I did not mean to cause you any embarrassment in front of your circle one: Wife, Young Girlfriend, Secretary, Other I realize you spent a great deal of money on your car and the last thi
Trang 19) ale)
sat
— Flag down a window office
Take care of business all over town with the Sprint Mobile Broadband Card
Better bucke up Business moves faster at SprintSpeed”
Trang 2Money
SUPTEMBER2007
VOLUMES NUMBER ®
index | Having trouble finding your favorite articles? Not a problem: Storles from the past four months are listed
below Subscribers can also check out these and other MONEY storles at cnnmoney.com/magazine
>BoRROWING Ewestmentloses/May/6v
Loans from parents May! nhiệt GIÁ, StcknaletoHibolIMfWre, fealesteve stocks May 'WebAddresses in This Issue q
TerdRudenys MercuyMiawJune/26 _ JmebeHksingorfelelueœ TALKBACK chealthinsurancecom —2ilow.com
LUan cư OplenJuiymo 2MIND OVER MONEY Undervaluedmarketsector/pine/7g tLeoitbggotom: mahood ve microsoftcomimeney INVEST ane
Givingstrategles/July34 BÌlshatpe/]ue'e6 banlzatecom momlngskrsam a
8llpymentz/Jt/26 John Roger july/02 ‘rotating om nochiorg aaepacom
TP 2MONEY MANAGEMENT frequentflercom -4uickencom earthquakeauthority
aes ei Sees Bestachiceever/Sept./88 garretiplanningnetwork maoietorg om
#emlylnteresratezJu/44 “Changig mons/orerze3dJu/aI ging money iy com teasoftcom floodsmartgov
2EDUCATION Expense tracking programs! Aug 24 mmponinemallcom HOME liieerg
Collegeadmission/Sept.(98 Financial adviser promises/Sept 48 raptor completelandlrdcem — meonopricecom Collegecampus tour June/49 Expeneesoncampus/Sept/19 .Gz4sanedsung/May/g Financial adviser wustJuly/a3 travel tate gor tedocieruseom — donaniacom hoingeeenomlcscom_ tImeconulauina tmlcerg -8pltsiju/6UAug Bổ GetingtichinAmerle/Ju/7a mlgprlessorcom ug.ga”
DFAMILY FINANCES inheritances uly7 phe hsa gor tenantveriestioncom edu
Bieta feneenrputalss Lessons from entrepreneurs/Julyi78
bit khhenetmsEl MMoneyandmeralQ/Aug./se Web dbs desnatnat 3 id vo beet
Financial pla forkids/Sept 32 Merete eee
InhertancewAug/4t ingonfamil asses! Aug/34 Mongagerefinancing/ July's Goingareen/June/30
Mamsblionaie/Juy/s, grenalMmanetsftuxelSBt/S.- QuuhotremgumUHl Lhtrerluggoge/May/ts5
‘Spouseoverspending/June/43 ‘perce Aas nicp neg Private mortgageinsurance/Sept./69 —_Noise-reducingearbuds/Aug./145,
‘Akernativetherapies/June/o0 DONE FAMILY Seller strategies May/35 Shipping antiques’ Aug/28 Bocmer heath June booklet Coping withiliness/July/04 Vegas relestate/AUg 7 Spending quide/Sept./23
Negotiingwithadoctor/Aug./g2 LeavingNew Oreans/Sept Windowsandskylights/Aug 2 Whole Food/July/ng
>DINSURANCE hô ‘uli bables/Aug./134 Unretrement june te? Areyouon tac Auger RETIREMENT 35T0CKS/BONDS/FUNDS een
