IDENTITY THEFT IS A CRIME, AND IT CAN SERIOUSLY DISABLE YOU FINANCIALLY.

During an average day, you may make a purchase by writing a check or using your credit card, pay your bills, or call home.  Chances are you don’t give these everyday transactions a second thought, but someone else may.  Identity theft is the fastest growing crime in America, affecting approximately 900,000 new victims each year.  The average victim spends more than 175 hours and one thousand dollars in out-of-pocket expenses to clear their name.  Job opportunities can be lost, loans refused—you can even be arrested for crimes you did not commit. What’s scary, is that it is relatively easy for identity thieves to obtain information about you.  You share your personal information at home, at work, or out in public on a daily basis.  With just a small amount of personal information, someone can steal your identity and use if for financial gain.

Top 10 Sources of Identity Theft

• Mail Theft – thieves will not only steal your mail, they may also complete a change of address card and have your mail directed to them
• Phone scams
• Unscrupulous employees
• Dumpster diving
• Stolen or lost wallets
• Internet fraud
• Burglary (home, vehicle, computer files, documents, etc.)
• Friends or relatives
• Shoulder surfing for passwords at ATMs, computers, etc.
• Unethical use of public documents

Minimize Your Risk of Becoming a Victim

Some insurance companies, such as Liberty Mutual, offer an endorsement to your homeowners or renters policy, to help you recover from expenses incurred if you become a victim of identity fraud.  In addition, you can minimize your risk of become a victim by managing your personal information wisely.  You are careful about locking up your home and your car to prevent theft, but an identity thief can steal from you without ever setting foot in your home.  Practice the following tips to help protect you and your family.

• Don’t give your personal information over the phone in an unsolicited call.  Be cautious.  Ask them to send you information in writing.
• Shred all your important documents.  Identity thieves will go through your trash and retrieve copies of your checks, credit card and bank statements, mail, and other personal records.
• Do not carry your Social Security card, birth certificate, or passport.

Monitor your bank records and credit reports often.  Identity theft can go on for years before it is noticed, so check your credit report at least once a year. Your bank statements should be checked each month. If you notice errors, contact your bank immediately.                               

The Internet provides us with a convenient way to do business, but you should be careful about giving personal information.  Identity thieves may use technology to target their victims.

• Do not supply personal information to a non-reputable company or suspicious Web site.                  
• You can verify the integrity of a site through the Better Business Bureau Online at http://www.bbbonline.org  The site also has helpful tips about shopping online.         

If You Become a Victim …   

If you suspect identity fraud, contact your local police station, the three credit agencies listed below, your credit card provider, and the FTC at 877-438-4338. 

Equifax – www.equifax.com

To report fraud, call 800-525-6285; to order your credit report, call 800-685-1111

Experian – www.experian.com

To report fraud, or to order your credit report, call 888-397-3742

TransUnion – www.transunion.com

To report fraud, call 800-680-7289; to order your credit report, call 800-888-4213

This article is reprinted with permission from Liberty Mutual Group.  Liberty Mutual insurance coverages are available to NYSPEF members through Group Savings PlusÒ.  This group discount program provides top-quality, affordable insurance through the convenience of payroll deduction, electronic fund transfer or direct billing at home.  For more information about this program, please contact 1-800-734-6796, www.libertymutual.com/lm/nyspef , or visit a local Liberty Mutual office near you.

Safeguarding Your Identity - Part Two

Attorney Mari Frank knew something was terribly wrong when her bank called regarding an outstanding $11,000 bill she knew nothing about.  She immediately phoned the major three credit agencies to tell them a fraudulent account had been opened in her name.  She learned that an imposter had stolen $50,000 in her name – and purchased a red convertible Mustang to boot.  The “thief” was a woman who had worked as a secretary at the law firm and accessed Mari Frank’s credit report from an online subscription service. 

CHANGED LIFE FOREVER

Almost one year after that first phone call – and hours of detective work, letter writing and telephone calls later – Mari Frank has her good name and credit back.  But it changed her life forever.  She continues to practice law, but she now serves as a privacy consultant and has written the book From Victim to Victor:  A Step by Step Guide for Ending the Nighmare of Identity Fraud and the Identity Theft Survival Kit.  She’s also testified on behalf of victims before the U.S. Senate. 

