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Jewish World Review April 4, 2000 / 28 Adar II, 5760

Bruce Williams

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Providing for retirement


http://www.jewishworldreview.com -- DEAR BRUCE: I have a daughter who is 48, and we would like to invest $10,000 toward her retirement. What can you suggest? -- A READER IN TEXAS

DEAR READER: Without having specific knowledge of what your daughter has and does not have, it's difficult to make any value judgment. If she doesn't have a Roth IRA, you could certainly encourage her to make a $2,000 contribution for the next five years. While she is along in life, as far as decent growth is concerned, the tax-free advantage of the Roth IRA cannot be underestimated.

Beyond that, you can purchase whichever vehicle you are comfortable with. It may be a mutual fund, one that is quite aggressive, or any other investment vehicle that achieves your goal with a certain degree of comfort.

You can give her the $10,000 you mentioned with no tax impact under the provisions of the tax laws.

DEAR BRUCE: How many mutual funds should I own? I currently have 12. Is this too many? -- P.K., Iowa

DEAR P.K.: There is no answer to the question as you have posed it. It may well be that you have a blend of mutual funds giving you some aggressiveness, some income, etc. If you are comfortable with the results, the number of funds is really immaterial.

I think what would be called for here is an analysis of each individual fund, how it is doing, and how has it has contributed towards the whole.

If it takes 12 funds, 24 funds, or just two, as long as you reach your investment goals, you are doing just fine.

DEAR BRUCE: I an a senior citizen with only $10,000 remaining on the mortgage on my home, which is valued at $240,000. Between my income from investments and a small pension, I live comfortably, but there is nothing left for extras.

Would you recommend a reverse mortgage so I can buy a new automobile, or would you advise selling some of my stock to accomplish that purpose? -- J.W., Roseville, Calif.

DEAR J.W.: It sounds to me like you are a made to order candidate for a reverse mortgage. Unless you are determined to leave as much as possible to your heirs, why dip into your savings when you are sitting on over $200,000 of equity in your home?

You will receive a check every month, and upon your demise the house would be sold to satisfy your debt. Check with a local banker.



Send your questions to JWR contributor Bruce Williams by clicking here. (Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies cannot be provided.) Interested in buying or selling a house? Let Bruce Williams' "House Smart" be your guide. (Sales of the book help fund JWR).

Up

04/03/00: Readers disagree on time shares
03/30/00: The road back to good credit
03/29/00: Pre-tax dollars in IRA taxed later
03/27/00: Gambling on business ventures
03/22/00: Old cars as hobby, not investment
03/20/00: Tax on foreign gifts?
03/16/00: How to buy government bonds
03/13/00: Buying treasury instruments
03/09/00: Subcontractors must pay S.S.
03/08/00: Real-estate lawyers are essential
03/07/00: Don't expect compensation for ideas
03/06/00: Too rich for a Roth IRA?
03/01/00: Is time-sharing a scam?
02/29/00: Paying for nursing-home care
02/28/00: Rely on a real-estate lawyer
02/23/00: Keeping child's money safe from divorce
02/16/00: Just how important is a 401(k)?
02/14/00: Shaky partnership buying house
02/11/00: Protection by residential zoning
02/09/00: Benefiting from a reverse mortgage
02/07/00: Ensure your insurability
02/04/00: Absurd community zoning laws
02/02/00: Money or securities?
02/01/00: Can we KO a custodian?
01/31/00: Why sell a home you love?
01/26/00: Everyone needs a will
01/25/00: Will splitting stocks affect rollover?
01/24/00: Should early retirees contribute to SEP?
01/21/00: Strategies for paying off debt
01/20/00: Is 15-percent growth achievable?
01/19/00: Selling a second home
01/18/00: Running from a time-share
01/14/00: Don't be a spendthrift!
01/13/00: Who gets the house?
01/11/00: It all depends on size of estate
01/06/00: Check references before hiring an advisor
01/04/00: Savings bonds a bad investment
12/31/99: Out of state ain't that great
12/29/99: Warranty rip-offs
12/27/99: Checking up on investment handlers
12/23/99: Options good only when company's strong
12/20/99: Capital gains tax sometimes best
12/17/99: Don't give up your nest egg
12/15/99: Small-claims court no panacea
12/13/99: Termite company not liable for termites?
12/10/99: Services provided must be paid for
12/06/99: How do we minimize house-sale gain?
12/06/99: Maximize your tax shelter!
12/02/99: My neighbor won't maintain even a modicum of civility
12/01/99: Long-distance rentals a bad idea
11/29/99: Mortgage strategy A-OK
11/18/99: Students can work and learn
11/16/99: Value is what will sell
11/11/99: Y2K: No big deal for real estate
11/08/99: Real life is tough luck
11/03/99: The right time to cash a savings bond
11/01/99: Slow road for savings accounts
10/29/99: What do you want from insurance?
10/27/99: You have a right to see your tax forms!
10/25/99: Why own a house at 65?
10/22/99: Online fine, but CDs?
10/20/99: Love, honor -- and separate credit
10/18/99: Find the value of your stocks
10/15/99: Property lien prevents trade
10/13/99: Clear up debt, only then tie the knot
10/11/99: If it ain't broke...
10/04/99: Should I stick with the company IRA?
10/04/99: Get a financial education!
10/01/99: Insurance: Not much one person can do
09/30/99: Lost tickets are lost cash
09/29/99: Trusting only one financial planner
09/27/99: Adult children should help out
09/24/99: Tips for first-time home buyers
09/21/99: Use the rule of 72s!
09/17/99: Legal strategy can be a pain
09/15/99: Teen drivers drive up insurance
09/13/99: Always use an attorney!
09/10/99: Whose taxes are they, anyway?
09/08/99: How do I roll over my 401(k)?
09/03/99: How can I work out my IRS payments?
09/01/99: When your company can't pay you
08/30/99: Beware of shady viatical investments
08/26/99: Landlords vary on security deposits
08/25/99: Educational IRAs must be spent on education
08/23/99: Finding out the value of old stocks
08/20/99: How to get an FHA refund
08/19/99: 100 percent financing is a scam
08/16/99: Will I have to pay a capital gains tax?
08/16/99: Thinking about PMI
08/13/99: Short-term mutual funds a-OK
08/11/99: It's your job to shop around
08/10/99: Sometimes, roots need to be uprooted
08/09/99: 'Pre-approved' doesn't mean a thing
08/06/99: Only you can determine your investments
08/04/99: Bank IRA the lowest-risk option
08/03/99: Reverse mortgages good for the elderly
08/02/99: Get the survey BEFORE you buy the house!
07/28/99: Get a lawyer -- it's worth it!
07/27/99: If it ain't broke...

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