Health insurance reform/June/84 >REAL ESTATE/HOME aouk)ristakes/ Sept./s8 Emerging markets funds/Aug./78
‘Home and auto premiums/Aug, 25 Age-in-place renovations /July/49_ TU EM) _ Financial planner fund picks/May/56
Homelnventon)sofware/June/2g—_Gathroom adeions/Sept 67 ie nschtoeaies Nay a8 Fund akernatves/AUg/69
Indhidvalheathinsurance/Sept7 —_Bestplacestollve/Aug/eg Nondeductble RAs/Aug./72 Janusfunds June’72
'Whelelfeiearance/May/49 Buye7smaieUMay/7o PiaingufthspeuseJuraE TNONEtrotplbi/Seợt + 2INVESTMENTSTRATEGIES Buyinghomewhthffends/june/s WokinglengtrSept/:6 MuldplbehdzMayisS
Balyboemerszteges/Sept/46 — Ceøet.andcahines/Aug/6s 3SAVINGS/BANKING Realestatefunds/uly/70
‘Benchmarkng/June/s7 ‘Contractor problems/Sept./s Cellphone banking/Sept./28 Target-dateretirementfundsiMay/s3 Bullmarketend/Sept-f7 Dumb enovatontads/May/so1 Creditunlon COs/Sept/74 2i xe
‘Checkingouta broker Mayo Home-pleforecasa/May/a Cnlnebankaccountpertsmayig THANH ý Uy Company stock July Home price ecovery/Jly/2s, Onlinebanking/Aug/i20 LessonsffomretumyMay/21
Dwiends/Sept/74 Kichenfxe HÑ/Mi/5> Paperless checking May/24 >TECHNOLOGY
DDumpinganannulty/june/40 Landbrding/Sepe/6t Savings ates Aug 49 ‘Callphonecontact vaps/May/20 Eamlngssurprizes/fune/70 nancbimaeuril/jMi/as Landscaping nes? Marleteutbek/May/2o Velé-comparsorvebsitesJune/s4 35PENDING Computer backupjune is 'SPsenabledphoeez/Junelrs> High yelinvestments/Juy9 Mongsgelrolzr/Aug./s7 Exercise cont/june/25 IPhone/Aug./5
>TRAVEL Alnefiedelb/Aug lạt Aline fees/Aug./28
WORKPLACE Becomingthe boss/June/28 Jpbinterviews/July/22 Nenprofwor Aug Relnentingyourslf’May/30 Time ay from work? Aug /a6
Trang 3Dear (circle one);
BMW, Lexus, Mercedes, Other, Owner:
Lam truly sorry for what happened on the road today I did not see you next
to me at that light IfT had I would have eased off the gas a litle when the light changed I did not mean to cause you any embarrassment in front of your (circle one): Wife, Young Girlfriend, Secretary, Other I realize you spent
a great deal of money on your car and the last thing you need is some guy
in a VW Passat to leave you behind like that If] see you again on the road I will be sure to let up on the gas and let you pass me
Sincerely
‘Your Name Here
The Volkswagen Passat 2.0 Turbo out-sprints the BMW 525] the Mercedes C230 and the Lexus IS 250 from 0 to 60 mph It also boasts more torque, an intercooled turbocharger, a push-button ignition and available SIRIUS Satellite Radio: All for only $23,180: So it
probably shouldn't be surprising that when you get into a Volkswagen, it gets into you The Volkswagen Passat 2.0 Turbo Who knew?