AN EPIDEMIC

“Identity theft is an epidemic,” Frank says, “affecting about 900,000 people a year.”  It costs the average victim more than $1,000 to cope with the damages from identity theft.” 

Thieves steal identities for financial gain (even using your resume to get a job!), to avoid prosecution or even exact revenge.  They use your personal information to obtain credit and services in your name. 

“It’s crucial to control your personal information,” Frank says.

So what is being done about this?  In the fall of 1998, the U.S. Congress passed the Identity Theft and Assumption Deterrence Act.  This law prohibits “knowingly transferring or using, without lawful authority, a means of identification of another person with the intent to commit, or to aid and abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable State or local law.”  In most circumstances, this offence carries a maximum prison term of 15 years and fines.  Schemes to commit identity fraud may also involve violations of other statutes such as credit card fraud, computer fraud, mail fraud, wire fraud or financial institution fraud.

These laws, while certainly very important, do not help a victim regain financial strength and credit reputation.  Many insurance companies have realized the significance of this growing crime, and out of that awareness have created an Identity Fraud Expense Coverage endorsement help policyholders recover.  For not much premium, the endorsement will help pay for expenses incurred as a direct result of identity theft. 

PREVENT IDENTITY THEFT
Take these five important steps today to protect your name, credit and reputation:
 

1. REVIEW YOUR CREDIT REPORT from each of the three credit
agencies listed at the right twice a year. See if there are accounts or
addresses you don’t recognize. Is your social security number correct?
Have there been more credit inquiries than normal? Any of these may
be early signs of identity theft. If you find something suspicious on
your credit report, call the agency’s fraud hotline immediately. You
also may want to add a consumer fraud alert, which asks creditors to
telephone you each time a new account is opened in your name.
 

2. LIMIT THE USE OF YOUR SOCIAL SECURITY NUMBER – this can
aid a thief the most. Never give it to someone who calls you on the
phone, don’t carry the card in your wallet and never print it on your
checks.
 

3. SHRED IMPORTANT PAPERS – especially credit card solicitations –
with a crosscut shredder. Some identity thieves piece cut papers
back together.
 

4. DON’T USE YOUR MOTHER’S MAIDEN NAME as a password on
personal accounts; it’s too easy to learn. Change it to another word
with the creditors.
 

5. SAFEGUARD CHECK USE. When writing checks to pay credit card
accounts, don’t put the complete account number on the “for” line.
put your work phone number on your checks instead of your home
number.

EQUIFAX

To report fraud: 888-766-0008

To order your credit report:

800-685-1111

www.equifax.com

TRANSUNION

To report fraud:  800-888-4213

To order your credit report:

800-888-4213

www.transunion.com

EXPERIAN

To report fraud:  888-397-3742

To order your credit report:

888-397-3742

www.experian.com

To learn more about identity theft, visit:

www.identifytheft.org

www.privacyrights.org

www.idtheftcenter.org

www.consumer.gov/idtheft

This article is reprinted with permission from Liberty Mutual Group.  Liberty Mutual insurance coverages are available to NYSPEF members through Group Savings PlusÒ.  This group discount program provides top-quality, affordable insurance through the convenience of payroll deduction, electronic fund transfer or direct billing at home.  For more information about this program, please contact 1-800-734-6796, www.libertymutual.com/lm/nyspef , or visit a local Liberty Mutual office near you.

When you’re away, home security depends on a helping hand (and extra eyes)

Neighborhood Watch
It’s much easier to relax on vacation if you know trusted neighbors are watching your home. Before you leave town, arrange for them to do the following—and don’t forget to return the favor when they take a trip.
• Collect any deliveries. Even if you have mail and newspaper delivery stopped, neighbors should watch for packages.
• Park their car in your driveway occasionally (or move your car) so it looks like someone is home.
• Set out your garbage can for normal pickup and put it away afterward.
• Maintain your lawn.
• Keep an eye on your property—and call the police if they see something suspicious.
• Act for you in an emergency. (Leave them a spare key, instructions and codes for your security system and information about how to reach you.)

