I have a 401A – 100% is in Guaranteed pooled fund. The company is BENCOR. I believe they are under Transamerica. Can I move this to an IRA if I am still employed?

Hi Suze,

How much of the crash this week do you think was due to the actual crisis versus how much was due to Bush's gloom and doom panic address to the nation and all the politicians and pundits following suit? Doesn't the rebound today show that some of it was pure panic?

Thanks,
Sue

p.s. And we have laws to prevent monopolies, how come we don't have laws to prevent any one or few businesses from being so crucial to the stability of our economy???? And how can the system be changed including what kind of laws could be passed to prevent something like this from happening again?

Help me understand

The American Taxpayer is being asked to put up a huge amount of money to prop up financial institutions who have lent too much money to too many people who cannot pay them back. The reason given is to avoid a credit “freeze-up” that would make it harder for people to borrow money. If people cannot borrow money, then they will not spend it and our economy will slow down.

True enough, but this crisis is exactly caused by us making too much money available to people who should not be borrowing it in the first place, all in the name of keeping our economy going. So, are we not just putting another band aid on the pig? Eventually, our economy will have to be built on creating value rather than borrowing it. Why not start now and avoid and even bigger crash later?

Richard,

Ohio

Suzie: thank you for your knowledge. we are a couple who are in our 50's. Had a mutual fund portfolio. We took it all out and put it into our state and local govt. Municipal Bonds. Per our financial advisor's advise. Theya re safe, tax free allthe way and will not be lost in the wall street shuffle. We think we did a good thing to protect our money, what do you think. We live in Fla., our mortgage is 200 a month, 15 years left, a safe mortgage and we read the fine lines. have had it for 15 years. we live within our means as we are both disabled.

thank you

In light of the economic crisis, I am very concerned for my parents, who are both receiving social security benefits. In a worse case scenerio, would they continue to receive these benefits?

******ANNUITIES******
I have funds in an ING Annuity that is above what the state will insure.
The State of CA only insures the lesser of 80% or $100. To this point it has given me a good return. Should I move these funds at an 8% penalty???

Hi Suze,

I'm 28 years old, recently paid off all my old debt and my fiance and I closed on our first home at the beginning of September. I currently pay into a 401k that my employer matches. I've been wondering though, should look into purchasing some stocks for more of a short term gain (looking at about a 10 year return) while the market is at it's current level? And if so, what sort of stocks should I be looking at?

Thank you,

Chris from Long Island

Suse,

My husband and I have made very poor financial decisions in the past, but we are now taking classes facilitated by Dave Ramsey to learn how to become debt free. We own our own home and we got it at a good price so we are not in over our head there. We have about $1000 in credit card debt and no savings, but we have spent money faster than we could make it in the past. We are committed to changing those habits now and began that commitment before the stock market crashed.

With the current state of the economy, is it too late for us to get it together?

Suze,
first, I just want to say that you are great, and I enjoyed you on the show last night!
I am a college student, my parents are paying for my college, and I am looking for a reliable market to put my money in. I have much of it in relatively stable stock, but should I take it out of the market and put it in the bank? I want to get some interest, but not put it at risk either...any suggestions?

Is this a good time for me to refinance and renovate my kitchen

Hi Suze –

I am 28 years old and getting married in December. I am almost maxed out on my credit cards with about 7k in credit card debt at 26%. I have called my c.c. companies asking for a lower interest rate. I also have another 9k or so in student loans. I pay the student loans each month and always pay atleast double the minimum on my monthly credit cards. I would say that my credit is average to slightly above average. I know, it used to be far worse.

I put in 5% to my 401k every paycheck and my company matches that.

My fiance's credit is great.

The high likeliness is that probably within a year or so we will want to take advantage of the housing market and look to buy something.

In your opininion, at this point given the situation with Wall Street, do you think I would be smart to borrow against my 401K, which isn't doing much for me these days, to pay off my credit card debt and help build my credit a bit more? Or, do you think borrowing against my 401k is poor decision which could ultimately harm my credit more than help it?

I plan on continuing to pat the minimums on my low interest consolidated student loans.

Obviously, I know that my fiance' and I will both need to have great credit in order to secure the best mortgage given the way things are right now.

Thanks,

Tim
New York, NY

Suze,
I have a large sum of money invested with a Financial Planner. I know he has lied to me and stretched the truth. How do I hire a trustworthy Financial Planner. I don't suppose you are available? lol

Christine Mack

If my bank closes, how quickly by law can I obtain my money?

I have a tax-sheltered annuity with AIG. Should I transfer funds (roll-over) or are they really safe?
Thanks,
A Worried Professor

Suze,
I hear this that and the other from so many so called economists who are against this bail out. I think they are confusing the American people by getting on TV and saying that this bail out isn't needed. So in your mind if congress doesn't pass a bill then what do you think will really happen to our economy? A lot of these economists are saying that it won't be as bad as we think. But is that true? BTW..I don't put much faith in what they say since they aren't in congress and don't know all of the details but are just guessing.

Cindy...Ga.

I have a 401K at work with what was 250,000 at the beginning of the year. It now is down by 27%. I'm just a few months shy of 60, and plan to work another 6 years. My house will be paid off in three years, and it was valued at 280,000 at the beginning of the year.

Our combined annual income is about 160,000. We have two car payments totaling 550, and about 4,000 in credit card debt (aggresively working to eliminate).

I am still contributing to my 401K up to the company match, in a fund called Pimco Real Return. It's the only fund that I have that is in the green for the year.
These are the funds that my money is distributed in:
Promark Lg Cap Index 19%
Fidelity Emerg Mrkts 16%
Fid Value 16%
Fid Capital & Income 13%
Fid Contrafund 8%
Mid/Small Cap Index 7%
Pyr Sm Cp Core Pool 6%
Fid Growth & Income 6%
Pimco Real Return 5%
Fid Diversified Intl 4%

QUESTION:
Should I stay the course for now, or move my money out of this fund and into an Flexible Annuity Fund that is gauranteed a 7% return. Annuity cost is stated to be 3%.

Susie,

I am 53 yr old but do not expect to retire until 65-67. I am currently contributing 15% of pay to Vanguard 2020 and my company match is 4.00%. I have no credit card debt and own my home. I also have six months of salary in ING savings.

My question is should I be moving a portion of my current funds, $140,000, into a trust account that is a safer investment but it provides very little return or start a Roth IRA.

It is a total mistake to take out my husband's $70,000 401k to pay off our credit cards – we have 3 kids in college and have racked up debt which now hurts! We want to start over and WON'T do it again! I have around $100,000 in my 401k which will stay put.

Here is how (with near-perfect credit) this crisis is affecting me and my husband. Although we have no late fees, collection accounts, or liens against us, we have both been receiving letters from our credit card companies that indicate that our limits have been lowered. What this does, for those of you who don't know, is re-calculates how close you are to your maximum limit and affects your FICO and other credit scores. THAT DOES affect those of us who need a new car, have kids going off to college and may need a home equity loan etc. What I want to know is this... how is this bailout going to help those of us who did nothing wrong in our responsibilities, regain some ground in our credit scores and borrowing abilities? We know credit is like the gas crisis.. have a disaster and prices go way up and fast... have good news, and it is SLOW to respond. I can't see our credit card companies doing an about face on our loan limits and credit scores anytime in the near future!

I have $51,000 in a 457 Plan and contribute $1,200 a month. In light of this financial meltdown, should I continue to contribute ? I plan to retire in 4 years at 62.

Suze,

Two questions:

1. I have lupus and I want know how someone with an incurable, potentially life threatening condition is suppose to invest?

2. I work for civil service and we have the Thrift Savings Plan. Do you have any advice on what funds to select?

Suze,

I am Ms. American Middle Class- pay my bills on time, own an average home with a mortgage, married and we both work, contribute to our 401K, pay for our daughter to go to college etc. Instead of a bailout of irresponsible companies and irresponsible shoppers, how about giving us "good guys" a free mortgage payment- we would do more to stimulate the economy than a bailout-

The congress and media say the bailout is so the average American can get credit- I get offers for new credit cards every day, and advertisements for easy car financing- the congress and media are doing a lousy job explaining why we need the bailout, or they're out of touch with the average American's daily lives.....

Thanks!

My husband is ready to pull the plug on our investments.He says he could put everything in a CD and get a 4% return....what do I tell him?? It's hard to say stay in the market when we're down 10% as of now...I feel we are diversified and should just stay put...HELP !!!!!!

Suzy,

I do not have a sub-prime mortgage. My credit rating is good. I thought about refinancing my home to pay off credit card debt. Are interest rates going down? If so Is now a good time to refinance?

Why should Washington bail out the "fat cats" and corporations that got us into this mess in the first place on the backs of the taxpayer?

What about helping the working family who struggles with savings, mortgage payments, insurance costs, paying grocery bills, filling up our gas tanks and now, paying for sky high heating bills? No help for the ordinary American! The rich get richer and the poor get poorer!

Our so-called leaders in Washington are more concerned about their re-election than the financial well being of this country! Throw the bums out!!!!!!!!!!!!!!!!!!!!!

What is your take on this Suze?

Thanks

Alex Geourntas

Hi Suze, my question is:

I have 20+ years before retirement. My portfolio is 65% stocks, 35% bonds. You said that you can’t time the market, and with 20+ years before retirement, I should be able to ride out the turmoil in the markets. However, I’m still concerned. I’m thinking about changing my allocations of future contributions to 50% money market funds and 50% index funds. Then be more aggressive later on when the market starts to pick up again. (I wish I can invest in municipal bonds like you have advised, but my current 401K plan doesn’t offer it). I will not touch the allocations in what’s currently in the plan now.

