YEAR 2000 INVESTOR KIT:
How Can You Prepare for the Year 2000?

As a result of early attention to the problem and significant regulatory and congressional oversight, the securities industry is well positioned for 2000. We expect the transition to be business as usual. Of course, intermittent problems may arise, and every person should take precautions. The following checklist will help you be prepared.

Stay Informed.
Read and learn all you can now about the Year 2000 situation. The more you learn about how your bank, brokerage firm, mutual funds, insurance company, local utilities, and others are preparing, the more comfortable you will be. Most service providers include Year 2000 updates and helpful hints in newsletters or other regular mailings. Much progress is being made in all industry sectors, so periodically check the status of your service providers. Also continue to check the following Web Sites for information about Year 2000: www.sec.gov; www.sia.com; www.ici.org; www.nasd.com; and, www.nasdr.com.

Keep Good Records.
In the unlikely event that computer errors caused by the Year 2000 create incorrect information in your personal account records, we encourage you to do the following:

a) Keep copies of personal records such as bank statements (at least for the last three months of 1999 and the first three months of 2000); bill payment records (credit cards, mortgage loans, utility payments, insurance payments, etc.); Social Security records; medical records; and, transaction receipts, such as ATM deposit and withdrawal confirmations. Good recordkeeping makes sense at any time.

b) Save investment account statements. This includes brokerage, mutual fund, defined contribution (401k), and benefits (pension) statements.

c) During December 1999 keep copies of all securities and investment transaction confirmations and receipts.

d) Keep credit card receipts for purchases and cash advances made on or around January 1, 2000.

e) In January and February 2000 compare your personal records against regular statements and bills received from your financial institutions, brokerage firm, credit card company, and others to check for discrepancies or unusual charges. In addition, check to make sure direct deposit payments have been received. If there is an issue, contact the company immediately.

Request Credit Reports.
It's always a good idea to look at your credit report to make sure it doesn't contain inaccurate information about your financial reliability. An error in your credit report could result in a higher interest rate on a loan, a rejection for a loan application, or other unnecessary complications. Obtain a copy of your credit report as soon as you can. If you spot a problem, get it corrected immediately. Then, in early 2000, get another copy and check again for errors.

To request a copy of your credit report, call any of the nation's three major credit bureaus: Equifax (1-800-685-1111), Experian (1-800-682-7654), and TransUnion (1-800-888-4213). Report information sometimes varies significantly among these companies, so you may want to request a copy from all three. Some reports are free, and others charge a fee of not more than $8 each.

Beware Of Fraud.
There may be people who will try to cash in on fears about the Year 2000 problem. Don't give out personal information. If someone tries to sell you a product, service, or investment that's "guaranteed" to fix or prevent a Year 2000 problem, be careful. Do your research first and check reputable sources.

Get Information From Your Bank.
There are several activities that should be completed regarding your bank, credit union, or savings and loan accounts (collectively referred to here as a "bank").

a) If you want more information about your bank's Year 2000 efforts that are not communicated in its mailings to you, ask to speak to an employee who is knowledgeable about the institution's Year 2000 program and ask the questions on the following pages. Another possible source is the bank's Web Site.

b) To get information about your direct deposits, ask your bank if it has tested its link to sources that send payments directly to your bank account. For example, some of those sources could be the Social Security Administration, the Department of Veterans Affairs, your employer, or others.  

c) If you've arranged for your bank to make automatic monthly payments--for your mortgage, life insurance, utilities, or student loans--check that the bank has tested these links as well.

d) Request a printed history of the payments on your mortgage, car loan, or other debts, including how much of each payment has gone toward principal and interest. Check to make sure this history is accurate. Be aware that some institutions charge a fee for these records.

e) If you bank on-line by home computer, contact the computer manufacturer or software vendor to find out if your systems are Year 2000 ready. Some computer companies have Web Sites with this information. Download your transaction records and store them on a backup computer disk. Back up your hard drive just before the end of 1999.

Ask Your Bank, Broker,...
mutual fund, investment adviser, certified public accountant (CPA), mortgage company, and billing department of phone and utilities companies these questions about Year 2000 compliance:

a) What is your firm doing to become Year 2000 compliant?

b) What is the firm's schedule for fixing and testing its systems?

c) If your firm is not ready now, will it be? How could I be affected?

Ask More Questions of Your Broker, Mutual Fund, or Financial Adviser.
Brokerage firms, mutual funds, and investment advisers are required to file two special reports on Year 2000 readiness with the SEC. You can obtain a copy of these reports from the firm or by contacting the SEC by e-mail at publicinfo@sec.gov. You can also review the reports on the SEC Web Site: www.sec.gov.

a) Are you testing your operations with the exchanges, clearing agencies, and other market participants before 2000?

b) What type of testing has your firm conducted?

c) What will happen if I want to sell some stock in December 1999 or early January 2000, and your firm or some other participant is having computer problems, delaying or failing to execute my sale on the day I placed the order? What will your firm do for me in that situation?

d) Is your firm's research department evaluating public companies' compliance with Year 2000 and the effect that their compliance might have on their bottom line before you make "buy" and "sell" recommendations?

e) How can I be assured that my interest and dividend payments will not be affected in January 2000?

f) Is the firm's on-line trading system ready for the Year 2000? You should also contact your computer manufacturer to learn whether your computer is Year 2000 ready.

Don't Worry About...
a) Asking your broker to provide you with stock certificates. Securities firms will continue to keep accurate records of customers' accounts. Your records and those of the firm create an adequate paper trail documenting your portfolio. This should be sufficient to address any problems you may encounter on or after January 1, 2000.

b) Timing the market and selling stocks because of Year 2000 issues. Invest for the long term. History shows that there's no such thing as a perfect track record for picking the best time to buy or sell. Use the same factors that you have always used in determining whether a stock, mutual fund, or bond is worth owning.

Ask Questions Of Public Companies.
Public companies provide Year 2000 disclosure in the annual and quarterly reports they file with the SEC. This disclosure is typically addressed in the "Management's Discussion and Analysis" section of a public company's quarterly and annual reports on Forms 10-Q and 10-K. Copies of the reports are available through the EDGAR database on the SEC's Web Site: www.sec.gov. Learn more about what public companies are doing to prepare by asking the following questions:

a) What is the company doing to prepare its computers for the Year 2000?

b) How could the Year 2000 problem affect the company?

c) What is the company's schedule for fixing and testing its systems?

d) What are the company's estimated costs for addressing the Year 2000 problem? And, how do they affect the bottom line?

e) As a manufacturer or supplier of computer equipment, software, medical equipment, computer services, etc., are you concerned about the potential liabilities associated with the company's products or services?

Information for this Investor Kit was collected from various Web Sites, including
www.sec.gov, www.sia.com, www.ffiec.gov, www.y2k.gov, www.nasd.com, www.nasdr.com, among others.

How Could The Year 2000 Date Change Affect You? |
How Can You Prepare For The Year 2000? | Additional Information |
Year 2000 Tips | A Checklist To Get You Ready For The Year 2000 (11 KB) |
Year 2000 Investor FAQs | Be Ready For The Year 2000! | Introduction

© Copyright 1999, National Association of Securities Dealers, Inc. All rights reserved.