SanLuisObispo.com: Personal Finance

Be wary of emotional influence on investment decisions

Mon, 25 Aug 2008 10:24 PDT

When it comes to deciding which investment to purchase, our emotions tend to be a factor in determining what we add to our portfolio. That's unfortunate because our decision should be based on what investment we need the most according to our situation. Slick financial salespeople often use tactics to make us believe what they offer is the best solution.

They do this by the way they make their presentation and the terminology they use. One of the most popular is the use of negative language. They can scare us into a decision by telling us all the bad things that will happen if we don't buy what they are selling. "If you don't invest in this, you won't reach your retirement goal," for example.

The methods and psychological influences the salespeople use has only recently begun to be studied by academics. A recent report by the Center for Retirement Research at Boston College addressed this issue by posing different language as part of investment presentations to see how it influenced buying decisions, specifically an annuity.

What if a friend owes me money?

Mon, 25 Aug 2008 10:24 PDT

When I feel that a business owes me, I don't hesitate to let the appropriate people know about it.

I have no problem taking my battle cry to the top executive if I don't get satisfaction from the manager.

But when it comes to friends and financial matters, I must admit that I sometimes retreat before the battle begins.

Know your rights when debt collectors come calling

Mon, 25 Aug 2008 10:24 PDT

With the economy on the fritz and consumer debt at record-high levels, does it surprise you that debt collection complaints are on the rise? The Better Business Bureau logged 18,000 complaints in 2007, up 26 percent compared with 2006; the Federal Trade Commission logged 70,951 in 2007, up 2.5 percent.

Given that there are millions of contacts made by collectors each year, those numbers don't sound terribly high. But what if you're the one being harassed? Being sworn at and called names? Humiliated at work by collectors looking for you?

Minnesota Attorney General Lori Swanson recently filed a lawsuit against AFNI Inc. of Bloomington, Ill., alleging that the company was badgering Minnesotans into paying debts they didn't owe.

On the Money: Federal insurance on bank accounts

Mon, 25 Aug 2008 10:24 PDT

Recent concerns about the stability of the banking industry and news of some bank failures has made many of us a bit uneasy about the safety of our money on deposit. Fortunately, the federal government has an insurance program in place to protect the savings of individuals and families in the event of a serious banking crisis.

If you're interested in learning about federal deposit insurance and its coverage limits, several Web sites offer a range of information. Here's a sampling:

- Bankrate.com