What do you think?

Thanks,

Lilibeth
Edmonds, Washington

Suze,

My wife and I work full time for academic institutions and are currently in graduate programs that we are financing with federal loans. Is there a chance there will not be enough money for the government to loan to people pursuing higher education?

David and Avery
Kingston, PA

Is this the time to add to a 401K? I am in my early 50's and spent every cent raising my kids. Now that they are out on their own, I knew it was past time to start saving for me. But am I better off with just a savings account – at least I won't lose money!

Would you please explain how banks will try to modify loans. do we have to be in default to be modified or not? I have a hard time to pay my monthly, some say i have to be in default till bank listen and some say no. Would you please clarify it for me. My bank is WAMU.

Thanks,
Nooshin

Dear Suze:
I recently returned from the private sector back to the federal govt. Now, I have a little less than $5k in a 401K (Fidelity) with my former employer & about half of that amount in a previous TSP account I established with the Feds before leaving. I also have a credit card with Barclays with a balance of $4k at 17.99%.

I want to know if I should do a “direct rollover” to TSP or cash out, take tax penalty and pay off/down credit card and just start saving from the balance already in my TSP. I am 32.

Thanks in advance.
PS. I am a save yourself member & continue to contribute monthly.

Why can't this crisis be possibly dealt with from the wealthiest individuals from around the world? For example, at least 25 people on the Forbes 400 list are worth between 57 -25 billion dollars. Why can't these individuals invest their money with some kind of tax break for them for so many years, or for them to earn a decent rate of return on interest? You mean to tell me we can't find billionaires/millionaires just waiting to make another buck? If their going to make money on the investment, why not do it? Gosh, they would be making history, by hopefully, preventing another depression, is that not priceless in and of itself?

Hi Suze, I’m worried about my tax-deferred 12yr. Fixed Indexed annuity linked to the S&P – however it does have a safety net 3% minimum guarantee. Was it a huge mistake to buy into this? (bought-2004) It looks like it is not insured with the SIPC – what if they go bankrupt? Huge mistake? After 12 yrs I can reinvest into a different annuity. What do you think is best? I won't need the money until retirement – 20+ yrs.

I have had a house on the market for almost a year now and there is a potential buyer who wants owner financing. Given the credit freeze, should I consider this route?

My annuity is 193,000.00 I take 1800.00 out a month with 200.00 to go to taxes. I realize I can no longer do thsi with the volitile marke. I make $38,900.00 gross a year. I pay $915 (this includes property taxes each month towards my mortgage. I am 59 1/2 years old in April. Am I better taking it all out now, putting it somewhere safe.??? The annuity would pay $1755.00 a month at 59 1/2 and $2467.00 in 2014.

Suze, what is your take on this idea as to dealing with people who are facing financial despair and are in danger of losing their home to foreclosure due to the current economy?

Take two types of homes:
a) Homes that have already been foreclosed
b) Homes headed for certain foreclosure

A new government regulated process, with accountability and transparency, oversees the transference of a current homeowner facing foreclosure into a smaller home that is vacant due to foreclosure. This would be done only if both parties are in agreement. The homeowner’s equities would be transferred accordingly to this foreclosed property. However, said property would have to be re-appraised to current values. The homeowner would have to be re-qualified based on their abilities to meet their current debt load and the new loan payment on said foreclosed property.

The new loan should be a (proposed) 30 year loan equivalent to the current interest rate (approximately 6%), but should be fixed so there can be no surprises later. No ARMS! This allows the current homeowners to retain their credit, their assets, and their will to continue making payments on all of their debts. The loaning institutions would benefit by slowing down this tremendous foreclosure rate and by eliminating some of their foreclosed properties as well as freeing up loaning monies.

This would bolster the economy in many ways. Debtors would continue to make good on their current debts and loaning institutions would be able to continue to make new loans. Maybe with this change and a few others this $700 billion bail out would not be so large or as necessary. The tax payers would be freed from incurring this burden and our economy might be able to rebound.
Thank you, Byron

I'm told to leave money and put in the maximum into a 401K because eventually when I retire in 40 years – the money would be there because the market trends correct itself. How true is that in light of what's happened for those who are retiring now? I currently do not put all my money into a 401K and would rather save it in various savings accounts. What else can I do to save outside of a 401K or IRA?

I have an 84-yr old Mother who has all her retirement investments in mutual funds via Merrill Lynch. Taking safety first, I've advised that she cash in everything now and not wait to "see what happens". These investments are all she has to live on in future years. Am I right that she should bail out now....and at her age, how significant would the taxes/penalties be?
Thank you!
Jennifer

HI SUSIE,
CURRENTLY I,M IN MY COMPANYS 401K PLAN, AND ALL MY INVESTMENTS ARE IN S&P 500, I'VE BEEN WITH THE COMPANY FOR 22 YEARS. I,M CURRENTLY 62 YEARS OLD AND PLAN TO RETIRE IN THREE MORE YEARS, THE HIGHEST MY INVESTMENTS HAVE BEEN IS 168,000, NOW THERE DOWN AROUND 140,000. I CURRENTLY INVEST 10% A WEEK AND THEY MATCH 4%, SHOULD I JUST PUT IN 4% AND WHAT SHOULD I DO WITH MY 401K NOW TO BE SAFE SO I DO NOT LOOSE ANYMORE OF MY MONEY? HOPE YOU CAN HELP WITH THIS! THANKS MW BOLDEN

Hello Suze;

When you say that the financial crisis we are currently in began in 2000. Is that when President Bush was in office or was President Clinton still the sitting president?

Was there any pressure from Barack Obama, Barney Frank, President Clinton, and the organization with the acronym ACORN against Fanny & Freddie to provide mortgages to people who would have otherwise been rejected?

Hi Suze,

A few weeks ago, I had $70K in my 401k. Today it has diminished to $53K. I have a home equity loan of $38K and was hoping my 401k would pay that off if there was ever a problem. Now I am terrified that my 401k will be gone and the bank will call in the home equity loan.

I want to take my money out of the 401k immediately and I temporarily
stopped further contributions.

I realize I have made some mistakes but I hope you can offer some advice.

Thank you. I love to listen to you. You make so much sense.

Suze would be a great treasury secretary except for one thing.

She believes in honesty and paying her bills. Most Americans don't have that same philosophy.

I want what I want and I want it now. I probably won't pay for it though.

I have excellent credit. Given the current economic situation, how long should I wait to purchase a new home? I'm worried that if I purchase a $150,000 home now, it may only be worth $90,000 when 2009 rings in. Warner Robins GA, 31095.

I have an adjustable rate mortgage that will adjust in 2010. I now owe more than my home is worth. Will it be possible for me to re-finance to a fixed rate mortgage? My credit is good (always pay on-time and more than the min), but I am close to the top of my credit cards.

Hi Suze,

I hear talk that personal credit lines may become the victims of this crisis, with credit card companies slashing my credit limits and my bank cutting my home equity line.

My question to you, is that if this is actually a strong possibility, should I seriously consider pulling some money out of my home equity line right now to set aside in a savings account, in case my home equity line soon ceases to exist? I realize that I would be accruing interest on this withdrawal and have to make payments, however, I would feel more comfortable knowing that at least I had access to these funds if I needed them.

Hi Suze!

I am wondering...I am 28 with no credit card or student loan debt, my condo is paid off, I have a great job and am putting some money away in my 401k. Should I be taking advantage of the "great bargains" that you discussed in your article on the 360 website yesterday? If so, how much is too much to invest in this market?

Thanks for coming and helping us through this Suze!!

Last year, I sensed things were not right after American Home Mortgage failed, so I re-allocated my 401k to 1/4 Money Market and the rest in several very conservative mutual funds that focused on asset protection. On Sept 23, I moved everything to Money Market. This appears to have worked for me so far, as I have lost little Year to Date, and none since last week. What do you think of this strategy? Is this a safe place to keep my money until markets return to normal (possibly years from now?)

If the market moves in a down ward direction like it did on Monday, September 29 do you think the government will temporarly halt trading on the US stock exchange. If so would this have a positive or negative affect on the over all financial situation? Thank you

I have heard the FDIC is starting to run out of funds. If this happens who pays for our guaranteed insurance up to $100,000 if our financial institution goes under???? I am sure its not a bottomless pit.....This is starting to make me nervous. Thanks, Sandy

You and CNN have done a good job of explaining how the REAL problem is the credit markets, but I still don't understand how buying mortgage backed securities and derivatives from investment banks will unfreeze the credit markets.
Thank you,

(Possible Duplicate)

Hi Suze, my question is:

I have 20+ years before retirement. My portfolio is 65% stocks, 35% bonds. You said that you can’t time the market, and with 20+ years before retirement, I should be able to ride out the turmoil in the markets. However, I’m still concerned. I’m thinking about changing my allocations of future contributions to 50% money market funds and 50% index funds. Then be more aggressive later on when the market starts to pick up again. (I wish I can invest in municipal bonds like you have advised, but my current 401K plan doesn’t offer it). I will not touch the allocations in what’s currently in the plan now.

What do you think?

Thanks,

Lilibeth
Edmonds, Washington

Hi Anderson & Suze,

I know it is probably very hard to predict, but how do you think the Economic Troubles right now will affect the ability to get college loans and scholarships in the future? I am 14, and I graduate High School in 2012. What can I do right now to ensure I can get a loan, and will organizations and Colleges become stingier with scholarships? What can I do right now to help make a good financial future for myself?