If You Can’t Ask a Neighbor for Help
To ease your mind, take the following actions:
• Keep your travel plans quiet.
• If you haven’t already, install a security system and motion-detector lights.
• Ask a friend or relative to stay at your home while you’re gone. If that’s not possible, ask someone to stop by your house to check on it once or twice a day.
• Notify local police about your trip. Some communities offer home-watch programs.


Before You Go
Complete this checklist to secure your home when you head out of town.
• Arrange to have mail and packages picked up or held.
• Stop newspaper delivery.
• Move cash, jewelry and other valuables to a safe-deposit box.
• Set lights, a radio and a TV on automatic timers to give the illusion that you’re home. (Use several for the most realistic effect.)
• Lower the sound of your telephone ringer and answering machine.
• Leave your regular greeting on your voice mail or answering machine. Don’t announce that you are away.
• Turn off water to the washing machine so hoses won’t burst and flood the house.
• Lock all doors. Long dead bolts are best. Don’t forget the side garage door and rear doors. Sliding doors should be equipped with special locks (or, in a pinch, place a broom handle or similar item in the door channel).
• Lock all windows.
• Leave curtains, shades and blinds in their normal position.
• Activate your security system.
 

 Warm weather means more people—especially children—are riding bikes and walking. These activities can pose dangers, however: In 2004, 719 cyclists and 4,641 pedestrians were killed in motor vehicle crashes, according to the Insurance Institute for Highway Safety. To share streets safely and peacefully, everyone must do their part.

Motorists: Laws of Cooperation
• Drive carefully. Slow down and give bicyclists extra space, especially in bad weather. When passing, leave at least three feet between your car and a cyclist.
• Yield when required. Right-of-way rules for vehicles also apply to bikers, who may take the entire lane when conditions dictate.
• Be considerate. Blasting your horn can startle a cyclist and cause a serious accident. Watch out for moving bicyclists before opening your car door.
• Look for children. They can be more difficult to see. Their bike riding is often erratic—expect surprises.
Bicyclists and Pedestrians: Advice to Live By
• Face the correct way. Ride bikes single-file on the right side of the road, with traffic. Obey all traffic laws. Pedestrians: When there are no sidewalks, walk on the left edge of the road, facing traffic.
• Protect your head. When biking, always wear a properly fitting helmet—no matter how short the trip.
• Be cautious. Be aware. Ride or walk in a straight line. Don’t weave through traffic or swerve between parked cars. Watch for cars pulling into traffic and for car doors being opened suddenly. Bikers: Signal your intentions. Never pass on the right when approaching an intersection.
• Stay visible. Don’t assume that drivers see you or will yield. Make eye contact. At night, wear light-colored or reflective clothing, and use a white front light, a red rear light or reflector, and flashers on your bicycle.

PROTECT YOUR KIDS ONLINE
Children don’t have to be looking for trouble to find disturbing material on the Internet. To prevent inappropriate online interactions, follow these family guidelines:
• Talk about the importance of making smart decisions.
• Establish rules about online activities and post them by the computer.
• Place computers in common, open areas.
• Consider using parental controls, blocks or filters, but realize that nothing takes the place of parental supervision.
• Limit kids’ instant messaging (IM) use to friends you know. Your child should be able to put a face to every name on his or her IM “buddy list.”
• Remind your children that people in chat rooms are not always who they say they are. Kids should never agree to meet in person with someone they’ve “met” online. Nor should they give out personal information, such as their name, street address, school or email address. If your teenagers maintain personal websites, make sure they don’t post such information or share photos of themselves.
 

PUT CALLS ON HOLD TO PREVENT CRASHES
Hands-free cell phones can be just as dangerous for drivers as handheld models, according to recent research by the Insurance Institute for Highway Safety (IIHS). When driving, you are four times more likely to be in a crash that injures you if you talk on any type of cell phone, the study found.

 “It has absolutely nothing to do with whether you hold it or not,” says Dave Melton, Liberty Mutual’s director of Transportation Technical Consulting Services. “It’s the mental effort you have to go through to participate in a phone conversation. Your brain is simply not engaged in the full-time task of driving.”

Conversations between a driver and passengers aren’t as risky, he says. “Their tendency is to slow the conversation down or even stop talking when they’re in complex driving situations.”

