Most 401k plans don't let you pick and choose exactly what stocks to invest in, including mine - they're funds. You're advice about putting $ into high dividend yeild stocks makes sense. So, here's my question...Should I lower my contributions to my 401K to the level that I would get the max company match and take the rest and invest myself? Or do I keep the contributions as is and wait it out? I'm tempted to put it all in my mattress. thanks.

On Larry King Live you mentioned to look for major companies to invest in that pay high yield dividends or exchange traded funds. Since you don't want to say exactly what you invested in, could you give us an example of a few of these types of investments that we could examine for ourselves. I have inherited some money and am wondering where I could grow it, especially in these crazy times. It currently is only making 1.75%.

Dear Suze,

I have your indentity theft kit...and I want to thank you for one year of solid security.

My question is this.....is it possible that the banks will fail? That the U.S. Government will fail?....making FDIC insurance useless. How does this situation differ from the crash of '29?

For those of us fortunate enough to be "ok" right now (by ok I mean still have a house, a job, some money in the bank), what should we be doing to hang on? Is there anything we can do as responsible citizens to help the situation or are we at the mercy of the government?

My husband and I have been contributing $100.00 monthly to a Whole Life Insurance Policy for him for past 20 years . We contacted our insurance agent to see what the value is today if we cash in and it would be 22,000.00. Would we be better to cash in and invest ithe money in IRA's or CD's and take out a term life policy or continue investing monthly to the whole life policy?

Thank you!

I own a home with a mortgage and also have some money in a money market account. I am thinking about buying a foreclosure property as an investment and rent it. Should I use my money and pay cash for this property or finance it?

Thank you,
James

With economic outlook so bleak, why don't the Democrats scale down the inauguration ceremonies, especially the gala balls held that nite. Why not just one gala ball?

Don't want to hear or see the Democratic inauguaration committee getting in line for a Congressional 'bailout' after the ceremonies to cover the expense of this momentous event.

hi suze
my husband and i are in a whole life policy. we are 8 years in and do not want to continue to put in $2k per month. we can either stop putting in, borrow at 7% from the policy or allocate other resources (ira, cash) to it. we are at a place where for every $2k we put in, our cash value goes up $2,600. according to our "guy" and so we are losing out of a great place to invest $ right now. my concerns are:
what if guardian goes bust?
the company only gives statements once per year, no online access,
and very vague reporting.
we have applied for term and are waiting approval. i know you hate whole life, so do we but we did this years ago and now need to decide if this is the wrong time to get out. thanks for your help.

What are the best stocks to buy now?

Lilibeth
Edmonds, Washington

I've heard of “market-neutral funds" which generate positive returns whether the market moves up or down. Is this true? How does this work?

Lilibeth
Edmonds, Washington

I have some money in a 403b should i continue to put my money into it or should i put the money i am trying to save for retirement (10 years out) into an IRA at the bank.

should i move everything over into a bank IRA, leave the money in the 403b (some of it in fixed income)>

thanks

I am currently have $4,000+/- in my company's 401(k) Plan. We just received a notice that my company will not provide a match this year. Should I keep contributing to the Plan or stop my deductions and leave my Plan money where it is.

Hello Suze, I am 53 single, no dependents and my job is secure. I have no cc debt, owe $30k on my house ( int 5.8%). I have indivdual stocks, all purchased for long-term, an IRA and a RothIRA. In addition, I have a 401K (Fidelity) and my employer matches 50% up to the first 6%. Currently I am putting the maximum allowed plus the catch up contribution. I recently redirected all 401K deposits to go to the Fidelity Bond fund but I now wonder if I should NOT put the maximum in and rather put more in to IRAs, RothIRA, buy more stock or what about working at paying off my house sooner? thanks for any advice you can give!

I'm retired at 75 with an insurance table predicted life expectancy of perhaps 15 years. My aggressive Fidelity IRA portfolio is half what is was a few months ago. Despite professional advice to move to bond funds and money market, I've left things alone assuming the recovery over the years would be stronger in the equity funds. Now there seems a threat of a total wipe-out. Is it time to bail completely? To move to very conservative funds? Or ride it out?

Thank you,

Jack Miles

My question concerns my children's College Savings Plan. The plan we are in (Oregon College Savings) only allows for us to change our portfolio options one time per year, which I did back in July after losing about $500 in the previous 6 months. As of today, we have now lost about $1000 in these plans in the last 18 months and that is using conservative and ultra-conservative portfolios! We don't have that kind of money to lose and I am afraid if I leave the remaining $1500 in there, I am going to lose all of it very soon and we simply can't afford to lose anymore. My question is this: should I withdraw the funds for now and put them into a SAFE FDIC insured savings account or leave the funds and "ride it out"?

i was wondering is this a good time to buy ford and gm stocks i am 57 and would like to be able to leave it alone for 5 or more years thank you

My Dad passed away last year and my Mom has to rollover my Dad annuity which right now is make 7% interest .
She is only 61years old and needs to live on this money. What can she put it in that is safe and if she needs any extra she can pull it out without being taxed.