Thank you lots.

Hello Suze,

I would like to see the Congress discuss about saving main street while letting the Banks stew in the bad loans they have made. As I understand the problem is credit freeze. I believe the government should find method of channeling loans to the main street, bypassing the banks.

What do you think?

Our home, cars, + college, everything is paid off on time, years ahead of time. We use two credit cards and pay off the balance in full each month. Our credit history is impeccable. I am hearing that our credit card companies may reduce our lines of credit thus lowering our FICO score. Is this true and why would the companies do this?

why cant the government give us tax payers the bailout money spread evenly to those who pay taxes? Wouldn't the majority of us use this money to pay down our mortgages and wouldn't it stimulate the economy? All I know is that I would feel a whole lot better if I got a check in the mail then if the government just gave the money to the crooks on wall street.

Hi Suze,

I graduated from college in May of 2007 and immediately started working a full time job. I earn a fair salary for someone just starting out, but with the cost of living continuing to rise and the current financial fiasco this country is in, which I'm sure we'll be paying for a very long time, how can young individuals save money just starting out? I'm just making ends meet and I feel like I'll never be able to afford buying a home of my own! Besides hiding under a rock, whact can I do to avoid getting myself into more debt?

Thanks,
Nick
Boston, MA

Suze, I watched you on Oprah and thought FINALLY someone is talking tough to these people who want to continue spending money that they don't HAVE. Don't ease up on them now...they NEED to be chastised until they "get" it!

My question: My new financial advisor keeps trying to put my 401k rollovers in annuities and the first batch I rolled over lost 15% in the first month. He knows I am risk-averse and am OK with slow steady growth. Should I wait it out? I put the second batch in treasuries...

Hi Suze,
I am 50 years old and am contributing the max to my 403b. Do you think it is wise to decrease my contribution, and try to put more in savings or apply it to my mortgage?

Why can't the same $700 billion be divided up equally among all the tax payers instead of bailing out Wall St?

My IRA has dropped by $8000 with all the market problems – should I keep it where it is, and ride it out, or do I need to do something else with my money to keep from losing more?

Thanks!

Hello Suzie,

Why are there no billionaires stepping forward to offer money for the bailout? If 700 stepped up to the plate and gave $1 billion each, Wall Street wouldn't have to beg the taxpayers to "bail them out". Or 350 each giving $2 billion.

What's the deal? They seem to want it all...

Dave
Honolulu, Hawaii

I am an insurance agent selling AIG as one of my homeowners markets. They tell us the insurance part of the company is sound since they are regulated by the state, and must keep adequate surplus to pay their claims. Should I feel okay about selling their policies still?

For the last ten years, virtually all my disposable income has gone to paying for health care costs for my very ill husband. Which means at age 50, I have only accummulated $24,000 in my 401K, plus about 10,000 in other savings. My husband passed away a month ago, and soon I will be receiving approximately $70,000 in life insurance benefits after I pay off all our debts (credit cards, doctors, hospitals, etc.) except our mortgage. With all the instability in the market, what should I do with that money to give myself the strongest safety net possible?

As a college student, you can figure that I'm pretty concerned about what I can expect to see in the next couple years. Should I have to worry about the student loans which I'm recieving every semester? And are there any steps or measures I should be taking to secure those loans.

Hi Suze,

I am currently in school and depend on student loans each year. I have about 3 semesters left and I keep hearing about the possibility of not being able to get student loans. Does this mean private loans or governement loans? I have worked so hard for almost three years working full time and going to school at least half time that I am in shock I may not be able to finish because of all this.

I also keep hearing that if the bill passes, Americans may end up with a profit in the end. What does this mean? Does it mean they will give us some kind of rebate check or does it mean it will just be applied to this administration's hefty deficit?

I am so confused as to what all this means.

Thanks

Why not go with a "Sweden" option of nationalizing these financial institutions, then sell them off once they get fixed?

My husband and I live in Florida ( above water so far ) . Our house and cars are paid for, and we have no credit card balance. My husband is getting s/s, started at 62, I will get s/s next year. We also had money in two funds (mostly bonds as suggested for our age group) that we were taking money out of to go with the monthly s/s check. With the turmoil in the market, we have lost about 70,000 since this time last year. My husband finally parked one account in a US Treasury bond fund, (very little interest but supposed to be the safest). Do you think this was a wise move, and should we also park the other account. Or do you think we should stay in the bond and stock mkt. We have a couple CD's and some cash to hold us for awhile. We are both retired. Thanks Susan S.

My in laws are retired. They are collecting social security. They have a tremendous amount of money in stock mutual funds. They lost a ton of money yesterday. I have been telling my father n law for yrs that at his age he should not have his money in high rick investments. Am i right? Should he have moved it into Annuities,Bonds.TBills etc? Is there anything they can do now..or is it just the waiting game?
Thank you

Instead of bailing out Wall Street, why not bail out Main Street? Instead of giving 700 Billion to the banks, give 1million to each family. It would be a lot less expensive. Let WE THE PEOPLE jump start the economy instead of the guy's in suits. They've squandered away EVERYTHING and now we're supposed to give THEM ANOTHER CHANCE?

One Angry American

Hello,

I've recently completed grad. school and am now entering the workforce; I'm in my late twenties. I'd like to begin planning for my retirement. Given the current economic climate, what is the best way for me to begin investing - ie: what investment vehicles should I explore? Also, I have a sizeable amt of school loans that need to be repaid. 1) should I focus on repaying the loans off first and then save for retirement?; 2) Can I generate monies from stocks/mutual funds and use that revenue to repay loans while saving for retirement?

The only debt I own are my school loans. No credit card debt.

Thanks!

Hello Suzie, Both my wife are retired and receiving Social Security and a pension from my last job plus monthly amounts for my IRA's and Annuities. My question is why are my IRA and Annuities are so tied to Wall Street performance. I took about a $9,000 hit monday and would to hear you advice. Thanks

The powers that be keep insisting that "bailout" is a misnomer and taxpayers will eventually be repaid most, if not all of the money...maybe even make a profit! How likely is that and how long do you think it would take before taxpayers start to see repayment?

Can you give the exact age that I should shift my 401k funds to more a more conservative portfolio. I am 50 and want to retire at 62.

Hello Sue,

I'm 45, married with two kids 5 and 8. I'm currently the sole breadwinner in the family (my wife will go back to work in 2-3 years), We live in California, the Bay area. Over the last 4 years, i have fortunately been able to contribute the maximum into my 401k, along with the maximum company match under IRS rules. I'm invested in a number of Fidelity funds that are about 75% stock, 20% bond and the rest other. About 20% of this is International, with most of that invested in Western European companies. The overall risk of my portfolio is slightly left of moderate on the scale. I plan to retire in 15-20 years. We don't carry any credit card debt, we have a mortgage balance of $210K, are drawn $11K on a $29K credit line, and an auto loan balance of $9K, payments are all current. My house has depreciated about 40% in the last two years, but fortunately i'm not upside down. We would like a bigger house, but will put that thought off until my wife goes back to work. Should i loose my job, we do have about 4-5 mths of savings to fall back on. Is there any advice that you can offer in the short term and long term?

Thanking you in advance, love your show!
Joseph

Last evening (Monday), I think I heard you recommend putting only enough pre-tax dollars into a 401(k) that will still qualify you for a matching employer contribution, but no more (I could be mistaken but I think that's what you said). I'm in my early 40s, have maxed my contribution (15 percent) for 15 years, still have some 20 years before retirement and the value of my 401(k) has lost approximately $40,000 this year ($12,000 since last week Friday). Would I be better off keeping my contribution at max, accumulating as much as possible now ("buying low") so that when the markets (hopefully) corrects itself, I'll have more shares? Or, should I use the "100 minus age" and put only that much into 401(k) and the rest in far less risky bonds (or similar)?

Thanks so much for your help!
-Confused in the Midwest

Maybe you can give me some advice in relationship to my 401K – I have around $200K in the plan with over 99% in the income fund that has been paying around 6% each year. The plan is run by Fidelity and I am not sure if I should take the money out and put it in CD's? The only problem is that I would have to pay the 20% or more if I take the money out – at this time I do not need the money but also I do not want to lose it in the 401K. Age 63 & I retired toay – bad timing or what.

Thanks in advance for any guidance you could give.

Suze,
The Federal Govt intends to buys $700B of toxic loans, at a discount, and then says the taxpayers will get the money back possibly even make a profit when they sell the loans. Who is going to buy those toxic loans? I don't see how the gov't expects to get paid back.

Secondly, the people who have now lost their homes, millions maybe, who are probably renting again. What's in this for them? Are they the ultimate losers in this money shuffle?

Thanks.

Hi Suze,

We are newly married couple we will be closing our first home in November.We are in our late 20's. We still have some credit card debt. My husband's company matches his 401K contributions though. Im just working part time.

How will the current decision to buy a house affect us? Is it a good investment? Would the rates go up? Is it safe to save the money in the bank as such or invest it? What would be a good time to withdraw the money saved in 401K and invest in which market?

Thanks.

Isn't this whole crisis because of variable interest rate loans being underwritten incorrectly?

I was an underwriter and we always used 8% for underwriting purposes even if the variable rate on a real estate loan was 4%.

