Don't hire a "Bernie" as investment adviser

Bernard "Bernie" Madoff created a scandal in 2008 when he bilked investors out of their life savings. He also provided a reminder why it's important to vet the person who's making decisions - or holding your hand - when it comes to your investments (Dailyfinance.com July 10).

If you're in the market for a broker or adviser, here's how to make sure you won't get scammed:

• Make the broker vs. adviser decision. Brokers are paid to do what you tell them. Generally you have to give the OK before they buy and sell your investments. Investment advisers are paid to give you advice and must be registered with either the Securities Exchange Commission or their state's securities agency. Typically, you sign a contract with an investment adviser giving him or her authority to manage your funds without you weighing in on every decision.
• Do your homework. Research broker backgrounds using the free BrokerCheck tool on the Financial Investor Regulatory Authority (FINRA) Web site. FINRA provides information about licensing, how long a broker has been in business, and any complaints filed against the business.

  For a financial adviser, whether a firm or an individual, use the Security and Exchange Commission's (SEC) Investment Adviser Public Disclosure site. It provides background information and disclosures about regulation violations on the ADV form. You'll need to ask if your adviser received income from certain funds, as this is not yet publicly available. This is important because you'll want to know if your adviser is putting your money into investments that may boost his or her bottom line too.

• Select two to three companies to meet with. Take the time to interview potential brokers and advisers--you are trusting them with your financial future, after all. Ask questions about services and their investment philosophy. Be sure you understand how they charge and whether fees are based on commission or a percentage of assets under their management. Request references and check them.
• Keep your cash. Many of Madoff's victims gave him their money directly instead of putting it in a third-party financial institution or with an independent broker-dealer. Keep your investment funds in a separate account so you'll get statements from the financial institution or brokerage and your investment adviser. Plan to compare them and look for any discrepancies.

E-reader or tablet? That is the question

Manufacturers of electronic reading devices such as Amazon's Kindle and Barnes and Noble's Nook are engaged in a battle for your dollars. This is your chance to take advantage of price wars between e-readers. But, before you buy, make sure the device will meet your needs as well as a tablet computer like Apple's iPad or Lenovo's IdeaPad (The Wall Street Journal June 28).

How do you decide? First, some definitions:

An e-reader (electronic reader) is a lightweight device for reading content, such as e-books, e-newspapers, and documents. Besides being able to download content, it can do other Web-based tasks. The display is black and white. E-readers can cost between $190 and $800. Smartphones and PDAs that display text can also function as e-readers.

A tablet is a laptop personal computer that may allow you to take notes using handwriting on the touch screen. The display is color and you're able to install any compatible application (app) or operating system. Tablets can cost between $500 and $1,500.

When making your evaluation, consider:

• How much you read. If you read a lot, you'll benefit most from an e-reader, even if you buy a tablet too. E-reader batteries last for weeks. The tablet's large screen uses technology that makes it easy to view whether indoors or out, a feature of e-readers as well.
• Attributes. Look at what the different electronic devices can do. Features vary: Make sure you want what you're paying for. SmartMoney has put together a handy chart for comparing features.
• Content. If you're going to use a reader for books, magazines, and newspapers, look at both cost and availability of content. You don't want to purchase a device that won't let you obtain content you want. No matter which device you get, look for e-book stores that offer content in a free electronic publishing (EPUB) format that any reader can use.
• Buying in a brick-and-mortar store. This will give you a feel for the device. The return policies and other benefits may be better than if you purchase it online.
• Waiting. More e-readers will appear later this year and prices may drop. Or not. If you haven't found an e-reader that fits your needs and budget, it may be worth the wait.

Prepare plastic for trips abroadPrepare plastic for trips abroad

Travel can be tricky, particularly when it's overseas. Don't leave home without taking measures to prepare and protect plastic cards--and your ability to use them (Bankrate.com June 29).

These simple tips could save you hours of frustration and hundreds of dollars or more:

