Identity theft is the fastest growing financial crime in the United States, affecting an estimated 750,000 people per year. Protect your financial well being by not becoming one of them - this month's Featured Question provides important tips on minimizing your risk. Also, our Resource Link to the Direct Marketing Association will help you reduce unwanted mail and safeguard against wider release of your personal information. The Article Briefings feature a sampling of recent financial and retirement news, including a looming long-term health care crisis, inaccurate rate-of-return projections for pensions, real estate investments, and more.

Featured Question of the Month
Preventing Identity Theft

Article Briefings
Long-Term Care Crises Are Beginning to Loom
Honey, I Shrunk the 401(k)
Heightened Pensions
Should You Invest Where You Sleep?
A Quick Fix From Congress May Be Bad for Retirees

Resource Link
Removing Your Name from Marketing Lists

Q: I've heard that identity theft is a growing problem. How can I prevent becoming a victim?

A: Identity theft occurs when someone uses your name and personal information (such as your social security number, credit card number, or drivers license number) to commit fraud or theft. An identity thief can exploit your personal information in many ways. For example, the thief might open a new bank account in your name, then use it to write bad checks. Or the thief might open a credit card or cell phone account in your name and run up charges that will never be paid. Whatever the means, the result is the same: the debts and delinquencies appear on YOUR credit report.

Identity theft is on the rise, but you can minimize the risk of becoming a victim. In general, control the distribution of all personal information: know who you release it to and why. If it's in print, be mindful of where those papers are and, ultimately, how they are discarded. Here are some specific safeguards to consider:

• Check your credit reports once a year for unauthorized activity. The three major credit-reporting bureaus you should contact are Experian, Equifax, and TransUnion.

• Monitor your mailbox, because thieves may obtain your information by stealing or redirecting your mail. Remove your mail promptly, and note any unexpected gaps in delivery--a thief can file a temporary address change in your name. If you suspect foul play, contact your local post office to find out if any if a change of address was submitted for you.

• Don't just discard your mail: shred it. A crosscut paper shredder works best. This is especially important for pre-approved credit card offers (as well as credit card receipts).

• Don't carry your social security number or bank passwords in your wallet. A stolen wallet can provide a thief with much more than simply the cash inside.

• Remove your name from marketing lists. Many companies that you do business with will sell or rent your name to others, creating another venue for uncontrolled distribution of your personal information. Contact the companies you work with and request that they remove your name from these lists. You can reduce the number of pre-approved credit card offers you receive by contacting 888-5OPT OUT. Also, be sure to read this month's Resource Link for further information from the Direct Marketing Association.

• Never provide telephone solicitors with personal information unless you place the call and can verify who you are speaking to.

• Be cautious about providing personal information on the web, especially when registering for free services or publications; this provides a way for companies to collect your personal information. The companies may use the information legitimately, but those they rent or sell to may not. Read the privacy policies to understand how your information will be used and with whom it may be shared. If your information may be shared, look for an option that allows you to request confidentiality. (Be assured that IRA.com fully respects your privacy and does not sell, rent, or otherwise share any personal information we collect without permission from you or in accordance with the law.)

Long-Term Care Crises Are Beginning to Loom
The cost of long-term health care is rising, partly due to increasing malpractice insurance rates, and those high rates have forced various for-profit and nonprofit nursing facilities to either go out of business or drop their coverage.

Read the full abstract at: http://www.ira.com/news/insure/9ba59a194f58a58c55879b41fd0adbeb.html

Honey, I Shrunk the 401(k)
Employers are starting to take notice as defined benefit plans, defined contribution plans, and hybrid plans become more popular among workers with shrinking 401(k)s.

Read the full abstract at: http://www.ira.com/news/plan/be69f1faca0e5875f1b859ac87fd1fb1.html

Heightened Pensions
Companies are allowed to assume an expected rate of return for their defined benefit pension plans, but a recent study shows a wide discrepancy between that assumption and the pension funds' actual losses.

Read the full abstract at: http://www.ira.com/news/plan/96824da8e1835d7d667b5be66c446c80.html

Should You Invest Where You Sleep?
The recession, the recent accounting scandals, and the subsequent stock plunge has prompted many investors to pour their money into real estate.

Read the full abstract at: http://www.ira.com/news/plan/54d3b1b010f45d4cff694bc77198649c.html

A Quick Fix From Congress May Be Bad for Retirees
Both Congress and the Bush administration are looking for fixes for damaged retirement plans that will at least get them through the next election, and the latest idea is to raise or eliminate the age level at which retirees must begin making withdrawals from their individual retirement accounts.

Read the full abstract at: http://www.ira.com/news/plan/3c829cf3aebe4e962568563b18a233a3.html

Removing Your Name from Marketing Lists
http://www.dmaconsumers.org/consumerassistance.html#mail

This web site from the Direct Marketing Association provides links and information to help remove your name from a variety of marketing lists. The site covers traditional mailing lists as well as those for telemarketing and email, and it also provides tips and cautions on entering sweepstakes and shopping by phone.

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