Why doesn't the government just cover the spread on a the real estate loans that have gone bad? Wouldn't that be cheaper?

hi, suse,
since as taxpayers we are going to bail out wallstreet, what if we take some of the 700billion dollars and pay off all the mortgages made from 2001 to the present and write off these mortgages. Not only would the mortgages be paid off by the government, and some of the Bad mortgages paid off but also the mortgagees that have never been late or foreclosed on. Since we have to pay this 700 billion why can't we benefit from this as well. Just a thought thanks. bruce

I have roughly 50,000k in my 401k that my company matches. I have approximately 55,000k in credit card debt at 14.99%.

Should I withdraw from my 401k to pay the debt or transfer the debt to another card at 0% for the next year (and then at a 6.99%)?

Chris
California

I've got about $10K accumulated in my "rainy day" account, sitting safely in a saving account. Expecting the market to eventually rise back up, would this be a good time to hop into the stock market... and maybe make a lot of money in a short time? If so, any specific suggestions for mutual funds?

I've heard statements that many of these failed mortgages are 2nd mortgages - people who were trying to profit by buying a 2nd house, holding on to it for 6 months, then sell for a quick profit. What percentage of the mortgages are those? How many "regular" people with one mortgage are caught up in this bad mortgage issue?

Suze, my police retirement 457(b) plan does not allow me to move it into a US Treasury Money Market Fund as you have suggested. What problems would I face if I roll it over to another company such as Vanguard?

I have a 2007 BMW X5 that I owe 69,500k. It's probably worth 57,000k. This leaves me upside down 12,500k.

My question is, I want to sell the BMW and buy a Toyota Prius (for financial and environmental reasons) and need to know if now is a good time to make this purchase. A new Prius is approximately 29,000k, which I would finance along with the underage of 12,500k. (41,500k)

By making this move, aren't I lowering my debt by 28,000k and saving the planet?

Hi Suze, Im 54 and want to invest 5 thousand dollars.Should that go into my Roth Account or a CGM Focus Fund account..thanks

I have a 401k with Fidelity with about $200,000. Is it FDIC insured? If not what are my options? I am 50 years old and would like to retire in 10 years. I make $100,000 a year (gross) and have been putting 25% into Fidelity. I own my home, no other bills. Thanks.
Mike Virginia Beach

i'm a 59 year old woman who is late to the workforce with little savings. $6500 in credit card debt @ 0% interest for the next year. car & house payments are affordable. I have been investing 20% of salary into my 401K. Should I stop paying into 401K ? and if so, where should I put it? I have $6K in bank savings - should I withdraw cash from the bank to keep it safe? My fear is there will be a run on the banks..I have no confidence in government at this point...I fear even FDIC will collapse or reveal they cannot cover our deposits. I have approximately$16K in a Roth account that i suspect has tanked in the past week. Also $5K in a retirement account from a prior employer. Is there anything else you would advise me to do ? Thanks, Suze!

I have some Uro dollars that I am reluctant to change, should I wait or keep the money?

thanks for your help

My money (savings, CD's, IRA's) is in a credit union insured by ASI. Is it safe?

Suze:

I think you are the real straight talker in this political season!

I am 46 and single, I have a 401k plan with employer annual contribution and a safe harbor amount (two annual contributions). It is diversified, managed by a local bank and I have percentages invested in growth, small cap, money market and government bonds. I invest about 3 percent and have about $20K accumulated. Should I stop contributions to save for a home? Is it ever wise to borrow from the 401K to buy a home, especially now? I have completely paid off credit cards and have no debt. My credit rating is low due to youthful indisretions, but had received preapproval for a mortgage. I have very little savings/cash on hand. Thanks for the advice.

Susan

Suze, I don't see where anyone has asked a question such as this. We have a $100,000 life insurance policy with ING (ReliaStar Insurance Company) which now has a cash value of $33,219 on my husband who is 62 years old. We are continuing to pay $179/month on this policy. With insurance companies also failing at a fast rate should we take the cash value out of this policy now?

Thank you for your advise.
Judy

Suze, If the economy crashes will there be inflation, lack of goods to purchase, or both ? Will cash have any value if we return to The Great Depression Part II ?

Dear Suze
I have very large sum $ in annuity at AIG through Bank of the West. I was told by the broker that this is insured by the government up to 2 million in annuity.

Also I have $ in Treasury COD Certificate in community bank. Am I insured, if so up to how much in principal amount? I was told that it is up to 1/2 million is insured in treasury bonds

Your answer ASAP is truly appreciated.

Hi Suze!

Thank you for being such an inspiration to so many women out there. You really encourage us to not just settle for what someone may tell us but really KNOW what's happening with our money. I have just turned 30, am single, own a townhouse with my sister, a cabin with 2 sisters, (both with mortgages) have roughly 10,000+ in RRSPs, and no real debt (maybe $200? on a credit card). I really would like to pay off our townhouse as soon as possible (I think we have 15? years left) but my financial planner tells me it's better to put any extra money into some kind of mutual fund (or other savings) because the interest is higher than the interest I'm paying on my house. Does this really work out in the long run as they say any extra payment on a mortgage makes a HUGE difference down the road, but is my financial planner just telling me to invest with him cuz it's his job and makes him money? I want to be making forward steps financially not sitting stagnent and I'm not sure who else will give me a straight answer on what my next financial steps should be. Thanks!!

Dorothy, from Canada

Suze,

With the credit market in crisis, I was wondering what will happen to student loans in coming years? I am currently a junior in college and my loans are secured for the coming year, but I worry about being able to secure federal loans, much less personal loans to complete my final year of school. What can students do to help ensure that they can get loans in the coming years?

Thank You.

Hi Suze

On last nights show you were stating the reasons why most people don't want the bail out package is they don't understand it.. Not so. This ecnomic mess has effected me in some verry bad ways. First I have been working for the City of N.Y., for almost 20 years and was getting ready to retire, I need to sell my home first. Before this mess started my property was worth $800,000. to $850,000. . Now I can't even get a buyer for $695,000. . I can't retire till I sell my home so I can move down south. I worry about how much I will clear on my home as I was going to use the proceeds to buy a new home. But thats O.K. I am glade the house rejected the bill, I would rather whate and see a bill that will help everyone then a rush job. Bush is good for that. A bill that states in plane english that CEO's will not get on penny of tax payers money and a bill that does not give a lame duck Pres. $100B to use at his decression.. To put in his .. Or how he put it "His power base'es pockets.". I would rather see a Bill that will help all Americans and American Companys with an oversight commity. Not a rush job..
Thank You for you time
George

Dear Suze,
I am 58, retired, and have my IRA in an annuity with Midland National.
Currently I have $900K invested and earning only 3.15% . In light of
what is happening with this mess of the economy and Wall Street, are
my holdings at risk? Believe me, right now 3.15% is okay!
I'm allowed to take out 10% of my assets and rollover to another
IRA every year. Should I take 10% of my assets and put into cd's that
are paying more? Thanks, Suze

How dare you say last night that people on disability that they have to learn to take care of themselves! Those people paid into the system their whole working life and then become injured that is their money! What is wrong with you? Should you become disabled Suzi 'miss high life' you'll eat your words.

If this would have happened two months from now, how do you think each of the two Presidential candidates would handle it?

Suze,
I am 42, have (or had) $130K invested in mutual funds (401K, IRA etc). I have 16K in cash savings and a 12K credit card balance that I just transfered to a no interest card until October 2009. Credit score of 780. I just purchased a home and have a hefty mortgage. Should I take the 16K out of the mutual fund to pay off the credit card and start paying more more money down on my mortgage or should I pay off the credit card in installments before October 09 and keep the cash in savings?

My husband & I are both retired. We have a diversed portfoilio, but have lost around $80,000 over a period of a year. We have $2,500 each month coming to us that is suppose to be coming from interest. My question is should we pull this money out into something safer or leave it. I am afraid that we will lose everything

I am going to ask you the question that I hear all over.
What are people who don't have a 401k going to do?
What about great credit card debt?
How is this all going to affect those who are already barely hanging on by a thread? I am worried about a lot of people here not just those who have the means.
Thanks Suze, you're the best!

Susz;

How do you see the affects of this fiancial disaster on Canada if at all??

The government cant fix social security, they cant fix healthcare then why in the world would we be turning to them to fix the financial markets.

Competition is what makes this country great. Let the banks fail that made bad judgments in lending. A new bank will be born tommorow. Most of the people being foreclosed on couldnt afford the house in the first place.Having our do nothing congress and inept president try and help is only a band aid on a larger problem. More regulation of the industries is whats needed.

The government created the mess in the first place by asking Freddie Mac and Fannie mae to be more lenient in their lending practices. other banks just followed suit. Corporate greed will always exist. A public companys officers should only be paid on a 5 year return on profit. Not on a yearly basis. The rich get richer and the middle class gets screwed... The golden parachute days are hopefully over.

suze

i have a small bussiness meaning 35 employees and 7 million a year. It's a 3 year old bussiness and we have a 750,00 dollars equity line and good credit. my bussiness has droped a little but material cost has gone up about 30%.which effects my profits.
so how is this bailout going to effect my company in the near future. i think it's a little to late most companies are already in trouble and because the banks have money they are going to lend it to bad credit companies. we all know thats not going to happen on houses our bussiness. these are the people that need it first.
maybe this should happen we have been overspending in this county for 10 years and now money is not so cheap. is this a bad thing now everyone has to leave within there budget. when we put money in stocks and 401k's isnt it a gamble.
how about giving new companies starting all over the states an incentive plan that will create more jobs and put a bigger inport tax to even the playing feild.
at the end of the day this is the first time in 8 years that i stopped using my credit card and started saving. not such a bad thing.

thank mike talbert

Recently on your show you told a viewer how they could talk to their creditors and get a settlement without showing as settled or a bad debt on their credit score. Can you give those steps again? Also, is using a home equity loan to pay off debts a bad idea?

