Managing your money all in one for dummies

Managing Your Money ALL-IN-ONE FOR DUMmIES ‰ by Ted Benna, Stephen R Bucci, James P Caher, John M Caher, N Brian Caverly, Peter Economy, Jack Hungelmann, John E Lucas, Sarah Glendon Lyons, Margaret A Munro, EA, Brenda Watson Newmann, Mary Reed, Jordan S Simon, Kathleen Sindell, PhD, Deborah Taylor-Hough, John Ventura Managing Your Money ALL-IN-ONE FOR DUMmIES ‰ by Ted Benna, Stephen R Bucci, James P Caher, John M Caher, N Brian Caverly, Peter Economy, Jack Hungelmann, John E Lucas, Sarah Glendon Lyons, Margaret A Munro, EA, Brenda Watson Newmann, Mary Reed, Jordan S Simon, Kathleen Sindell, PhD, Deborah Taylor-Hough, John Ventura Managing Your Money All-in-One For Dummies® Published by Wiley Publishing, Inc 111 River St Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2009 by Wiley Publishing, Inc., Indianapolis, Indiana Published by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600 Requests to the Publisher for permission should be addressed to the Legal Department, Wiley Publishing, Inc., 10475 Crosspoint Blvd., Indianapolis, IN 46256, 317-572-3447, fax 317-572-4355, or online at http://www.wiley com/go/permissions Trademarks: Wiley, the Wiley Publishing logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way, Dummies.com and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc and/or its affiliates in the United States and other countries, and may not be used without written permission All other trademarks are the property of their respective owners Wiley Publishing, Inc., is not associated with any product or vendor mentioned in this book LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: THE PUBLISHER AND THE AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING WITHOUT LIMITATION WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES OR PROMOTIONAL MATERIALS THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR EVERY SITUATION THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING LEGAL, ACCOUNTING, OR OTHER PROFESSIONAL SERVICES IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM THE FACT THAT AN ORGANIZATION OR WEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FURTHER INFORMATION DOES NOT MEAN THAT THE AUTHOR OR THE PUBLISHER ENDORSES THE INFORMATION THE ORGANIZATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ For general information on our other products and services, please contact our Customer Care Department within the U.S at 800-762-2974, outside the U.S at 317-572-3993, or fax 317-572-4002 For technical support, please visit www.wiley.com/techsupport Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books Library of Congress Control Number: 2008936355 ISBN: 978-0-470-34546-7 Manufactured in the United States of America 10 About the Authors Ted Benna is often called the “father of the 401(k)” because he created and gained IRS approval for the first 401(k) savings plan Ted is a nationally recognized expert on retirement issues whose articles and comments have appeared in myriad publications Ted has been profiled in The New York Times, USA Today, Fortune, and Kiplinger During his career, Ted has helped thousands of employers establish, restructure, and administer their retirement programs He is president and founder of the 401(k) Association Ted is the coauthor of 401(k)s For Dummies Stephen R Bucci is currently the president of the Money Management International Financial Education Foundation, www.mmifoundation.org, which provides funds and materials for essential money management education In addition, he is helping to build one of the nation’s largest credit counseling services, Money Management International (MMI) MMI is not only accredited by the Council on Accreditation, but is also a member of both the Association of Independent Consumer Credit Counseling Agencies and the National Foundation for Consumer Credit — the umbrella associations for credit counseling nationwide In addition, all of their counselors are certified — and trained to help you find the best way out of debt Stephen is the author of Credit Repair Kit For Dummies, 2nd Edition James P Caher is a practicing attorney with 30 years of experience, is a nationally recognized expert on consumer bankruptcies and authority on the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 Jim has published scores of articles for bankruptcy professionals and is frequently called upon to analyze and interpret the complicated provisions of the 2005 bankruptcy law He also serves on the editorial board of the American Bankruptcy Institute Jim graduated from Niagara University and then earned his law degree from Memphis State University Law School, where he was a member of the Law Review and recipient of the American Jurisprudence Award for Excellence in the field of debtor-creditor relations He filed his first consumer bankruptcy case shortly after graduating in 1975 and lives and practices in Eugene, Oregon James is coauthor of Personal