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Friday, July 11, 2008
In this edition of Getting Personal, Chris and Tess talk about insurance options, suspiciously high interest rates and education savings.
Getting Personal (Marketplace)
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From Cupertino, CA, 07/31/2008
Are I bonds a good investment right now? For saving money that I don't need right now. How do you figure the rate? 4.840 plus ?
From Long Beach, CA, 07/30/2008
In a foreclosure, can the creditors come after assets other than the mortgaged house? I am particularly concerned about an IRA. Are there other potential threats to an IRA?
07/30/2008
Hey Chris.
I'm 24 and currently have no investments or long-term accounts. I've saved up about 8-10k that I should be able to invest in the near future. Additionally, I have about 34k in student loan debt. 17k fixed at 4.25% and 17k variable between 5% and 11%, both of which I have mostly been making minimum payments on.
I will also become eligible for my company's 401k in two months, at which point I feel I can comfortably put $500-$1000/month into that.
Do you recommend rushing to pay off the debt before investing or before working up the retirement fund? Or do I keep making payments on the low interest loans and save up the 401k dollars now?
Also, and possibly my most important question, where and how do you recommend finding a financial planner that can help me sort through these details without trying to sell me a package I might not know enough to refuse? What questions should I ask when seeking out financial advice and how can I know if the advice I'm getting is good advice?
Thank you so much for helping make investment seem manageable for those of us that are new to the experience.
From Ames, IA, 07/28/2008
The new housing bill passed by congress has some motivations for first time home buyers. Are any of them back datable to the house my wife and I bought last March (2007)? While I may not have liked the bill overall, if there is any way I can benefit from it I'd like to try. The no interest loan/credit is would be a nice way to pay off some of our worst debt (6.2%) with some 0% debt. We saved for several years, bought a small fixer upper house with help from our parents, and put full 20% down on a 15yr, and have only mortgage and student loan debt at ages of 27 and 29. Is it worth the effort to pursue anything from the government? Thanks and I love all three shows.
From New Buffalo, MI, 07/27/2008
Is this where I ask Chris a question? If so, here's my question:
Am I diversified if I have all my savings in a well-diversified fund at one fund family (Vanguard)? Do I need to split it up by putting part in, say, Fidelity?
If this is not the place to ask Chris a "Getting Personal" question would you PLEASE tell me what link I should use!
Thanks, Bob Sprentall
From Raleigh, NC, 07/27/2008
Hi Chris, Enjoy the show.
I ineherited 60K; my husband and I want to put to our kids college. We currently have 529 accounts invested in American Funds American Balanced 529E fund. The older child has about 15K and will go to college in 5 years. The younger child has about 10K and will go to college in 7 years. The fund seems to have done quite well in the past. The stock market turbulance concerns us. Any input on how to invest the 60K - put in another savings vehicle, choose a less risky fund from American? (We are over income limits for Roth and I Bonds.) If market dips in next 5 years, their won't be much benefit from growing tax deffered which is benefit of 529. Suggestions? Key objective to ensure the money is avaialable otherwise we will divert retirment savings to pay for college.
Would prefer not to have question, with our name posted on web thanks.
From Elk Rver, MN, 07/26/2008
My husband and I have an home equity loan for $64,800 @9 1/2%. In two more years the interest rate will increase. We have been paying extra on it evey month. I am wondering if there is anything we can do between now and when it increases to lower the interes rate. Do you have any suggestions?
From fournieb@gvsu.edu, MN, 07/25/2008
I am 65 and plan to work one or two more years. My financial planner wants me to increase my contribution to my 403b but I have a mortgage of $121,000 on my condo that I'd like to pay down in the next two years. Which is better to do?
Thank you.
Barbara F.
From Brookline, NH, 07/24/2008
I've just received notice from my credit card issuer that my account details have been compromised by a third party (they won't say who).
They tell me they're taking proactive measures to "close your current account and issue you a new account number and credit cards"
I always hear that closing/opening cards is bad for the FICO score.
Will this activity have an impact?
Thanks!
From Athens, GA, 07/22/2008
I am 66, retired, and currently live off 2 pensions that are not part of my retirement funds with TIAA-Cref. I have $286,454 in TIAA-CREF of which $242,464 is in an IRA. I have just learned that they do not have insurance backings like that of banks, FDIC. How safe is my money? Should I roll over my IRA into an IRA with a major bank such as Bank of America? What about an investment house such as Fidelity? At this time I am not using any of the money in TIAA-CREF.
I LOVE your program. Thanks for your help. Mary
From Great Barrington, MA, 07/21/2008
Taking your advise I am going to move IRAs to a stock index account and I a thinking of Vanguard. They offer an adviser if I have over 100K which I do. Is it a good idea to use their adviser? I am pretty sure I want a mix of target date and total market index funds. Thank you
07/21/2008
I expect to receive 20k before Christmas. What is the best way to invest it. Thanks
From Billings, MT, 07/21/2008
I signed up for Medicare about 6 months ago and find that I am spending $1116 a year for no relevant medical coverage. My annual medical expenses are preventitive: pap smear, mammogram, blood test; dental checkup. What would be wrong with using a medical flex plan instead of Medicare and unsubscribing from Medicare. I am not taking medications and I am extremely healthy because of intelligent preventitive proceedures. Where can I find out about available flex plans.
From Lebanon, OH, 07/20/2008
I am lucky enough to come into a bit of money in the next few month. This will come in Euros. The exchange rate is quite attractive and I would gladly use some of it to reduce my mortgage and get rid of the PMI. What should I do with the rest? Is it better to invest it in Europe (France)? Or bring it over in the US , benefit from this exchange rate and find a place to invest in that will beat the inflation?
