Clicking on banner ads enables JWR to constantly improve
Jewish World Review Oct. 17, 2000 / 18 Tishrei, 5761

Bruce Williams

Bruce Williams
JWR's Pundits
World Editorial
Cartoon Showcase

Mallard Fillmore

Michael Barone
Mona Charen
Linda Chavez
Ann Coulter
Greg Crosby
Larry Elder
Don Feder
Suzanne Fields
Paul Greenberg
Bob Greene
Betsy Hart
Nat Hentoff
David Horowitz
Arianna Huffington
Marianne Jennings
Michael Kelly
Mort Kondracke
Ch. Krauthammer
Lawrence Kudlow
Dr. Laura
John Leo
David Limbaugh
Michelle Malkin
Jackie Mason
Chris Matthews
Michael Medved
MUGGER
Kathleen Parker
Wes Pruden
Debbie Schlussel
Sam Schulman
Roger Simon
Tony Snow
Thomas Sowell
Cal Thomas
Jonathan S. Tobin
Ben Wattenberg
George Will
Bruce Williams
Walter Williams
Mort Zuckerman

Consumer Reports


Young investors should start a Roth IRA


http://www.jewishworldreview.com -- DEAR BRUCE: My wife and I are in our mid-20s, and we have paid off a $13,000 debt in the past three months. We have no payments outside of our rent and utilities. We earn about $70,000 a year together. We want to purchase a home and start investing. What do you suggest? -- T.C., via e-mail

DEAR T.C.: For guys that are your age, the first thing that I would do would be to take $4,000 of after-tax money and put it into a Roth IRA. Within the Roth, have this money invested in a very aggressive mutual fund or something similar. I can't overemphasize the value of this. If you do this for six or seven years, for all intents and purposes, your retirement is assured.

One thing that you didn't mention was if you were participating in any retirement plan at work. If it's available, use it to the utmost. Should it not be available, you can invest your money like any other investor outside a tax shelter. That means picking some reasonably aggressive areas and buying and holding. The last thing that I think you should be doing is trading.

As for the home, you haven't mentioned children or how long you have been married. Recognizing that a home is an investment and lifestyle, I would not rush into buying one. Buying a home is not an investment to make money. In today's world, while your property values may increase, it is nothing like it was a couple of decades ago, so walk softly. Remember real estate can and does go down.

DEAR BRUCE: We live in a deed-restricted community -- that is, there are a lot of things that you are not allowed to do and you agree to these things when you purchase your home. At the closing, you sign a paper with the restrictions. Among other things, you can't put up a fence all the way around your house, only around the back yard. You get the idea.

One of our neighbors just spits in the eye of the restrictions and the deed restriction committee. He has not one, but two unlicensed cars parked on the side of his house, a beat-up looking boat that he claims he is going to restore, and now he is putting up a fence around the front yard because he says that some of the neighbors' kids cut across the grass.

When he receives violation notices from the committee, he simply throws them away. He owns the property, and he will do what he wants. Unfortunately, we have a number of people in the community who are reluctant to take any stronger action. I simply cannot put up with this. It certainly takes away from the value of my property, not to mention the pleasant living environment that we've spent a great deal of money to enjoy. What can we do? -- L.T., via e-mail

DEAR L.T.: In your circumstance you have a couple of options, and perhaps you would want to exercise both. The first would be to get together with your neighbors and take over the board of directors of your association. You cannot have mamby-pamby people running the board. The reason for the deed restrictions is to give some uniformity to your community. Unless they are enforced, they have no value.

Secondly, in most circumstances a property owner in your situation, without the support or approbation of anybody else, can take the miscreant to court, and I suggest that maybe a couple of you might want to take that route as well. He is in violation, and I have to believe that the courts would find in your favor. You would think that people like this would buy somewhere where there are not restrictions and not force themselves upon those people who prefer to keep a community looking more orderly.



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

10/13/00: Maybe your prices are too low
10/12/00: Dealing with underground home oil tanks
10/11/00: Go with simple interest!
10/05/00: When property is worth more than the home
10/04/00: Put part of windfall in a Roth
10/03/00: Not paying taxes on interest from house sale
09/28/00: Protection by Medicaid and Medicare
09/27/00: Refinancing home without alerting crooks
09/26/00: Base investments on trust
09/25/00: Do we really need a will?
09/21/00: She took off with the car
09/20/00: Diversify your financial advisers?
09/18/00: How to inherit a house
09/15/00: The tax scoop on student loans
09/14/00: House buying only for the young?
09/13/00: No reason to give credit
09/11/00: Must I pay for my gifted child's college tuition?
09/08/00: We got bitten on purchase of dog
09/06/00: Pools can soak you
08/28/00: When the insurance company has an 'out'
08/25/00: When to buy a home
08/24/00: More 'interest' to live on
08/22/00: Paying for private school
08/18/00: Don't make huge down payments
08/16/00: IRAs for people with pensions
08/15/00: She doesn't deserve a break
08/11/00: Her shopping will ruin us
Yes, a contract means something
08/10/00: Her shopping will ruin us
08/09/00: A $1,500 car ... for $3,000
08/04/00: Time to take on the airlines
08/02/00: How can I retire at 62?
08/01/00: Cash in your savings bonds
07/28/00: Hold onto a mortgage under 7 percent
07/26/00: I want my partner to buy me out
07/25/00: Negotiate with your neighbor
07/21/00: How can I finally start saving soundly?
07/20/00: Where's my prize?
07/18/00: Getting out of an upside-down loan
07/13/00: Death is no escape
07/12/00: Multiplying dollars
07/10/00: Making sense of retirement investing
07/07/00: 'Bankruptcy does follow us around'
07/06/00: In which state should I file my income tax?
07/03/00: When to diversify assets
06/30/00: I'm buying my dad's house
06/29/00: How social security seniors should invest
06/27/00: Waiting before re-establishing credit
06/21/00: Insuring an older car
06/19/00: Take the money and run!
06/16/00: Utility company incursion
06/15/00: Insurance settlement is no bargain
06/13/00: A straightforward form of bankruptcy
06/08/00: In the computer's clutches
06/07/00: The trouble with tenants
06/05/00: Do I really need title insurance?
06/01/00: The truth about nursing home insurance
05/30/00: Keep mother-daughter loan simple
05/25/00: CDs for security, not investment
05/24/00: Battling with collection agency
05/22/00: Are callable CDs a waste of time?
05/18/00: Building a college fund
05/16/00: Even death brings no relief
05/15/00: House is 'worth' what's offered
05/12/00: Borrow from Mom and Dad?
05/11/00: Your heirs, your choice
05/09/00: Mutual-fund investigations
05/05/00: Credit cards vs. debit cards
05/04/00: Lawyer are good for something
05/03/00: The binding nature of contracts
05/02/00: You know you are in trouble when ...
05/01/00: Can primary residence be rented out?
04/28/00: A full refund after five years?
04/25/00: Get a homeowner's title policy!
04/24/00: Beware of errors in your favor
04/18/00: $10,000 limit on gifts
04/17/00: Invest or repay student loans?
04/13/00: Beware of Internet auctions
04/11/00: Six percent is a pittance
04/10/00: Married couples should share windfall
04/07/00: How not to blow an inheritance
04/06/00: Get genetic screening for Tay-Sachs
04/05/00: Beating the look-back period
04/04/00: Providing for retirement
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...

©1999, NEA