Not just your own life is at stake: Nearly nine out of 10 cell-phone-related accidents in the IIHS study involved other vehicles.

TRY THESE CELL-SAFETY DRIVING TIPS:
• Let your voice mail pick up incoming calls. If you must answer, let callers know that you’re driving and talk just a minute or two.
• For longer or more complex conversations, find a safe place to pull over.
• When you call people, ask them if they’re driving and whether it’s a good time to talk

Dashboard DVD players, satellite TV, wireless Internet access and fancy navigation systems are among the latest high-tech vehicle luxuries. But they also can be deadly diversions.

 “We’re not nearly as good at multitasking as we think we are,” says Dave Melton of Liberty Mutual. Though hard to measure, distraction is estimated to play a role in 25 to 50 percent of crashes—up to 8,000 a day—according to the National Highway Traffic Safety Administration.

 Construction sites, billboards and other events outside the car cause the most distraction-related crashes. But the list of attention stealers—from bickering kids to an engrossing audiobook—is endless. That’s why you must resolve to keep your mind on the road.
 

 VEHICLE SELLERS MIGHT CONCEAL FLOOD DAMAGED DAMAGE
Last year’s hurricanes destroyed record numbers of vehicles, and experts fear some of them will be spiffed up and disguised for sale as regular used cars across the country.

These vehicles may seem fine at first, but their electronic and mechanical systems may eventually require expensive repairs. Another serious problem is mold and mildew.

If you’re in the market for a used vehicle, visit only reputable dealers and take these precautions:

 • Check the Vehicle Identification Number (VIN) on the National Insurance Crime Bureau’s free online database at www.nicb.org. (Note: Not every vehicle damaged in the hurricanes is listed on the site.)

 • Buy a vehicle history report.

 • Have a certified, independent mechanic inspect the vehicle.

 • Insist on seeing the title. Some states clearly mark titles “salvage” or “flood”; others use codes. Some unscrupulous sellers won’t disclose damage as required, a crime called “title washing.” Be wary if the title indicates that the last owner was an insurance company or the car came from a flood-affected region. Ask about “damage disclosures.”

 • Thoroughly inspect the car for water stains, mildew, sand, silt, grit, mud and rust, especially in hidden areas such as door speakers and the spare tire compartment. Check for dampness under carpet in the trunk. Look for moisture buildup on head- and taillights. Check for rust on screws in the dashboard and other areas water shouldn’t reach; bolts may be painted to conceal rust. Look for faded upholstery and door frames. Also be suspicious of cars with newer interior parts but older sheet metal. Under the hood, look for rust, a green patina on copper and a white powder and pitting on aluminum and alloys.
 

 PLANS FOR SAFER ROADS MATURE AS THE DRIVING POPULATION GROWS OLDERWS OLDER

With American drivers graying, safety initiatives are growing up fast. The over-65 crowd is expected to include 70 million people by 2030.
Many older drivers have excellent skills and the safety records to prove it. But health conditions, medications and the normal changes associated with aging—diminished vision, hearing, strength and cognitive ability—can eventually make driving more difficult and dangerous. Governments, advocacy groups, the auto industry and individuals are responding to these changes.

Senior-Friendly Roads
Some communities are using larger, easier-to-read signs and improving street markings. Changing a two-way stop to a four-way cuts accidents by half. Traffic signals that briefly show red in all four directions also may reduce crashes. Turn lanes and protected left-turn signals help as well. Such changes benefit all drivers, not just older ones, says Debra Alvarez, AARP legislative representative.

Screening At-Risk Drivers
Licensing procedures vary, but some states have special requirements for older drivers, such as more frequent in-person renewals. Some require written or behind-the-wheel tests.
How old is too old to drive? “The standard should be based on ability, not age,” says Robert Hodder, senior policy advisor for AARP. The National Highway Traffic Safety Administration and the American Association of Motor Vehicle Administrators are currently studying how to develop fair, consistent licensing guidelines.

Transportation Alternatives
Each year, about 1 million older Americans stop driving. Helping them maintain mobility is critical to their mental health and participation in their communities. Cities are improving public transportation, but options are limited in rural areas.
“The answer is going to be a diverse array of choices,” Hodder says. One highly regarded model is Portland, Maine’s Independent Transportation Network, which offers rides 24/7 to seniors and people with vision problems.

