March 3, 2008 issue

Needed: 50,000 new financial planners, and in a hurry. Boomers are reaching pre-retirement and retirement age, and, often, they’re clueless about what to do with their money now. They’re eager for help with decisions that could make or break their lives: Can I afford to retire? Should I take a pension or a lump sum? What’s a suitable investment? How do I make my nest egg last? There aren’t enough people trained to answer those questions well, says Deena Katz, associate professor in the Personal Financial Planning department of Texas Tech University in Lubbock.

As always, the issue is quality, and the financial sharks are circling. “That keeps me up at night,” says Sheryl Garrett, founder of Garrett Planning Network, an association of nearly 300 independent planners. “There are so many people drooling over all the money that’s going to be coming out of retirement plans.”

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By Linda Stern 

If you missed your chance five years ago, this might be a good time to refinance your home mortgage. The credit crunch has paradoxically produced the lowest interest rates in years. Rates on 30-year loans are below 6 percent, and 15-year loans are skirting the 5 percent level.

A refi now should appeal to three groups in particular: those who have dangerous interest-only or negative-amortization mortgages, those whose credit scores have improved significantly since they got the loans they have now and those whose variable loans reset last summer to 7 percent or higher.

Folks who have big loans— so-called jumbo mortgages of more than $417,000—should wait and see. The federal stimulus package is supposed to help rates on those loans, but that effect may not kick in until spring.

The Internet is crawling with smart money sites offering calculators, data and advice. Below, TIP SHEET reviews some standouts that can help you make good financial choices.

Analyzenow.com: A former engineer breaks down all the math behind retirement planning. It includes free Excel spreadsheets, book suggestions, articles and a “tough love” approach to building post-job budgets—just the brutal facts, according to its author.

Retailmenot.com: Easy, comprehensive couponing, with discount codes for just about every online and retail store. Also includes user reports, so you don’t get stuck using bad codes. Check this site before you click “place order” and you’ll save money.

By Linda Stern 

Greenwashing isn’t about salad prep. It’s what companies do when they plaster their products with meaningless but inspiring labels like EARTH-FRIENDLY and ECO-SAFE. Sounds good, looks pretty, but how do you know whether you’re really getting an environmentally sound product?

You don’t, according to the Federal Trade Commission, which is reviewing the guidance it gives consumers on green pitches. “There’s a heightened potential for deception” with green claims like carbon offsets when you can’t monitor the actual effect, says FTC chair Deborah Platt Majoras.

Ignore the fluff and look for specifics, suggests the Center for American Progress, a liberal think tank. The words “organic” and “recycled” are regulated by the government and have legal meaning, as do the Energy Star designations given to appliances, electronics and other products by the Environmental Protection Agency and the Energy Department. You can look for independent certification by groups such as Green Seal (greenseal.org), EcoLogo (ecologo.org), the Greenguard Environmental Institute (greenguard.org) and the Forest Stewardship Council (fscus.org).

The more details you get, the better, says the FTC. Instead of going for the box that says “less waste,” buy one that says “20 percent less material.” If a product has those three little green chasing arrows, check to see if the box offers more info, like whether it’s recyclable or recycled, whether the symbol refers to the product or the package and what percentage is actually made of recycled materials. Be aware of what the environmental marketing company Terra Choice calls “hidden trade-offs”: products that claim one environmental virtue, like energy efficiency, but deliver another sin, like hazardous contents. Finally, don’t get smitten with the word “biodegradable.” Most of that stuff ends up in landfills anyway, and still takes a long time to go away.

With rates on money-market accounts and certificates of deposit stuck around 3 percent, it hardly seems worth driving by the bank to make a deposit. But now a relatively new kind of account, called rewards checking, is showing up at hundreds of banks around the country, promising to pay as much as 5 percent in interest without any fees. Here’s what you need to know before you start looking for one.

• They come with strings. These accounts typically require you to use your debit card at least 10 times a month and to give up paper statements in favor of online ones.

• They’re not at the big banks. These accounts can be found at community institutions like the State Bank of Toledo (www .banktoledo.com) and Southern Community Bank and Trust (smallenoughtocare.com). Some cater only to a local clientele.

March 3, 2008 issue

Cash-strapped parents are filling out their aid forms in the face of higher college costs, a credit crunch and new student-loan legislation from Washington. TIP SHEET’s Linda Stern asked Mark Kantrowitz, publisher of FinAid.org, how you can get the most cash for your kids.