Bankruptcy Laws For Dummies John M Caher is a legal journalist who has written about law and the courts for most of his long career He has been Albany bureau chief for the New York Law Journal and state editor and legal affairs reporter for the Times Union of Albany, New York His legal reportage has won more than two dozen awards, including prestigious honors from the American Bar Association, the New York State Bar Association, the Erie County Bar Association, and the Associated Press John is coauthor of Personal Bankruptcy Laws For Dummies N Brian Caverly is a practicing lawyer in Pennsylvania He has practiced law since 1968, and in his practice emphasizes wills and estates, estate planning, and elder law He holds an AB degree in economics from Bucknell University, and a JD degree from the Dickinson School of Law He serves on the board of directors of the Angeline Elizabeth Kirby Memorial Health Center in WilkesBarre, a major charitable organization Brian is also chairman of the Luzerne County Planning Commission He presents lectures and writes articles and papers about various legal topics, including those related to estate planning Brian is the coauthor of Estate Planning For Dummies Peter Economy lives in La Jolla, California and is a bestselling author or coauthor of more than 35 books, including Managing For Dummies and Consulting For Dummies with Bob Nelson, Home-Based Business For Dummies with Paul and Sarah Edwards, and Writing Children’s Books For Dummies with Lisa Rojany Buccieri Peter is also Associate Editor for the Apex Awardwinning magazine Leader to Leader Jack Hungelmann’s policy knowledge, problem-solving expertise, and coverage analysis was gained through more than 25 years in the insurance business as a claims adjuster, agent, and consultant He has advised individuals and commercial enterprises on their insurance needs and has earned several distinguished designations Jack graduated from the University of Minnesota in 1969 and has taught professional continuing education classes for both the CPCU and CIC societies He has been published numerous times in American Agent & Broker magazine He lives in Chanhassen, Minnesota with his wife Judy Jack is the author of Insurance For Dummies John E Lucas has been in the mortgage banking industry for over 40 years, actively originating mortgage loans in the Van Nuys, California area When the Department of Housing and Urban Development (HUD) introduced the HECM reverse mortgage in 1989, he worked with one of the companies HUD chose to participate in the test program He has lectured on reverse mortgages to a wide variety of organizations and groups such as senior centers, realtors, CPAs, financial planners, elder law attorneys, service clubs and university groups, and is a member of the National Reverse Mortgage Lenders Association John is the coauthor of Reverse Mortgages For Dummies Sarah Glendon Lyons is a San Diego-based writer with a diverse portfolio of housing-industry experience She holds a B.A in English Language and Literature from the University of Arizona and studied at Australia’s University of Wollongong before joining Hanley Wood LLC, publishers of over 75 consumer home magazines As an editor for Pfingsten Publishing’s Mortgage Originator magazine, she has written hundreds of articles for mortgage professionals Although she has developed a wide scope of lending insight, her particular expertise is in the reverse mortgage field Sarah offers reverse mortgage information to originators and consumers around the country Her perspective as an unbiased researcher and consultant allows her to provide readers with both the benefits and challenges of reverse mortgages Sarah is the coauthor of Reverse Mortgages For Dummies Margaret A Munro, EA, is a tax consultant/advisor/writer/lecturer with over 30 years of experience in various areas of finance and taxation She is an enrolled agent, licensed by the federal government to represent clients in the areas of tax and tax-related issues She currently operates a widely diverse private practice that specializes in the financial concerns of families with school-age children, a group that is near and dear to her heart She is a graduate of The Johns Hopkins University and has also attended University College Cork and the Pontifical Institute of Mediaeval Studies in Toronto Peggy is the author of 529 & Other College Savings Plans For Dummies and Estate and Trust Administration For Dummies Brenda Watson Newmann is a writer and editor dedicated to helping ordinary folks understand complicated topics She was in charge of editorial content for the mPower Cafe, a leading educational Web site for retirement investors Under her direction, the site won accolades including Forbes magazine’s “Best of the Web.” Brenda keeps attuned to the concerns of 401(k) investors through the emails she receives regularly from readers She frequently writes articles on retirement investing and has been interviewed by media