Unlike most of your listeners I'm a model of fiscal responsibility. My wife and I have great jobs, zero debt other than our fixed low rate mortgage and student loans, and significant cash savings. I feel even in the worst case scenario we would come out OK in the end. What's the incentive for me to spend my tax dollars bailing out people who are irresponsible? Is my sense of security a false one?

Don't you think that what we all need is another “Surge”, this time on U.S. Soil! I know, let's attack Wall Street with a massive infusion of cash. Our numbers would have to be so unimaginably great that Wall Street would have no choice but to capitulate to the sheer economic force it would face from the constant, unrelenting “surge” of money the American public could throw at it. Sure, Democrats will want an early withdrawal before the job is finished, but the beauty of the “Financial Surge” would be that there would be no money left for anyone to withdrawal - from anywhere. We would replace millions of bullets with billions of dollars. We would replace smart bombs with bailout bonds. And then, when Wall Street and the banking industry had recovered, like all great nations, we will forgive their debts because we are the greatest nation to ever exist.

Oops, I got to run to the bank and withdrawal some cash before this thing goes nuclear.

Hi Suze,

Is the current financial situation having any effect on university endowments?

I have a 401k with the federal govt, have strained to put in 15% starting about a year ago because I had heard that was the right thing to do. I can retire in 4 years – should I be putting that 15% in or just do the matching funds which is 6%. If only 6%, what is your advice on what to do with the rest considering I am 62.

How does all this affect those of us who have already retired and are drawing social security? Will we still get it? Also I receive a life-time annuity. Will it be affected?

All of the news that I've seen today is positioning the day's rise in the stock market as being in anticipation to an agreed bailout by our legislators. Why is it not being discussed that the rise might actually be a next-day relection that not passing the bill was a good thing? IT seems possible...

My husband and I have been maxing out our 401k s since we have been able to (I am 37 and he is 38) and it is invested in aggressive mutual funds. We have no debts other than a mortgage, and we do pay more on that each month. We have been unable to contribute to a roth IRA but my company is now offering a Roth 401K. I have never heard this discussed on your program. Is this basically the same as a ROTH IRA and should I switch anything above my match to a Roth 401K now. More importantly, should I do anything NOW to my 401K at all?

I have been following the market like most people these days. Looking back at the last 7 years, we have had have created credit problems by deception in accounting and cheap money. Right now they big buzz word is "Mark to Market" rules. To me it seems as if they want to allow banks and brokers to let them hide the debt for the future. Are we just postponing issues that need to be more transparent? They tried to keep the market up at all cost during the great depression which prolonged the pain for a decade. Please explain to all of us in common language what they are talking about and explain if you think this is a good thing or not.
More importantly what are we going to do when the market drops 40%- Recessions are common part of the business cycle.

All my credit is paid off, Is now a good time to invest in the market, my money is sitting in a high interest saving account?

If the bailout is designed to buy bad loans from the banks in order for them to lend again, why is there no provision in the plan that requires that for every dollar of bailout disbursed, the banks will lend x amount back to the economy? If no such provision is incorporated, wouldn't the entire bailout lose its purpose if the banks do not start lending again?

Is buying gold a good idea now? With prices so high, isn't it likely that once the price drops it will be a long time before we see gold reach this price again.

I called an ING representative to ask if my ING Annuity accounts are safe. He said I am covered up to 100K by the state of CT for each account. I do not hear much from the experts concerning annuities. Is this true and is there any reason to move the money, although it would be penalized by maybe 10%.

Hi Susie,

I have about 100K in my 401K. 60% of my 401k in Vanguard International Stock Growth Fund and 30% in Vanguard International Stock Value Fund. The other 10% of the 401k is in money market and Vanguard Total Bond Index fund. I know I do not have the correct mix of asset allocation. The internation stock funds has lost 31% YTD as of 9/29/2008. I am 47 years. I planned to retire at 55. I am still contribute 1K a month to my 401K but the new money is going to money market fund. What should I do with my 401K international stocks? Sell it? Or sell some of it and move it to other fund or just ride it out?

IHi Suze,

I'm planning on taking out a loan to consolidate all my bills. Is this a wise move , seeing that the market is the way it is?. Th loanis actually $7000. I'm not able to save anything at the end of the month because i'm so overwhelmed with all my montly expenses.

What does the Wachovia/Citigroup buy out mean for stockholders. What is the stock worth? Do you see this stock recovering in the near future and when?

Suze,

As we have seen throughout the course of history, there always seems to be a small percentage of folks out there who are actually making money off of national tragedies, natural disasters, financial crisis, etc.

My question to you is this:

In our current situation, are there people in our capitalist economy who are not only "not" losing money, but actually MAKING money because of our failing situation?? I'd be interested to know who and what types of people/companies are making a killing right now...

- Thanks

Lee
Los Angeles

Wow, it looks like a case of the "sky is falling" as called by the Wall Street Big Wigs. Looks like you might not need my tax money for the next 100 years in order to make sure the "fat cats" remain fat!!!!

What do you think Susie. I think President Bush is trying to shore up his own portfolio just in case he has done irreversible damage to our economy.

Dear Suze,

Oddly with all this talk about financial crisis I admit that I don't think I'm feeling it directly. I'm 26, not buying a home anytime soon, and just paying my student loans and credit cards off. But I'm anxious, if this financial crisis hasn't affected me now, will it anytime soon, and if so, how and what should I be doing to prepare?

Second, since ultimately it will be my generation inheriting the nation's trillion+ deficit what should we be doing to prepare? Why does Washington continue to pass the buck to the following generations?

Suze,

I'm 28 and have always tried to manage my money wisely. My only debt is from a comfortable, 30-yr fixed interest mortgage at 6.29%. I invest in my 401(k) up to the company match and I've already contributed $5,000 to my Roth this year. I have more than six months saved for emergencies and have every insurance I could ever need to protect myself and my income. I recently paid off a school loan and now have some extra money to work with. What do you suggest I do next considering this market?

Tell us how flexible you think the Kuwait Investment Authority and the Abu Dhabi team is going to be viewing balance with OPEC and renewable energy ? Given the collapse of Washington Mutal and that includes Citi Group and Wachovia per Paulson's press conference yesterday.Look out for the yahoo's hill topping and get in your two point position ! Has Washington got control of those banks ? What does regulators have until Dec. mean ? Kick in Wall Street ! BP Capital management ! Watch us take the jump and clear the fence for energy independence and national security ! It's a rebel yell ! "One bourbon,one scotch and one beer..." "Ain't seen no interest on my money since we don't know when ,but we'll watch this one with a grin."

Hi Suze, thank you for taking my question –
the other morning on the Today show you said there was something that you could purchase that was like a money market account but only better with a guaranteed rate - I couldn't write it down fast enough - could you e-mail me this instrument? - you said it could guarantee a rate of 5-6-7% rate and was insured –
You made this comment towards the end of your discussion with Matt Lauer –

Thanks again, Lynn (male) Foltz

I've heard you mention that if you do have cash, that the current market presents a significant opportunity for the future. Can you elaborate on this point, what opportunities you think are best and if you do you have cash how do you know how much to invest.

My Simple IRA has gone down 20 percent, but I am still contributing each payday. Should I continue to contribute the same amount? Should I contribute half the current amount and put the other half in a savings account or C.D.? My employer does not offer matching contributions, but my financial advisor wants me to stay the course since the contributions are not taxed. Would your answer be different if I were retiring in 10 years instead of 5?

My mother is 80 yrs old and lives in California. Her home is paid for and is under the Prof 13 tax law. Yesterday, her property tax went up the alotted 2%. Should she get her house reappraised to lower her taxes? Should everyone pay lower taxes?

Hi Suzie
I know this won't happen, but we have at present 301,139,947 U.S. Citizens. Why not give us each a 1 million dollars. That will help people pay off debt, spend money etc. and get the economy going again.
Im just asking.
Thank you Suzie and Anderson,

Patti

I have a CD which is about to mature. The amount is 80K. I am 44 years old owe nothing except for my home mortgage where I have about another 10 years on at a great rate. I have two rental properties where I own the property with no mortgages. Should I use this money to purchase some foreclosure property with the purpose of rent this property too....because I can make more on the rental income than I can on what I get in interest from the banks??

Thanks and blessings to you.

The current bailout addresses credit default swaps involving sub-prime mortgages. Why is no one addressing similar credit default swap investments involving commercial mortgage debt, debt from mergers and acquisitions, credit card debt, and car loan debt.

Is this the next tsunami to hit?

Thank you for being YOU and having the knowledge and the courage to speak. I especially liked when you were on OPRAH and made the suggestion that all mortgages be put to 3% so people could stay in their homes. Your points on how this could help in many ways made sense to me. I think we need someone like you without political ties to speak and help all of us understand what really is going on. We also need to educate ourselves. I like the CASH policy. I am almost 64 so I remember life before credit cards. I am a war "orphan" , I cry for the America I am afraid we have lost!
I am a small business owner (salon/spa) retiring the end of Oct. have 2 grown daughters, 3 granddaughters. 2nd marriage to a retired Col.
Thank you

My husband and I are considering a debt settlement company to help us out of a credit card mess we are in. How do I know if this is a good company and is this a better option than a credit counseling service? The debt settlement company told me that out of an $18,000 debt, we would end up paying about $10,000, of which approx $7000 to the debt and $3000 to the company and attorney that they use. Thank you for all your wonderful advice Suze!

