Ask Carrie from Creators Syndicate

Retirement Can Last a Very Long Time: Will Your Money Last as Long as You Do? for 07/08/2009

Wed, 08 Jul 2009 00:00:00 -0700

Dear Carrie: All the articles I see about planning for retirement seem to assume a 30-year retirement. I'm hoping to retire in three years at 62, so that's probably fine for me. But my non-working wife, 55, has had numerous relatives live well into their 90s, so planning for 40 years of retirement income for her seems prudent. How does the 4 percent rule change for that scenario? Thanks! &mdash ...

Updated: Wed Jul 08, 2009

Does It Make Sense to Pay Off Your Mortgage? for 07/15/2009

Wed, 15 Jul 2009 00:00:00 -0700

Dear Carrie: I have over $600,000 in CDs at 3 percent interest. I have a mortgage balance of $100,000 at 5.125 percent. Would you advise that I go ahead and pay off my mortgage or leave the money in CDs? — A Reader

Dear Reader: On the surface, the answer to your question might appear to be a simple calculation. But in reality, the decision to pay off a mortgage can be more complex. ...

Updated: Wed Jul 15, 2009

Advice for 20-Somethings: How to Make a Good Financial Start Even Better for 07/22/2009

Wed, 22 Jul 2009 00:00:00 -0700

Dear Carrie: I'm a 24-year-old single college graduate. I was fortunate to graduate debt free, and have a job that pays roughly $40,000 a year in a part of the country where the cost of living is relatively low. While I feel this is a great start and that time is on my side, I know there's more to do. I have begun to invest through my company's retirement plan and HSA offering; however, I have ...

Updated: Wed Jul 22, 2009

How to Build a Credit Rating -- and Keep It High for 07/29/2009

Wed, 29 Jul 2009 00:00:00 -0700

Dear Carrie: What is the best way for a graduate with a new career to build a good credit rating? I have no credit at the present. — A Reader

Dear Reader: Credit is ubiquitous in modern life, but the realities of it, particularly the details of your credit rating or "credit score," as it is more commonly known, are not well understood. But you're smart to think about it n ...

Updated: Wed Jul 29, 2009

Social Security Benefits: Timing Can Make a Difference for 08/05/2009

Wed, 05 Aug 2009 00:00:00 -0700

Dear Carrie: I am planning to start collecting Social Security at age 66, since I fall in the age group from 1943 to 1954. Will I still be able to work without restrictions on the income I make even though I am receiving Social Security benefit payments? If I understand it correctly, there is no cap to my earnings at that point. Is that correct? — A Reader

Dear Reader: Thanks for y ...

Updated: Wed Aug 05, 2009

LTC Insurance: Do You Need It? for 08/12/2009

Wed, 12 Aug 2009 00:00:00 -0700

Dear Carrie: I'm a single, 43-year-old female and have saved money my entire life. I keep hearing about long-term care insurance. Is this something I should buy? — A Reader

Dear Reader: As our population ages, it's not surprising that you're hearing more and more about long-term care (LTC) insurance. According to the U.S. Department of Health and Human Services, 9 million Americans ...

Updated: Wed Aug 12, 2009

Managing Your Portfolio: What to Think About When You Want to Do-It-Yourself for 08/19/2009

Wed, 19 Aug 2009 00:00:00 -0700

Dear Carrie: I want to switch my stocks for mutual funds and manage my money myself. I have about $1 million in bonds and $350,000 in equities. I need to produce approximately $50,000 a year to live on. Any suggestions on how I go about this? — A Reader

Dear Reader: My whole career has focused on the idea that when it comes to personal finance, most people can do most things by the ...

Updated: Wed Aug 19, 2009

Making Sense of the Gift Tax for 08/26/2009

Wed, 26 Aug 2009 00:00:00 -0700

Dear Carrie: On the $1 million lifetime exclusion: Is that per recipient or giver? Is the $1 million exclusion per spouse or per family? — Debbie

Dear Debbie: Just about everything having to do with gift taxes is confusing for a lot of people, so thanks for asking the question. I'll start with the simple answer to your question about the exclusion, and then get into some of the det ...

Updated: Wed Aug 26, 2009

What's the Best Way for a Parent to Help Pay off Student Loans? for 09/02/2009

Wed, 02 Sep 2009 00:00:00 -0700

Dear Carrie: When I went to college, my father told me he would help me get grants and loans. When I graduated, he said he would pay my debt. I never got a chance to ask him how he paid for it, but he did. He thought this was an incentive for me to get a degree — it worked.

Now I have done the same for my children, and my daughter just graduated with about $20,000 in debt. It seeme ...

Updated: Wed Sep 02, 2009

Suddenly Alone: Where Can You Turn for Help? for 09/09/2009

Wed, 09 Sep 2009 00:00:00 -0700

Dear Carrie: My husband died recently, and it's just me now. Who will look out for me if I have issues with Medicare or Social Security? — A Reader

Dear Reader: My heart goes out to you as you adjust to the loss of your husband. The death of a loved one can make everything else pale in significance. But as your question implies, you still need to deal with the practical and financi ...

