Cash Management and Financial Planning – use your credit card for more than just purchasing

(This is a summary of a recent post by Kiplinger’s)

You may have selected a card for points or for cash back. However, there are many other benefits to keep in mind, from on-line purchase protection to vacation and travel insurance.

Prices
: many gold and platinum cards, and now the Citi premium card, will give you up $250 back if you find an item you purchased for a lower price within 60 days.
Warranties: several cards extend the manufacturer warranty for up to a year, ending the need to pay for an extended warranty that a sales clerk tries to get you to buy at check out or a company e-mails urging you to purchase after you buy on line. AMEX, Visa Signature, gold, and platinum MasterCards do this when used for purchases. Some add a 90-day protection for loss or breakage of a laptop or digital camera. Citi Premier and some replace the item.

Theft – Coverage on the road: If your laptop is stolen from your hotel room, MasterCard will reimburse you if you used a gold or platinum card to pay for the room. Likewise, if your luggage does not arrive when you do, MasterCard will reimburse you for the cost of replacing essential items. In addition, MasterCard will cover the cost to repair or replace damaged luggage. Use your Visa Signature card to buy your airline ticket and you can be reimbursed up to $3,000 for lost or stolen luggage.

Avoid checked-baggage fees. You can redeem points for an airline ticket with your U.S. Bank FlexPerks Travel Rewards Visa Signature card and receive a $25 credit toward the checked-bag fee. Gold Delta SkyMiles cards from American Express cover the cost of checked bags (up to $50 per person round-trip) for up to nine people on the same reservation. American Express’s platinum card offers a $200 annual credit for flight-change and baggage fees.

Free admissions: Bank of America and Merrill Lynch cardholders receive free admission to 150 museums in 85 cities on the first weekend of the month. Participating institutions include New York’s Metropolitan Museum of Art, Chicago’s Art Institute, Nashville’s Country Music Hall of Fame and the National Cowboy & Western Heritage Museum, in Oklahoma City.

Concierge services. The 24-hour service (available to Visa Signature and MasterCard World Elite cardholders) can help with restaurant reservations, party planning, travel arrangements and getting tickets to sold-out events. Visa cardholders can see what is available by visiting Visa’s Web site or by becoming a fan of Visa on Facebook.

Getting back home: Chase customers can call Global Lifeline (the number is on the back of their card) and get help with hotel and airline reservations and medical assistance. For example, Chase helped a cardholder stranded in the Dominican Republic get a flight back to New England this past winter after a massive snowstorm forced flight cancellations.

We added checking these benefits to the Finance Health Day page .

Let me know if you have questions or comments.

Investment Strategies and short-term turmoil: sometimes it is better not to watch!

Maybe the last few days of investment market turmoil need to be put in the same category along with legislation and sausage – that you don’t to watch while it’s being made….

You investments will ultimately provide returns, but you probably did not need to watch as the stock markets slid last Thursday and again Friday, bounced around Monday and then shot back up on Tuesday

It may have been confusing or even scary. However, as you always hear us say, the key is sticking to your investment allocation and long-term strategy… that is what works over time.

Here is an interesting example of why investment allocation is so important.

* On Monday, many investments were down, but not all. There are funds we use that were up significantly on that day.

* The same funds were also up on Tuesday

In contrast, if you panicked and sold some time on Friday to sit in cash or gold, you missed the upswing of the last few days. Staying invested worked better than any timing attempts.

Therefore, diversification by asset class, and staying with your strategy, can provide positive results even in times of turmoil.

Let me know if you have questions or comments …. and good luck!