SIRIUSÃÁ, wise a podlage car Sills Sn hou crdepicha i whoo $2980 a parang ra Bì
Sarevtin Ma Ioret optlens and decler charge Actual price detrmined by Vokwagin deal ©2007 SIRIUS Sarelite Rado, ln “SIRUS the SIRIUS dog logo and
tr hạ fe “The Beet Rao on Rods are woiemols cf SRUS Seelie Rodo lnc ©2007 Volzwozen cfAmarie, lọc (wrccm]
Trang 4
uying your teenager his or her
first automobile is exciting yet
takes research While kids are
usually caught up with a vehi-
cle's style and glam appeal, it’s im-
portant for parents to emphasize the
importance of its safety features as
well Before sitting down with your
teen to discuss this issue, check out
nationwidesmartride.com It is a site
filled with tips and tools to help you
talk to your teen about smart driving
Then consider the following tip:
1 CONSIDER SIZE Teens usually want
alight, frisky car Mid-size and full-
size vehicles offer better crash protec-
tion than a smaller car, But larger does
not always mean better
2 KEY FEATURES Anti-lock brakes
and dual air bags are key features
ideal for the safety of any driver Also
check to see if the vehicle you are con-
sidering is equipped with stability con-
trols that reduce the risk of rollovers
EN KEEP DRIVING DISTRACTIONS TOA
‘MINIMUM Cell phones and radios
can cause teen drivers to lose focus on
what they need to concentrate on the
most—the road Switch cell phones
Off Choose the CD or radio station you
want and stick with it—changing them
can be distracting
For more information on smart teen driv-
ing, visit:
nationwidesmartride.com
Nationwide’
On Your Side
Nationwide, the Nationwide framemark, and On
Your Side are federally registered service marks of
‘Nationwide Mutual Insurance Company
DITOR IN-CHIEF hn ony MANAGING EOITOR, THAEINC Jonesy
Money
MANAGING EDITOR Er schcenberg saseunvttononCrig Mates [stata orton ae Har len Stak torronsaranct jen Can, Mca Sy
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Trang 5Dad wil U Lt me tak urnucar4asPn
Sometimes it seems like your teen speaks a different language
Which makes It pretty tough when you need to talk to them about certain issues, like smart diiving But we've created a Web site with the help of the National Safety Council to make “the
tall a Iitle easier, At natlonwidesmartride.com, we've included tips and tools to halp you make
your teen @ smarter driver, You'll even find expert ressarch from psychologists focused on tesn
brain development and ways to effectively cornmunicate with them Even understand tham Sono
lectures, eye rolling or whatevers Just you and your teen talking face to face about smart driving, Now that's Life Comes at You Fast® or, as they'd say, LCAYF
On Your Side" |nationwidesmartide.com j |
¿UIdS B 10/182 2U 100Á 22jB‡ 2U 4a] NOA | Peg
Trang 6
editor’snote
Cutting Class
at the School
of Hard Knocks
THERE ARE REALLY JUST TWO WAYS to get better at man-
aging money You can follow advice from the many brilliant
people over the ages who've wrestled with the same problems
you face now Or you can plow ahead on your own, make mis-
takesand learn from them As one who has done itboth ways, I
can ell you, the former isa lot easier And alot cheaper
‘My mistake (at least, the one I'll own up to here) is the clas-
ic investing faux pas—performance chasing Iwasseduced
by the hot retumsofatech-oriented mutual fund featured
on the April 1983 cover of a certain magazine of which Lwas
then a reader, not an employee “This fund was up 131% in six
months," I said to myself, “Whatkind of chump am I notto
own it?” So Ibought it—and when the 1980s tech bubble burst,
I quickly found out precisely what kind of chump Fw
Icould have saved myself considerable pain had I heeded, as
1do now, the Anglo-French financier James Goldsmith, who
said, “If you see a bandwagon, it’s too late.”
In fact, ifyou string together enough
aphorisms like Goldsmith’, you end up
with avery useful and memorable little
rile book for managing your finances,
‘That's exactly what contributing writer
Carla Fried andassistant managing edi-
tor Diane Harris have donein “The Best
Advice of All Time” (page 88) Many
of the investing insights draw on the
science of modern portfolio theory But managing money is also
often a matter of understanding human nature, and for that part
of her story Fried has drawn on sages from all of history Its safe
to say thatthis is the first time Warren Buffett, Confucius and
Coco Chanel have been quoted in the same MONEY story,
Speaking of understanding human nature, | invite you to enjoy “Your Money and Your Brain’ (page 104), an excerpt from the bookby MONEY’s investing columnist Jason Zweig
‘Zweigcan explain better than any writer alive why investors
are so susceptible to familiar mistakes (il hasing performance) and why adhering toa set of proven rules can
be such an effective way to keep on track
Finally, during this second anniversary of Hurricane Katrina, urge you not to miss senior editor Marlys Harris’ feature, “You Can't Go Home Again” (page 114) Harris tells the story of the Pellissiers, third-generation New Orleansbusiness owners
‘To get smart about money, you can follow advice from
brilliant people or make your own mistakes As one
who's done it both ways, I can tell you, the former is cheaper
who sadly concluded that they could no longer make a home
in the city oftheir birth In an unprecedented joint effort, our sister publications—including Time, People, Fortune and Sports Mlustrated—are now telling their stories of that still suffering place Ihope you'll make a point of reading them too
rie Schurenberg
‘managing edtor@moneymat com
ILLUSTRATION BY STEVEN GUARNACCIA
Trang 8TalkBack
Money
‘SEPTEMBER 2007 VOLUMIES@ NUMER
YOU DEBATE THE BEST PLACES TO LIVE
Middleton, Wis, [No 1, “Best Places to Live,” August] wasa great place
tw grow up I lived there for 23 years, moved to Chicago for afew years
and now am heading back I can’t believe anyone would knock this town!
