be liable for should you return the car with a dent or ding. The insurance costs a fortune, but declining the coverage can cost you some sleep. An ABCnews.com story said that about one-third of renters opt for the insurance even though many "end up wasting money."
Matt's View
The key to a smart decision is knowing what coverage you already have. I found out from my insurance agent that, for the most part, all coverage on the vehicle I own is the same for a car I rent. The one exception is that if I'm in an accident with a rental car, the rental car company will charge me a daily rental fee for every day that the car is being repaired ("loss of use"), and that would not be covered.
I then checked with my credit card company, which offers free "secondary" insurance. That means it covers anything not covered by the policy on the car I own, such as the deductible. However, loss of use turns out to be a gray area. The card company rep said technically they do cover that, but only if the rental car company provides adequate documentation, which it rarely does (how's that for an honest answer?). Two other surprises from my credit card company: it only provides coverage if I rent from one of three companies, and it does not provide coverage for full-sized SUVs.
Planning to rent a car? Call your insurance agent and credit card company first.
The science of shopping is a hot topic, with a number of journals helping marketers get inside the minds (and wallets) of their customers. A recent Chicago Tribune article summarized some of the recent research. "Shopping momentum" was the topic of a recent Journal of Marketing Research article. Researchers have found that the first purchase a shopper makes is crucial because it can "open the floodgates of buying." From the Journal of Consumer Research comes news that shoppers are not typically good at math (shocking, right?). Therefore, marketers are encouraged to use techniques like offering 20 percent off the original price plus an additional 25 percent off the already-reduced sale price. At first glance, it appears to be a 45 percent discount, when in reality it amounts to a 40 percent discount.
Matt's View
The best way to keep those "floodgates of buying" from swinging too far open is to follow that trusty (if somewhat rusty) advice to shop with a list.
One other common shopping mistake is to put too much focus on the percentage of a discount instead of the absolute dollar amount, especially with more expensive purchases. Getting a $40 sweater for $20 seems great ("Wow, 50 percent off!"), whereas a 5 percent discount on something costing $400 doesn't seem so great ("A lousy 20 bucks - who cares?").
