Free Financial Questions Answered Daily

Is surviving wife required to pay off mortgage with life insurance

2009-04-25

Is my wife obligated to pay my mortgage with the life insurance proceeds in case that I die?;

Should I cancel my life insurance policy to pay off credit cards

2009-04-15

I am 26 years old and I recently got married. We are looking to buy a house before December 1 so we can take advantage of the $8,000 tax credit. We have around $5,500 on 0 percent interest credit cards and I have $11,000 in student loans at 6.8 percent. My wife�s insurance policy cash value is around $5,500 and mine is around $1,200. We have good credit both above 720�s. Should we cash in our policies and pay off the credit cards so it looks better when we apply for a mortgage?; Should we cash them in and use the money as a down payment on a house?; After we get the house and the $8,000 tax credit should I use the money to pay off my student loans?; Can you use the tax credit as a down payment?; Should we put the money in the bank as security and to help make the mortgage payments?; What should we do?;

What to put excess money in inside of retirement account

2009-03-29

I have received about $9,000 in federal/state income tax refunds. I want to contribut the money to my solo 401(k) as I do not need the money at the moment (I already have an emergency fund, I have a somewhat stable government job, I do not have any debts, I have pre-paid my disability insurance policy, and I am 32 years old). My 401(k) essentially holds index funds -- now only worth $10,000. My question is, big picture, what type of investment should I be considering for these funds?; I am thinking I would double down on index funds and see what happens, but I am not sure if this is the best way to go. Any suggestions would be appreciated.

What assets can a creditor get if I am unable to pay off loan

2009-03-22

I have a boat loan in excess of $100,000. I can't pay it off. If the loan company repossesses my boat and it does not satisfy the total owed, what can I be accountable for?; Can they take my home or any assets I have left?; What's the worst and best case scenario?;

What assets can a creditor get if I am unable to pay off loan

2009-03-22

Transferring old 401K assets to an existing SEP-IRA

2009-03-19

Can I "transfer" my old 401K assets (mutual funds) to an existing SEP-IRA?; I like my funds and will like to hold them until the market improve to re-allocate assets at with cheaper commission with my online broker. Is that possible or allowable?;

What should we convert these CD's into

2009-03-09

I have a sickly 65 year old aunt who has about $160,000 held in several CD's. Her father, when he was alive, was a big believer in long term CD's, and her current assets are in 10 year CD's. My sister is handling the finances, and she recently needed to cash one of the CD's to pay for continued in-home care for my aunt. Unfortunately, she didn't know the certificate had recently automatically converted to a new 10 year term, and there was a substantial penalty which could have paid for 2 months care. In your opinion, what would be the best alternative to convert these CD's into as my sister will need to cash them when future funds are needed?; Also, how do you suggest we prolong these assets so my aunt can continue to receive in-home care as long as possible?; She is very much against going into an Assisted Living Center, but we know our choices of a quality one diminish as her assets diminish. How much do you think she would need in order to get into a nice facility as we don't want to wait until it's too late?; And finally, if it's determined a quality care facility requires 'X' amount in order to take her in, are there legal ways to transfer the excess funds (Total - X) out of her name?; Thank you.

Is now the time to buy our first home

2009-03-07

I don't know if my wife and I should try to get into a house now while the market is low even though we have some debt. Married; no kids yet; I have a secure US government job paying $60,000/yr. My wife is making about $20,000/yr part-time but when we start a family she will likely stop working. Debt: Student loans $38K, credit cards $10K, car loan $8K. It would be pretty tight for a while but my income should increase about 6%/yr for the next 3 years even if I don't get promoted. We are thinking of trying to purchase a single-family home at the low end of the local market: about $150K. Basically we are torn between paying off some debt now or saving to get into a house while the opportunity is so good (low prices/interest and $8K stimulus. We don't want to miss what so many are saying is a once in a lifetime chance. Any guidance is greatly appreciated.

What to do about dwindling retirement

2009-03-03

I work for the federal government and am part of what they call the thrift savings plan for retirement. I have 35% in the common stock index, 30% small cap index, 30% international index and 5% in govt. securities. I have watched it dwindle from $145,000 to $81,000 and am getting scared, frustrated, aggravated -- like anyone else right now. What should I do?; Move it all to govt. securities?; Stop putting my hard earned money in?; Change allocations?; Interfund transfer?; Cry?; Wait it out?; I am no financial expert and am looking for guidance. I am a federal officer and am eligible to retire in about 8 years (20 year retirement). I have lost so much and feel like I don't know what to do to protect myself from losing it all. I have tried to forget about it and wait for things to turn around but am really getting scared. Can you offer any advice?;

Withdrawing from the stock market

2009-03-02

My husband is 72, I am 69. We are losing out shirts in the stock market. It is our retirement money. We are too old to wait for a recovery. We feel like we are on the Titanic. Should we get out and buy gold or leave half in and put the rest in the bank?; We have been advised by several people to get out. Your advice please. Thank you for your time and effort.