Getting Personal
Economics editor Chris Farrell and host Scott Jagow take questions on wrap accounts, high-yield savings, diversification, depression-proofing investments and 529 plans.
Getting Personal (Marketplace)
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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
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From Minneapolis, MN, 10/17/2008
Hi, My husband and I are learning about Medicaid rules through a sad family event. My mother-in-law had a stroke in April and my father-in-law now has to spend down his assets to receive Medicaid coverage for her long-term care. This has lead my husband and I to questions about our future. I am 43 years old, and he is 53 years old. We are currently healthy and active, but with our 10-year age difference, is it more important for us to consider long-term care insurance? Of course, we hope to never require nursing home care, but if I needed to spend down assets to pay for nursing home care for him, I could run into financial problems in the somewhat likely event that I would outlive him by 10+ years? Thanks for your insight. We love your show!
From CA, 10/12/2008
I'm 44 with about $4k in savings, and add about $300/wk to that. No retirement savings other than that, no debt at all and low monthly overhead. I want to open a ROTH IRA and invest in the stock market now, believing some great buying opportunities are just around the corner. I know diversification is important, but I'm hoping to put all of my $4k into stocks now (or soon) and diversify in a few months. Bad idea? Do you have a different suggestion?
From irvine, CA, 10/12/2008
Hi
My question is a repeat of your other commenter above (Layla Khan). I have a 410k that I am investing in enough to get the full company match. Since four months ago I have been planning to invest in a Roth IRA in additon to my 401K. I had come to this conclusion, because I like the idea of taking money out at retirement tax free. additionally, the Roth IRA rules should let me invest for a house downpayment tax free... Anyways, with the market doing crazy things lately, I have been holding on to the money that I was planning to invest in the Roth IRA. I feel hesitant to invest it in mutual funds. One day they are down, one day they are up, and who knows what will happen tomorrow. In waiting, I sometimes fear that I am loosing the opportunity to get a good chunk of stocks in mutual funds for a good low price. Am I right? Should I go ahead and take the money out of a safe bank saving account and into a Roth IRA with mutual funds?
From Wilmington, DE, 10/12/2008
With the market being down, it obvious that this is a good time to buy. But I don't know how much I should leave in my savings if I am buying stocks. I have 6000 in savings, about 17,000 in 401k, and about 6500 in company stock. I am 29 and single without kids. I was thinking about taking 1000 out of savings and buying some stock. Is that a good idea? I do not forsee buying a home in the immediate near future and basically put money in savings just to have extra money. What are some companies whose stock is expected to do well.
From duluth, MN, 10/12/2008
Is this a good time to move money into an annuity with a guaranteed rate of return as my financial advisor suggests? What are the pitfalls and benefits? Thank you
10/12/2008
I am 59 1/2 years old. I have retirement money in two accounts, a guaranteed rate and money market annuity. The guaranteed rate is 3% but I can only withdraw 10% a year. Do you think the guaranteed rate has advantages and what percentage should I have per account
From Superior, WI, 10/12/2008
I have two types of advisors, a strategic (asset allocation reviewed a few times a year, fee is 1 percent) and a tactical one (no asset allocation,follows market very closely, moves in and out quickly, fee is 2 percent). I want to withdraw my money from the strategic because I had lost 20 percent of my portfolio in the last month. On the other hand, tactical advisor is holding that portfolio on the side line waiting to either go long or short, depending on market conditions. Tactical advisor claims that over the last 27 years he has been right around 66% of the time. What do you think of tactical advisors in the present market situation. Strategic advisor doesn't react to the dramatic changes in the market. Tactical is much more willing to jump in and out of market. I am 61 years old and want to retire when I am 70 years old
10/11/2008
Accounts at Morgan Stanley will be fine even if the worst happened and they went bankrupt. Accounts are always held in the name of the client with the firm only acting as custodian. These are never assets on the firm's balance sheet (I believe Morgan custodies well over a trillion dollars for clients). Of course, you aren't protected from the market risk in your investments. Any cash in your accounts is probably in the bank deposit program which is FDIC insured. If Morgan "goes under" it would most likely be a fed brokered type deal like Bear - JP Morgan or Merrill - Bank of America where clients would see no disruption and the only losers are the shareholders. If it was a Lehman type bankruptcy your money still is not impacted by such (Lehman clients are now those of Barclay).
10/10/2008
I am sure you've have hundreds of similar emails but here goes... My husband and I are in our 40s. We have accounts at Morgan Stanley (1 traditional IRA, 1 Roth IRA and 1 401K) and I am truly at a loss as to what to do with these. These accounts never had millions in them but these accounts were set aside for retirement investment and obviously they are tanking. I was ok with sitting on everything as we are years away from retirement and Morgan Stanley "seemed" to weathering the storm better than some, but now it looks as though they may be the next diaster story and I don't know what that means for our accounts. Should I transfer what we have left to some other financial institution/manager? If I don't and Morgan Stanley goes under, is everything lost? Again, this is money we had not intended on using until retirement, but these accounts are our attempt at retirment savings and to loose it all would be devastating as my husband is no longer working and my current salary is just enough to keep us in our home, so putting any money aside in the near future is not going to happen. I would so appreciate any comments or advise.
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