Spare Change

Money Tip

If you’re thinking of purchasing a hybrid car or SUV, you may need to hurry if you want to qualify for a substantial tax credit. Once a manufacturer has sold its 60,000th hybrid of any model, car buyers have until the end of the following quarter to get the whole credit. Toyota has already reached the limit and new-car buyers have until Sept. 30 to take delivery of a hybrid if they want to qualify.

Dollars and Sense

What’s the worst financial mistake people make? According to New York-based Certified Financial Planner Lewis J. Altfest, it’s being a momentum investor – buying what’s been doing well and selling what’s been doing poorly.

Fund Fact

Mutual fund companies stand to reap a huge financial windfall from the pension reform bill. By one estimate, the new rules would result in an additional 5.5 million people saving through a 401(k) plan in the next five years.

Retirement Watch

If you work at a large corporation with a pension plan, you should assume it’s going to be frozen; more and more U.S. companies are doing it, and sweeping pension reform legislation likely will prompt others. Pension freezes hit mid-career workers hardest – those with 15 or so years to retirement – because they’ve accrued only a modest pension but likely won’t realize significant appreciation in that time in a 401(k). The experts’ advice? Start planning for a freeze now, and once it happens, deposit the maximum in your 401(k) to take advantage of matching contributions.