Thanks a lot.
From hopewell junction, NY, 07/20/2008
A few years back, an eldery relative of mine invested in a preferred stock issue of Freddie Mac under the advice of a financial advisor. My relative no longer works with this advisor but is still holding a modest stake in the preferred issue. From time to time, my relative would ask if she should hold or sell the shares; I was always reluctant to answer since I didn't really understand the preferred issue, and didn't want to discount the knowledge of the financial advisor.
However, the big price swings of the past month convinced me I should learn enough to take a position. The only place I can find anything about this stock (issue R) is on the Freddie Mac website. From what I can understand, this issue has a redemption price of $50 versus a current market price of $26. It also has preference to common stock and all junior preferred issues.
So relative to your program about the future of Freddie Mac and the safety of its stock and bond issues, how risky is it to continue to hold this issue?
From Rexburg, ID, 07/20/2008
The FDIC insures deposits in financial institutions to $100,000. Is that correct? My question is this: if I have $100,000 in a CD, and maybe $50,000 in other accounts at the same institution, would I get all $150 back if the bank or credit union were to go under?
Thanks.
From North Bethesda, MD, 07/20/2008
I am 64 with around $975K in various TIAA-CREF accounts. I have a high per cent of my savings in inflation-indexed bonds and only a little in equities and commercial real estate. I am thinking of shifting some of the money from I bonds to an annuity that earns roughly 5% annually. Is this a wise move? If not, where should it go and still provide the safety I seek prior to probable retirement at 66 or 68? Am I being too conservative overall?
From Johnson City, TN, 07/19/2008
Everyone advises to contribute the maximum tax deferred amount to a retirement plan. However, if income tax rates rise in the future couldn't deferring tax on income turn out to be a bad idea? Rates may well rise onsidereing the historically low rates currently and the size of the federal debt. Also many advise that retirement income will need to be similar to pre retirement levels to maintain standard of living so that you won't benefit from a lower rate bracket.
From Amissville, VA, 07/19/2008
You say ES-tate, I say es-TATE (you say po-TA-toe, I say po-TAH-toe).
From orlando, FL, 07/19/2008
Everyone asks for your SSN from getting quotes
on auto insurance to doctors offices...
When is it necessary to give out your SSN
vs. a choice to decline ... with all the identity thefts
it seems that it is not necessary until when??
From Sharon, MA, 07/19/2008
I am 53 years old and have about $150,000 in my 401K (my only savings).
my funds are currently in: 20% The Growth Fund of America (ClassR4)and 80% Legg Mason Value Trust Fund. I am concerned about the Leg Mason fund and would ask what you suggest. The followng funds are available to me:
Stable Value Option, MainStay Indexed Bond, PIMCO Total Return FUnd Barclays Life Paths (year options), Mainstay Income Manager Fund, Mainstay S&P 500 Index Fund, Baron Small Cap, Fidelity Low-PRiced Stock Fund, RS Partners Fund.
Thank you,
Myra
From Fort Pierce, FL, 07/18/2008
Have you ever done a spot on the negative economic effects of hoarding, like Mr. Scrooge did? Would it help our economy if the haves did some smart shopping, instead of "'keeping' more of their own money"? A real "Tiny Tim", willing and able to do honest work, slept on a park bench last night.
From Gainesville, FL, 07/16/2008
A few years ago, I used a credit counseling service to help me pay down about $8,000 in credit card debt. Since then, my husband and I have not used any credit cards at all. Now, we want to open our own business, and we'll need a business loan to start up. What would be the best way to rebuild a good credit score? We pay our mortgage and car payment on time, but that's probably not enough to impress a banker.
From Indianapolis, IN, 07/14/2008
For Heather and anyone else who has cancer questions. I listened to your question on Saturday and wanted to make sure you knew what the American Cancer Society can do for you.
You can call 1-800-277-2345 24 hours a day for free. ACS can help you with a personal health manager kit. ACS can also direct you to local agencies that might be able to help financially. There is so much more too.
Also- Come join the ACS CAN Fightback Express Bus on Tuesday July 15 from 11:45am-12:45pm in the Anderson Town Square. We will talk about using advocacy to ensure insurance companies cover needed medical expenses and procedures and much more.
From rochester, MN, 07/14/2008
My mutual fund advisor recently enocuraged me to shift my Euro-Pacific shares to one called the Fundamental Fund. I noticed this particular fund is comprised of 69% American companies. Could reinvestment in American companies stimulate activity and bring back the value of the dollar. By issuing shares for their investment capital rather than using loan funds wouldn't they be further ahead? Thank you...Janet
From Port Townsend, WA, 07/13/2008
I have a friend who is going to hire a home health care worker. She wants to avoid hiring an agency and pay this person directly. What taxes is she liable for and will she need an EIN?
From Loxahatchee, FL, 07/13/2008
I have less than $10,000.00 in a Fidelity Rollover IRA investment account. I am "retired" (my job was eliminated and I am over 75 years of age). My account breakdown is 35% Bonds 40% Money Mkt 20% Stock 5% High Interest something. My statement for June 2008 showed a loss in investment value of $117.88. Please tell me if my % division is smart at this time or any time? Are Bonds good to have when stocks are in such bad shape? Or should I just get out now and sit on the sideline for awhile? I don't have much money and any drop in savings has a large impact on our finances, Thank you and I never miss your money show.
Andy B.
From KY, 07/12/2008
Is there a way to block a child who is going off to college from applying for credit cards? I think this child could REALLY get into credit card debt.
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