Getting Personal
Tess Vigeland and Chris Farrell answer listeners' questions about whether moving during the recession is a good idea, what to do when a company stops matching 401(k)s and how to handle unused pension or HSA funds.
Getting Personal (Marketplace)
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. - Analyze Now! Web site
Comments
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From Mt. Clemens, MI, 04/10/2009
Chris,
Recently, my wife and I met with a financial planner who advised us to roll over all of our retirement savings (about $60,000) into a variable annuity. The financial planner urged us to purchase a "Guaranteed Minimum Withdrawal Benefit" rider that allows investors to make gains in up markets while protecting their "benefit base" when the market declines. How can we determine whether this is a safe investment, and how can we gauge the tradeoff between the fees and the "guaranteed" income stream? (I already own a tax-deferred annuity from a different company, and I will earn a small teacher's pension from the state of California.)
Sincerely,
George
From Washington, DC, 04/08/2009
Hey Chris--I've a general question about investing. I'm about 5 years into a career with the federal civil service and have been contributing about 1/3 of the maximum allowable TSP contribution. I've 2 outstanding student loans from law school--I owe $11,900 on one at a 4.767 rate and $52,080 on the second at a 2.875 rate. Also, I've a 1BR condo with a 5/2 ARM--the 2-year is paid off and the 5-year, $300,000 principal with a 5.5 rate is scheduled to reset in Feb 2011.
Finally, the good news: I've a money market account of about $50,000 (I've no savings or IRA account).
With all of this in mind, I'm wondering what type of investment would be best for my situation. Stay with the money market? Diversify with a mutual fund? Thanks so much for your time.
Best,
Chris
Washington, D.C.
From Washington, DC, 04/08/2009
Hey Chris--I've a general question about investing. I'm about 5 years into a career with the federal civil service and have been contributing about 1/3 of the maximum allowable contribution. I've 2 outstanding student loans from law school--I owe $11,900 on one at a 4.767 rate and $52,080 on the second at a 2.875 rate. Also, I've a 1BR condo with a 5/2 ARM--the 2-year is paid off and the 5-year, $300,000 principal with a 5.5 rate is scheduled to reset in Feb 2011.
Finally, the good news: I've a money market account of about $50,000 (I've no savings or IRA account).
With all of this in mind, I'm wondering what type of investment would be best for my situation. Stay with the money market? Diversify with a mutual fund? Thanks so much for your time.
Best,
Chris
Washington, D.C.
From Bethesda, MD, 04/04/2009
Hi, Chris,
I am 56 and figure I will work at least another 15 years. With good health and longevity genes maybe a bit more.
When is it too early to buy an annuity?
I have both a current 401K and an old SEP IRA. Not much in each now--about $150,000 each. Because 49% of SEP is in money market, a financial adviser says to curb my nervousness about losing more of my samll amount, put all $150,000 into annuity (and the market). He has one with bump ups, etc.
Sure, it will be guaranteed, but it seems a bit early in my retirement horizon.
What do you think?
Thanks.
Anita Kramer
From Minneapolis, MN, 04/04/2009
Hello Chris, I have a question about buying a new home. I have zero dollars in the account but I make about $60,000/year and my wife goes to school.We just paid off our car loan. 900 dollars of my income goes to a child support. Also, I have student loan of about $22,000. For now I am a renter and we dont have children.I am wondering given the Obama credit and the current market if you could suggest whether it is good idea to buy a home or not.
PS: I contacted a bank and they said I am qualified for FHA loan which requires $6,400 of down payment given that I borrow $185,000. My middle FICO score is 720.
Thanks
Dalmar
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