Use these simple tips to keep ID thieves at bay
Don’t make thieves’ jobs easier. Though they’re not foolproof, these simple tips will help ensure that your financial data is a whole lot safer.
“Shred old documents. Protect yourself against potential fraud or identity theft by eliminating your own paper trail.
“Use a credit card with a small limit for mail-order and online purchases.
“Get it in writing. Require anyone who solicits you over the phone to first send their information by mail, so you can check its legitimacy.
“Review your monthly statements. You may find fraudulent charges — or legitimate charges for services that you no longer need.
“Safeguard your family’s important documents in case of a disaster. Keep emergency supplies on hand, with copies of your important documents in sealed plastic bags. Keep valuables in a fireproof safe. Store a set of your important papers in a safety deposit box (consider choosing a location outside of your immediate vicinity).
“Make sure anyone asking for your Social Security number really needs it. Many businesses will accept alternative customer identification numbers if you ask. Don’t print your Social Security number on checks.
“Opt out of all pre-approved credit card offers by calling 888-567-8688.
“Be vigilant while using the Internet. Independently verify the validity of any requests for personal information before you give out any of your sensitive data.
“Protect your computer’s security. Use various tools (antivirus software, spyware, firewalls and passwords) to guard your computer information.
Ask the Fool
Q: What’s “window dressing”? — F.L., Denver
A: It’s a practice employed by some mutual fund managers to pull the wool over our eyes. Fund managers regularly report to the public on their funds’ holdings, typically every three or six months. They generally want to look savvy, in order to impress their existing shareholders and attract new ones. So they’ll sometimes sell lackluster investments they’ve held for a while and buy recent stellar performers — just so that their holdings on the day of record look good.
For example, perhaps the Kitten Kaboodle Fund (ticker: MEOWX) has been holding shares of some companies whose shares have plunged recently. If so, before the day on which the fund’s holdings would be recorded and later revealed, the managers might sell out of those dogs, snapping up shares of recent market darlings. This is window dressing.
Q: What are the world’s biggest brands? — L.A., Atlantic City, N.J.
A: A brand consulting outfit called Interbrand Group tracks and lists the most valuable brands in the world each year. You can read more about its surveys at its Web site: www.interbrand.com.
Here are the top 10 international brands for the year 2006, along with what Interbrand estimates to be the market value of each, in billions of dollars: (1) Coca-Cola, $67; (2) Microsoft, $57; (3) IBM, $56; (4) General Electric, $49; (5) Intel, $32; (6) Nokia, $30; (7) Toyota, $28; (8) Disney, $28; (9) McDonald’s, $28; (10) Mercedes-Benz, $22.
My dumbest investment
My dumbest investment decision wasn’t a purchase, but a decision not to buy. Why didn’t I buy more stock in America Online, well before it merged with Time Warner? Why didn’t I buy more Microsoft, Cisco, Applied Materials, Starbucks and so on back in the mid-1990s? I did buy some shares of them, and I liked the companies. But I just didn’t trust my investment style enough.
— Tom Trimbath, Langley, Wash.
The Fool Responds: That’s an excellent lesson, Tom. A lack of faith in our investment choices is one reason why some of us spread our money over too many stocks. As long as you’ve done your homework and have conviction, it’s often best to keep your money in your best ideas, aiming to hold stock in roughly eight to 15 companies.