• Give card issuer your itinerary. If the company knows you're traveling overseas, it won't place a hold on the card when you try to use it outside the U.S. And if someone uses your credit card number in a country that's not on your itinerary, you'll be notified of possible fraud.
• Call ahead. Contact the hotel before you leave home to make sure your credit card will be accepted there. Some Europeans have adopted chip-and-PIN cards that include a computer chip and require you to enter a personal identification number (thestar.com June 29). If you're carrying a card without this feature, your card might be denied. When shopping, ask a salesperson before you get to the cash register if your card will be accepted. And consider printing your train tickets at home, before departure, to avoid kiosks that require chip-and-PIN cards.
• Ask about transaction fees. Some cards assess a foreign transaction fee, which can run around 3% and add up quickly if you charge hotel, restaurant, and other expenses paid for in a different currency. Be aware that even if a transaction involves U.S. dollars, some card issuers assess the fee if you conduct the transaction on foreign soil or with foreign entities. If your card charges a foreign transaction fee, take a little extra cash with you and take precautions to keep the cash safe.
• Clean out your wallet. Only take the plastic you'll need, but make sure you have a backup in case your primary card is lost, stolen, or cancelled. And, keep toll-free numbers of your card issuer in a separate place so you immediately can cancel plastic that's been compromised. Keep all plastic in a secure location, such as a wallet tucked into an inside pocket.
• Plan for loss. Consider carrying a USB Flash drive with your credit card information and other important documents in digital form. Make sure the flash drive allows for encryption, which protects your confidential information from identity thieves. Then if your card is lost or stolen, simply decrypt the file on a computer.

Turn to Someone You Can Trust

"People helping people" is the fundamental philosophy on which credit unions were built. More consumers are discovering that credit unions have some important characteristics not always found at other financial institutions, such as personal service and customer advocacy.

Data from Forrester Research Inc. shows that customers of the biggest banks in the U.S. are the least likely to believe their financial institution does what's best for them as opposed to what's best for the bottom line, according to the 2009 Customer Advocacy Rankings. Americans often are wary of doing business with large profit-driven financial organizations--they believe these companies only are interested in their own bottom lines.

Credit unions, however, continue to remain near the top of the rankings, as they have in previous years, with 70% of credit union customers saying their financial institution puts their interests first. Members trust their credit unions, which are not-for-profit organizations. Members know the people at their credit union care about them and have the members' best interest at heart.

When you become a member of LifeWay Credit Union, you'll always have a place where you belong. We offer a wide variety of programs and services designed to meet the unique needs of our members. Our member-focused staff will be here to assist you face to face, and answer any questions you may have.

Whether it's to open a new account, to ask about a loan, or for any of your financial needs, stop in and see us today. We are here for you.

Well-kept - and clean - car worth more

A little elbow grease can pay off when it comes time to sell your vehicle. According to the Car Care Council (carcare.org June 16), a clean, well-maintained vehicle can be worth as much as 50% more than one in "fair" condition.

These recommendations take little money or effort but deliver huge returns:

• Wash and polish. Washing once a week and polishing once every six months keeps the finish free from damaging chemicals and dirt. It also protects your car's finish from the damaging effects of ultraviolet rays and acid rain.
• Examine the surface. While you're washing and waxing, look for dents, dings, scratches, or cracked glass. Fix any problems right away, before they become expensive repairs later.
• Use recommended products. Harsh detergents, even dish soap, can damage the protective finish, leaving your vehicle even more vulnerable to the elements than before you washed it. Clean your car with products recommended by the manufacturer.

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Long-term care: It's a Class Act

The new health care bill President Barack Obama signed into law in March includes a national voluntary insurance program for purchasing long-term-care services, called CLASS, for the Community Living Assistance Services and Supports program (SmartMoney June 11).

Working people age 18 or older will have the option to use CLASS, through voluntary payroll deductions, to take the place of or supplement private long-term-care insurance (LTC). The program is expected to launch next year.

Why would you want more insurance? If you become disabled, traditional insurance, private LTC, Medicare, Medicaid, and your loving family most likely will not be enough to allow you to stay in your home and out of institutional settings (The New York Times March 24).

Here's what you need to know about CLASS:

• Enrollment. If you are working, you can enroll no matter what pre-existing conditions you have. You can have premiums deducted from your paychecks if your employer participates. Some employers will enroll workers automatically and provide an opt-out if they choose.
• Eligibility for benefits. You become eligible for benefits when you need help with two or more activities of daily living (ADL), as long as you've worked the previous three years and have contributed for at least five years. ADLs include preparing meals, eating, bathing, dressing, helping with medications, using the toilet, and so on.
• Cash benefits. The cash benefits can be used to pay for home care services, nursing home care, assisted living care, or adult day care. CLASS benefits won't cover all your costs for long-term care. The details are being ironed out--it may take awhile--but the Congressional Budget Office expects they'll average $75 a day, and be no less than $50 a day.

You might do better getting private LTC insurance, but perform a careful comparison. Fewer than 10% of older adults have bought private LTC policies. The daily cost benefits are not the only differences between CLASS and private LTC insurance. Look at the consumer protection provisions, lifetime benefits, lifetime premiums, discounts, and other features, as well as the daily cost benefits.