STERN: Will there be college money for next year’s freshmen? How much will it cost?
KANTROWITZ: There will be fewer lenders, but students will still be able to obtain federal education loans. Undergraduate federal student loans will cost 6 percent if they are subsidized, 6.8 percent if they are unsubsidized, and parents’ loans will cost as much as 8.5 percent.

Those rates all seem pretty pricey. Shouldn’t families just get a home-equity line instead?
Remember that these are fixed rates, and home-equity rates will vary, so over the long term they may go up higher. And student loans have some other favorable terms like hardship deferments and extended repayment plans. But, if you think you can pay it off over the next couple of years, I’d recommend the home- equity line.

 March 3, 2008 issue

Our top picks for the week

Rent “Darjeeling Limited.” Director Wes Anderson transports his arch, melancholic sensibility to India, where three estranged brothers hop a train in a quixotic attempt to heal spiritual wounds. “Darjeeling” has a lightweight, coloring-book charm that deepens after these odd, privileged ducks are thrown off the train.

Hear Terry Riley’s “The Cusp of Magic.” Kronos Quartet, along with pipa player Wu Man, introduce noisemaking children’s toys to Riley’s 2004 composition. With a quack, quack here and a glissando there, they bring this mesmerizing piece to vivid and magical life ($12.99; Amazon.com).

Buy John Allan’s Travel Kit. The jet-set man on the go can travel with style and ease with this six-piece TSA-approved set. The clear, zippered pack includes two-ounce bottles of necessities like shaving cream, shampoo and moisturizer ($38; johnallans.com).

Watch NFL Super Bowl XLII—New York Giants Championship DVD. See the historic upset a different way: through the prism of NFL Films. The DVD offers three hours of footage that takes the Giants from training camp to the championship ($24.99; nflshop.com).

Go to Miami’s Carnaval. Enjoy two weeks of food and festivities, culminating with Calle Ocho, Carnaval’s marquee event on the 16th, when 23 street blocks are opened up for the grandest party of all (March 1–16; carnavalmiami.com).

March 3, 2008 issue

By Linda Stern

Individual workers can sue their bosses for mismanaging their 401(k) plans, the Supreme Court said last week. But that doesn’t mean the millions of employees who are watching their nest eggs shrink this year should race to the courthouse. They are more likely victims of a fickle stock market than financial malfeasance. And, because most workers make their own investment decisions, they can’t blame their companies for those losses.

But employers can misuse 401(k) plans, says Rebecca Davis of the Pension Rights Center (pensionrights.org), a Washington advocacy group. They can stuff a plan with poorly performing company stock, or with mutual funds that charge excessive fees. They can delay making investments or depositing money into the account. When that happens, employees should first take their complaints to their employers and then, if they aren’t satisfied, to the Labor Department (dol.gov/ebsa), which regulates retirement plans. And as for those red-inked statements of 2008, just sit tight, says David Wray of the Profit Sharing 401k Council of America (psca.org). With stock-market prices down, your monthly contributions are simply buying more shares cheaply, and that’s not bad.

  Illustration: Mark Matcho for Newsweek

 By Karen Springen

Like many couples, Brian Delaney, 35, and his wife, Daniela, 34, turned to in vitro fertilization after failing to conceive on their own. But after five attempts and an investment of $150,000, IVF failed them as well. Then Brian saw a male-infertility specialist, Columbia University’s Dr. Harry Fisch, who discovered that Brian’s low sperm production could be corrected through microsurgery. Three months later, Daniela was pregnant. Last November she delivered a baby boy, Harrison.

Long overlooked, male infertility has become a fruitful field of research. Doctors now know that, when a couple fails to conceive, the problem lies with the man as often as with the woman. And as the Delaneys learned, recent advances have dramatically improved experts’ understanding of how to diagnose, treat and prevent the condition. “Anything that makes the body unhealthy—a disease, toxins, excessive alcohol—will hurt fertility,” says UCSF urologist Paul Turek. “But most of these things that hurt fertility are reversible.” Some tips for men:

Surf shoetube.tv. This first Web channel for shoe addicts combines “news” reports on the latest shoe styles, sneak previews of spring lines and clever woman-in-the-street interviews. You don’t have to have Imelda Marcos’s shoe closet to love it.

Visit San Francisco for the Chinese New Year parade, the largest celebration outside Asia. Help usher in the Year of the Rat while enjoying acrobats, lion dancing and, of course, the food (Feb. 23; chineseparade.com).

Meet your music match on rocknrolldating.com. Looking for someone who shares your love of Goth—or any other genre of rock and roll? This new Web site recognizes the “relevance of music compatibility in relationships.” Best of all, it’s free.

