Managing - financial management - Brief Article

Kiplinger's Personal Finance Magazine, Jan, 2000

HOW TO MAKE YOUR MONEY WORK FOR YOU

* ATM WARS: California banks won the first round in their battle for the right to impose annoying fees on ATM transactions, but the war isn't over. Two other states--Connecticut and Iowa already ban the fees. * NEVER MIND: You can safely ignore the warning in your federal income-tax package that your instructions may be out-of-date. The IRS had to print the forms before Congress approved the final bill, but the agency guessed right about what would happen. The forms are fine. * DON'T GO BROKE: Bankruptcy reform is likely in 2000, forcing more debtors into repayment plans if income is above a certain threshold. Bankruptcy filings have soared 43% since 1992, and the strong economy is making it tougher to defend the current system. * INSURANCE RATINGS: A.M. Best ratings of the financial strength of insurance companies, which used to sell for $4.95 each, are now available free on the Web, at www.ambest.com. * REASON TO SAVE MORE: Life expectancies for men have narrowed to within six years of women's--a two-year shift since the '70s. * BUNDLE UP: Higher oil and gas prices are ahead, says a study by the Energy Information Administration. Demand is up, production is down. All it would take is a "normal" winter to boost residential prices by 10% or more. The price of electricity should hold at about current levels, though. * HOME PRICES: The boomiest housing market between now and 2010 should be Las Vegas, where prices are expected to climb nearly 90%. Steadiest markets: Evansville, Ind., and Spokane, Wash., which are barely expected to budge. See page 92.

JANUARY CHECKLIST

[] Check out charities: Go to www.guidestar.org for financial facts on more than 620,000 nonprofits in the U.S.

[] Update your estate plan: Assets of up to $675,000 are free of federal estate tax starting January 1, up from $650,000 in 1999.

[] Dig deeper: The FICA wage base goes to $76,200, up $3,600. If you make that much or more, you'll pay an extra $223--twice as much if you are self-employed.

[] Check your tax packets: In its continuing quest to change its image, the IRS will include photos of missing kids in your tax instructions that arrive this month.

[] Watch rates: Best bet is that the Fed will raise rates another quarter-point, but not until spring.