outlets, such as USA Today and Investor’s Business Daily Brenda began her writing career with The Associated Pres, and was a foreign correspondent in Germany and Switzerland She is a graduate of Stanford University and the Johns Hopkins University School of Advanced International Studies Brenda is the coauthor of 401(k)s For Dummies Mary Reed is a personal finance writer who has coauthored or ghostwritten numerous books on topics related to consumer money matters and legal rights Mary has also written for the magazines Good Housekeeping, Home Office Computing, and Small Business Computing and she has ghostwritten numerous articles that have appeared in national and local publications She is the owner of Mary Reed Public Relations, an Austin, Texas-based firm that provides public relations services to a wide variety of clients, including authors, publishers, attorneys, financial planners, healthcare professionals, retailers, hotels, restaurants, and nonprofits She received her MBA from Boston University and her BA from Trinity University in Washington, DC Mary is the coauthor of Managing Debt For Dummies Jordan S Simon is vice president of asset management at Venture West, Inc., a Tucson, Arizona-based investment firm, where he has worked since 1988 Jordan focuses on real estate investments He received his BA from the University of Arizona and his MBA from the University of Southern California, where he was the recipient of the Quon Award for outstanding university and community service He is the coauthor of The Computer Professional’s Guide to Effective Communications and Estate Planning For Dummies Kathleen Sindell, PhD, is the author of numerous books on investing and Internet topics She was contributing author to the Encyclopedia of Computer Science and online investing columnist for Investor Direct magazine Dr Sindell is an expert on electronic commerce and is an adjunct faculty member at The Johns Hopkins University MBA program She is the former Associate Director of the Financial Management and Commercial Real Estate Programs for the University of Maryland, University College Graduate School of Management & Technology She received her BA in Business from Antioch University, an MBA in Finance from the California State University at San Jose, and a PhD in Administration and Management from Walden University, Institute for Advanced Studies Dr Sindell is the author of Managing Your Money Online For Dummies Deborah Taylor-Hough has been living the frugal lifestyle most of her life Deborah is the editor/publisher of the Simple Times Newsletter, an email publication reaching tens of thousands of subscribers since 1998 She has authored several books on frugal living topics and has been featured extensively in television, radio, and print media throughout the United States and Canada She frequently conducts workshops on frugal living, voluntary simplicity, and assorted homemaking topics for conferences, retreats, women’s groups, and church functions Debi is the author of Frugal Living For Dummies John Ventura is a best-selling author and board-certified bankruptcy attorney He is also adjunct professor at the University of Houston Law School and Director of the Texas Consumer Complaint Center at the Law School John earned his JD degree from the University of Houston Law School Later, he and a partner established a law firm in Texas, building it into one of the most successful consumer bankruptcy firms in the state He subsequently began a successful consumer law firm in South Texas He is also a regular speaker at law conferences around the country and serves on the Bankruptcy Council for the Texas Bar Association John is the author of numerous books on consumer and small business legal matters, including Managing Debt For Dummies Publisher’s Acknowledgments We’re proud of this book; please send us your comments through our Dummies online registration form located at www.dummies.com/register/ Some of the people who helped bring this book to market include the following: Acquisitions, Editorial, and Media Development Project Editor: Corbin Collins Acquisitions Editor: Tracy Boggier Copy Editor: Krista Hansing Composition Services Project Coordinator: Katherine Key Layout and Graphics: Carl Byers, Jennifer Mayberry Assistant Editor: Erin Calligan Mooney Proofreaders: Melissa D Buddendeck, Dwight Ramsey Technical Editor: Brian Richman Indexer: Sharon Shock Senior Editorial Manager: Jennifer Ehrlich Editorial Supervisor and Reprint Editor: Carmen Krikorian Editorial Assistants: Joe Niesen, David Lutton Cover Photo: © Creatas Images Cartoons: Rich Tennant (www.the5thwave.com) Publishing and Editorial for Consumer Dummies Diane Graves Steele, Vice President and Publisher, Consumer Dummies Joyce Pepple, Acquisitions Director, Consumer Dummies Kristin Ferguson-Wagstaffe, Product Development Director, Consumer Dummies Ensley Eikenburg, Associate Publisher, Travel Kelly Regan, Editorial Director, Travel Publishing