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Parents and graduate school
Chris Farrell Apr 9, 2012
What do you suggest is the best way for middle-income baby boomers to support their children's post-bachelor's degree educations? Anne, Burlington, VT
For penning a money-savvy rap
Tess Vigeland Apr 6, 2012
This week's Piggy Award goes to a money-smart teen who practices what she raps.
The trade-off: Savings vs. mortgage
Chris Farrell Apr 3, 2012
When I look at the interest rates on various savings accounts, they are all way lower than the 4.6 percent I'm being charged on my mortgage. I do recognize my condo as providing me with a service, and my minimum payment now is actually less than the rent I was paying on a studio 4 years ago! But, if I think of the equity I gain as a sort of savings account for a future upgrade, I'm just not sure how to compare my options. The simplified thought process I currently go through is that any extra I pay on my mortgage saves me 4.6 percent in interest that I would have to pay, while that same money would only earn me maybe 2 percent in a savings account, so it is better to save 4.6 percent by never having to pay it. Am I totally off? Erin, Boston, MA
A subdued reading on rates
Chris Farrell Apr 2, 2012
The survey consensus was for no increase to slight increase in interest rates for 2012. Nothing dramatic. Very muted. There's no sense that the economy will turn gangbusters. At best, the economy will show modest gains in 2012.
Getting Personal: Health care, nursing, and investing
Tess Vigeland Mar 30, 2012
Host Tess Vigeland and David Lazarus from the L.A. Times answer your personal finance queries.
Taxes and a home equity loan
Chris Farrell Mar 28, 2012
Hello. I'm 50 and single. I have a 15-year mortgage at 3.5 percent. My income is more than $80,000. I have a Roth and I am maximizing my company's 403(b) account. I have no credit card debt -- no debt in general except the mortgage, so I don't have a lot of write-offs. Does it make sense to get an equity loan and finish my basement so I can get a bigger write-off on taxes while investing in my home, or should I continue to just sock money away because it is better to not have debt? Thanks. Lisa, Salt Lake City, UT
Emergency savings: Expenses or aftertax salary?
Chris Farrell Mar 26, 2012
I'm a 36-year-old single professional in the DFW metroplex that tries to think long-term in my financial planning. I put 12 percent of my around $100,000 salary into my 401(k) with company match. Currently, the retirement fund is valued at about $100,000. I owe about $12,000 on my student loans (4.25 percent fixed interest, originally $80,000) and I have about 27 percent equity in my $180,000 town home. I recently refinanced my home at 4.125 percent for 15 years. My credit card debt is maybe $1,000.
After surviving a layoff well (due to a generous severance in the Great Recession), I was scared straight once I started working again. I now have about $15,000 in an emergency fund and next year's bonus will go to this, too. So I have three questions:
1) Do I need 6 months of bills or 6 months of salary after tax?
2) Should I park this in savings? Or is there a better financial instrument?
3) Is the emergency fund a higher priority than nuking the graduate school debt?
I appreciate your guidance. Keith, Plano, TX
Preserving the value of an inheritance
Chris Farrell Mar 23, 2012
What would you do if you came into a family inheritance after years of accruing debt and working minimum-wage Jobs?
What goes up must come down
Chris Farrell Mar 22, 2012
"What goes up must come down" was true with dot-com stocks and the residential housing market. Investors should understand that the same fate lies ahead for corporate profits, argues James Montier of the investment management firm GMO.
The role of a fiduciary
Paddy Hirsch Mar 23, 2012
Sr. Producer Paddy Hirsch explains the responsibilities of a fiduciary with a taxi metaphor.