Thanks

I have a article of jewelry that is appraised at $200,000.00. I have to pay to have it insured (even though I keep it in a vault). If I sell it to a broker, I'll probably get half of the insured value. I understand that diamonds are going up in value at the rate of 8 to 9%. Do you recommend that I sell it? If so, do you recommend that I keep the proceeds in a money market fund and make virtually nothing or should I continue to hold onto the item and sell it down the road? Thank you for your consideration and thoughts.

Respectfully,

Nita

Hello Suzy, my concern is I am not saving enough for retirement. Will retire in 11 years. Currently have a roth IRA with Vanguard, losing a lot money as well as others I am sure. What would be the best Mutal fund for investment if retiring is 11 years out? Also just recently changed my 401 to lifecycle fund since retirement is less than 15 years away. Was this a smart move? Currenly have savings with ING, should I also look at Money Market Accounts for savings?.

I'm 56, will retire in 6 years. I currently contribute the max to a 401K including the $5,000 allowed catch-up. My options are limited for choices in this plan. I currently have moved everything to Money Markets. Is this a solid plan or should I be contributing less and puting the money in another financial vehicle.

Thanks

I have inherited enough money, plus more, to pay off our house note. We have a balance of approx $65,000.00 with an interest rate of 5 1/2% . Should I keep the money in CD's and savings or pay off our house??

Auto bail out.If we cant afford a car now.How are we going to buy a electric car are low fuel car.With a price of 35 to 45 thousand.Average american is struggling to make it .And there credit scores also.So when they do get back to work how do they get a loan to buy a car.Its funny the people that got bailed out BANKS and AUTO whos ceo got millions out of this and didnt struggle any is going to be the ones that turn us away.PLEASE HELP YOUR AVERAGE AMERICANS.And then the economy will get started

Well, Suzie I don't know what's going to happen, but where I work, the plant is shutting down and a lot of families including mine will be without. So, now all of us will have to go stand in line at the unemployment office to find work or sign up for benefits. To me, it doesn't make sense. I'm not the type of person to depend on anyone to support but me. We will have to make due some kinda way with no insurance, a lesser income, and have to drive much farther for work. I hope there will be help for us little people as well as the Big 3! Since I'm losing money in my 401K plan, would it be safe to say "I better get it, while the gettings good."

Thank you Suze and CNN for this opportunity.

I have money invested in a company sponsored 401k, I have been laid off and am no longer contributing. The past year I have seen an almost 50% loss of my retirement. Invested in two different "funds". One domestic and one International. I'm 42 years old and don't have a clue about how the market works.

Suze, I've recently heard you say it's a good idea to roll over 401k's to an IRA (under certain circumstances), and pay attention to "dividends"(?). My question is this, would the circumstances I've mentioned fall under this recommendation? If so, can you provide any details to point me in the right direction? Or, should I just leave everything alone and hope that I get my money back?

Thanks in advance,
-scared and clueless

hi suzie,
i have no debt and good fico score ,house paid off, no credit card debit and only$ 66,000 in savings money market cd. my question is i have another couple 401 k that was was worth 80,000 ;now worth $57,000 and still falling. should i pull it and roll it into a ira cd getting 2 1/2 %? i am 55 years old and still working another 7 yearsand want to retire at 62 years old. what should i do?take out 401k and roll it into ira cd ?

Suze,

My husband and I are investment virgins. We're interested in investing up to $1000 in Ford due to the low stock price and have the confidence the auto industry will rebound. Our current debt consists of $1500 mortgage, $162 school loan plus common monthly bills. We own our vehicles, which are 11 & 12 years old. We have $20,000 in cash saved. We have no 401K or other investments accounts. Is investing at this time with this amount of money not the right thing to do?

Which are the most aggresive stocks that you recommend in the future?

I am a retired 63-year-old with a regular IRA. In view of the market downturn, do you think it makes sense to convert some of that to a Roth, with the optimistic assumption that, knock on wood, market momentum will likely be on the upside during the majority of the next 15-20 years?

Hi Suze,

We bought a house in California in late 2005. My company went out of business in 2007 and we had to re-locate out of state. We've been renting it out and have been taking a loss on it every month, but the property's value has been re-assessed by the county for a much lower amount. We've contacted our lender about possibly re-adjusting our loan based on the property's current value but they refuse as it's now classified as a rental property. We couldn't sell the house for $200,000 under what we paid for it. It seems like foreclosure is our only option, but do you have any suggestions that would be more favorable?