for Technology Dummies Andy Cummings, Vice President and Publisher, Dummies Technology/General User Composition Services Gerry Fahey, Vice President of Production Services Debbie Stailey, Director of Composition Services Index risks investment balance risk and expectations against future monetary needs, 275 general knowledge of, 275 identifying the cost, 275–276 literature, reading carefully, 276 retirement accounts, 533–535 roadside service coverage, 416 Robin, Vicky (Your Money or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence), 39 rollovers 401(k) plans, 480 403(b) plans, 490 IRAs, 506 Roth IRAs characteristics, 505 defined, 499 tax-sheltered growth, 505 Web site, 553 •S• SaveWealth Web site, 615 saving See also cost-cutting techniques about this book, Choose to Save Web site, 547, 550 investment education, 274–276 paying yourself first, 273–274 reducing debt before, 51 setting financial goals, 30–31 systematically, 273 while in debt, 278–279 saving accounts HSA (Health Savings Account), 160–161 online banking, 371 savings categorizing, 42 earmarking pieces of income for, 274 taxable, 305 scams, 352 school accident insurance, 170 Sclar, Deanna (Buying a Car For Dummies), 115 Scottrade broker, 295 scratch-and-dent shopping, 121 SEC (Securities and Exchange Commission), 295 second jobs, as bankruptcy alternative, 259 second mortgages, as bankruptcy alternative, 259 secondary market, bonds, 287 Section 529 (Qualified Tuition Program), 321 sector funds, 292 secured credit, 200, 204 secured debt prioritizing, 53 unsecured debt versus, 54 Securities and Exchange Commission (SEC), 295 Securities Investor Protection Corporation (SIPC), 341 security, about this book, 4–5 self-approved wills, 589 self-confidence, positive attitudes, 36 self-directed IRAs, 499 self-employment health insurance, 170 retirement plans, 554–555 seller financing, 125 selling to soon/too late investment mistake, 298 selling your home pre-foreclosure sale arrangement, 150 short sale, 149–150 seniors See aging parent care SEP IRAs, 499 SEPP (substantially equal periodic payments), 525–526 setbacks, setting financial goals, 36–37 72(t) withdrawals, 525 share price, 284 shareholders, 282 short sale, foreclosures, 149–150 short-term health insurance coverage, 165–166 short-term solutions, to foreclosure, 147–148 shredder use, identity theft, 355–356 signature clause, wills, 588 SIMPLE IRAs, 499 simple wills, 581–582 simultaneous death statutes, 603–604 single limit coverage, car insurance, 407 SIPC (Securities Investor Protection Corporation), 341 sites See Web sites Skeel, David A Jr (Debt’s Dominion: A History of Bankruptcy Law in America), 255 small business retirement plans, 554–555 665 666 Managing Your Money All-in-One For Dummies SmartMoney Web site, 186, 340, 544, 552, 612 social engineering, 353 Social Security Administration Web site, 179, 367 Social Security benefits, online retirement planning, 545–546 Social Security income, 303–304 Social Security numbers, identity theft, 213, 367 special forbearance plan, 148 Special Form causes-of-loss, 390 spending categorizing, 268–269 compulsive, 10 emotional, 10 estimating, 42–43 financial assessment, 268–270 income comparison, 14–18 irresponsible, 191 monthly spending and income comparison worksheet, 46–49, 192 spending habit assessment, 19–20 standard percentage guidelines, 52 wasteful, 269–270 ways to spend less bargain shopping, 62 blog resources for, 73 on clothing, 68–69 coupon shopping, 65 eating for less, 64–65 on housing, 62–63 on insurance, 71–72 looking for good deals, 62 on medical expenses, 70–71 overview, 61–62 on personal expenses, 68 phone cost reduction, 69–70 on prescriptions, 70 on recreation, 67–68 refinancing, 63 renting, 63 on transportation, 66–67 on utilities, 63–64 on utility bills, 63–64 spending languages, 181 Spending Profile Web site, 179 split liability limits, car insurance, 405–407 split stock, 284 spousal elective shares, 605–606 spousal health insurance coverage, 167 square-footage method, homeowner’s insurance, 396 Standard & Poor’s Web site, 289–290, 538 standard deduction, 448 state income taxes, 54 state taxes, 447–448, 477 statute of limitations, bankruptcy, 263–264 stock See also bonds; mutual funds appreciation, 282 bear market, 285 blue chip, 285 bull market, 285 buy and hold strategy, 285 buy what you know strategy, 286 common, 283 concept and practices behind, 282 dividends, 282, 284 DJIA (Dow Jones Industrial Average), 285–286 do-it-yourself versus broker assistance, 293 dollar cost averaging, 286 fundamental analysis, 285 futures, 285 growth investing strategy, 286 IPO (initial public offering), 284 listed exchanges, 283 market capitalization, 284 market timing strategy, 286 options, 284 over-the-counter market exchange, 283 P/E (price-to-earnings) ratio, 284 penny, 284 preferred, 284 publicani, 282 share price, 284 shareholders, 282 split, 284 technical analysis, 285 value investing strategy, 286 yield, 284 stock certificates, 