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Fantastic Fund Freebies

April 30, 2007

Chuck Jaffe at Marketwatch periodically contacts mutual fund companies and asks for educational materials and says that while these freebies usually come with a healthy does of promotional material, a lot of what he gets is surprisingly useful. Here are some highlights:

  • Handheld "slide-rule calculators." I love old-fashioned, cardboard hand-held gadgets that let you slide your way through inputs and outcomes. You practically can't stop playing with them, learning something with each move. They're simplistic, but still a good jumping-off point.
  • AllianceBernstein's "College Debt Crunch." This calculator is one of the most interesting I have seen in a long time because it is designed to show the long-term impact of education debt on college graduates. A few minutes playing around -- or letting your kids use it if they are responsible for tuition -- and you're likely to increase your college set-asides immediately. You can get the calculator by calling AllianceBernstein at 800-227-4618. You also can order versions online or use an electronic version at www.collegedebtcrunch.com.
  • College savings. Of course, it helps to know how much money you will need to save and the college savings slide-rule from American Century's Learning Quest program gives you a quick-and dirty estimate of how much you will need -- and how much to invest monthly based on your child's age -- in order to pay for a public or private education. You can get the calculator by calling 1-800-579-2203.
  • Allocation models. The asset allocation calculator from Franklin Templeton Investments (1-800-342-5236) remains one of my all-time favorites, providing five sample allocations and allowing you to track how money invested that way would have performed over the five- to 20-year periods ending Dec. 31, 2006. This lets you measure your current strategy against others, letting you know if you want to stay the course or need to consider a change.
  • Putnam Investments' "retirement calculator." This slide-rule -- available at 800-225-1581 -- is a two-sided, dual-purpose keeper. On one side, it allows you to determine the future value of systematic investments; it's a great way to show not only how $50 a month adds up over time, but how doubling that number -- or going even bigger -- will turn small monthly dollars into lifetime money. On the flip side, the calculator helps determine the future value of your current savings, which will help you see how much $10,000 will have grown to when you reach retirement, based on various rates of return and your current age.
  • Organizers. T. Rowe Price recently created a new "family records organizer" that is a terrific tool for anyone trying to get a handle on their finances. The freebie in this case is actually a CD-ROM -- available by calling 1-800-538-2706 -- that does a great job of helping a family gather and manage its records in one single place. Having looked at fund freebies for years, this is one of the best I have ever seen.
  • Mixing it up. As long as you are calling T. Rowe Price, ask for the company's "asset mix worksheet," as it could be a very good tool for deciding how to best position your money.

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