Thanks so much

My husband and I have a mortgage and basic monthly expenses. No credit card debt. He was rear-ended in a car accident and had to have neck surgery to releave the spinal cord injury last May 2008. The other driver had no insurance and PIP only pays $30,000 in medical cost washington state. We are now $100,000 in medical debt. My husband has no income and my income can only pay our monthly bills. What do we do? We've been turned over to collections which has ruined our credit.

Hi Suze,
I have lost money from the collapse of Indymac since I've had uninsured amount at a CD account. Nowadays Indymac is doing everything it can to ease the burden on mortgage holders who are not able to pay their loans. What about the depositors? Do you think we have any chance of recovering the money we have lost?
Also, why dont the banks inform their depositors couple days before declaring chapter 11 so that those people might get a chance to save their money?

I am retired and 68 1/2 years and debt free. My IRA had $500K in it a year ago. I pay a national investment firm to manage the investments. Now it has $360K. In 2 years I am required to begin drawdown of my IRA. Should I just hang on or should I buy an annuity?

I'll complete the sale of my business in mid-January. I expect to net $1.2 million and retain $4M in company stock which I can sell beginnning in Q1 2010. I'm now considering investment options for the $1.2M. I have 2 years before I retire and expect to maintain $100,000 salary until that time.

How would you recommend I invest the $1.2M?

Thank you,
Diane

My husband and I are 53 with one child left in college. We are paying college expenses as we go. We have a fixed rate primary loan on our house and a 2nd that is at about 3.75% right now, however we still have a lot of equity in our home since we bought 18ys ago. We lost our first retirement when United Airlines went bankrupt and have about $100K
in a 401 plan and about $30K in my SEP IRA. ( I am self employed, my husband still works for United) We don't have forever to make up losses but we don't have any plans for retirement either. What is a good retirement strategy for our age?

Suze:
I heard you state that an employee should only contribute to their 401k to the extent they have an employer match and no more than that. That's a huge mistake.

First, a 401k allows an employee to invest $15,000 or up to $20,500 if over 50 years old. An IRA does not allow you to invest that amount per year.
Secondly, with the majority of plans, they allow you (as does an IRA) to choose a Roth and pay the tax now, allowing all contributions AND earnings to be tax free upon withdrawal....a huge advantage, especially for young taxpayers. If taxes stay the same (unlikely), there is very little difference in the end result. (Most people's tax bracket doesn't drop when they retire.) And I believe like most experts that tax rates if anything will increase in the future.
Third: I believe your biggest objective was that they only had 'mutual funds', limiting the investment choices. Well many 401k plans these days have indexed funds. The exposure to employers for having limited investment choices is too great. If you don't have index funds to choose from, put thru a formal request to have them added.

--So someone who invests in an IRA like you suggest and puts the rest in a taxable account is at a disadvantage! So – - please rethink & revise your advice!

Hello Suze;

I've been left a large sum of money from a deceased relative, and I have yet to invest due to the financial trying times we now face.
I'd like to know where should I be ivesting my funds, or should I let things be for now until I see whats going to happen. Please any financial advise you could give me would be greatly appreciated.

Suze,

If my husband and I want edto taking advantage of the current financial situation and invest in the stock market (we have the 20,30, 40 years to ride it out that you talk about) how much is a good amount to start investing? Does it have to be thousands of dollars, or would a few hundred be fine too? Thanks.

Teresa
Bowling Green, OH

I recently changed jobs and have a 401k at my previous employer.
I also have a managed rollover IRA account at a full service broker.
Transfering the 401k to this managed account will reduce the management fee by a small amount. Given the current market situation, should I leave the 401k were it is or moved it to the professionally managed account?

Hi Suze,

I'm 36 independent sales agent, my retirement is private IRA in mutual funds. It's down 30% since the collapse of our financial market.

Should I continue to buy mutual funds on a monthly basis with my dollar cost average or should I buy stocks of good companies?

Should I just sideline?

The blue chip companies aren't so solid these days. What do I do?

Suzy: The automakers are asking for a bailout from Washington to avoid bankruptcy. If they go bankrupt, what happens to the shareholders? I've already lost thousands in a parts supplier bankruptcy that now is reorganized and issuing new stock while their former shareholders are left with worthless paper. Bankruptcy is not fair to the people who have invested and built the organizations with their financing.

Suze,
I'm about to make the last payment on my youngest child's college payment plan (Yah!). I'll actually have some disposible income. Where should I put it?

Hi Suzie, I own a home with a mortgage of $270K @5.5% there is 12 years left on the mortgage.The house is valued at $750K. I also own a condo that my parents live in (worth $260K) mortgage $200K with adjust rate currently only the interest is due monthly – my monthly payment is $600 and I have been adding another $500/month onto to the principal. I am going to receive $20K from a lawsuit. My question is should I take the $20K and pay it on the condo or put the money in a CD or other investment?

