MANAGING MONEY, Using the InternetGet the Most out of your Financial PlanningMANAGING MONEY USING THE INTERNETHow are you using the Internet? Email? Chat rooms? Shopping? Games? Downloading music? More than half of America's households now use the Internet for communication and commerce, but many have yet to use it for financial planning. It's time to do some serious financial surfing and discover the wealth of resources on the 'Net that can make you a better informed money manager.YOUR 24/7 FINANCIAL LIBRARYLet's say you're wondering about the new rules on income limitations for collecting Social Security retirement benefits. You've phoned the Social Security Administration for an explanation, but all you got was a busy signal. No problem. Log on to www.ssa.gov, then click on the FAQ (Frequently Asked Questions) symbol. Find your question and click on the answer. Ah, but what if you don’t know where to look? Start with your Internet service provider (ISP). Many ISPs provide channels that deliver information by topics such as Personal Finance, Travel, Entertainment, etc. If an appropriate channel isn’t provided, try your ISP's Internet "search engine." The search screen starts with a blank space to enter one or more keywords to help you find the information you need. Key in your subject, then click "search." A list of references will appear along with brief descriptions of the articles’ contents. Find one that seems promising and click on the Internet address (usually in blue type and underlined). You can also try other search engines by logging onto their web sites. Some of the most popular information finders include Google, AltaVista, AOL Search, Lycos, and HotBot. All can be located by entering www.[name of search engine].com. You can tell something about the source of the information you'll find at sites by their general top level domain names. That's Netspeak for the suffixes at the end of Web addresses. ".com" signifies a profit-making company. ".gov" means a government agency. ".org" usually represents a non-profit organization. ".edu" identifies universities and schools. Most Websites are open to anyone who wants to visit, and the contents are usually free. Some sites ask you to register before you have full access to their contents. You choose a user name and password and become part of the site's "community." Don't be surprised if you receive frequent email from the site, promoting its contents and inviting you back for more visits. That's how Web sites grow their audience (and, in some cases, sell their products and services).BE CALCULATINGSome of the best planning tools found on the Internet are financial calculators. These calculators can help you do everything from planning a budget to growing a college fund to estimating your income needs for retirement. With these calculators you enter the data, and the calculator does the math. Financial calculators are great for formulating “what if” scenarios. What if I cut back monthly expenses by a certain amount and invest the savings for five years? How much interest will I save if I opt for a home mortgage for 15 years instead of 25? What are my expenses likely to be after I retire? Be forewarned that calculators expect you to supply useful data. That isn't always easy if you don’t have accurate figures available or you’re asked to predict changing amounts like future income. But by using the calculations as a guide, you can steer a course that will get you close to your goals. A sister tool to the calculators is comparison tables. Here you can get side-by-side feature and cost comparisons of different brands of products or financial services like life insurance or car loans. For example, the same kind of feature-quality-cost comparisons published by Consumer Reports are available online to Consumer Reports Online subscribers. Several auto buying sites provide make and model comparisons to help you make the best car choice.E-SHOPPINGIn the '90s, shopping over the Internet seemed to be a real threat to traditional retailers (the so-called "clicks" or "bricks" challenge). But the more things change, the more they stay the same. After seeing the popularity of e-tailers like Amazon, savvy retail giants like Wal-Mart built their own Web sites, in some cases offering shoppers the option of picking up the merchandise at their nearest store and paying by check or cash rather than by credit card. If wandering around malls isn't your idea of fun, you can stay home and compare products and prices on your computer. By shopping online, you may avoid local sales tax, but don’t forget shipping charges added to the purchase price. Is credit card information secure when you shop online? Generally speaking, yes. Web retailers use sophisticated encryption software to keep such information out of the reach of hackers or even their own employees. Look for a security statement or symbol (such as a padlock) when it comes time to enter such information at checkout. Some manufacturers have built their entire business around selling direct to customers online, thus eliminating wholesaler/retailer mark-ups. But keep in mind that when you buy from such a company, you may have no local source for returns or service repairs. Save the box and paperwork in case you have to ship it back.FINANCIAL SERVICESMany banking services are now available online from both traditional and Internet-based banks. (Some customers believe it’s better to be online than waiting in line.) You can apply for loans, transfer funds from one account to another, pay bills, and get up-to-date statements on the bank’s customer Web site. The cyber banks even provide ATM cards for getting cash. Just make sure that your deposits are insured by the FDIC. If you're a stock or bond investor, you are acutely aware of online investing at discount costs. All online brokers back up online trading with optional telephone access – but at higher fees. Most online brokers offer some level of free research and other investment information. But all expect you to make your own investment decisions.Whether you invest online or with with a full-service broker, the Internet provides useful tools to research and track your investments. Sites such as TheStreet.com (thestreet.com), CBS Market Watch (cbs.marketwatch.com), and Motley Fool (fool.com) give you company profiles, earnings estimates and SEC filings. And you can track your investments as the market moves with portfolio trackers available from ISPs or Internet portals like Yahoo! (yahoo.com). ALWAYS USE CAUTIONKeep in mind that anyone can host a Web site. Much of what you see online can be false or misleading. Deal only with reputable companies and sources of information. Don’t supply personal data you wouldn’t otherwise give in person. When shopping or making any financial transactions, print out any order forms or confirmations you receive. Keep these verifications in case there are problems you have to resolve. And pay attention to any disclaimers or agreements that appear on Web sites you use.
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