Your Money Matters Weekender

My financial advisor recommended a Prudential HD Five Annuity Series Lifetime payment. Are all annuities bad? – Suzy

Thanks for the question, Suzy. While we don't believe all annuities are bad, there are some that are bad news, and they need to be approached with caution.

For starters, an annuity is a contract between you and a life insurance company. In exchange for a lump sum or series of premiums to pay, you receive either fixed or variable payments from the company. Any profits you make on your invested money are usually tax-deferred. If you do decide to purchase an annuity, we highly recommend you choose a fixed instead of variable. Variable annuities simply don't work. They're too expensive, and when the market isn't doing well, they do worse than the average mutual fund because of all the expenses that come out. Click here to read our full take on annuities.

Trivia Winner

Last week I (Ken here) challenged everyone to another round of Dolan trivia, asking what the average life span of the new $5 bill is. Congratulations to Barbara Pollack for correctly answering “16 months.” (That's according to the Bureau of Engraving & Printing—the folks who actually print our money!) Barbara will receive a copy of our 30-Day Quick-Start Plan, which is full of ideas to help you spend smarter and live richer.

Thanks to all who participated. Keep an eye out for more trivia questions and other fun games in future issues of Your Money Matters!

Airlines Raise Prices Again:
How to Save
You may not realize it, but the rising cost of oil isn't just affecting you at the pump – it's also making the "friendly skies" less friendly. Major airlines recently raised their ticket prices for the sixth time in just three months for a total increase of $70! They're being sneaky about it, too, as these fees are primarily showing up as fuel surcharges. Now, more than ever, we all want the best bargains we can find. Here's one way to get dirt-cheap airline tickets – and it's guaranteed. You'll definitely want to know about this one!

6 Smart Ways to Make Your Tax Rebate Work for YOU
There's an extra incentive for getting your taxes done early this year: As soon as you do, you are eligible to receive your rebate check from President Bush's economic stimulus plan. Now the question is, what are you going to do with it? Before you rush off to the stores to spend it (which is what the government hopes you will do!), click here to check out 6 smart ways you can get this money working for you.

4 Steps to a Better Credit Rating
One of the best things you can do for your finances (especially in our unstable economy) is improve your credit rating. It can be done, even if you have a few black marks on your report! If your credit report could use some polishing, our four-step plan will clean it up and keep it that way for years to come.

How Long Until I Reach My Savings Goal?
Are you curious about how quickly your savings will grow? No matter what you're saving up for, the beauty of compound interest will put your money on the fast track. (No wonder Einstein reportedly called it the "most powerful force in the universe!") Plug in your numbers, and our calculator will show you when you can expect to reach the financial finish line.

Fight Back Against Bank Fees!
With the credit crunch squeezing all our wallets a little tighter these days, the last place you want to lose money to is your bank! Hidden bank fees can drain your accounts without you realizing until it's too late. Fight back by being aware of these six trends that affect consumers.