KER! (via CNNMoney.com) Chicago—but not for long
Assomeone who gratefully escaped from small-town Wisconsin, [have
to laugh Keep your big, cheap house [in Middleton], and I'll keep my
tiny, overpriced apartment with the best front yard in the world!
JULIE MANIS New York City
We moved from New York to Lake Mary, Fla, [No.4] 2¥ayearsago, and we
loveit We have great people, trails and excellent neighborhoods Everything
isopen and clean And my 15- to 20-minute commute on I-4 is awh
compared with my old 11-hour commute to downtown New York Ci
Sherwood, Ore [No 18] isan amaz~
ing place to live Where else can you
be 30 minutes froma city downtown
[Portland], 10 minutes from wine coun-
ty and within two hours of world-class
beaches and skiing? Thave to pinch
myself to remember that I'm not ona
‘movie set for a modern-day Mayberry
‘INDY (viaCNNMoney-com) Sherwood, Ore
Although we're proud of our town’s recog
nition [it was No, 21], wealso rather regret
that MONEY letthe cat out ofthe bag
NEAL HORAN (via CNNMoney.com)
Chelmsford, Mass
HUNTING FOR CD TREASURES
In August, the Mole claimed thatCD
yields of 6.3% to 70% were recently avail-
able at federally insured creditunions
and small banks [41 Invest Only with
the Best, Sort Of") The Savings chart in
the same issue doesn’t show those rates,
money they haveon deposit (so they can
makemoreloans, for example), they may run unadvertised specials that don't last long It takes work to find them—MONEY's
‘monthly Savings chart includes only CDs
that are available nationwide (see page 74
in thisissue for details)—but the Internet can help One great site is Bankdeals blogspot.com, which recently mentioned CDs with rates as high as 7%
CORRECTIONS
“How to Pay in Euros " [July)didn' note that the Discover Card isn'taccepted in Europe; itcan be used in Canada, Central America, the Caribbean, Mexicoand China
In “Great Then, Great Now: 20 Years of
Best Places” [August], the Proton Therapy Institute isin Jacksonville, not Gainesville In“The Best College Savings Plan Just Got Better [August}, the College Savings
By following all the tips in your May issue, we sold our
home inno
e, Next used your advice on how to
purchase a new home, saving $13,000 from the builder's lowest price Thanks! —Thomas Winters, Canton, Ga
GIVE PEACE A CHANCE Your suggestions for helping couples attain financial harmony [“Five Ways to Stop Fighting over Money,” August] make a ieee tan a ae eB a
Plans of Maryland offer not one ut eight aage-based fands; henurnber for the
Michigan Education Savings Program is
877-861-6377; and the number for the
Trang 9Dear Ketel One Drinker
Hello again.
Trang 10
Gea Ea ICRC
Retirement
Red Zone,
my friend”
“Retirement
sounds great It's the
no more
paycheck
part I'm worried about
Prudential has created RetirementRedZone.com-—the website for people
inthe 5 years before to 5 years after retirement
Thats when decisions about your retirement matter more Decisions like how an annuity can help provide guaranteed income in retirement
At RetirementRedZone.com you find new ideas for retirement From
TT cu