Economy- Simple soultion.

Bailout individual taxpayers.

Take upto 700 billion or less and give it directly to taxpayers. ($500,000 to each)
What this will do:
Infuse millions of dollars into the economy. By paying off bad debt, mortgages in or near default. Stimulate the credit market by making individuals and credit markets solid again.
(taxpayers get money and spend it on debts to financial institutions, taxpayer and institution now solvent) Taxpayer/s buy new products start spending and imagine the possibilities.
Has anyone thought of this?

Hi Suze -

My wife and I received a mortgage pre-approval last week. This was not a pre-qualification, but an actual pre-approval. Will the current financial situation invalidate the approval or change it in some way?

Thanks.

George

Hi Suze and Anderson,

Love the show. I won't waste your time. Here we go.

My hubby and I are both 32. We've both paid up our cars. Currently,
the only debt we have is house ($160,000K at 5.8%), student loans (70K at 2.5%) and no credit card debt. We have a savings account that
holds approximately $5,000 and we have a 401k to which we contribute 15% (employer matches 4%). We have a 457 plan (hubby's) and we have two fully funded Roth
IRA's and two more which we're in the process of funding. We currently earn enough to max out all of the above. Question is, should we? Or should we reallocate some of the money to other areas? If so, where and why?

My next question involves asset allocation. Currently in our 401k,
we're at about 90% US and foreign stock with about 10% in bonds in our funds. Our future contributions are entirely in stocks at this
point. Should we consider a shift into bonds with these future
contributions?

Thanks for the help.

Hi Suze,
My son graduated from College this May. He has a few private student loans (in addition to his Federal Stafford loans which we are told we cannot consolidate) that he would like to consolidate. His grace period will soon be up. Upon much research we have found that a vast amount of lenders no longer will consolidate private student loans due to the financial crisis going on. We have been told this on the phone, and many websites are posting this message as well. (I have contacted approx. 10 lenders already). We are starting to panic as it is unlikely he will be able to make the separate payments required for each loan. Help!!!! Can you name any lenders who still consolidate? Thank you in advance

Well, since we live in a global economy and big business has no problem sending jobs overseas (to fatten their corporate officer's pockets), the small businesses should do the same. There are plenty of international banks that will love to extend a line of credit to solid small businesses. What would be the reprecussions if small businesses make this move?

You put it more eloquently.
Thank you,
Patti

My 79 year old father has a pension he receives from his 45 year career working for a telecommunications company. Should I be concerned that the current economic crisis will adversely affect his pension? Is it possible he could entirely loose his pension benefit? This is his primary source of income.

NO BAILOUT!!!! I understand that without the bailout people will not be able to get credit, but what put us in this position in the first place?? TAKING OUT TOO MUCH CREDIT. The government made it too easy to borrow money and not be able to pay it back. And does anybody realize that if we print this so called 700 billion probably a bit more in when it comes down to it, but this will devalue our money big time so yea if the bailout goes through you will be able to borrow money but lets not forget that money is not going to be worth much, and this will devastate the middle and lower classes and the upper class will feel a pinch, this is all in an effort of the war on the middle class. Greed has taken over and this might just be the final blow we are now at a lose lose situation. what do you think???

hi , just wondering how if at all this mess will impact the house my husband and i are about to close on (hopefully). we have credit scores in the low 600' s. We have contracts signed and pre-approval, are we in danger of suddenly being told no. we don't have a closing date yet, just waiting for all the paperwork to be processed. we have to leave our current residence by november.
thanks.

Since the "Bailout Crisis" I have heard so many opinions and so many solutions from financial heads. They always say we need this and the taxpayers will pay for it. They also say that when we recover from it, the tax payers will be paid back, maybe even get more back. This may be a dumb question, but why doesn't anyone ever tell us how we will be paid back?. It seems odd to me that no one has ever told us that.

Suze – My husband and I have credit card debt worth $20,000 and a home equity line of credit with a balance of $40,000. We have no emergency fund in place. Is it ever a good time to take from our (retirement) IRA to pay off this debt during the current economy crisis? We have 20+ years until retirement.

Why don't you suggest ways for people to avoid probate, and use the laws that most lawyers use, such as:

1. Add : the following POD (payable on death) to each checking, savings and all accounts so they stay out of probate and the money is not frozen if the owner of the account passes, and the money goes directly to the person listed as beneficiary.

2. Use: Revocable Living Trust naming your beneficiary and put everything you own in this Revocable Living Trust, and everything stays out of probate.

----Isn't it great to do everything to avoid probate and thereby only hiring lawyers @$300 to 400 per hour unless absolutely necessary?

Should I purchase a home now or wait?

I have been shopping for a home for about 3 months. I have a stable job, i think as a RN for Health Partners X 8 yrs

I have no debt, except my school loan that is 60,000 with a $454 per month pmt.
I think I can afford a home and have the means to provide for my two children without stretching myself to thin.
However, If I am able to buy now should I WAIT and see what the economy does in 6 months? (currently living with my parents to save down pmt, all is well there, I could stay there forever if my teenagers would agree)

thanks for your time,
I love your books,
concerned republican

Hey Suze! (and Anderson:)

With evrything going on financially in the world...
All i want to know is should we all keep our money in our Roth IRA's and 401K's and continue to contribute OR do we take the money out and put it elsewhere?? Possibly the bank..or even fireproof safe in house!! What to do???
Appreciate your input.

Nancy
Rockland County, New York

Glenn Cash cannot make even a simple computation. There are approximately 140M individual/family filings each year. 500K per filer works out to be on the order of $70 trillion (with a T) dollars. Your formula only works with $5000 per filer for 700B... please do the math and don't make such ridulous and provocative statements.

Suze If we bail out Wall Street. What will keep them from going wild again. The feds and the tax payers will save them again. Already the Stocks have gone up over 400,points. By timorow it probaly will be a full recovery. They do not need us.
JWN

My fiance and I currently own a very small modest home worth about 110,000 in Racine WI. We have one daughter and are planning more children. Neither of us has great credit and we are currently planning on selling our home and buying an exsisting home worth about 230,000 to 240,000 for more space. To do so we need to use an FHA loan. Our yearly take home base is about 115,000 and we will put 3 % down on the new home. With the current financial crisis is it smart for us to continue our plan and get into a bigger home that we can fit comfortably. We are concerned that if we wait out the financial crisis, we won't beable to get a loan because only goot credit scores will be able to obtain credit. What would you recommend.

Thank you

I understand that we need a financial solution to our credit crunch. How do I grasp why the market dropped 777 points one day which supposedly sent a message to Washington to resolve the problem and then rose 490 points the day after without a bailout being completed. How do we explain the market rise today?

I am 46. My house is valued at 121,500. I owe 66,000. My company's 401k matching is at Wachovia. Can't do much about that if I want to keep the matching. What I'm concerned about is a previous 401k that I rolled to Edward Jones in an IRA that is diversified in Franklin Templeton and I've seen it (original was $18,000 last year) fall to around $14,000 in the last year (mostly in the last 4 or 5 months). Should I right now ask them to move it to something safer or just let it ride??? I plan to have to work 21 more years. I have about $12,000 in credit debt and I know I need to work on that. What I'm interested in is whether I should just let the EJ IRA ride or pull out now into something safer???? My debt is from recovery from a bad divorce. Please don't use my name on air.

Suze,

I currently have my paycheck set up on direct deposit. If this thing gets worse should people be concerned that they won't be able to get money out of our bank accounts? I've heard some people say that if things get worse people could go to the ATM and not be able to get anything. Fortunately, I have very little debt, but I do live pretty much paycheck to paycheck so even a few days delay on getting funds from my paycheck would be disasterous.

Hi Suze, I've got my 401K in 100% aggressive growth and won't retire for 20 years. Do I leave it as is or do I change the distribution now when the market is at it's lowest and lose potential earnings?

If this Bail-Out plan passes and the Treasury Department buys all of these mortgages that have foreclosed....who will cut the grass? We had a smaller version of this in New Orleans after Katrina. The State bought people's homes for resale. The next thing you know the neighbors were complaining that the grass was not being cut and the houses had vagrants or were an eyesore. No one planning the program had thought about the duties of ownership for so many homes. Has the Treasury Department got a plan?

.
Hi Suze,

Is the current financial situation having any effect on university endowments, is it a risky investment?

I have a $180000 IRA with Wachovia Finance that was $200000 a year ago. I would like to retire in four years. IRA is diversified over many types of investments. Should I keep there or move it to something more secured but with small growth?

Thank You

I am 54 years old and would like to retire in 4-5 years. In addition to my UCRS retirement I also have a 403B with Fidelity. My 403B is divided at 61% UC Equity and 39% UC Balanced Growth. Due to the instability of the market should I transfer the balances to a UC TIPS fund until the market stabilizes – whenever that might be? I'm nervous about losing more or not recoup the loss before 5 years.
Thank you.

Hi Suze,

I am 61, retired and have funds in a 401K through the company I worked for, however it is not the type that I can make contributions too. Since all of this financial uproar has taken place I have lost a little over $5,000 between August 31 and September 30. I have my funds divided between balanced and equity. Would you suggest dividing my funds three ways, into balanced, equity and fixed.

Thanks for your time and thanks for you.

