Bruce Williams, Smart Money
Posted: Monday, May 6, 2013 2:30 pm
Dear Bruce: I recently learned that someone used my Social Security number to apply for a credit card. I was advised to call the three major credit bureaus and put a fraud alert on any attempts to apply for credit in my name. The credit bureaus sent me complimentary copies of my credit report for review. In addition, they suggested that I notify the local police.
I thought this information might interest you in light of your recent column on identity theft. — Reader, via email
Dear Reader: I think that the agencies gave you good advice. They put a fraud alert on your account to prevent further damage. If you have information to pass on to your local police, I would do so.
Dear Bruce: I’ve been working for this mom-and-pop business. They pay me under the table and do not withhold any taxes or Social Security. Is this a problem, and could this be a problem for me? — Reader, via email
Dear Reader: Is this be a problem? It certainly is. You’re a tax evader! You are taking cash that’s not being reported, no payroll taxes are being paid, etc.
If you want to go straight, you can notify the IRS of what you have been doing. Have someone compute what taxes you should have been paying and include those taxes with your letter.
Another thing you could do is have the people you work for start you off as a “new employee.” The likelihood is that it will forestall any action on the past transgression, assuming you do not in any way repeat this transgression.
Dear Bruce: One of our friends came to my house for a visit. A major storm blew through the area and there was quite a bit of damage, including to his car from falling debris from our “healthy” trees.
I contacted my insurance company to see about helping with the damage, but they said since it was “an act of God,” there was no coverage. I don’t understand how this could be. — R.T., South Carolina
Dear R.T.: In the event that your friend’s car was damaged by debris from your “healthy” trees, it’s entirely possible that it would be called “an act of God” and it would not be covered by your homeowner’s insurance. If the tree was diseased in some way, that would be another matter. If your friend has comprehensive insurance on his car, that will easily take care of the problem.
Dear Bruce: I have heard you say that when buying term insurance, it should be “renewable and convertible.” Can you explain? — Reader, via email
Dear Reader: The answer is simple. If you purchase term insurance, it should be renewable without evidence of insurability. In other words, if it’s a 10-year term, after the 10 years, the policy should be renewable in spite of any medical history the person may have. Convertible simply means it could be converted to whole life if you chose to do so.
• Send questions to bruce@brucewilliams.com. Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies cannot be provided.
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Monday, May 6, 2013 2:30 pm.