Ask Carrie from Creators Syndicate

Can You Collect Both a Public Pension and Social Security? for 02/15/2012

Wed, 15 Feb 2012 00:00:00 -0800

Dear Carrie: I'm 69, worked 23-plus years in the private sector and I am still working in the public sector and receiving monthly Social Security payments. When I retire and start receiving public employee's retirement payments, there's supposed to be an "offset" of my Social Security benefits. Can you explain how this works? —A Reader

Dear Reader: While no one likes to t ...

Updated: Wed Feb 15, 2012

Love and Money: Can You Overcome Your Financial Differences? for 02/08/2012

Wed, 08 Feb 2012 00:00:00 -0800

Dear Carrie: My husband and I have been married for less than a year. He comes from a moderately wealthy family and my family was always scrimping for every penny. Ironically, I'm now earning more than he is, but he's still ready to spend. How do we sort out our differences? —A Reader

Dear Reader: The old adage "opposites attract" seems to apply even to attitudes about mo ...

Updated: Wed Feb 08, 2012

Retiring Early: What's the Best Plan for a Too-Small Nest Egg? for 02/01/2012

Wed, 01 Feb 2012 00:00:00 -0800

Dear Carrie: I only have about $21,000 saved and I am headed into a way-too-early retirement. Should I be investing aggressively to make up for lost time? —A Reader

Dear Reader: In the financial world, we often talk about the importance of aggressive investing for long-term growth. But for lots of investors in lots of situations, aggressive investing is not the right strategy. And ...

Updated: Wed Feb 01, 2012

Can You Start Investing With a Small Amount of Money? for 01/25/2012

Wed, 25 Jan 2012 00:00:00 -0800

Dear Carrie: Please help. I don't have a clue as to how to invest my small amount of money. Also, I don't understand what people mean by "long term" or "short term" in actual years. —A Reader

Dear Reader: When you're just starting out, investing can seem a bit daunting. And in volatile times like these, with markets moving up and down dramatically, some people m ...

Updated: Wed Jan 25, 2012

Do You Need More Financial Advice as You Get Older? for 01/18/2012

Wed, 18 Jan 2012 00:00:00 -0800

Dear Carrie: We are getting older and need help managing our investments. What do you suggest for people in our circumstances? —A Reader

Dear Reader: You're wise to be asking this now because, as much as we don't like to think about it, the older we get the more likely it is that we'll need help managing our finances. In fact, a study out of Texas Tech University last year measured ...

Updated: Wed Jan 18, 2012

Paying Off Student Debt: Can You Find a Financial Balance? for 01/11/2012

Wed, 11 Jan 2012 00:00:00 -0800

Dear Carrie: I am relatively new to investing. I have set money aside and plan to take an aggressive approach to paying off my student loans. Can you offer an ideal action plan for both investing and lowering student debt? —A Reader

Dear Reader: With money set aside and wanting to put a plan in action, it sounds like you're already headed in the right direction. Now it's time to ge ...

Updated: Wed Jan 11, 2012

Cutting Your Credit Card Debt: How to Get Started for 01/04/2012

Wed, 04 Jan 2012 00:00:00 -0800

Dear Carrie: Please help. I'm determined to get out from under my credit card debt this year, but don't know how to get started. I'm currently earning $50,000 a year as an administrative assistant, but I owe $20,000 on my three cards. I'm afraid I'll never get on top of it! —A Reader

Dear Reader: Just by asking for some advice, you've taken a vital first step towards getting on top ...

Updated: Wed Jan 04, 2012

New Marriage, New Family Finances: What's Fair? for 12/28/2011

Wed, 28 Dec 2011 00:00:00 -0800

Dear Carrie: I'm about to get married for the second time. I have two kids, 8 and 10, and my fiancee has two teenagers. Everyone gets along well, but my husband-to-be is a lot wealthier than I, and his kids have been raised with very different financial expectations.

It's not that I necessarily expect him to now pay for everything for my kids, but at the same time, I don't want them to ...

Updated: Wed Dec 28, 2011

Helping Your Kid Buy a Home -- Before You Write the Check for 12/21/2011

Wed, 21 Dec 2011 00:00:00 -0800

Dear Carrie: What is the best way for me to help my 30-year-old son buy a house? I'm 64 and about to retire in the next year or so. I have enough in my retirement fund to pay for all my essentials and some extras, but I'm not wealthy. What's your advice? —A Reader

Dear Reader: The housing boom seems like a distant memory these days, but home ownership is still a worthy aspiration ...

Updated: Wed Dec 21, 2011

What Can You Do When an Inheritance Threatens Family Harmony? for 12/14/2011

Wed, 14 Dec 2011 00:00:00 -0800

Dear Carrie: My elderly mother is very ill, and we don't expect her to live much longer. My four siblings and I have expected to inherit a reasonable sum, but I just saw a bank statement with a balance less than half of what I expected. One of my sisters has been managing Mom's money but never mentioned anything. I'm scared to bring it up with her or talk to my other sibs because I don't want t ...

