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=09 The following message was sent to you as an opt-in subscriber to sandbox.c= om. We will continue to bring you valuable offers on the products and servi= ces that interest you most. If you wish to unsubscribe please click here: U= nsubscribe[IMAGE] =09 =09 [IMAGE]=09 [IMAGE]=09 [IMAGE] Welcome back to eJoin Finance News, where there's always time to= get in on a hot property and always time to bail when that "sure thing" he= ads south. In this issue? Collection Agency Harassment Junior Investors:= UGMAs Index Funds: An overview Very few things make me happier than recei= ving your email (My therapist says I'm making great progress though!). Plea= se send any finance-related material, questions or stories to editor@ejoin.= com [IMAGE] The statements contained in this newsletter that are not = historical facts are forward-looking statements that involve risks and unce= rtainties. You should consult with a certified financial advisor prior to = making investment decisions. [IMAGE] Collection Agenc= y Harassment and What to do About it. If you've lived long enough, th= en the chances are pretty good that you've had at least one run-in with a c= ollection agency. Chances are even better that it was a thoroughly unenjoya= ble experience. Whether your debt is the result of investments gone south= , unexpected medical expenses or a struggling home business, you still have= a ton of rights as a citizen of this great nation. One of those is the rig= ht to not be harassed by collection agencies. But how can you tell the dif= ference between aggressive collection tactics and outright harassment? If t= he collector is engaging in any of the following activities, then you may w= ell be looking at harassment: Debt collectors may not harass, oppress, or = abuse anyone. For example, debt collectors may not: use threats of violen= ce or harm against the person, property, or reputation publish a list of co= nsumers who refuse to pay their debts (except to a credit bureau) use obsce= ne or profane language repeatedly use the telephone to annoy someone teleph= one people without identifying themselves advertise your debt Debt collect= ors may not use any false statements when collecting a debt. For example, d= ebt collectors may not: falsely imply that they are attorneys or governmen= t representatives falsely imply that you have committed a crime falsely rep= resent that they operate or work for a credit bureau misrepresent the amoun= t of your debt misrepresent the involvement of an attorney in collecting a = debt indicate that papers being sent to you are legal forms when they are n= ot indicate that papers being sent to you are not legal forms when they are= Debt collectors also may not state that: you will be arrested if you do = not pay your debt they will seize, garnish, attach, or sell your property o= r wages, unless the collection agency or creditor intends to do so, and it = is legal to do so actions, such as a lawsuit, will be taken against you, wh= ich legally may not be taken, or which they do not intend to take Debt col= lectors are also not allowed to: give false credit information about you t= o anyone send you anything that looks like an official document from a cour= t or government agency when it is not use a false name Debt collectors may= not engage in unfair practices when they try to collect a debt. For exampl= e, collectors may not: collect any amount greater than your debt, unless a= llowed by law deposit a post-dated check prematurely make you accept collec= t calls or pay for telegrams take or threaten to take your property unless = this can be done legally contact you by postcard If you are being harassed= by a collection agency, the normal reaction by most people is to either av= oid the calls, or get angry with the collector. While getting angry with th= e harassing party might give you a brief moment of satisfaction, there are = more productive ways to go about ridding yourself of that harassment. Tel= l them to stop Under the Fair Debt Collection Practices Act (FDCPA), you h= ave the right to tell a collection agency employee to stop contacting you. = Simply send a letter (registered mail) stating that you want the collection= agency to cease all communications with you. All agency employees are then= prohibited from contacting you, except to tell you that collection efforts= have ended or that the collection agency or original creditor may sue you.= You can do this even if the collector is not breaking the law. Document = the harassment If a debt collector breaks the law, document the violation = as soon as it happens. Start a log -- and write down what happened, when it= happened and who witnessed it. Then, try to have another person present (o= r on the phone) during all future communications with the collector. In som= e states, you can record phone conversations without the debt collector's k= nowledge. But beware. In a few states this is illegal unless you get permis= sion from the collector or warn him that you are recording the call. Check = with your state consumer protection agency to find out if you live in one o= f these states. File a Complaint File an official complaint with the Fed= eral Trade Commission (FTC), the federal agency that oversees collection ag= encies. Ask the FTC to send you a complaint form, or just write a letter. C= ontact the Federal Trade Commission at: 6th and Pennsylvania Ave. NW, Was= hington, DC 20580 Or visit their website: http://www.ftc.gov/ftc/complaint= .htm Include the collection agency's name and address, the name of the col= lector, the dates and times of the conversations, and the names of any witn= esses. Attach copies of all offending materials you received and a copy of = any tape you made. Also, send a copy of your complaint to the state agency = that regulates collection agencies for the state where the agency is locate= d. To find the agency, call information in that state's