282 stock funds, mutual funds, 291 stop orders, 343 stop-limit orders, 343 student loans consolidating, 271 dischargeable debt, 256 prioritizing unsecured debt, 55 suability factor, car insurance, 403–404 sub accounts, 403(b) plans, 488 subprime versus underbanked, 211 substantially equal periodic payments (SEPP), 525–526 Index suicide clause, life insurance, 422 suicide crisis hotline, 38 summary plan description, ERISA requirements, 482 SunTrust Web site, 371 surplus, budget, 55–56 surrender fees/exit fees, 489, 492 survey fee closing cost, 127 survival clause, wills, 603–604 systematic saving, 273 •T• T Rowe Price broker, 294–295 tangible personal property, estate planning, 563 TAO (Taxpayer Assistance Order), 471 Target Maturity Funds, 533 TAS (Taxpayer Advocate Service), 468, 471 tax anticipation loans, 58–59 tax clause, wills, 585 tax liens, 13 tax refund loans, 58 taxable savings, 305 tax-deferred annuities (TDAs), 487 tax-deferred income, 224 taxes audits, 451–454 deductions, 448–450 essential expenses, 458 federal, 445–446, 477 FICA, 477 filing bankruptcy, 461–463 filing electronically, 450 FUTA, 477 levies, 467–468 liens, 465 local, 477 mistakes, avoiding, 450–451 past-due, 464–468 paying in installments, 456–457 less than ten-thousand dollars, 457 more than ten-thousand but less than twentyfive thousand dollars, 458 more than twenty-five thousand dollars, 458 penalties and interest, 454–455, 463 postpetition, 463 prepetition interest, 463 prioritizing unsecured debt, 54 resources, 469–470 retirement account, 529–530 setting money aside for, 42 state, 447–448, 477 Taxes For Dummies, 453 Taxpayer Advocate Service (TAS), 468, 471 Taxpayer Assistance Order (TAO), 471 tax-sheltered annuities (TSAs), 487 TD Ameritrade broker, 294–295, 338–339 TDAs (tax-deferred annuities), 487 technical analysis strategy, stock, 285 TeleCheck Web site, 94 telephone bills, cost-cutting techniques, 272 television and cable expenses, cost-cutting techniques, 110 temporary health insurance coverage, 165–166 tenure payment option, reverse mortgages, 520 term life insurance, 423 term payment option, reverse mortgages, 520 terms, mortgage, 124 testacy status, wills, 594 testamonium clause, wills, 589 theft, identity accessing credit after, 365–367 accounts, closing and reopening, 366 active-duty alert, 354 avoiding, 213–214 basic description of, 349 collections calls, 358–359 computer safety, 352 credit bureau contacts, 361 credit cards, 357, 359 denied credit or account access, 359 document storage, 355 driver’s license numbers, 367 early-warning alerts, 357–358 extended alerts, 365 FACT Act, 363–364 fraud alerts, 364–365 freezing credit options, 356 FTC involvement, 362 how to spot, 357–360 IFCC (Internet Fraud Complaint Center), 352 line blocking, 365 mail crimes, 353–355 missing account statements, 360 online transactions, taking advantage of, 350 password-protection, 353, 366–367 phishing scams, 351–352 PINs, 366 667 668 Managing Your Money All-in-One For Dummies theft, identity (continued) police-reporting process, 362–363 post office, notifying, 363 predicting, 358 shredder use, 355–356 social engineering, 353 Social Security numbers, 367 top known sources of, 353 unrecognized credit card charges, 359 victim’s statement, 361 what to do/who to call, 360–365 thin files defined, 88, 93 divorce and, 212–213 immigrants new to country, 211–212 rebuilding credit process, 212–213 underbanked versus subprime, 211 30-year note, 223 title insurance closing cost, 127 Tomorrow’s Money Web site, 183 total loss, 382 trade executions, brokers, 335 trading demos, 344 trading down, 271 traditional IRAs defined, 499 maximum allowable annual contributions, 503 transfer fee closing cost, 127 transferring balances, 217–218 transportation expenses airfare bargains, 118–119 biking and walking, 118 bus riding, 117–118 categorizing, 41 cost-cutting ideas, 66–67, 115–119 public transportation, 117–120 rental car bargains, 118–119 standard percentage guidelines, 52 subways, 118 trains, 118 TransUnion creditreporting company contact information, 12, 83 discussed, 11–12 Web site, 86 trash costs, cost-cutting techniques, 108–109 travel expenses See transportation expenses travel medical insurance, 171 traveler’s check fees, 377 treasury bonds, 288 trust funds, college savings, 323 trustee, estate planning, 564 trustee-to-trustee transfer, 401(k) plans, 480 trusts charitable remainder, 624 durable power of attorney form, 618 funding the, 617 healthcare proxy, 619 irrevocable, 617 living, 616, 636–637 online estate planning, 615–618 resources, 617–618 revocable, 617 wills comparison, 616 TSAs (tax-sheltered annuities), 487 tuition See college savings two-cycle average daily balance, 218 •U• umbrella policy, 407 unconditional discharge, 255 underbanked versus subprime, 211 underinsured motorist coverage, 408 underwriting, individual versus group health insurance coverage, 156 unenrolled prepayers, tax resources, 469 Uniform Probate Code (UPC), 600 uninsured motorist coverage, 408 universal default clauses, 140, 149 universal life insurance, 427–428 UnivestDirect Web site, 378 unsecured credit, 200, 205 unsecured debt prioritizing, 53 secured debt versus, 54 when to prioritize, 54–55 UPC (Uniform Probate Code), 600 Upromise, 278 U.S stock funds, 292 user profiles, online accounts, 373–374 utilities cost-cutting techniques, 63–64, 106–107 energy-saving programs, 64, 272 Index free energy audits, 64 standard percentage guidelines, 52 •V• value investing strategy, stock, 286 Vanguard broker, 294–295 VantageScore scoring field, 92–93 variable annuities, 488 variable expenses, 15 variable life insurance, 429 vested interest, estate planning, 565 vesting, 480 victim’s statement, identity theft, 361 Virtual Stock Exchange Web site, 343 •W• Wachovia Securities Financial Network, 299 Wachovia, online banking, 379 waiver of premium, 422 Wall Street Journal career journal, 75 Wall Street Journal Web site, 179, 544, 552 WaMu (Washington Mutual), 184, 375, 379 water damage, homeowner’s insurance, 390 water heaters, cost-cutting techniques, 63 water use, cost-cutting techniques, 110–111 Web sites AARP, 546, 618, 636 About.com budget worksheets, 181 online retirement planning, 543, 550, 552, 555 Advisor, 552 AICCCA, 237 Altamira, 187 Alzheimer’s Association, 636 A.M Best, 538 American Academy of Estate Planning Attorneys, 624 American Bar Association, 617 American Funds, 549 American Law Institute, American Bar Association, 619 America’s Job Bank, 75 Annuity, 555 Argone Credit Union, 547 Assets Protection Law Center, 618 AXA Equitable, 547 Bank of America, 374 Bank of the Internet USA, 378 Bankrate, 179 Budget Map, 44 CalculatorWeb, 187 Career Builder, 75 CCH Financial Planning, 554 Charles Schwab, 612 Charles Schwab Bank, 378 Chase, 374 Chex Systems, 94 CHH Financial Planning, 619 Choose to Save, 547, 550 CNN Money 101, 186, 617 CPA Directory, 550 Craigslist, 76 Creditinfocenter, 179 Debtors Anonymous confronting reality of financial situation, 10 contact information, 38 emotional spending assessment, 10 as help option, 38 Deloitte, 626 Duff & Phelps, 538 Employee Benefit Research, 553 Equifax, 12, 86 Estate Planning Law, 624 Everbank, 378 Experian, 12, 86 eXtension, 626 Fairmark, 546 Family Care Givers Online, 619 Fantasy Stock Market, 342 Federal Citizen Information, 613 Fidelity, 612 Fidelity Investments, 181 Financial Engines, 311, 551 Financial Planning Association, 575 Fiscal Agents, 179 FTC, 240 Funeral Directory, 615, 620 GainsKeeper, 345 Guide to Planned Giving, 623 HSBC, 184, 375 HUD, 145, 148 Imoney, 179 ING Direct, 184–185, 378 InsWeb, 179 Investopedia, 544, 550 InvestorGuide, 376 job search, 75 Job-Hunt, 75 Kiplinger, 183, 340, 550, 553, 613 669 670 Managing Your Money All-in-One For Dummies Web sites (continued) LegalMatch, 625 Legalzoom, 614 Living to 100, 547 Living Trusts on the Web, 618 MainStreet, 179 Medical Billing Advocates of America, 174 Money Instructor, 555 Monster.com, 75 Morningstar, 311, 345, 544, 554 Motley Fool, 544, 554 mPower, 311 MS Money, 179, 181 Myfico, 179 MyVesta, 179 National Mental Health Association, 39 net worth calculators, 187 NFCC, 32, 41, 145, 237 NOLO, 618, 623 Probate FAQ, 614 Prudential, 626 Prudential Financial, 543, 613 Quicken, 181 Raymond James, 183 Retirement Planner, 555 Retirement Planning for the Golden Years, 543 Retiring Well, 543 Reuters, 345–346 Risk Grades, 346 Roth IRAs, 553 SaveWealth, 615 Smart Money, 186, 340, 544, 552, 612 Social Security Administration, 179, 367 Spending Profile, 179 Standard & Poor’s, 538 SunTrust, 371 TeleCheck, 94 Tomorrow’s Money, 183 TransUnion, 12, 86 UnivestDirect, 378 Virtual Stock Exchange, 343 Wall Street Journal, 179, 544 Wills FAQ, 615 Yahoo! Finance, 179, 186, 547 Zions First National Bank, 378 whole life insurance, 427 wills abatement statute, 599–600 about this book, ademption statute, 600–601 amending, 591–593 antilapse statute, 601–602 appointment clause, 588 augmented state, 606 basic description, 579 codicils, 593 common law, 605 community property states, 604–605 contents, 584–585 contingent beneficiary, 601 dispositive clause, 589 divorce clause, 602 ending clauses, 588–589 exempt property award statutes, 608 exordium clause, 589 family allowance statutes, 608–609 family statement clause, 585 fiduciary power clause, 588 giving clauses, 586–588 holographic, 583 homestead allowance statutes, 607 homestead exemption statutes, 607 intestacy status, 595 introductory clause, 585 joint, 581–583 laws of intestate succession, 595 mutual, 583 nuncupative, 583 omitted beneficiary, 609 online estate planning, 612–614 opening clauses, 585 partial intestacy status, 595 personal property clauses, 587 planning for, 580–581 preprinted, 584 pretermitted beneficiary, 609 real property clauses, 587 residuary clause, 587–588 safeguarding, 590–591 self-approved, 589 signature clause, 588 simple, 581–582 simultaneous death statutes, 603–604 spousal elective