Do you recommend buying "protective puts" to protect the falling retirement account balances?

Suzie -

HELP! I am single and 46 having saved the maximum each year since I started working I have now lost 50% of my 401K, IRA & Roth. What should I be doing now? Do you recommend continuing to put the maximum into the 401K and electing the cash option or just taking the company match and placing the rest in a straight savings account.

Thank you for your help!

Hi Suze – Self Directed IRA – Small Business Finance – 401k Loan: These are my options that I am currently considering. I am self employed and have kept my 401K in a stable value fund with my old employer (thankfully I have not seen a downturn in value like others have). Times are getting tougher and I am considering the above options. My first choice is rollover into a 401k broker account, which charge 1/4 point to administer (see 401kbrokers.com). The main reason for selecting a broker instead of going right to a custodian is I can loan against the value @ around prime plus 1% or CD rate plus 2% with typical 5yr payback structure with max loan amount of 50k, (I do fit the Solo 401k restrictions). I have heard you say many times to not loan against 401k as they are protected in bankruptcy (which I am not considering), just need an influx of cash to catch up so to speak. Small business financing is also another option (see Guidant Financial). I can roll my 401k, then it forms an LLC and LLC purchases a business, which in my case would be another business that I can run and also compliments or goes hand in hand with my current business. Thus the LLC owns the business and I can draw a reasonable salary from this, although this new business would follow same guidelines if it were sold for cash (early distribution penalties). The final option is to roll into a self directed IRA, which can purchase and sell property to build up a retirement portfolio in real estate or stock market or a percentage of both. The later option to me is the best, although it does not fix my current cash flow needs. Can you address the pros and cons of options above and perhaps what direction you are leaning?
Thanks
Ken
Seattle , WA

I am amazed at the overwhelming negative attitude that your reporters/anchors convey. You should report news, not rehash and rehash how bad the economy is. Do you not think that you play a role in the publics confidence? YOU DO. You could be providing encouragement to the public to balance your news. Report on new ways to help stimulate the economy, not discouraging people from spending money this holiday. Remember all the retail people that are counting on their jobs too! That does not mean spend spend spend, but shop wisely and with the slant of trying to help as many American jobs as possible. If you continue to keep this up the next job lost could be yours.

Please ask the question:: why can't we allow the car companies to get back to work, help them out with already promised money, and save the environment.... do the things they have promised.. and then add conversion to Natural Gas for Vehicles, which has ben accepted worldwide, is easily converted for ay vehicle, and is already at the dorr o at least 75%of all American homes???? Most major cities, around the world, already run there vehicles, and mass transit, on Natural Gas.

Further, I hpoe you would also ask the question: why after all is said and done, blame the few thousand people regarding late payments on mortgages, for a problem in the economy, since there is nothing unusual about bad times affecting homeowners. We all have known for a long time that we were way beyond or means, HOWEVER, we were all encouraged to invest in funds, 401 k's and a plethera of other investment vehicles , in the name of savings, including pension plans and exit payments for the auto industry, and every other industry in the country. If you look, I think America is the best country in the world in terms of personal savings, only to find out that these so-called "saving "for investmet forums , were a con on the American Public, by Wall Street, and the other spin doctors, to fund there BMW's

Re: BIG THREE AUTOMAKERS: On the surface, the use of corporate planes by the CEO's of the Big Three Automakers is, indeed and at the very least, a public relations error of epic proportions. That may well be the whole story. However, the surge of opinion about this issue smacks of lynch mob mentality and raises the specter of Madame Defarge at the foot of the guillotine. There are a few questions which might alter these perceptions and that I have not heard asked or answered. For example: How many people were actually transported on each plane? Was their presence necessary? Would schedules have required their overnight stay in Washington? Would the costs of commercial transport, meals and hotel stays have overtopped the costs of flying the corporate aircraft? It seems that some of these answers might either support the visceral responses or indicate responsible actions on the part of the auto companies. So far as I know, we do not have these answers, and drawing conclusions based on inadequate information is always dangerous and frequently wrong, although it is clear that there are huge problems inherent in the companies. More depth in reporting and thinking would undoubtedly increase public trust in news media.

One more, then I'm done>>>> If the executives of the major Corporations, especially in the auto industry, but maybe all others, accept the fact than any exorbitant compensation paid to them, will no further be in cash, but in stock in their own company, and only their own company. It would certainly give them an interest in making the company better, instead of the presumption that the public has, that these guys get cash for nothing. I the corporate Heads had to account for their stock price, ther would be a reasonable measure of success or failure of some very, very very, large Compaiies in the US. As we know, Wall Street, and all of the analysists, and those who project the performance of individual companies, have been bought off with cash, and now we see the result of these so-called "professional evaluations "of the company performance or the projected world dollar amout of the destiny of any stock or company, or country.