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Focusing on debt, but which one
Chris Farrell Dec 6, 2011
My husband and I have extra money each month, a healthy emergency savings account, and we save for retirement through our work plans. (I should point out we are in our 20s.) We recently bought a home and now have a mortgage of $130,000 at 4 percent interest. We also have approximately $80,000 in student loan debt for our graduate degrees at 6.8 percent interest. With our extra spending money each month, should we tackle the student loan debt first? Pay down the mortgage? Both? Or some other option? Carolyn, Duluth, MN
Working toward financial flexibility
Chris Farrell Nov 22, 2011
I max out contributions to my workplace 401K and a traditional IRA (I no longer qualify for a Roth). Should I be doing more to save for retirement? Are there other retirement vehicles available to me or should I continue investing in non-retirement accounts (e.g., direct purchase of mutual funds and/or stocks through my brokerage account)? Sandra, Silver Spring, MD
Stick with low risk
Chris Farrell Nov 21, 2011
Our primary aim is to have a deposit for a house in 3 years. We have saved a reasonable sum of money but did not want it to linger in a current or savings account for 0.75%. We are deciding either investing at low risk or paying off mortgage. We have to sell our current house to buy a new house. My mortgage rate is 4.99%, so after tax rebate it is about 3.99%. Most investing opportunities are giving us about 2% at low risk and 3-5% at medium risk. After tax one would have to take another 1.25% off the return. We would like some advice. Thanks, Tom and Anne, Boston, MA
The relentless pressure to save
Chris Farrell Nov 15, 2011
There's a good reason why you may feel the pressure to build a larger emergency fund.
Budgeting for Uncertain Events
Chris Farrell Nov 10, 2011
Here's a list of reasons why we save. A lot of things can go wrong.
Age to die
Need for extraordinary health care
Close relative needs money
Lo...
Sell down to the sleeping point
Chris Farrell Nov 6, 2011
Question: With the roller coaster-volatility of the stock market, would it be wise to tell my investment management firm to sell all mutual fund...
A decent return on savings
Chris Farrell Oct 28, 2011
Millions of Americans are struggling to save more. The worst job market since the 1930s has convinced us that we need to shore up our personal...
Cash is king
Chris Farrell Oct 7, 2011
Question: I have about 30,000 dollars saved in a savings account that is giving me about 0.85% interest. I put about $ 800 a month into this...
I-bonds and emergency savings
Chris Farrell Oct 3, 2011
Question: My house is almost paid off. I now want to build a larger emergency fund. Putting money into a savings account or CDs will not keep up...