Updated: Wed Dec 14, 2011

Can You Avoid Paying Income Taxes on a Charitable Gift From Your IRA? for 12/07/2011

Wed, 07 Dec 2011 00:00:00 -0800

Dear Carrie: Can you make a gift to charity from your Individual Retirement Account in 2011 and not have to pay a tax? —A Reader

Dear Reader: I'm glad you're asking this question now because, while it's possible to make a charitable gift from your IRA without paying income taxes on it in 2011, you have to act quickly — and you also have to be at least 70 1/2 years old. (Yes, ...

Updated: Wed Dec 07, 2011

Is Preferred Stock Preferable? for 11/30/2011

Wed, 30 Nov 2011 00:00:00 -0800

Dear Carrie: Are preferred stocks safer and less volatile than regular stocks? —A Reader

Dear Reader: I'm rarely asked about preferred stock, so I'm happy to shed some light on an often-misunderstood investment. Even though preferred stock and common stock both represent shares of ownership in a company, they are very different animals and behave very differently. In fact, preferr ...

Updated: Wed Nov 30, 2011

Will Uncle Sam Take a Bite Out of Your Gift? for 11/23/2011

Wed, 23 Nov 2011 00:00:00 -0800

Dear Carrie: If I gift my entire $1,300,000 to my grandson, does he have to pay income taxes on the gift? —A Reader

Dear Reader: Questions regarding the tax treatment for gifts seem to come up time and again. I think that's because people often confuse the regulations regarding gift and estate taxes with income taxes. The easy answer to your question is no, the recipient never has ...

Updated: Wed Nov 23, 2011

Can You Borrow From Your IRA? for 11/16/2011

Wed, 16 Nov 2011 00:00:00 -0800

Dear Carrie: I know you can borrow from a 401(k), but can you also borrow from an IRA? And if so, could I take $3,000 out of my Roth and return it within 60 days without penalty? — A Reader

Dear Reader: Let me start by saying that I always caution against taking money from your retirement accounts early —penalty or no penalty. The whole point of having a 401(k) or an IRA is t ...

Updated: Wed Nov 16, 2011

Can You Use Your SEP-IRA to Pay for College? for 11/09/2011

Wed, 09 Nov 2011 00:00:00 -0800

Dear Carrie: How do I withdraw money from my SEP to reimburse myself for my daughter's education? —A Reader

Dear Reader: To give you a specific answer to your question, I'd have to have a bit more information. First, I'd need to know the type of educational expenses and when you paid them. Second, I'd want to discuss your overall financial picture and how prepared you are for retir ...

Updated: Wed Nov 09, 2011

For Older Workers: How Long Can You Contribute to Your 401(k)? for 11/02/2011

Wed, 02 Nov 2011 00:00:00 -0700

Dear Carrie: I am over 73 years old. Can I still contribute to my 401(k) and, if so, how much per year? —A Reader

Dear Reader: You can indeed! As long as you're working and your employer offers a 401(k) plan, you're eligible to contribute to it. How much you can contribute depends on your income and the specifics of your company's plan, but theoretically, you could sock away up to ...

Updated: Wed Nov 02, 2011

What's the Best Way to Start Saving? for 10/26/2011

Wed, 26 Oct 2011 00:00:00 -0700

Dear Carrie: I'm 28 years old and not quite sure how I can save — for either buying a home or something personal. Where do I begin? Do I still have a chance? —A Reader

Dear Reader: First, kudos for some smart — and timely - thinking. Starting to save in your 20s will give you a huge leg-up. That's not to say it will always be easy. But by starting now, you definitely ha ...

Updated: Wed Oct 26, 2011

What's The Best Way to Invest for Your Grandchildren's College Education? for 10/19/2011

Wed, 19 Oct 2011 00:00:00 -0700

Dear Carrie: I have $85,000 to invest for my grandchildren's education. Where would you suggest I invest it? — A Reader

Dear Reader: I applaud your idea wholeheartedly, with just one caveat. Before you move ahead, make absolutely sure you won't need that money for your own retirement. Err on the cautious side, and proceed with this gift to your grandkids only if you're confident y ...

Updated: Wed Oct 19, 2011

Does a Surviving Spouse Always Collect 100 Percent of Social Security Benefits? for 10/12/2011

Wed, 12 Oct 2011 00:00:00 -0700

Dear Carrie: Does my wife collect 100 percent of my Social Security benefits at my death? Thank you. — Bert

Dear Bert: I wish I could provide you with a quick answer to such a straightforward question. But as with so many issues related to government programs, there are a number of factors that come into play. So yes, it is possible for your wife to collect 100 percent o ...

Updated: Wed Oct 12, 2011

Giving Stock or Cash: What's Better? for 10/05/2011

Wed, 05 Oct 2011 00:00:00 -0700

Dear Carrie: Is it better to gift stock or cash to a charity or university? — A Reader

Dear Reader: Especially in tough economic times, like these when people in general have less to give, charities and universities welcome any type of donation — cash or stock. And from a tax perspective, the giver gets a tax deduction for the gift either way. However, your question raises an ...

Updated: Wed Oct 05, 2011