When mail arrives from the companies that invest your money or lend you some of theirs, don't be too quick to pluck out the statements and throw the rest of the paperwork in the trash.
Failure to pay attention could be costly, particularly if a letter or leaflet is announcing changes in the terms of your account. Your credit card company might be jacking up your interest rate or spelling out conditions under which it will. Your bank or brokerage might be raising fees for bounced checks or adding fees for services that were formerly free.
If you don't like it, sometimes your only recourse is to close your account and take your business elsewhere. But sometimes you can call and negotiate, especially with credit card companies. And sometimes you can avoid fees by changing to a different type of account.
You always have the option of doing nothing, but that might be negative for your financial well-being.
For example, many customers of Charles Schwab (including me) soon will face higher fees unless they "opt out" of account choices the company has made for them. Schwab recently overhauled its account structure, rolling out something it calls "Schwab Personal Choice." Customers who invest directly, rather than through an adviser, have three options, but Schwab isn't simply asking which one they want. The company is making the initial choice for them.
Many customers who qualify for no-fee basic accounts are being moved into higher-level accounts that carry a quarterly fee. The fees add up to $100 a year or more unless the customer has at least $500,000 at Schwab or makes at least two dozen trades a year.
The fees kick in automatically unless customers notify Schwab by June 20 that they want the basic account, which has no fees for those with at least $50,000 in assets.
"Rather than automatically take away services that you've been accustomed to receiving, this gives you the choice to retain them for a quarterly fee," Schwab spokeswoman Sarah Bulgatz said.
To select the basic account, customers can call the company or go online. Don't like the new options? Be prepared to pay $95 per account to transfer all your assets to another brokerage.
Q. Who are those people on the stage above the New York Stock Exchange floor? Why do they applaud furiously when the market ends? They clap if the market goes up and they clap if it goes down. Do they contribute anything positive to the market or are they a bunch of idiots? It hurts me to see these people enjoying themselves on the down side.
Usually those mystery people are stock exchange visitors.
"Ringing the closing bell is an honor accorded to heads of state, senior executives of listed companies, retiring members of the New York Stock Exchange and individuals here representing a national or local celebration," exchange spokeswoman Diana DeSocio said.
She said their applause has nothing to do with how the Dow did that day. "They're celebrating some kind of milestone, whether it's the first trading day for their stock, an anniversary or retirement," she said.
Q. My girlfriend recently submitted her income tax by TeleFile, and she owes money she doesn't have. She had gotten some bad advice not to itemize even though she tithes at church and is purchasing her condo. Is there a way she can amend her TeleFile? Also is it worth it?
Yes, your girlfriend can amend her return by filing Form 1040X. It is worth itemizing if her deductions are more than the standard deduction ($4,750 if she is single; $7,000 if she has a dependent and files as head of household). Her charitable contributions, real estate taxes and mortgage interest all would be deductible. It sounds to me as though it would be worthwhile to at least review her return to be sure she really owes that money.
- Helen Huntley writes about investing and markets for the Times. If you have a question about investments or personal finance, send it to On Money. We'll try to answer those we think are of greatest reader interest. All questions must be submitted in writing, but readers' names will not be published. Send questions to huntley@sptimes.com or Helen Huntley, Times, P.O. Box 1121, St. Petersburg, FL 33731.