Personal Plan of Action
As you age, good health and good sense are the keys to keeping you safely behind the wheel.
• Have regular eye appointments and physicals.
• Exercise, focusing especially on strength and flexibility.
• Stay mentally active and involved in life.
• Monitor medications for problems such as fatigue.
• Keep up on car maintenance.
• Always wear your seat belt.

 

HEED YOUR CONCERNS ABOUT A LOVED ONE

The best way to assess someone’s driving is to ride with him or her. Does Grandpa look both ways at stop signs, stay in his lane and yield properly? Does Mom seem irritable or unsure of herself?

Dents, scrapes, close calls, tickets or warnings also indicate a problem. If you see red flags, the car isn’t the right place to discuss them; you’ll distract the driver. Instead, wait until you’re both calm and in a comfortable setting before starting this difficult conversation.

 “It brings families to their knees,” says Lissa Robins Kapust, LICSW, director of the DriveWise assessment program at Beth Israel Deaconess Medical Center in Boston. “Nobody wants to be the bad guy.”

• Share specific examples of the behavior that worries you.
• Highlight your concern for the safety of your family member and others. No one wants a lifetime of good driving to end in tragedy and regret.
• Be prepared for anger. “People are scared and sad about the challenges of growing older,” Kapust says. Respond with kindness and patience. Don’t get drawn into an argument.
• Suggest an evaluation from a driver rehabilitation specialist or professional driving teacher. To locate resources in your area, look under “Driving Instruction” in the Yellow Pages.
• Realize that the issue may need to come up more than once. If necessary, enlist the help of your loved one’s physician.
 

INNOVATIVE VEHICLE DESIGN MAKES DRIVING EASIER, SAFER AND MORE COMFORTABLE

These options are currently available or are in the works:
• Entrances: Larger doors; seats that swivel out and move back but automatically return to driving position when the car is started
• Seats and Pedals: Elevated seats for better view; adjustable gas and brake pedals
• Air bags: Inflate with less force to prevent injuries to frailer passengers; various types protect the head, neck, knees and sides
• Control panel: Larger knobs; nonglare surfaces; easier-to-read displays
• Sight lines: Cameras for blind spots; technology to improve night and peripheral vision

DID YOU KNOW?
• Research suggests that a man in his early 70s who currently drives can expect to outlive his driving ability by six years.
• For a woman in her early 70s, the number jumps to nine years.
 

Source: National Institute on Aging

Did you know your home is more likely to be damaged by a flood than a fire—even if you don’t live near water? Floods affect urban and rural areas in all 50 states. “People in the desert get flash floods,” says James C. Giracca, director of Complex Loss and Underwriting Issues for Liberty Mutual.

A separate policy will protect your home from flood losses, which aren’t covered by regular homeowners insurance. If your community participates in the National Flood Insurance Program (NFIP), you’re eligible for up to $250,000 in coverage for your home and up to $100,000 for its contents. (Renters can insure belongings for up to $100,000.) Don’t wait for flood warnings to buy a policy. In most cases, there is a 30-day waiting period before coverage takes effect.

Flood insurance rates and terms are set by NFIP, which is administered by the Federal Emergency Management Agency (FEMA). For more information, visit www.fema.gov/nfip on FEMA’s website.

Hybrids Are Hot

Want to leave those huge gasoline bills in the dust?  Consider switching to a gas-electric hybrid vehicle. Some deliver fuel efficiencies of more than 50 miles per gallon.  You’ll be in good company: According to automotive researcher R.L. Polk & Co., U.S.  hybrid-car sales increased nearly 26 percent from 2002 to 2003.

Manufacturers are gearing up to meet the growing demand.  Toyota and Honda each offer hybrid cars in their 2004 lineups, and a hybrid version of the Ford Escape SUV is due to hit the streets this fall.  Offerings from other companies are expected in 2005 and beyond.

Today’s hybrid cars are alternately propelled by battery-powered electric motors and small gasoline-powered internal combustion engines.  Batteries are recharged while driving, eliminatinly source.