My 28 year old daughter just sold her condo and walked away with $45,000. She moved in with me and would like to move out in about a year. She recently divorced and has about $3,000 worth of bad debt in her own name and a creditor trying to get her to pay off a $10,000 car loan that she cosigned for her ex before the car was repossessed . Can she reestablish her credit without paying off the car? How can she reestablish her credit in order to get a mortgage in the future? Where is the best place to put the profit from the house?

QUESTION:
My associates claim I'm an evil predatory investor by having focused my attention on sub-prime investments for maximum return, and I am as equally responsible for the Wall Street meltdown as the CEO's themselves. Should I feel guilty or just find a whole new set of associates?

I currently bank with a local credit union. The bank is NCUA and ASI insured. Do I have the same security as a FDIC insured institution?

The market lost 1.2 trillion dollars yesterday. Congress was looking to spend 700 billion dollars to fix the market. Too bad the market didn't just fix itself and keep the extra 500 billion...but that would have been too easy...

Hi, Suze – I currently max out my 401(k) contribution. Is it wise to temporarily drop that down to 6% (50% of which is matched by my employer) and put the rest in a savings account (I'm with ING)? Would that be too fiscally conservative? I'm only 38 and could certainly ride out the erratic nature of the stock market right now.

Obama stated today that all Americans should work together to improve the economy. What can the average American do as an individual to make change in the short and long run ?

Dear Susie-
I am 66 years old, retired and have an income of about $65,000 with SS. and pension plus my husband has a similar pension which is not transferable if he passed. I have an annunity worth about $120,000 in a AIG Valic account and some money in Ameriprise. The financial person at Ameriprise wants me to take my money out of the AIG annunity and place it with Ameriprise with about 70% in a mutual fund and the rest ina fixed annunity. Is this a good plan, or should I stay where I am? Thanks

Suze-

I have $32,000 in credit card debit. at 12% interest I currently have $48,000 in mutual funds. I have already contributed the max to my 401k this year and my annual income is $220,000 a year. Besides my home the only other loan I have is my car and no other credit card bills.

My question is, do I put $3200 a month towards my credit card bill, or sell my mutual funds and payoff the credit card in full and invest the $3200 a month back in mutual funds?

My husband and I are in our middle 40's. We owe approximately $100,000.00 which includes a line of credit, a car and credit cards. Our home is mortgage free. Would you suggest we take out a mortgage on our home and pay off all the debts and have one low payment?

It it true that if the government gave every single person in the US $1,000,000, the bail out would only cost us $300 billion?

I am 38 years old. I have 6,000 in an IRA and am coming into about 50,000 from a QDRO. I have 14,000 in credit card debt at 0%, 7,000 car debt at 6% and student loans of 6,000 at 8%. What is the best way to use this money?

Thank you for all of your wonderful advice.

My husband and I relocating and purchasing a home this week. Since the bailout was rejected do you think the the mortgage interest rate will drop further than the 6.125% they(WF) are currently offering? Or should we just take the 6.125 and not risk an increase, afterall it is lower than the 6.5 we were paying?

Sincerely searching for knowledge,
Kelli

Ms. Orman,
You seem to only address a small percent of Americans who have some sort of financial security or financial plan for the future. You don't address the majority of people who have only a few bucks in the bank and live day to day.
What do you say to those who have lost their homes, spent their 401K's, lost their jobs or will be laid off soon, have no Health insurance, maxed out their credit cards and have a family to feed?
This is the status of MANY Americans!
What does the bailout mean to them? Where have you reporters, commentaries, advisers been to those people? What advice do you have to those sleeping in their cars with their families, with no mailing address? Those who can't get Public assistance because of cutbacks from changes in budgeting? Or do you want to pretend they don't exist and are growing day by day?

You look rediculous. Screaming that the sky is falling yesterday because of the 777 drop. Now it jumped back up. And you never touch on what a bailout would do to the vallue of the dollar. I would appretiate it, if you at least touch on why the american people are against the bailout. It is not because we are angry! It is because the problem is we borrowed too much, so the sollution shouldn't be to borrow more. And creating $700 billion out of thin air will destroy our currency.

Dear Suzy,

My wife and I are in the accumulation phase of investing. We invest in a S & P 500 index fund through my 401K plan. We have a 20 years before retirement. My wife heard you recently say that we should not invest the maximum amount allowable in our 401K. We make regular investments into the 401K plan. Why should we not continue with this plan?

Were do all the Familys go when they loose there homes?
There is about 25 or more Familys looseing there homes here in Colorao Spring Co. Most of or all these familys already lost there Homes do to they were just to much money from the start. Or for other reasons. Then ended up here in this moble home park because the offered them second chance morgages. Now looseing there homes again from lack of funds or a major family crisses. Were do we go from here!!.
Thank you very much
Very scared
Mary Lou Peterson

Hi Suze,
I wake up at night wondering what I am doing with my money is going to be ok or will I end up losing it all. I have 70% of my money in growth and index mutual funds and 30% in Income mutual funds with EdwardJones. My Financial Advisor there of course says I should ride it out. I am 50 years old. I am terrified of it disappearing and have already lost over $5000 this year. I think this is affecting my health and I am not the market type. Thanks for your help.

Hi Suzy! What do think about a plan that pays the $700B to the American taxpayers? They can pay off their mortgage, credit cards, autos, etc. Then they would spend, spend, spend and continue doing so because their budgets will be free of debt. The influx of money into the economy will add money to lenders to make new creditors. The bill could do away with sub-prime lending and other ludicrous lending practices including predator lending. I know the banking lobbyists wouldn't like it. But can you tell me where this idea is flawed?

It would amount to about $4000 per taxpayer in the US.

Hi Suze,
I am an educator and have investments in a 403-b. My husband has a 401k. ( Both of our 403-b and 401k investments total approx. $350,000. in diverse mutual funds. We are both in our early 50's with a 15 year window before we plan on retiring. We currently own a home with 7 years remaining to pay our mortgage. Our credit card debt totals about $40,000. My question to you is in light of this current "bailout" situation, should we change our fund allocations which are 70% stocks and 30% bonds? Also should we withdraw some funds to rid ourselves of this credit card debt? Suze, I hope you can answer this!!!! I watch you faithfully and always send in a question.......but it is never answered! Please help me.

We have an annuity through AIG Valic in the amount of $163000. We are trying to take your advise about clearing up credit card debt by withdrawing from this fund. We are both 60. Previously any withdrawals were only taxed at 20% withholding. There has never been any fees to pay. This was a DROP fund that was rolled into it when my husband retired in 2005. Now we are being told that a TSA (consulting group) is handling the funds for the School Board retro active to include retirees. We need their approval to withdraw any funds and I am sure there will be a fee attached plus the extra days needed for their approval and AIG. My question is: Should we move this money into another type of account and if so What Type? Our retirement income and SS will allow us to live comfortably.

suze
what if my company close it doors. what should i do with what left in my 401k

Suze, could you please explain to me why the American public is not encouraged to SAVE their money and not live beyond their means? All I hear now is that the credit market needs a bailout because consumers won't be able to buy, buy, buy. Isn't that what got us into this mess to begin with? People borrow and then can't pay their bills.

Dear Suze,

My husband and I are in our early 40's. Due to a tragic accident when my husband was 30 he is permantly disabled and unable to work. I work part time and care for him the rest of my time. We are heavily invested in the market with a fairly diversified portfolio but depend on dividends for income. We have lost thousands of dollars in the market. I have 90,000 in a 6mos CD at 3.07% interest and just pulled 50,000 out our growth funds on wed. Sept. 24. We owe about 5,000 in credit card debt and aprox. 90,000 on our home. What should I do?

Could you explain how this financial crisis will affect high credit card debt? Also, I just received 30,000 in cash, I am 55,000 in credit card debt. What is the best way to use the cash? Is debt settlement a good idea or a credit counselor.

Please help.

Is this a good time to refinance my home? I have a loan at 6.54% and am being offered a 30 year loan at 5.08%.

Thanks for all you do!!!!

suze
what if my company close its
doors. what should i do with what left in my 401k

Here's a solution that will cost a lot less than $700 Billion. Give a million dollars to every household where at least one household member paid income taxes in 2008 and the household income is less than one million. We could all pay off our debts, the big lenders would get their money, most households would have surplus cash to spend and/or invest. Seems like a win-win to me.

Why not have the top profit making companies in the U.S. put up the $700 billion? They made the most money from the economy they should be the ones to put it back in. Then the banks could repay them with interest. 138 million Americans paid taxes in 2007 and they would need to pay over $5,000 a piece to reach the $700 billion mark. Many Americans, myself included, could never afford such a price. Even over a number of years.

Hi Susze,
I have 60,000 cash in a Money Markey account. I would like to invest some in the Market. When and where should I put it?

Instead of having the government give the banks money, why don't they use or distribute that money as a commission for them closing deals. That will make them work on getting things approved. An additional form of Income. It would also encourage competition. The money would also be stretch to many banks instad of a few. It can be a 10% kick back or something. If you give the banks money, they do not have to use it. They will use it for payroll, or supplies.

If you think this is a good Idea Pass it on! Quick. Eventually it will get to Someone or enough people that can encourage it.

Is it timing the market to get out of mutual funds( my IRA, with most of my money) now that the market is tanking? I have had some funds like TRowe Price Growth for 30 plus years. I am 64 years old, single and thought I was on the right track. I have no other pension. I have no debt and own my house. My portfolio was nearing 300,00 before market downturn. Of that money only 50,000 is in IRA CD. As you can see my tendeny to wait things out is strong. Thank you, Suze.

