FINANCIAL HOUSEKEEPING
Protect against ID theft
Despite plenty of media horror stories, most consumers don’t take significant steps to protect themselves against identity theft, right up until they lose their wallet, see a credit- card charge they don’t recognize or find something ugly on their credit report.
The Federal Trade Commission, however, has the definitive website for helping consumers defend themselves against identity theft. Much of the information at the site, FTC.gov /idtheft, is better viewed before there is a problem, although the site does have suggestions to help recover once a consumer realizes that personal information has been stolen.
For those who think they protect themselves and take all the right steps, a worthwhile stop would be the FTC’s quiz for consumers. There is a link from the main page, or you can get to the quiz directly at onguardonline.gov/quiz/idtheft_quiz.html.
SHORT COURSE
Beware of “zombie”
This is a term with two different definitions when it comes to investing.
Most times, the term “zombie” is used to describe an insolvent or bankrupt company that continues to operate while awaiting a merger, reorganization or liquidation. The term applies because the company is not quite free and alive but not quite dead.
For an individual investor, a “zombie” is the worthless shares in a company that has, essentially, become worthless. It may be stock in a zombie company, or it might be shares that have gone to zero while the company died.
Zombie shares, however, may have value from a tax standpoint, as the investor can declare the shares worthless – effectively abandoning them to the brokerage house – and use the loss to offset other gains. Savvy tax management suggests that a zombie might stay on a consumer’s statement until the time is right to kill it and get the tax break.