Hybrid-vehicle battery packs are designed to last for 150,000 to 200,000 miles.  Warranties vary but usually cover 8 to 10 years.  Manufacturers expect to recycle the nickel-metal hydride batteries, which are more environmentally friendly than nickel-cadmium versions.

http://www.fueleconomy.gov/feg/hybrid_sbs.shtml for more information on hybrid vehicles

Some Good Financial Planning Habits

Every child’s battle cry of independence is “Me do it!,” and parents wryly recall when those not-ready-for-prime-time toddlers first got themselves dressed, poured their own milk, or took the dog for a walk. But in the roaring 1990s, “I can do it myself” was heard from another quarter—adult investors—and often the results were just as disastrous, if not quite so funny. It wasn’t long before legions of sadder but poorer do-it-yourselfers decided that maybe a little help was in order.

But old habits die hard, and some new (and not-so-new) financial planning clients could probably use a refresher course in what it takes to build an effective relationship with an advisor. Here are a few basics.

Investing isn’t supposed to be exciting. On your own, there was plenty of drama. You watched CNBC, surfed financial websites, and raced to buy or sell ahead of the crowd. Now it’s time to stop thinking about the market. Deciding how to allocate your investment assets is a deliberative process between you and your advisor; it depends on your goals, your time horizon, and your tolerance for risk. But whether you decide to push hard to make up for lost time or take a more conservative approach to conserving your wealth, once you’re committed to a plan, leave it to your advisor to stay on top of your portfolio’s performance. Checking your progress quarterly is often enough, and will give you the chance to make prudent adjustments.

Everybody needs a plan. Back when everyone was an investment genius, having a financial plan seemed a little quaint. Those outsized returns made it feel as if everything else—finding funds for your kids’ education and your own retirement, protecting your family in case of your death or disability, transferring wealth to your heirs—would take care of itself. It won’t, and now it’s time to work with your advisor to create a comprehensive plan.

Knowledge is power, so stay informed. While fretting about your portfolio is counterproductive, keeping up to date about tax-law changes, new estate planning strategies, and other developments in the financial world will only make you a better client. That’s why we send you this newsletter.

Knowledge is power, so keep us informed. The better we understand your financial situation, the better we will be able to help you. All of the aspects of financial planning—involving your investments, your retirement, your estate, your taxes, and your insurance needs—are interrelated, and any change in your circumstances or objectives could reverberate throughout your financial plan. Suppose, for example, that your daughter has decided to go to medical school, and you’ll pay the tuition. Letting us know will give your family the chance to discuss whether, for example, you need to cut back on funding your retirement plan for the next four years—and whether, as a result, you should consider a slightly more aggressive asset allocation that could keep your retirement plan on track.
 

For more information regarding this article contact helpdesk@staceybraun.com

This info-click article was supplied by Stacey Braun Associates, Inc.

What is a Roth IRA?

A Roth IRA allows only nondeductible contributions but features tax-free withdrawals for certain distribution reasons after a five-year holding period.

Who qualifies for a Roth IRA?

There are two requirements for eligibility to contribute to a Roth IRA:

1.You must have earned income, and

2.Your modified adjusted gross income (MAGI*) cannot exceed certain limits (see below)

*MAGI is gross income less any pre-tax contributions (Deferred Compensation, IRA’s, Flexible Spending Accounts, 403(b), etc.)

Single Tax Filers: 

Married, Joint Filers:

How much can I put in a Roth IRA?

If I am age 50, can I contribute additional money?

To make up for lost retirement savings, EGTRAA also added “catch-up” contribution ability for any individual who reaches age 50 or older by the end of his/her tax year. See Below: 

Do I pay taxes on My Earnings? 

No, provided you take earnings as part of a qualified distribution. A qualified distribution is:

• Distributions made on or after the date on which you attain age 59 ½

• Distributions made to your beneficiary upon your death

• Distributions attributable to you being disabled, and

• Qualified first-time home buyer distributions (up to $10,000)

What if I need access to my money now?

A helpful feature of the Roth IRA is that, for non-qualified distributions, original contribution amounts are returned first. Contributions are not subject to taxation or the 10 percent premature distribution penalty tax when distributed. In other words, you can always withdraw your principle income tax free and penalty tax free for any reason.

How much do I need to Start a Payroll deducted Roth IRA?

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