Suze,

I am about to recieve a small inheritance, about $30,000. I had planned to pay off credit cards, about $15,000, with part of the money. If I pay off my credit cards, will they close down my credit lines? Should I save the money instead? Would putting it in a new money market be safe? I have good credit and no savings outside of my 401K. I'm 54 with about $110K in my 401K.
Thank you.

Hi! I'm self-employed and 45. Currently, I have zero credit card debt...only a mortgage. I have funds in a Roth, Money Market, Savings and the Bank. No 401K. It seems like it would be a good time to take advantage of purchasing individual stocks such as Fannie Mae. Is it a good time and what stocks would be a good investment? I'm not saavy on the buy, hold, sell options. I want something long-term that I would not have to worry about too much. Thanks!

I have the ability to pay off outstanding debits and would like some quidance on which ones. I have $18,000 to pay towards the debits.
My debits include: 401K loan employee matched 50 cents on a dollar-#1 401K loan has a balance of $4,000 interest around 6% and $200 a month with 23 payments left, # 2 401K loan has a balance of $3,500 and $80 a month with 54 payments left. A car loan balance $16,000 and $345.83 a month at 6.75% with 52 payments left; a home equity loan balance of $19,700 and 5.25% with 11 years left; 4 credit cards (Lowes, Home Depot, Krogers, and GAP) and 21% with balance of $5,000. Which would you recommend?
P.S. My friend Kirk thinks you should be the Treasury Secretary...we watch your show often.

Susie,
I'm 39 years old and got a late start on my 401K. However, in the last 6 years I managed to put into it (with company match), $70,000. That was as of August 2007, my 401K is now down to $52,000. Should I stay my course and continue to contribute the maximum to my 401K or perhaps choose some more conservative funds?

Hi Suze,

Question:

I am 51 years old and I am fully vested in a 401 K. I wanted to retire in 10-11 years

My balance in the account was $51,236. 56 on 9-29-08; I checked my balance today, 9-30-08 it is now $48,204.68.

I have $10,000 in credit card debt @ 12.51 % APR

Would it be wise to make a withdrawal from my 401 K of $10.000 to pay off credit card (not to use again) knowing that I will have to pay 30% in taxes and early withdrawal penalties. My gut says do it since my 401 k is declining quickly anyway. What do you think?

Suzi,

I am a small business owner (sole proprietor). For the small business owner cash flow is always an issue, but this is the first time there may not be future cash! My income is tied to the real estate market in San Francisco, CA. Now that the real estate market is starting to tank in the city I am not sure where or when my next projects are coming. I have cash reserves for only a few months out.

How do I weather this storm out? Do I to pay the minimum on my business credit card debt to stretch the cash out? Does my mortgage come first? Who gets paid first? Vendors? Credit Companies? Mortgage? I don't want to be on a sinking ship. Please advise.

I'm 61 and no longer working. My 401 K is with Wachovia Retirement Services. Should I do a lump sum withdrawal and put it in an IRA at a local bank? If I do that, will I be taxed on that withdrawal? It is all in a Stable Value Fund. I'm 100% vested.

Hi Suze, do you recommend any financial advisers that I could see here in Southern, NJ to help get my finances and credit back on track. Although I would would prefer to talk with you.

I am 62 and have been retired for the past 2 years. My 401k is allocated on 60% stocks and 40% bonds. My other income is my pension and my wife's pension. I withdraw some funds on a monthly basis from my 401k so it is an integral part of my retirement lfe. Should I change my allocation to 50/50? Convert some or all of it to Exchange Traded Funds? Or take other actions to sustain my retirement fund flow. My portfolio is down 17% due to the last financial turmoil.

Thank you for your advice.

Hi, Suze:

I just finished school and have my first grown up job. I have a little over $5,000 saved up so far. When should I start investing my money and where? I want to make sure that I start my nest egg at an early age. (I'm only 22 years old.)

Jordan B.

We would appreciate your advice. Just retired at age 68, our SS and pension income does not meet living expenses. We have almost $700K invested in conservative mutual funds and TIAA/CREF but we are considering moving this to more secure investments. We own our home and have no debt besides a condo in NC with a $100K mortgage and about $75K equity. Should we modify our investments?

Suze, thanks for being on Larry King last night! I loved that you reminded Americans that yesterday we lost........$1.2 TRILLION!

WE......lost. People have the mistaken idea that Wall Street is a bunch of rich guys. Some are.........but, tell them, PLEASE, Wall Street is US!

Check your 401ks, we lost $2000. In one day. Thankfully we had already moved our money to safe mutual funds and Treasuries.

Please, Suze, explain to Mr & Mrs Average Joe, why we need this Bill to pass!

Hi Suze,

Instead of a 700 billion dollar Wall Street bailout, why not give each taxpayer one million dollars. People would be able to buy back their foreclosed homes or purchase a home stimulating the housing market;, invest in the stock market stimulating Wall Street, have money in the bank to help with their credit, and be able to purchase things they want to stimulate the retail markets. It seems this would trigger the flow of money on a national level and cost the taxpayers less than one percent of the 700 billion, not to mention give a lot of people peace of mind.

Just a thought,

Ron

Why are we expecting the government to bail out Wall Street? These people cannot even balance their own checkbooks and have kept the US budget operating in the red! Why not let experts in the fields of economics and finance design a plan? People such as yourself, Warren Buffet, Steve Forbes, Donald Trump?
Thanks

Hi Suze,
I contribute to both a 403 B and a Roth IRA. I pay my credit card bills off monthly. I currently rent an apartment, but am contemplating buying an apartment. I will not be looking to access my money in my retirement account for at least 30 years. Would now be a good time to invest in an apartment or should I keep putting my money in my 403 B and Roth IRA?
Thanks!

Hi Suze,

If a bank was to close will I be able to get to my safe deposit box also if the bank fails andthe account is covered by fdic do we get all our money in one lump sum up to one hundred thousand.
Thank you

I have about 100K in my 401K. 60% of my 401k in Vanguard International Stock Growth Fund and 30% in Vanguard International Stock Value Fund. The other 10% of the 401k is in money market and Vanguard Total Bond Index fund. I know I do not have the correct mix of asset allocation. The internation stock funds has lost 31% YTD as of 9/29/2008.

I am 47 years. I plan to retire at 55. I still contribute 1K a month to my 401K but the new money is going to money market fund. What should I do with my 401K international stocks? Sell it? Or sell some of it and move it to other fund sor just ride it out?

I think I am confused. The bailout is because the banks are in trouble because of all the forclosures. But aren't most of these subprime home loans forced to carry PMI which guantees the loans are paid back to the bank?? And shouldn't these banks just quit loaning money for the time being? And shouldn't these banks have profits that are stockpiled to weather an economic storm such as this one? Or do they operate week to week?

Hi, i saw you on oprah show and you mentioned that this is the best time to buy stock. I have never invested in stocks because i don't know how or which to buy. I have a substantial cash and i 'd like to know which stock share you would recommend. Hope to hear from you soon.

Hi Suze,
Just wondering, apparently Mr. Mccain mentioned something about using or the posibility of using the Exchange Stabilization Fund, What do you think about this? How big is this fund anyway, and can it be used for something like the bailout?
Thanks,

I have just started a company. They match upto 4% in 401k. I am wondering should I begin contributing to 401k or should I invest in cd's, money markets accts. etc. instead due to the market. I was told by a financial advisor that I should invest in 401k and mutual funds at this time and not stock? Do you agree?

Thanks

We pay our credit cards off every month. We own our home clear, We paid cash for one car and we financed a pick-up. We have a small retirement fund. We have a money market account which is our "slush" fund but we seldom use, in fact we often transfer funds from our regular checking account to the money market account. We have made good choices and we live on my Husband's Navy retirement and Social Security. We live within our means and I simply cannot justify bailing out a bank that pays a CEO that has been on the job three weeks millions of dollars when the bank goes down. He got his money first!!! Let the banks who survive have the business. Why should the taxpayer who will never see that kind of money have to bail them out? Wall Street will recover! How will they determine who should be the ones to pay back this debt that will be created.

Suze,

I recently lost my job and now find myself struggling to make all my payments. What advice do you have for a person who has a car loan and the car is now worth less than what is owned? I need a car for finding work. Is there any solution?

Hi Suze,
I currently have a TDAmeritrade Save Yourself account. Should I be putting more money into this account versus adding to my ROTH IRA? I usually put the max into the ROTH but at this rate, is it smarter to fund my MMDA?
Thanks,
Ann

Suze,

I have a lot of credit card debt (I know it's a bad thing), and I recently lost my job. I keep hearing everyone say call the credit card companies and they will work with you. I called 5 credit companies last week to get some help and none of them offered any solutions. What should I be asking for? Any advice would be great.

Thanks

Hi Suze,
I saw you on TV yesterday and I only wish it had been you all week explaining exactly what was happening in our financial system to the American people instead of all those academicians and economists, who not only disagreed with each other, but really confused the people. No wonder there is so much anger. Please make every effort to speak out whenever and wherever you can. People trust you, they understand you, and they listen to you. They will believe you when you say that we can't let the "free" market handle this alone.
Thank you
Sue Parrish

Why can't the media..... in English explain.... the pros and cons of the bailout on each side. All I hear is blame... if you ask me....everyone keeps saying that Congress did not sell the plan too well, but I think neither has the media explain it to us. We count on the media to educate us especially on matter like this. So PLEASEEEEE someone explain the pros and cons........

Thank you