Getting Personal
In this edition of Getting Personal, Chris and Tess talk about a relative's financial deal, types of credit scores, rewards checking accounts and pooling money to buy a house.
Getting Personal (Marketplace)
More on Investing, Housing - Real Estate
Links
- Audio: Getting Personal (Part 2)
Each week on Marketplace Money, host Tess Vigeland looks at the week's major national and international stories that will impact the average listener's wallet. - Blog: Getting Personal
Comments
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06/20/2008
What do I do with $11k that I don't need right away? It's currently in a 4-month CD account--the term of which ends today--and I have 5 days to decide what to do with it. I haven't yet decided whether to use it as my safety cushion/emergency fund or to make much-needed home improvements. The home improvements can wait so I don't mind parking it for awhile. What would you advise?
From St. Paul, MN, 06/20/2008
I was recently a victim of check fraud. A check was stolen and new false checks were printed with the routing and account number and used to electronically transfer money from my account. The money has been returned to my account but now I'm being hassled by collection agencies about the unpaid electronic transfers. What should I do?
From Champaign, IL, 06/20/2008
Mr. Farrell, I would like to know how safe are the online FDIC-insured bank accounts offered by ING (ingdirect.com), Heartland Bank ( heartlandbankdirect.com) , and HSBC (hsbcdirect.com).. All give 3% or more interest on very liquid accounts. What are the potential problems with these online accounts?
Thank you.
George Gertner
From St Paul, MN, 06/19/2008
Any thoughts on where to go to look to refinance a home loan to pay off credit card debt? Thanks
06/18/2008
I have recently joined taken a job with the federal government and have the option to roll-over the 401K from my previous employer to the TSP. Would it be better to do this, or add it to my existing IRA? (Value as of March was near 10K)
From Falls Church, VA, 06/18/2008
If 401(k) contributions are taken out of pay every two weeks, is it appropriate/legal for an employer to hold those funds for up to 6 pay cycles before putting them into my 401(k) account? This results in a lump investment rather than dollar cost averaging over a 3 month period, plus there is no interest earnings on the contributions. Shouldn't this money be invested very soon after it's deducted from gross pay? This doesn't seem right.
From Santa Monica, CA, 06/16/2008
What is your opinion on the foreign CD-like offers I have read of recently. They offer a much higher interest, though they are not insured by FDIC or similar. Would you recommend?
From Newport Beach, CA, 06/16/2008
I am interested in using a Self-Directed Individual Retirement Account to purchase a duplex. Could you help answer a few concerns and questions: Is this approach advisable; how do I find a reliable and trustworthy custodian; can I use my existing retirement accounts (Roth, SEP, Standard IRA) to purchase the investment property; what is the limit to the amount that can be applied to the purchase; can I live in one of the units as a renting tenant; and finally, can I become my own custodian? Thank you and I very much appreciate your wonderful insights on the show.
From Diamond Bar, CA, 06/16/2008
I'm self-employed at the moment. Ten years ago, I was laid off from my job and rolled my 401K into a traditional IRA. Later the same year, I converted that IRA into a Roth. I'm not sure if this will make a difference in the answer to my question, but this was when it was possible to spread out the tax hit for the IRA conversion over four years. At the time, my understanding was that I would not be able to make contributions to the account in subsequent years because of accounting issues arising from the way the taxes were spread out. Now I've heard from various people (none of whom are tax experts) that the rules have changed and that it is okay to make contributions to such a Roth IRA. Can you please clarify this? Would it be advisable to just start a new Roth IRA? Thanks for your help.
From St. Louis, MO, 06/16/2008
Probably more of a question, dealing with retirement planning. What can you tell us about the annuities being offered by Edward Jones from Lincoln. They are based on never reducing the market value of your account. A little confusing.
From Farmington Hills, MI, 06/15/2008
In the discussion of pooling money to buy a house, Chris made one statement I strongly disagree with, although he redeemed himself later by emphasizing that the buyers should consult with a real estate attorney and needed to get all their agreements in writing. Chris said " you can put four or five names on the deed......" After (too) many years of practicing real estate law, I can tell you that this is definitely a place to take George Plimpton's advice: "Don't!"
Putting John, Joe, Mary, and Sue on the deed as co-owners of a house creates certain legal relationships between them (and their spouses and heirs), depending on the language used in the deed. If they also enter into a written agreement about their respective rights and obligations concerning the house, then there may be a conflict between the real property rights created in the deed and the contract rights created in the agreement. Conflicts like this can cost a lot of money to resolve, even those that don't end up in court.
The alternative, one that I hope any good real estate attorney or financial advisor would suggest, is to form a partnership. The partnership owns the house, while Mary, Sue, Joe, and John own shares in the partnership. The agreements about using the house, maintaining the house, and paying the mortgage and bills are laid out in the partnership agreement, along with what to do when one partner decides they want out of the partnership, or fails to pay their share of the obligations, or dies, or gets divorced. Using the partnership form also usually saves money when one of the partners leaves because the partnership share can be transferred without recording a new deed or paying transfer taxes or document stamps (although this varies by state).
Using the partnership form is not guaranteed to keep you out of court if one of the partners really wants to argue about something, but it can make resolving most disputes much simpler and easier.
From sanford, NC, 06/15/2008
I found a great rewards checking account. Capital Bank pays 5.01% interest for up to $25000 balance.
Just make 10 card purchases, have one auto deposit or make one auto bill payment and have internet connection for banking and statements
i joined april 2007. still the same.
greetings
ulla l taylor
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