Go to the Northwest Flower & Garden Show in Seattle. Featuring six acres of gardens, seminars and exhibits, as well as demonstrations, food and kids’ activities, this five-day-long event is a must for gardening enthusiasts (Feb. 20–24; gardenshow.com).

The Nissan Altima Hybrid proves you don’t have to sacrifice sporty driving dynamics and midsize roominess for improved enviro-friendliness. It has sure-footed handling, sharp steering response and standard ABS brakes.

Power: Nissan licensed Toyota’s excellent electric motor for use in the Altima. Paired with Nissan’s own engine, that’s a combined 198hp.

Interior: The brightly lit animated gauge cluster is fun, and the base model has many perks. But the push-button ignition is not for everyone.

Side mirrors: Altima’s side-mirror-mounted direction indicators are a surprising added safety feature in a car of this price.

Customer call centers tend to do one thing efficiently: frustrate complaining customers. Beat them at their own game with these tips from “Gotcha Capitalism” by Bob Sullivan (Ballantine Books. $14.95):

Start by checking the Web site gethuman.com for the secret code that will get you to a live rep more quickly. Call during regular business hours, when the best employees are manning the phones. And consider pressing the number for Spanish, as you’re likely to get a bilingual operator faster than you would by waiting for an English-only agent. Or call the sales office instead. Once you get through, jot down the rep’s name or operator number, and then state your case simply. Ask if he or she has the authority to solve the problem for you. If not, ask to be switched to a supervisor who does. Take that, “hold” music!

Baby, it’s cold outside. But don’t let that stop you from exercising outdoors. TIP SHEET spoke to Dr. Robert Marx of the Hospital for Special Surgery in New York for ideas on how to stay warm.

Bundle up. Dress in layers and choose your materials carefully. Make sure your outer layer is made from materials that repel wind and precipitation, like microfiber or Gore-Tex. Don’t wear cotton next to your skin, as it traps moisture and causes your body to lose heat faster. Opt instead for moisturewicking fabrics, like Patagonia’s Capilene (patagonia.com) or Eastern Mountain Sports’ Techwick (ems.com), which keep you drier.

India's Golden Triangle--Delhi, Agra and the Rajasthan capital of Jaipur--attracts tourists by the droves. But after getting your fill of the prime attractions, travel west where a pair of enchanting cities offers a closer glimpse into India's largest state. NEWSWEEK reporter Christopher Werth recently returned from the journey.

Delhi: While the Indian capital is said to be comprised of at least seven successive cities throughout history, the two most recent manifestations are the most apparent. Old Delhi is a vibrant but sooty conglomeration of streets and bazaars, thronged with people and cycle rickshaws. New Delhi is a colonial pattern of wide, sweeping boulevards and monumental buildings, a master plan designed by the British architect Edwin Lutyens. The most fun to be had is in the old city. For a memorable dining experience, duck down the tiny alleyway that leads to Karim's, a well-known establishment occupying a courtyard of random buildings near the Jama Masjid, India's largest mosque. The restaurant is famous as far away as Mumbai.

Gaming the System: Choose videogames that adapt to your child’s skills. Getty Images

By Anna Kuchment and Christina Gillham

Parents who feel guilty about letting their kids watch TV might breathe a sigh of relief after talking to Deborah Linebarger. Linebarger, an assistant professor at the University of Pennsylvania’s Annenberg School for Communication who studies the effects of media on young children, has let all her kids watch some TV from the time they were babies. “There’s evidence now that certain kinds of programming can help kids with language development and can be beneficial in moderation,” she says.

Some studies have linked TV and videogames with obesity and attention-deficit disorders. And the American Academy of Pediatrics says kids younger than 2 shouldn’t watch any television at all. But, despite these warnings, 90 percent of 2-year-olds regularly watch TV, DVDs or videos, and one third of 3- to 6-year-olds have a TV in their bedroom. So child-development experts have turned their attention to helping parents make smart choices. A growing body of research shows that, if parents select programming wisely, set time limits and watch with their kids as much as possible, children are likely to benefit rather than suffer any negative consequences. “I don’t think TV screens for any age should be dealt with as something toxic,” says Dr. Michael Rich, a pediatrician at Children’s Hospital Boston and director of its Center on Media and Child Health (cmch.tv). Some advice on helping your children navigate the video landscape:

Ages 0 to 2.“There’s nothing better for infants’ development than human interaction,” says Dr. Dimitri Christakis, a professor of pediatrics at the University of Washington and coauthor of “The Elephant in the Living Room: Make Television Work for Your Kids.” Last year Christakis coauthored a study that found a correlation between baby video and DVD viewing and poor language development in babies ages 8 to 16 months. But Linebarger says to follow your kid’s cues. If your child seems interested in TV, an 11- to 12-minute episode of a commercial-free show like Nickelodeon’s “Blue’s Clues” or PBS’s “Arthur” is unlikely to do harm and could help him learn new words. Preliminary research by Rebekah Richert, an assistant professor of psychology at the University of California, Riverside, shows that babies as young as 18 months are capable of learning new words from DVDs like Baby Einstein’s “Baby Wordsworth” as long as “parents direct their children’s attention to the screen and label particular words.”

