Oldenburg says this scam relies on common misunderstandings about the check-clearing process. Bank workers will deposit the check and tell the seller it requires 48 hours to "clear," at which point the seller can withdraw the money.
"Most people assume that means the check is valid. But the real check-clearing process can take weeks," Oldenburg writes.
The bottom line here: Never accept a check, certified or otherwise for more than the agreed-upon price of the car you are selling.
Also keep this in mind: This scam isn't limited to car sales. Check-fraud schemes have many variations, targeting all Internet auction sellers of high-priced items.
Penny-Pinching Practical Tips
Anita Platt of Plantation, Fla., writes, "I use the plastic sleeves that the newspaper comes in to place the contents of the cat litter box and "pooper scooper" leavings from the dog. I wash and reuse Ziploc plastic bags, as well as the disposable plastic containers such as Gladware, until they wear out."
Jean Jones of Quincy, Mass., says, "I cut up old clothes for rags instead of using paper towels. And we collect rain water by putting a 33 gallon trash bucket under the downspout, then setting up siphoning hoses to distribute water to three other trash barrels, so we collect over 100 gallons of rainwater every storm."
Financial Fact vs. Fiction
Myth: Julia Bradley of Boston asks: "The average financial planner suggests that a typical 30- to 40-year old should be maxing out their 401ks and IRAs to help build a retirement nest egg. I am worried that my hard-earned nest egg will dwindle away in future decades once the baby boomer demographic starts liquidating theirs. Is it a money myth that someone my age (I am 39) should be maxing out 401k plans?"
Financial Fact: Although there are some who would confirm this reader's fears, just as many other financial experts would say this myth or theory is false.
In fact, in a column last year (May 23, 2004, "What the Boom Will Do in 2010") former Post investing columnist James K. Glassman cited a report that debunks the myth that retiring baby boomers will pull so much money out of the stock market that it will crash.
"The most persistent investment cliche about baby boomers is that, as they start retiring, they will pull their money out of the stock market. Because of this decreasing demand, stock prices will fall and keep falling, so you should start moving into bonds and cash right now," Glassman wrote.
However, he pointed to a report called "The Next American Dream" issued by Citigroup Global Markets that suggested the stock market will not collapse in chaos because of retiring baby boomers.
"The Citigroup report throws cold water on this hoary hypothesis. Baby boomers plan to keep working and earning longer than their parents, they are remarkably good savers, and they have embraced the 'equity culture.'"
Don't believe Glassman? Then read this Post Magazine article (Sept. 11, "Heaven Can Wait") by Paula Span in which she profiles one boomer who won't quit ... working.
"The experts have come to a strikingly widespread consensus: Never mind that golden-years stuff. Keep working," Span writes.
Are you wondering if what a so-called financial expert told you is true? Do you have a co-worker who thinks he knows everything about personal finance and you want to confirm his advice? Send me any "Money Myths" that you want help dispelling. Drop me a line at colorofmoney@washpost.com. Put "Money Myth" in the subject line.
You are welcome to e-mail comments and questions to singletarym@washpost.com . They may be used in a future column or newsletter with the writer's name unless otherwise requested.