shares, 605–606 statues, list of, 598 status, 594–596 survival clause, 603–604 tax clause, 585 tax exposure situation, 580 testacy status, 594 testamonium clauses, 589 trusts comparison, 616 typewritten, 582 Wills FAQ Web site, 615 window coverings, climate control, 102–103 worldwide coverage, 155 Index •Y• Yahoo! Finance Web site, 179, 186, 547 yields bonds, 287 stock, 284 Your Money or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence (Dominquez and Robin), 39 •Z• zero-coupon bonds, 288 Zions First National Bank Web site, 378 671 Notes Notes Notes BUSINESS, CAREERS & PERSONAL FINANCE Accounting For Dummies, 4th Edition* E-Mail Marketing For Dummies Six Sigma For Dummies 978-0-470-24600-9 978-0-470-19087-6 978-0-7645-6798-8 Bookkeeping Workbook For Dummies † Job Interviews For Dummies, 3rd Edition*† 978-0-470-16983-4 978-0-470-17748-8 Small Business Kit For Dummies, 2nd Edition*† Commodities For Dummies Personal Finance Workbook For Dummies*† 978-0-7645-5984-6 978-0-470-04928-0 978-0-470-09933-9 Telephone Sales For Dummies Doing Business in China For Dummies Real Estate License Exams For Dummies 978-0-470-16836-3 978-0-470-04929-7 978-0-7645-7623-2 BUSINESS PRODUCTIVITY & MICROSOFT OFFICE Access 2007 For Dummies PowerPoint 2007 For Dummies Quicken 2008 For Dummies 978-0-470-03649-5 978-0-470-04059-1 978-0-470-17473-9 Excel 2007 For Dummies Project 2007 For Dummies 978-0-470-03737-9 978-0-470-03651-8 Salesforce.com For Dummies, 2nd Edition Office 2007 For Dummies QuickBooks 2008 For Dummies 978-0-470-04893-1 978-0-470-00923-9 978-0-470-18470-7 Word 2007 For Dummies 978-0-470-03658-7 Outlook 2007 For Dummies 978-0-470-03830-7 EDUCATION, HISTORY, REFERENCE & TEST PREPARATION African American History For Dummies ASVAB For Dummies, 2nd Edition Geometry Workbook For Dummies 978-0-7645-5469-8 978-0-470-10671-6 978-0-471-79940-5 Algebra For Dummies British Military History For Dummies The SAT I For Dummies, 6th Edition 978-0-7645-5325-7 978-0-470-03213-8 978-0-7645-7193-0 Algebra Workbook For Dummies Calculus For Dummies Series Exam For Dummies 978-0-7645-8467-1 978-0-7645-2498-1 978-0-470-09932-2 Art History For Dummies Canadian History For Dummies, 2nd Edition World History For Dummies 978-0-470-09910-0 978-0-470-83656-9 978-0-7645-5242-7 FOOD, GARDEN, HOBBIES & HOME Bridge For Dummies, 2nd Edition Drawing For Dummies Knitting Patterns For Dummies 978-0-471-92426-5 978-0-7645-5476-6 978-0-470-04556-5 Coin Collecting For Dummies, 2nd Edition Etiquette For Dummies, 2nd Edition Living Gluten-Free For Dummies † 978-0-470-22275-1 978-0-470-10672-3 978-0-471-77383-2 Cooking Basics For Dummies, 3rd Edition Gardening Basics For Dummies* † Painting Do-It-Yourself For Dummies 978-0-7645-7206-7 978-0-470-03749-2 978-0-470-17533-0 HEALTH, SELF HELP, PARENTING & PETS Anger Management For Dummies Horseback Riding For Dummies Puppies For Dummies, 2nd Edition 978-0-470-03715-7 978-0-470-09719-9 978-0-470-03717-1 Anxiety & Depression Workbook For Dummies Infertility For Dummies † Thyroid For Dummies, 2nd Edition † 978-0-470-11518-3 978-0-471-78755-6 978-0-7645-9793-0 Type Diabetes For Dummies* † Dieting For Dummies, 2nd Edition Meditation For Dummies with CD-ROM, 2nd Edition 978-0-7645-4149-0 978-0-471-77774-8 Dog Training For Dummies, 2nd Edition Post-Traumatic Stress Disorder For Dummies 978-0-7645-8418-3 978-0-470-04922-8 978-0-470-17811-9 * Separate Canadian edition also available † Separate U.K edition also available Available wherever books are sold For more information or to order direct: U.S customers visit www.dummies.com or call 1-877-762-2974 U.K customers visit www.wileyeurope.com or call (0) 1243 843291 Canadian customers visit www.wiley.ca or call 1-800-567-4797 INTERNET & DIGITAL MEDIA AdWords For Dummies eBay Business All-in-One Desk Reference For Dummies iPod & iTunes For Dummies, 5th Edition 978-0-470-15252-2 Blogging For Dummies, 2nd Edition 978-0-7645-8438-1 MySpace For Dummies 978-0-470-23017-6 eBay For Dummies, 5th Edition* 978-0-470-09529-4 Digital Photography All-in-One Desk Reference For Dummies, 3rd Edition 978-0-470-04529-9 Podcasting For Dummies eBay Listings That Sell For Dummies 978-0-471-74898-4 978-0-470-03743-0 978-0-471-78912-3 Digital Photography For Dummies, 5th Edition Facebook For Dummies Search Engine Optimization For Dummies, 2nd Edition 978-0-7645-9802-9 978-0-470-26273-3 978-0-471-97998-2 Digital SLR Cameras & Photography For Dummies, 2nd Edition The Internet For Dummies, 11th Edition Second Life For Dummies 978-0-470-12174-0 978-0-470-18025-9 978-0-470-14927-0 Investing Online For Dummies, 5th Edition Starting an eBay Business For Dummies, 3rd Edition† 978-0-7645-8456-5 978-0-470-17474-6 978-0-470-14924-9 GRAPHICS, DESIGN & WEB DEVELOPMENT Adobe Creative Suite Design Premium All-in-One Desk Reference For Dummies Creating Web Pages For Dummies, 8th Edition Photoshop CS3 For Dummies 978-0-470-11724-8 978-0-470-08030-6 Photoshop Elements For Dummies Adobe Web Suite CS3 