capital city. Final= ly, send a copy to the original creditor and the collection agency. The ori= ginal creditor may be concerned about its own liability and offer to cancel= the debt. Once your complaint is filed, don't expect immediate results. T= he FTC may take steps to sanction the agency if it has other complaints on = record. The state agency may move more quickly to sue the collection agency= or shut it down for certain violations. Your best hope is that the credito= r will offer to cancel the debt. Junior Investors: UGMA's This in= vesting stuff is so easy; a kid could do it! ?and probably should. If tim= e is the most important factor in an investment program, than it's impossib= le to be too young to be an investor. Indeed, you should start an investmen= t program as early as possible. Starting an investment program is easy, r= egardless if you are a young adult (18 years or older) or a youngster. Once= you reach the age of majority (18 in most states), you may have an investm= ent account registered solely in your name. [IMAGE] Youngsters under the a= ge of 18 are not permitted to have their own investment accounts. However, = several ways exist to introduce youngsters to investing. When establishin= g investment accounts for youngsters, consider carefully how you want the a= ccount registered. If you choose to have the account in your own name, you = will be responsible for taxes on the account. The good thing is that you al= so retain complete control over the account for as long as you want. An al= ternative is to set up the account as a Uniform Gift To Minors Account (UGM= A). Funds in the account are in the minor's name and social security number= and are considered to be owned by the minor. Dividends paid on the account= are taxable, most likely at a preferred tax rate. The adult custodian is r= esponsible for the account until the minor reaches the age of majority. Any= withdrawals from the account are payable to the custodian on the minor's b= ehalf until that time. However, once the youth has reached the age of major= ity, which is 18 in most states, control of the account reverts to the chil= d to do with as he or she sees fit. This is the downside of setting up a UG= MA. Parental control is lost at the age of majority. Another consideration= is that college financial aid decisions could be impacted if a child has s= izable assets in a UGMA. For these reasons, it is important to understand = the pros and cons of UGMAs before registering the investments in that manne= r. There really is no right or wrong way to set up an investment account f= or a child. What may work for a friend may not work for you. For that reaso= n, make sure you set up the account in the way that meets your, and your ch= ild's, objectives. [IMAGE] Index Funds: An overview = If you are new to the wild and wooly world of investing, then you are pro= bably a bit overwhelmed by the number of different "types" of investments. = From stocks to bonds, mutual funds and IRAs, it seems like you need a bache= lor's degree in finance just to understand your options. In this article, w= e'll introduce you to Index Funds and explain why this might be an investme= nt alternative worth looking into. Unlike a typical mutual fund, index fu= nds do not actively trade stocks throughout the year. This makes it an obvi= ous choice for the investor that doesn't want to monitor the fund on a dail= y basis. Rather, the funds hold their stocks for the full year and even lon= ger if the index incurs few changes. This helps to cut costs by reducing tr= ansaction fees and eliminating the need for highly paid fund managers. The= re are a number of sound reasons why index funds are so popular with invest= ors. A few of those are: No Sales Charges. No Manager Risk. Less Volatilit= y. Less Operating Costs. More Diversification. Less Capital Gains Tax. High= er Gross Returns for Both Bonds and Stocks. Even Higher Net Returns. Not a= ll indexes are created in the same way, though. How they are assembled can = affect investor returns. Three methods primarily used to construct indexes = are: Market value-weighted Method- Each stock is given a weighting proport= ional to its market capitalization Price Weighted Method- Each stock is gi= ven a weighting proportional to its market price Equal Weighted Method- Ea= ch stock is equally weighted in the index The market value-weighted metho= d, where a company worth $2 Billion is given twice the weight of a company = worth $1 Billion, is the most popular way of creating an index. A market va= lue-weighted index allows investors to best capture total economic activity= and changes in valuation of the companies in the index. By giving larger c= ompanies higher weighting, this method reflects the fact that large compani= es have larger revenues and profits and that any change will have a larger = effect on economic activity than change in smaller companies. A price-wei= ghted index over-weights the performance of companies with higher listed st= ock prices. Early in this century, high prices were synonymous with larger = companies and higher market caps. Things are different today but the old me= thod is still used for computing the index. An equally-weighted index make= s no distinction between large and small companies, both of which are given= equal weighting. The good performance of large-cap stocks is negated one-f= or-one by poor performance of smaller-cap stocks in this index. Since there= are many more small companies than large ones, this strategy greatly overe= mphasizes the importance of small company activity. Despite the fact that = index funds tend to be much lower risk than other investment options, you s= hould still speak with a financial advisor prior to making the purchase. He= might be able to point out an index fund or two that have a higher yield p= otential. And that is always a good thing! Submit a story = [IMAGE] =09 [IMAGE]=09
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