GIVE WHILE SPENDING
Affinity Credit Cards can help consumers support worthy causes, but watch out for high rates and tiny donations

While it may seem painless for people to donate to their favorite charities using an affinity credit card—cards that give a small donation to a charitable group for every purchase made—cardholders could feel a decidedly uncharitable pinch in the form of high finance charges.  

Around since the 1980s, these cards have raised hundreds of thousands of dollars for charitable organizations and nonprofits devoted to causes running the gamut from rescuing abandoned animals, helping the homeless, and finding a cure for cancer.  Recently, a growing number of affinity cards give holders the option of earning reward points for themselves as well.

But like any credit card, affinity cards can charge high interest rates and other fees, or carry unfavorable terms. And unlike other forms of charitable giving, cardholders can’t claim a year-end tax deduction for gifts made on their behalf through the affinity card, nor can they be certain that the amount earmarked for the charity went to the program they support rather than to administrative or overhead fees.

While the card might give its user a warm, fuzzy feeling for supporting their pet cause, CRMA editors advise cardholders to know exactly what they’re getting and giving.

CR Money Lab: How Many Funds Should People Own

CR Money Lab calculates how many mutual funds are needed to put together a diversified portfolio

To find out how few mutual funds investors can have and still remain diversified, the CR Money Lab analyzed nine sets of funds—one for each of the nine equity styles described by the mutual-fund research firm Morningstar. 

In nearly all cases, the returns of the fund sets began to converge around the fifth or sixth addition. Buying the eighth, ninth, and tenth fund didn’t really change the returns, never mind improve them. In the case of the large-cap styles, the returns of the funds became virtually  indistinguishable from the index. Each set was made up of 10 actively managed funds, randomly selected from those with significant assets and track records spanning at least 10 years. For each set, CRMA compared the performance of owning a single fund with owning a pair of the funds, etc., all the way through owning all 10 funds. Finally, CR Money Lab measured this performance against the performance of the overall category.

Aside from these results, CRMA's experts say that there are other reasons for investors to limit the number of funds they own, including easier record keeping and less paperwork.

Divorce's Impact on Retirement
What people need to know about dividing up their assets

Anyone who is getting divorced faces a daunting array of financial decisions, but one of the most important is how to divvy up the couple’s retirement assets. According to CRMA, in most states, retirement plans acquired during a marriage, including pensions, annuities, 401(k)s, and IRAs, are considered marital property and will have to be included in the division of marital assets in the event of divorce.

Each plan has its own set of rules.  Some might allow a distribution of an ex-spouse’s portion at the time of divorce, for example, while others require waiting until the ex retires.  So it’s essential to collect all the relevant documents as early as possible and consider seeking help from an attorney or knowledgeable financial adviser. 

CRMA's expert advice for people getting divorced includes considering the tax ramifications of dividing or transferring such assets as the family home and tax-deferred retirement accounts. In addition, it’s important to remove an ex-spouse’s name as beneficiary of retirement plans and insurance policies, because failing to do so can have ruinous financial consequences.