FINANCIAL HOUSEKEEPING | Learn to avoid bogus checks
The Federal Trade Commission has warned consumers about a new scam being used against consumers, involving counterfeit checks. The checks seem legitimate to bank employees and consumers but leave the unsuspecting recipient of the check holding the bag and without any money.
The FTC has issued a new brochure, “Giving the Bounce to Counterfeit Check Scams,” explaining common angles used in these scams, the responsibilities of banks and consumers when it comes to counterfeit checks, and advice on how to avoid these increasingly common traps. You can find the information at .
Unfortunately, if you fall victim to these scams, you are mostly out of luck. Money that is wired in these schemes can’t be retrieved, and by law, consumers are responsible for the deposited checks, even though they didn’t know the checks were fake.
SHORT COURSE | Fixed versus variable annuity
Consumers hear a lot about annuities, but there are many types. In the broadest possible terms, however, there are fixed annuities and variable annuities, and the difference is in the underlying investments and the way returns are calculated.
Fixed annuities are invested primarily in bonds, bond funds or the insurer’s general account. The buyer is locking in an earnings rate – how much the contract will generate in monthly payments, based on a number of factors.
By comparison, variable annuities are invested primarily in stocks, stock funds or stock index funds, and monthly payments vary based on the market and the returns of those underlying investments. Generally speaking, a variable annuity has the potential to generate larger monthly payments, but it also has greater risk than a fixed annuity.