All-in-One Desk Reference For Dummies Dreamweaver CS3 For Dummies 978-0-470-09810-3 978-0-470-11490-2 978-0-470-12099-6 SolidWorks For Dummies Flash CS3 For Dummies 978-0-7645-9555-4 AutoCAD 2008 For Dummies 978-0-470-12100-9 978-0-470-11650-0 Visio 2007 For Dummies Google SketchUp For Dummies 978-0-470-08983-5 Building a Web Site For Dummies, 3rd Edition 978-0-470-13744-4 Web Design For Dummies, 2nd Edition 978-0-470-14928-7 InDesign CS3 For Dummies 978-0-471-78117-2 978-0-470-11865-8 Web Sites Do-It-Yourself For Dummies Photoshop CS3 All-in-One Desk Reference For Dummies 978-0-470-16903-2 978-0-470-11195-6 978-0-470-17443-2 Creating Web Pages All-in-One Desk Reference For Dummies, 3rd Edition 978-0-470-09629-1 978-0-470-11193-2 Web Stores Do-It-Yourself For Dummies LANGUAGES, RELIGION & SPIRITUALITY Arabic For Dummies 978-0-471-77270-5 Chinese For Dummies, Audio Set 978-0-470-12766-7 French For Dummies 978-0-7645-5193-2 German For Dummies 978-0-7645-5195-6 Hebrew For Dummies 978-0-7645-5489-6 Ingles Para Dummies 978-0-7645-5427-8 Italian For Dummies, Audio Set 978-0-470-09586-7 Italian Verbs For Dummies 978-0-471-77389-4 Japanese For Dummies 978-0-7645-5429-2 Latin For Dummies 978-0-7645-5431-5 Portuguese For Dummies 978-0-471-78738-9 Russian For Dummies 978-0-471-78001-4 Spanish Phrases For Dummies 978-0-7645-7204-3 Spanish For Dummies 978-0-7645-5194-9 Spanish For Dummies, Audio Set 978-0-470-09585-0 The Bible For Dummies 978-0-7645-5296-0 Catholicism For Dummies 978-0-7645-5391-2 The Historical Jesus For Dummies 978-0-470-16785-4 Islam For Dummies 978-0-7645-5503-9 Spirituality For Dummies, 2nd Edition 978-0-470-19142-2 NETWORKING AND PROGRAMMING ASP.NET 3.5 For Dummies Java For Dummies, 4th Edition 978-0-470-19592-5 978-0-470-08716-9 C# 2008 For Dummies 978-0-470-05620-2 978-0-470-19109-5 Microsoft® SQL Server™ 2008 All-in-One Desk Reference For Dummies Hacking For Dummies, 2nd Edition 978-0-470-17954-3 978-0-470-09941-4 978-0-470-05235-8 Networking All-in-One Desk Reference For Dummies, 2nd Edition Wireless Home Networking For Dummies, 2nd Edition 978-0-7645-9939-2 978-0-471-74940-0 Home Networking For Dummies, 4th Edition 978-0-470-11806-1 Networking For Dummies, 8th Edition SharePoint 2007 For Dummies OPERATING SYSTEMS & COMPUTER BASICS iMac For Dummies, 5th Edition Mac OS X Leopard For Dummies 978-0-7645-8458-9 978-0-470-05433-8 Windows Vista All-in-One Desk Reference For Dummies Laptops For Dummies, 2nd Edition Macs For Dummies, 9th Edition 978-0-471-74941-7 978-0-470-05432-1 978-0-470-04849-8 Windows Vista For Dummies Linux For Dummies, 8th Edition PCs For Dummies, 11th Edition 978-0-471-75421-3 978-0-470-11649-4 978-0-470-13728-4 Windows Vista Security For Dummies MacBook For Dummies Windows® Home Server For Dummies 978-0-470-11805-4 978-0-470-04859-7 978-0-470-18592-6 Mac OS X Leopard All-in-One Desk Reference For Dummies Windows Server 2008 For Dummies 978-0-470-18043-3 978-0-470-05434-5 SPORTS, FITNESS & MUSIC Coaching Hockey For Dummies GarageBand For Dummies 978-0-470-83685-9 978-0-7645-7323-1 iPod & iTunes For Dummies, 5th Edition Coaching Soccer For Dummies Golf For Dummies, 3rd Edition 978-0-470-17474-6 978-0-471-77381-8 978-0-471-76871-5 Music Theory For Dummies Fitness For Dummies, 3rd Edition Guitar For Dummies, 2nd Edition 978-0-7645-7838-0 978-0-7645-7851-9 978-0-7645-9904-0 Stretching For Dummies Football For Dummies, 3rd Edition Home Recording For Musicians For Dummies, 2nd Edition 978-0-470-06741-3 978-0-470-12536-6 978-0-7645-8884-6 Get smart @ dummies.comđ Find a full list of Dummies titles • Look into loads of FREE on-site articles • Sign up for FREE eTips e-mailed to you weekly • See what other products carry the Dummies name • Shop directly from the Dummies bookstore • Enter to win new prizes every month! * Separate Canadian edition also available † Separate U.K edition also available Available wherever books are sold For more information or to order direct: U.S customers visit www.dummies.com or call 1-877-762-2974 U.K customers visit www.wileyeurope.com or call (0) 1243 843291 Canadian customers visit www.wiley.ca or call 1-800-567-4797 s e i m m u D h t i w e r o M o D ! s U f o t s e R e h t r o f s t c Produ DVDs • Music • Games • DIY Consumer 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Check out the Dummies Product Shop at www.dummies.com for more information! ... xvii xviii Managing Your Money All- in- One For Dummies Introduction W elcome to Managing Your Money All- in- One For Dummies, a big onestop shop designed to help you get control over your financial... something to with your personal relationship to your own money, it’s a good bet we talk about it in this book Managing Your Money All- inOne For Dummies offers money- management and personal-finance... debt, scaling back on expenses, managing home and personal budgets, repairing and improving your credit rating, planning an estate, banking online, saving and investing, and protecting your money