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Putting a priority on savings goals
Chris Farrell Jan 30, 2012
I recently bought a house for the first time. I am in my early 50s and have a son in high school. I don't have life insurance. I have been receiving lots of advertisements in the mail telling me I should have life insurance or mortgage insurance. Should I buy term life insurance to protect my son? It is very hard for me to save money, and I'd rather save what I can for future college bills and my retirement. Thank you, Erika, Salisbury, CT
When money goals collide
Chris Farrell Jan 19, 2012
We have achieved the goal of $10,000 in our emergency fund and now we're looking to put that extra money into retirement. However, in this uncertain market with dwindling returns, we're not sure that a long-term retirement fund is the best place to dump all our eggs. ... We have a fairly good mortgage rate of 4.75 percent. Our question is: Would it be better to focus on paying off our mortgage early while the market is so volatile instead of putting all that money into retirement? Every penny paid off to the mortgage early is money we aren't paying interest on, after all. Cathy, Bogart, GA
Spending in retirement
Chris Farrell Jan 18, 2012
I am 63 years old and hope to retire in 2 years. My wife and I have a 403(b) and a 457. Also we each have a Roth IRA and we both are covered by modest pension plans. By a lot of self-education (including Marketplace Money), we have done well accumulating our nest egg, but we're not sure how to transition to using our nest egg. Do you think we need a financial adviser to make this transition? If so, what criteria do we use to choose one? Perhaps more importantly, how do we learn to trust this person with our future? Thank you. Walt, Grove, IL
The Roth 403(b) option
Chris Farrell Jan 17, 2012
My wife and I both work for a state university that recently began offering a Roth 403(b) option. I am 52 and she is 47. We both contribute the maximum to the traditional retirement plan and to a traditional 403(b), as well as making the maximum contribution to Roth IRAs. I've used various online calculators to try to determine if we should switch new 403(b) contributions to the Roth option, but the result always comes out to just a couple hundred dollars or less monthly income difference one way or the other. I wonder if I'm missing some significant considerations or if the decision really is just a toss-up for people our age. I'd greatly appreciate some insight on how best to weight this decision. Thanks! Jerry, Hillsborough, NC
Thinking about retirement?
Chris Farrell Jan 12, 2012
Planning for retirement isn't easy. The Society of Actuaries has a retirement series that tries to give you a framework for thinking through the key decisions.
Should I rent to move?
Chris Farrell Jan 10, 2012
We'd like to move into a new home, but we aren't confident that we could sell our existing home without taking a large beating on our down payment. I know there's a dollar/cost average play here (i.e., the house we'd buy would be depressed as well), but I just don't like that. So lately I've been considering purchasing a second home and renting our current one as a way to get past the current housing slump. Question is: If I reduce my 401(k) contributions to save for the down payment and eventually fund the new mortgage, (say, down to 6 percent or so to meet the match minimum), is that a good idea, an OK idea, a bad idea or a really bad idea? Thanks! Dean, Atlanta, GA
Take Social Security now -- or wait?
Chris Farrell Jan 9, 2012
I will be 66 in June but want to continue working for 3 or 4 more years. (I am a college professor.) I am in the position of being able to take my social security check and put the full amount each month in a pre-tax IRA so I would not have to pay taxes on it. Am I better off doing this or should I delay taking it until I am 69 or 70 and get a larger amount each month? Thanks, Hal, Cullowhee, NC
A sliver of good news on retirement
Chris Farrell Jan 5, 2012
It's underappreciated how well one large cohort of aging boomers should do financially during the traditional retirement years: the college-educated stalwarts of the feminist movement.
Keeping an eye on your assets
David Brancaccio Jan 2, 2012
To retire right these days, pension expert Olivia Mitchell encourages clients to look at the bigger picture.
Got the Roth IRA: Now what?
Chris Farrell Dec 30, 2011
I'm 25. After listening to your show, I decided, Hey, I ought to start saving for retirement, so I opened a Roth IRA. Now my question is: Is that it? Do I just put money in there and it grows? Or is this the type of thing where, once it's created, I then have to allocate the money in there to various investments? If it's the latter, what the HECK should I direct my first investments toward? Love the show, cheers! Sam, Concord, NH
