Question 6, which asked at what age one is required to take distributions from an Individual Retirement Account, listed 59 1/2 as the correct answer. The correct answer actually is 70 1/2, which was not among the options offered in the multiple-choice quiz.

Distributions may be taken from IRA accounts at age 59 1/2 without penalty. But the required withdrawals don’t begin until 11 years later.

My sincerest apologies. I have personally rapped my own knuckles with a ruler.

Don Mecoy
Business Writer

I always grease Bobby H., the bellman at my hotel, and on my first night, within minutes of the pass, he suggested that I might request a room upgrade. He even gave me a room number to ask for. Another twenty at the desk and I was out of two queens, snug in my one king. The next day, we ran the same drill, and wham, I was in the minisuite. The twenty after that, I was in a full suite with a view of Times Square. We used a different desk guy each day. When you’re passing twenties, Bobby H. told me, you have to spread the wealth. “It’s a one-time trick,” he said. “You don’t want anyone to catch on.” Somehow he managed to take a twenty each time, having caught on fully some time ago.

However, Chiarella is a bit less successful in buying favors during a trip west. (via kottke)

Don Mecoy
Business Writer

The study shows that counter to recent signs of recovery on Wall Street, economic conditions are actually worsening for many Americans.
“Above all right now, American consumers are financially stressed,” says Liz Davidson, founder and CEO of Financial Finesse. “We’re seeing employees’ financial stress reaching serious levels that we need to be concerned about.”
An overwhelming 98% of employees who used the Company’s online financial planning platform in the second quarter reported they are stressed about their finances, 35% indicating their stress level is either high or overwhelming.

In the second quarter, employees inquired nearly twice as frequently about tapping retirement accounts as they did in the previous quarter, the study showed. Over the same period, calls regarding investing dropped, a sign that consumers aren’t ready to jump back into stocks.

The entire report is available here.

Don Mecoy
Business Writer

In 2008, sales of vision-care products and services at optical retail outlets topped $25.8 billion—a modest increase of $73 million from the previous year, according to the VisionWatch trade report. But some retailers that specialize in discount eyewear are enjoying robust growth: EyeBuyDirect, an online retailer based in Bethesda, Md., that offers prescription glasses for as little as $7.95 a pair, reports that its sales have risen 900% since its inception in 2006.

Last week, I bought my second pair of prescription glasses from an online retailer. I paid $18. I’ve been happy with both pairs of glasses I bought online. However, my wife is not as pleased with her bifocals, which cost about $30. While they correct her vision properly, she’s not entirely satisfied with the size and fit.

Don Mecoy
Business Writer

Bill Hardekopf, CEO of LowCards.com and author of “The Credit Card Guidebook,” said consumers should brace for the changes.

The new credit card regulations will substantially reduce the revenue for issuers. Increasing the number of cards with annual fees is certainly one way to make up for this shortfall. Consumers must pay attention to the offers they receive to see if the card has an annual fee. In addition, consumers need to look at the notices you receive in the mail or in your bill to see if your issuer has added, or even increased, an annual fee.

Just this week, I received a credit card offer from Citi. I’m not interested in opening a new account, but if I were I might want to check the issuer’s credit report before signing up. Exactly how much does Citi owe me already?

A Consumer Reports survey finds that bargaining works better during a recession. Sometimes all you have to do is ask.

CR’s nationally representative poll found that most consumers who asked for a discount were successful. Among those who haggled, 83 percent negotiated better deals on hotel rates, 81 percent reduced their cell phone bills, and 81 percent went home paying less for clothing.

Consumer Reports offers these tips for successful haggling:

1.Be patient and be nice.

2. Time your haggle. Late in the month, when salespeople are trying to meet their quotas, can be a good time to bargain for big ticket items. Evening or early hours are usually less busy, so clerks have time to talk.

3. Haggle out of earshot of other customers.

4. Research prices and store policies.

5. Learn to read the ticket.

6. Offer to pay cash.

7. Be prepared to walk.

Don Mecoy
Business Writer

Let me make this perfectly clear: freecreditreport.com IS NOT FREE!

The free place is annualcreditreport.com.

You know what happens when you go to freecreditreport.com? Let this guy fill you in:

(via boingboing)

Don Mecoy
Business Writer

Hear a Verizon customer attempt to explain to customer representatives the difference between 0.002 dollars and 0.002 cents.

Don Mecoy
Business Writer

I recently bought a pair of prescription eyeglasses on the Internet. I had read that many consumers were satisfied with the products produced by cut-rate companies operating online. I figured that even if I didn’t like my glasses, I could use them as spares, and it only cost about 40 bucks.

Turns out, I’m pretty happy with what I got. Granted, my prescription is a simple one. No astigmatism. No bifocals.

My wife says the glasses look fine. I don’t look at them, only through them, so that was important.

Total price, after a $5 coupon and including shipping, was $40.05. Next up, some cheap prescription sunglasses.

Don Mecoy
Business Writer

A new study suggests that the mere act of touching an item makes it more desirable to consumers. According to a report at livescience.com, people who held a mug for 30 seconds were willing to pay more in an auction than those who held the mug for just 10 seconds.

Previous studies have shown that many people begin to feel ownership of an item — that it “is theirs” — before they even buy it. But this study, conducted by researchers at Ohio State University, is the first to show “mine, mine, mine” feelings can begin in as little as 30 seconds after first touching an object.

“The amazing part of this study is that people can become almost immediately attached to something as insignificant as a mug,” said study leader James Wolf, who began the work while he was a graduate student at Ohio State. “By simply touching the mug and feeling it in their hands, many people begin to feel like the mug is, in fact, their mug. Once they begin to feel it is theirs, they are willing to go to greater lengths to keep it.”

The study lends confirms the value of practices used by many retailers for years. Test drives of vehicles and the freedom to play with toys in a story lead to higher sales. It’s also more ammunition for consumers to know when they may be subject to manipulation.

Don Mecoy
Business Writer