Using Retirement Funds To Pay for House Is Risky
Washington — The housing market is expected to be busier than usual this winter as some home buyers rush to act before the Federal Reserve raises interest rates. Some consumers who haven’t yet been able to save the money for a downpayment may be tempted to raid their retirement accounts for the cash. For people with decent retirement savings, that can be a way to diversify investments. But people considering the move should consider...
Money Talk: Options for Changes to 401(k) Account
Question: I’m leaving my job later this month and am trying to decide what to do with my 401(k) account. Some of my friends say to leave it where it is, and others say to roll it into a traditional individual retirement account or Roth IRA. Which is best? Answer: You can’t roll a 401(k) directly into a Roth IRA. You would first need to roll it into a traditional IRA, then convert that to a Roth and pay the (often considerable) tax...
Money Talk: Why Credit Score Keeps Changing
Question: My Discover card started including a complimentary credit score with my statement. My first report was 840. Each month since has been lower. Two months ago it was 812 and the last one was 800. I have not applied for any new loans, cards or other credit. My limit on this card is $4,000, and I never charge more than $500 each month, which is paid in full. Why does my number keep dropping when I’m doing nothing different?...
Money Talk: Advice for Supporting Challenged Son
Question: My son, who is almost 50, is mentally and emotionally challenged. He has been unemployed and homeless for years. Although not a criminal, he’s been in jail a few times because of his explosive, combative nature. There seems to be no help for him in the state where he lives. I do send a few dollars for his basic needs when I can, but must be careful with my budget. Do you have any tips that might be helpful in this situation?...
