SIPC Protection

A question came up at our January meeting regarding SIPC (Securities Investor Protection Corporation) coverage “when a brokerage firm is closed due to bankruptcy or other financial difficulties and customer assets are missing.”  An example would be the Bernard Madoff case, which is currently highlighted on the SIPC website.

SIPC protection insures accounts for up to $500,000 each, including a maximum of $100,000 in cash.

The SIPC only protects customers of broker-dealers as long as the broker-dealer is a SIPC member.  “Among the investments that are NOT protected by SIPC are commodity futures contracts and currency, as well investment contracts (such as limited partnerships) and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933.”  Their website and brochure cover all this in more detail.

Discovering What’s Next

What’s next for your retirement?  Don’t forget to investigate the activities and information available from Discovering What’s Next® in the third floor HUB of the Library.  Discovering What’s Next® is a network of people and community organizations that connects individuals 50+ with information, inspires them and supports development of their ideas, and fosters involvement leading to action that benefits both individuals and the community.  Most activities take place at the Newton Free Library.  Click here for contact information and get started on discovering what’s next for YOU!

More on Mutual Funds

If you’re looking for more information on mutual funds, we looked at two recent articles at the last meeting. both from the Wall Street Journal:

The first, by John Bogle, founder and former chief executive of the Vanguard Group of mutual funds, covers Six Lessons for Investors that we should learn from the past.

The second is a quiz about mutual funds, How Well Do You Know…the Fund Business?  After listening to Carole’s presentation, we all did very well.  See how well you do!

January Meeting Report: Mutual Funds

We were lucky to hear Carole, one of our own members, give a lively and informative presentation last week on mutual funds and how they are organized.  A Ph.D. chemist by training, Carole has been managing her mother’s finances in addition to her own 401(k).  Looking for the best way to implement a conservative low-cost strategy for investment that takes into account taxes and estate planning, she has studied and learned a lot about mutual funds, and she shared this knowledge with the rest of us.

The complete PowerPoint for Carole’s presentation is available here, but among the the items she covered were a historical overview of mutual funds, the difference between closed-end, open-end, and exchange traded funds, and traditional vs. mutual ownership structure.  She also talked about the different costs and expenses involved in purchasing mutual funds and how these can be compared, and discussed the various types of financial advisors and their licensing.

Carole also mentioned that the Investment Company Institute, the national association of U.S. investment companies, has investor education materials about mutual funds on their website.

We all learned a lot, and appreciated Carole’s willingness to teach us!

Woman’s Guide to Money Matters

Also new from Morningstar, The Woman’s Guide to Money Matters, a short booklet with tips for women on budgeting and money management, and separate sections for women who are divorcing, widowed, taking care of their parents, or working part-time.

To build on your money management knowledge, take a look at the Morningstar Investment Research Center database (available in the Library only).  Clicking on the “Help & Education” tab at the top gives you access to a wide variety of online help, and their “Investing Classroom” has 150 different information “courses,” ranging from basic to advanced.

The Morningstar database has been purchased through our Smart Investing @ Your Library grant, a joint program of the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation and the American Library Association (ALA).

Investing in 2009

Morningstar has sent us a new guide, Where to Invest in 2009.

The booklet includes insights from some of Morningstar’s top analysts, who cover:

• The 10 Best Companies in the World–Paul Larson, Morningstar StockInvestor Editor
• The Best Funds for 2009–Andrew Gogerty, Morningstar Mutual Funds Editor
• Retirees’ 2009 Survival Guide–Christine Benz, Director of Personal Finance and Editor of Morningstar PracticalFinance
• Clip and Save: 20 Common Investing Mistakes–Russel Kinnel, Director of Fund Research and Editor of Morningstar FundInvestor

Check out their suggestions and follow them up with more research by using the Morningstar Investment Research Center database (available in the Library only).

The Morningstar database has been purchased through our Smart Investing @ Your Library grant, a joint program of the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation and the American Library Association (ALA).

Learn about socially responsible investing

Christopher McIntyre

On Tuesday, January 20th, at 7:30 p.m. , the Library will host a talk titled Hope and Change: Socially Responsible Investing and Financial Planning under the Obama Administration.  Speakers will be Christopher McIntyre, Ph.D., founder of Green Harbor Financial, Joshua Humphreys, Ph.D., founding director of the Center for Social Philanthropy and David Wood, Ph.D., Director of the Institute for Responsible Investment at the Boston College Center for Corporate Citizenship.

The seminar is for people who are interested in learning about the social, environmental and financial benefits of socially responsible investing (SRI). After giving a brief history of the field of SRI there will be a review of current sustainable investing trends and opportunities, and impacts; including how SRI has weathered the current financial crisis. After examining what the immediate future might hold, for example how the Obama presidency might affect SRI, participants will learn how this broad context relates to those who want their investments to reflect their values, and how they might accomplish that within the framework of a financial plan. There will be a Q & A session.

Christopher McIntyre, Ph.D., holds degrees in economic anthropology. He has been in the financial services industry for nearly seven years.

Joshua Humphreys, Ph.D., lectures at Harvard. His insights on long-term trends in philanthropy and social and environmental investing have been widely cited in the press.

David Wood, Ph.D., directs applied research and other activity for the Institute for Responsible Investment (IRI), a Center project at Boston College that works with investors, corporations, public sector organizations and research institutes to coordinate thinking and action around issues of strategic importance to long-term wealth creation for investors and society at large.

Chris McIntyre is one of two featured guests on the January edition of Books and Beyond, the library’s monthly cable access TV show on NewTV.

Two Days of FREE Financial Advice!

On Tuesday, January 13, and Friday, January 30, Kiplinger’s, joining with the National Association of Personal Financial Advisors (NAPFA), is sponsoring Kiplinger’s Jump-Start Your Retirement Plan Days.

From 9 a.m. to 6 p.m. eastern time on those dates, call 888-919-2345 and a NAPFA adviser will respond to your question.  Or you can participate in an online discussion with a NAPFA adviser during the same time period by going to the “Jump Start Your Retirement Plan” page, where you can also read transcripts from previous online discussions.  You might find your question already answered!

Money Management in a Time of Economic Stress

In the current economic climate, money management has become more difficult.  For help, see our new bibliography, “Money Management in a Time of Economic Stress,” with links to useful books and internet resources.

Get Your Finances Ready for Retirement!

Another FINRA Foundation grantee, PBS’s Nightly Business Report, is doing a retirement planning series:  Get Your Finances Ready for Retirement.  In addition to transcripts, videos, and podcasts of the programs, the website includes links to relevant articles and other retirement planning resources–and the Nightly Business Report’s blog.

FINRA has given us two copies of the DVD from the series for the Library’s collection.  The DVD addresses retirement lifestyle options and their costs, figuring out if you have enough money to retire, and deciding when to begin collecting Social Security.  The DVD’s (“Nightly Business Report: Get Your Finances Ready For Retirement”) have arrived and are ready to be checked out!