Reader’s question: We all see the market going up and down but when I received my 401k statement recently it had lost as much as I had invested (10%) in the 1st quarter. I am getting closer to retirement but fear I’ll not have enough money to do so. I have a child out of college […]
401k Losses…Who’s Responsible?
The Value of a College Education
Recently, The Birmingham News ran a column that brought into question whether borrowing to pay for college made financial sense. The writer pointed out that the average student loan amount upon graduation topped $25,000. I presume the alternative to borrowing to pay for college was to not go to college and therefore avoid the debt. For 2012, […]
Age 70½ Required Minimum Distributions- Questions Persist
Reader question:I turned 70 years old in January. When will I have to take my first Required Minimum Distribution (RMD) from my 401k? T.D. Answer: You have two choices. You can either take it by December 31st, 2012 or you can wait as late as April 1, 2013. When you take your RMD, it will be […]
Discount Broker a Good Choice for Your IRA?
Reader Question: In one of your columns, you addressed a question about investing unneeded money from required IRA distributions and one suggestion was to open a personal investment account at a discount broker and invest in no load mutual funds. That left me wondering. Since I will soon be taking IRA distributions, is there a […]
Facebook IPO- Deal or No Deal?
The largest initial public offering (IPO) in history for an Internet company will occur this Friday when Facebook will offer approximately 330 million shares at an estimated $28-$35 per share. This represents about 16% of the company. The numbers suggest that Facebook is valuing itself at nearly $100 billion and will make chief executive officer, Mark […]
7 Traits of Highly Effective Leaders
Whether you’re running your own business, heading up your team or simply running solo, here are the 7 traits of highly effective leaders. Trustworthy. Perhaps the single most important trait of a leader is trustworthiness. Trust is based on keeping the promises you make, both big and little ones. With some people, trust is built over time […]
Lotto Mania- Does it Make Cents?
Reader Question: The recent $600 million lottery set off a big buzz around the country. Is buying lottery tickets a good idea? S.R. Answer: Buying lottery tickets is just plain stupid. Over 150 million people spent a record $1.5 billion on lottery tickets so that three people could split just over $460 million. These odds define a loser’s game. Lotteries attract […]
Are Bi-Weekly Mortgage Payments a Good Idea?
Reader Question: I just refinanced my home and was offered the option of monthly payments or ‘bi-weekly’ payments which they say will save me lots of money because it will result in one ‘extra’ payment per year. Is this true and is it a good deal? C.H. Answer: If the bi-weekly payment offer is free, it’s your best […]
How Safe is the Internet?
My recent columns have sparked several follow up questions from readers. Reader Question: In a recent article you recommend www.Mint.com. I logged on and started through the steps until it asked for all my credit card information, bank account numbers, etc. How safe is giving out all that information online so they can access my […]
Give It or Lose It- Part II
In last week’s column, I discussed the case of the ninety-three-year-old who was worth $3 million and suggested that he consider giving $2 million to his daughters now under the current law that allows gifts up to $5 million without tax. Next year the estate tax exemption automatically drops from $5 million to $1 million. By […]