Ages 2 to 5. In Linebarger’s research, watching such programs as Nickelodeon’s “Dora the Explorer” and “Blue’s Clues” and PBS’s “Arthur,” “Clifford” and “Dragon Tales” was linked with increased vocabulary in kids ages 6 months to 2½ years, while such shows as PBS’s “Teletubbies” were linked with decreased vocabulary. Choose programs with a linear plotline, as opposed to a variety-show format, because they’re easier for toddlers to follow.

Ages 6 to 10. “There’s not as much programming for kids once they start school that’s of high quality,” says Christakis. But kids in this age group are not yet ready for prime-time TV, and parents will need to hunt around for more-appropriate content. Prescreen as much as possible to make sure the show you’re watching is teaching your child the same values you are, and check review sites like parentschoice .org or commonsensemedia.org. Linebarger also recommends documentary-style shows on the History Channel and the Discovery Channel. Michael Levine, executive director of the Joan Ganz Cooney Center at Sesame Workshop, a new organization dedicated to improving the educational content of digital media, says to limit screen time to one hour per day, discuss TV shows and games with your kids after they’ve viewed them, and read daily with them for at least 20 minutes. As with nutrition, a healthy media diet is all about balance.

“Activity around college campuses will really hold up, better than the market as a whole,” says Walter Molony, a spokesman for the National Association of Realtors. “It’s driven by supply and demand.” College enrollment has been growing twice as fast as the general population, and more students are taking five years to graduate. Juxtapose that wave with the supply of aging and “barracks-like” dorms, and you have a great niche for investment, says Michael Dowd of Millennium Credit Markets, a Boston firm that arranges financing for privately owned dorm buildings.

Interior: A central dial controls all audio, climate and navigation, which appear on a colorful large screen. The heated 10-way power seats are comfortable and well bolstered.

Rent “Lubitsch Musicals.” The great Ernst Lubitsch invented the narrative movie musical with 1929’s “The Love Parade,” with Maurice Chevalier and Jeanette MacDonald. This generous collection of his urbane, vivacious “pre-Code” musicals includes “Monte Carlo,” “The Smiling Lieutenant” and “One Hour With You.”

Brazil: Sanchos, on Fernando de Noronha, is the island’s most perfect beach: languorous, sensual, golden. Stay at Solar do Loronha (pousada solardeloronha.com.br) for $350 per night.

Richard Dobson/Getty images
Wild Things: A family comes across Masai giraffes during an afternoon excursion in South Africa

Feb 11, 2008 issue
By Tara Weingarten

Twice before, Alison and Geoff Edelstein had been on an African safari and thought it was the best vacation they had ever taken. They awoke each morning at 5, hopped on an open-air 4 x 4, and drove into the world of giant elephants that gathered at sunrise to chomp on the dewy leaves. But it wasn’t until they brought their two teenage boys with them on a recent trip to South Africa and Zambia that they fully appreciated the journey. “It is the biggest experience you can imagine, and you just want to share it with the people you love the most,” says Alison, 44, of Pacific Palisades, Calif.

Many families dream of visiting southern Africa to see free-roaming lions and rhinos up close. But such a trip is likely to be one of the most expensive vacations you’ll take in your lifetime, even if done on a budget. For that reason, many travelers wait until midlife to make the trek, when they have more disposable income and their kids are old enough to cope with jet lag, sit through long safari rides and get the full impact of what they’re seeing. Now winter through springtime is the best time to go—the bush is less dense and the animals are easier to spot.

Our Top Picks for the Week

Rent “El Cid.” Unlike most Hollywood roadshow movies, this Charlton Heston costume epic—restored and sumptuously reissued—holds up, not least because of director Anthony Mann, who knew how to turn the tropes of a genre inside out and make movies that half a century later still captivate.

Hear “Just a Little Lovin’,” by Shelby Lynne. Lynne makes this collection of Dusty Springfield’s Memphis classics (“Anyone Who Had a Heart,” “Breakfast in Bed”) her own. Intimate, knowing and sublime ($13.98).