Spare Change

Money Tip

There’s a way around the 10 percent early withdrawal penalty for Individual Retirement Accounts; section 72(t) of the Internal Revenue Code allows people to withdraw money from their IRA penalty-free before age 59 1/2 , provided the withdrawals are in “substantially equal periodic payments” for at least five years. Sounds simple, but it’s not and the regulation’s complexity is ensnaring a growing number of early retirees.

Wise Planning

Here’s a guide to the alphabet soup of financial advisers:

CFP: Certified Financial Planner, a general adviser who can help with investments, retirement, estate and tax planning.

CPA: A Certified Public Accountant is accredited and must meet experience requirements.

CLU: Chartered Life Underwriter is the highest designation in the life insurance industry.

CFA: Chartered Financial Analyst candidates must pass three exams and typically work for financial institutions and wealthy investors.

Fund Fact

Amid inflation fears, mutual-fund investors have been flocking into TIPS funds. These funds invest in Treasury Inflation-Protected Securities, a government bond introduced in 1997 that automatically readjusts itself twice a year so that its returns keep pace with inflation. Funds invested in TIPS stood at more than $34.4 billion as of May 31, a sharp rise from about $4 billion at the start of 2002.

Survey Says

Why don’t most women invest more aggressively? News flash! It’s because they’re too busy with daily concerns like taking the kids to soccer, cooking dinner and paying bills, says a study by Prudential Financial.