Watt's Up! - June 2011 Newsletter

June 2011

Watt's New:

There are new restrictions on the fees that large banks and credit unions can charge retailers when customers use debit cards. The restrictions go into effect July 21 after a protracted debate in the US Senate focused on whether to postpone implementation.

The new average fee will be capped at 7 cents to 12 cents for each swipe of a debit card, down from the current average of 44 cents.

Word of the Day:

Risk tolerance

Risk tolerance is the extent to which you as an investor are comfortable with the risk of losing money on an investment. If you're unwilling to take the chance that an investment might drop in price, you have little or no risk tolerance.

On the other hand, if you're willing to take some risk by making investments that fluctuate in value, you have greater risk tolerance. The probable consequence of limiting investment risk is that you are vulnerable to inflation risk, or loss of buying power.

The Other R&R: Reallocate and Rebalance

True, it's summer — time for rest and relaxation. But, if you have a little down time, it's also a good time to take a fresh look at your retirement planning. While reallocation and rebalancing your investment portfolio isn't as much fun as lying on a beach or exploring a new place, retirement is a destination worth planning for.

Depending on how many years away you're planning to retire, it may be the time to make some adjustments in the allocation of your investments. You might also make sure your portfolio is still aligned with your investment strategy.

Read more about reallocation and rebalancing.

Financial Wit & Wisdom

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Understanding Investing

This extremely popular guide, which covers all aspects of investing, including investing for retirement, has been updated and will be available soon.

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Disclaimer:
This information is provided with the understanding that the authors and publishers are not engaged in rendering financial, accounting or legal advice, and they assume no legal responsibility for the completeness or accuracy of the contents. Some charts and graphs have been edited for illustrative purposes. The text is based on information available at time of publication. Readers should consult a financial professional about their own situation before acting on any information.

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