Updated: Wed Sep 09, 2009

How to Plan for a Shorter Retirement for 09/16/2009

Wed, 16 Sep 2009 00:00:00 -0700

Dear Carrie: Many projections of what you need to save for retirement are based on 30 years. But if your life expectancy is only 15 years, is it reasonable to divide those projections by two? — A Reader

Dear Reader: The question for most people facing retirement is: "Will my money last as long as I do?" And you're right — in most cases, the projections are based on ...

Updated: Wed Sep 16, 2009

Life Insurance: When it Makes Sense (and When it Doesn't) for 09/23/2009

Wed, 23 Sep 2009 00:00:00 -0700

Dear Carrie: I am a single, 43-year-old female and, at the advice of my insurance agent, I've been carrying a term life insurance policy since age 22. I also participate in my company's life insurance plan, which is just a few dollars per month. Does it really make sense for me to continue paying for these policies, especially since I don't have any children? — A Reader

Dear Reader ...

Updated: Wed Sep 23, 2009

Giving Money to Your Adult Children? Use it as an Introduction to Investing for 09/30/2009

Wed, 30 Sep 2009 00:00:00 -0700

Dear Carrie: I am investing $5,000 for each of my two daughters who have graduated from college. What are your suggestions? — A Reader

Dear Reader: Giving your adult children some capital for their future is a wonderful gesture, and even more so when the gift has the potential not just to grow but to also become an important learning experience. And that's why my suggestions today ...

Updated: Wed Sep 30, 2009

Recovering from the Downturn: You Can't Change the Past, but You Can Help Shape the Future for 10/07/2009

Wed, 07 Oct 2009 00:00:00 -0700

Dear Carrie: My husband and I are 60 and 55. We have been maxing out all retirement savings for decades, including post-tax IRA and regular savings. We have seen $1 million in savings shrink by 40 percent. What do you say to those of us who have lost as much as the rest of the market? We are very frustrated at our age and scared! — Anne

Dear Anne: It's never easy to watch your hard ...

Updated: Wed Oct 07, 2009

How Much Should You be Saving? for 10/14/2009

Wed, 14 Oct 2009 00:00:00 -0700

Dear Carrie: How much should one save as a percentage of their income? Ten? Fifteen? Twenty? — A Reader

Dear Reader: Thank you for focusing on one of the simplest — but most important — questions in financial planning. Many of us are much more interested in discussing esoteric investments, but at the end of the day, the amount of money you save will likely have an even ...

Updated: Wed Oct 14, 2009

Maxing Out Your Tax-Deductible IRA for 10/21/2009

Wed, 21 Oct 2009 00:00:00 -0700

Dear Carrie: How much can a person who is 55 invest yearly in an IRA that is tax deductible? — A Reader

Dear Reader: It seems like such a simple question. But the answer is anything but, thanks to the complex web of rules and regulations surrounding the whole range of retirement investment options. Still, it's an important question because the need to build capital for retirement i ...

Updated: Wed Oct 21, 2009

Is it a Good Idea to Borrow in Order to Buy Stocks? for 10/28/2009

Wed, 28 Oct 2009 00:00:00 -0700

Dear Carrie: I'm a 43-year-old male who bought a $300K home six years ago and have it paid off completely. With interest rates so low, I'm wondering about taking out a mortgage and putting the money into the stock market where I'm more likely to get a higher return. Is this the right idea? — A Reader

Dear Reader: You pose an interesting question: leveraging your house to buy stocks ...

Updated: Wed Oct 28, 2009

Is Your IRA an Emergency Fund? for 11/04/2009

Wed, 04 Nov 2009 00:00:00 -0800

Dear Carrie: I was laid off and am seeking employment. I am 60. Would you advise using my IRA funds in an emergency if my unemployment benefits end? What would the penalties be for doing so? — A Reader

Dear Reader: The technical part of this question is easy to answer: There are no penalties for withdrawing money from your IRA once you've reached the age of 59 1/2. Note to those yo ...

Updated: Wed Nov 04, 2009

Payday Loans Out of Control? Get Help Now for 11/11/2009

Wed, 11 Nov 2009 00:00:00 -0800

Dear Carrie: I'm 55 years old and I got out of my 401(k) plan. I have a lot of payday loans and am really struggling. Can you offer me any advice? — A Reader

Dear Reader: I'm so glad that you wrote in. If you're mired in payday loans, your situation is serious and you need to get on another path quickly. You've taken the first step by reaching out for help and I applaud you for tha ...

Updated: Wed Nov 11, 2009

Are You Saving Enough for Retirement? Only You can Decide for 11/18/2009

Wed, 18 Nov 2009 00:00:00 -0800

Dear Carrie: I'm 37, single and make $90K. I've saved about $40K in my 401(k) and IRAs, but I'm concerned I'm not saving enough. In a recent article, you stated that a couple who saved $395K by age 45 would be off to a good start -- does this mean I should save $35K a year for the next 10 years? Yikes!

What's the best plan for someone my age? Should I invest more in my Roth or in my 401( ...

Updated: Wed Nov 18, 2009