Does this credit lender’s monitoring practices cross the line?

Apparently, some credit lenders are scrutinizing the credit of their borrowers in order to modify their credit lines. It was reported that American Express started not only checking the credit scores and payment histories of their customers but also using information such as the price of homes in their customers’ areas, the types of mortgage lenders they have and spending habits of others to determine if they should limit credit lines. If I love to shop at Store ABC123, it shouldn’t affect my credit if their other patrons are one purchase away from being broke! Do you think credit lenders should be allowed to use such “external” information to modify your lines of credit?

Click here to read the entire article.

What would you do if you lost your retirement savings?

I ran across this video featuring a victim of the highly publicized Bernie Madoff’s investment fund scheme. Just when he retired, this 90-year-old man lost his $700K life savings and had to get a job making $10 per hour to support him and his wife. Now, I am almost 30 years old and I can’t imagine saving money over the entire course of my life and having something like this occur after I retired.

more about "What would you do if you lost your re…", posted with vodpod

This makes me highly consider the risk factor when saving for my retirement. Has this fraud incident made you reconsider how and where you’re saving your money for retirement?

A safer alternative may be to open an individual retirement account, or IRA, which is insured up to $250,000. Click here to learn about the tax advantages and other benefits of IRAs.